Wireless waxes international

The Hispanic population is currently the second largest ethnic group in the United States. Therefore, companies would be wise to put some Hispanic marketing muscle behind places like California, Texas and New York, which together represent a larger population than Chile, Paraguay and Uruguay combined-according to The Insight Research Corp. Wireless carriers have not waned in their focus on this sector. In fact, there are some companies that have made it a priority to market to the Hispanic community.

Consider AirTouch. Because it is based in Southern California and because California accounts for 34.2% of the total U.S. Hispanic population (see figure)-according to Miami-based Strategy Research Corp.-the company deemed it important to employ an advertising firm specializing in the Hispanic market two years ago. The firm, Los Angeles-based RLR/Jarrin, has since helped put AirTouch on the Hispanic map.

"The firm gave AirTouch a detailed overview of the marketplace, economics and behavior patterns," said Randy Laub, manager of communications and advertising for AirTouch.

With such knowledge behind it, the company established itself as one of the first wireless operators in the Los Angeles area to make a major commitment to the delivery of service to Hispanics. Because the meaning can be lost in the translation, AirTouch made it a priority not to just take existing material and translate it. Delivery of information can determine whether or not a company gains or loses a customer.

"There is a great need for the delivery of accurate information. This was a challenge we responded to," and conquered, said Ralph Lascher, principal and creative director for RLR/Jarrin. "The marketplace has gotten to a point when it is viewing wireless as a necessity."

Wireless may be fast approaching the realm of necessity. A survey by telecommunications market research company, Insight Research Corp., Parsippany, N.J., predicted that Hispanic wireless users from 1998 to 2003 will accumulate at a 9.6% growth rate. Put another way, while there were 1.17 billion Hispanic wireless users in 1998, there will be 1.87 billion in 2003.

Also, by 2002 the ethnic telecom market will total $50 billion, with Hispanic and Asian markets growing at a faster rate-8% and 8.6% respectively-than the overall ethnic market. Another important statistic is that roughly 50% of Hispanics, even though they might be fluent in English, prefer to be addressed in Spanish, with 77% preserving the language by speaking it in the home.

"When looking at traditional telecom, wireless is the fastest growing segment," among Hispanics, said Robert Rosenberg, president of Insight Research. "From research, we found cost was not the issue [for the Hispanic market]; more important was the notion of customer service."

AirTouch, along with Pacific Bell, parent to Pacific Bell Wireless, offer customer service callers the choice to be helped in English or Spanish. Callers will hear a cue that directs them to either an English-speaking customer service representative or one who speaks Spanish.

Pacific Bell Wireless, which entered the market in 1997, is in the midst of working on its Hispanic marketing plan, said Stephen Krom, vice president of marketing for Pacific Bell in the Los Angeles area.

"We need to sell the way they want to buy the products and offerings," said Krom. "1999 is the year to go after the marketplace."

Currently the company is focusing on building distribution. Pacific Bell has located Hispanic neighborhoods and is putting up PCS stores in those areas. Like AirTouch, Pacific Bell also has employed an advertising/research firm that specializes in the Hispanic market.

"Considering the size and opportunity of this market, we must treat the Hispanic community as a separate market," said Krom. "We must tailor everything to be successful right out of the gate."

Sprint PCS also has begun looking at the Hispanic market. The company is currently in the process of choosing a national agency to focus on the market. "It is a very influential and affluent market," said a company spokesman, who also said the Hispanic market is brand loyal.

There are, however, other players who do not necessarily view the Hispanic market as an immediate priority. "It is on our radar screen but it is not a priority with all the other changes going on," said a spokesman for Aerial Communications. Aerial covers markets in Columbus, Ohio; Minneapolis, Tampa and Orlando, Fla.; Kansas City, Mo.; Pittsburgh and Houston. Texas has the second largest percentage of Hispanics after California.

Gaining respect is crucial if a company wants to retain customers. "The Hispanic population wants to be respected," said Lascher. "The way to do this is to advertise in Spanish, and take part in community events. It is giving back to the community."

AirTouch was the exclusive media sponsor for the World Cup. "The World Cup was really important to us," said Laub. "Being the exclusive media sponsor for Spanish language television, radio and print shows commitment." The company also advertises regularly on Spanish television, newspapers and radio.

Pacific Bell Wireless also contributes to the community. The company held a fundraiser for the Ronald McDonald House in Los Angeles, raising more than $1 million. "We found tremendous response from the Hispanic community," said Krom. "The whole thing was helping out kids and the community; it was something the Hispanic community really latched on to."

When targeting different groups, like Hispanics, companies ought to keep cultural differences as well as the community in mind. "People prefer to receive information that is carefully grafted to represent values in the community," said Rosenberg. "We have to be cognizant of cultural cues."

GSM GAINS GROUND According to the North American GSM Alliance, 3.6 million customers across the U.S. and Canada use GSM wireless digital phone service. North American GSM service providers offer commercial service in about 3500 cities in 45 U.S. states, the District of Columbia and four Canadian provinces.

WESTERN WIRELESS ON A WIRELESS ROLL Cellemetry LLC and Western Wireless signed an agreement to roll out Cellemetry data services throughout the 17-state area covered by Western Wireless. The agreement allows Cellemetry to strengthen its North American footprint, while giving Western Wireless an opportunity to further expand into the wireless realm.

cdmaOne EXPERIENCES A GROWTH SPURT After only four years in the wireless market, cdmaOne has gained almost 30 million subscribers, totaling 28.5 million at the end of March 1999, according to The CDMA Development Group. As of now, the technology is being deployed in over 35 countries around the world, with 27 countries already in c\ommercial service.