Faceless Activation

Over-the-air (OTA) activation is not a new concept, but complete automated activation still is not a reality. Moving from in-depth, prolonged, in-store credit checks and phone programming to a faceless, voiceless, nearly instantaneous process is wonderful in theory, but today's OTA activation methods still require some assistance from CSRs.

The technology to offer total OTA activation is here, from the hardware modifications to the necessary software. Moreover, consumers continually are becoming more comfortable with conducting business over the Internet. So why is demand still down?

Carriers already have taken steps toward full OTA activation. Many PCS carriers provide activation via the handset. These methods, however, still require assistance from call-center CSRs, who must push the appropriate keys to bring new subscribers on-line.

BellSouth Mobility DCS has offered this function since its launch in July 1996. Customers can buy a phone from any retail location, open the box, punch in the customer-service number on the handset and relay the appropriate credit information. Then, once BellSouth verifies the credit information and approves the account, the phone number and other necessary information is sent OTA to the SIM card with the push of a button.

David Neveleff, BellSouth Mobility DCS director of customer operations, said the feature has enabled the company to offer a true cash-and-carry service. He said GSM allows such an operation to take place because all of the phone's information is embedded in a SIM card.

PrimeCo also has offered such a service on its CDMA network for the past two years. Customers dial *288 from a recently purchased phone, and a similar scenario unfolds. Catarina Wylie, PrimeCo director of corporate communications, said the system has proved to be effective.

"It shaves off 10 minutes with the call, and it is incredibly valuable with indirect retailers," she said.

But what about complete activation without one touch of assistance from another human being? With the aid of WAP protocol and Web browsers, that is exactly what the next generation of OTA features will enable.

WHERE IS OTA? The technology to provide automated activation is ready. In fact, Lightbridge had a prototype of the service running at PCS '98. At the time, it was thought Web-browser-enabledphones would be available to consumers by the end of 1998, so offering OTA was not far off, said Judith Dumont, Lightbridge vice president of product management.

"It's a year behind prediction, but that's not uncommon in this industry," Dumont said.

Web-ready phones now are available from carriers. For example, Sprint PCS offers Internet access via the NeoPoint 1000 handset.

That's where most carriers will begin their OTA activities.

"Self-service activation is where we would start, because we are ready," Dumont said.

Ben Linder, Phone.com vice president of marketing, however, said information retrieval is where it's at today for carriers.

A driving force for many carriers, specifically those using CDMA technology, is enabling OTA provisioning more for behind-the-scenes work such as managing roaming lists than for self-service customer-care activities.

An announcement in July by Bell Atlantic Mobile (BAM), Motorola and Phone.com is one example. Linder said BAM's motivation behind pursuing OTA capabilities is so it can remotely alter roaming lists, ensuring customers who roam get connected through the carrier's appropriate roaming partner. Changes on roaming lists occur frequently, and customers must call in to get such information downloaded to their phones. Once OTA capabilities are available, all that work can be done behind the scenes, as long as the phone is on.

"Roaming lists are one of our top items," said Lee Magnus, BAM director of wireless data. "We can keep the information on our network and, when ready, download it to customers."

Magnus said BAM got involved in the joint partnership, which will undergo internal technical trials in 1Q00, because it sees the Internet as the driving force toward information delivery.

"We want to make it easier for customers," he said.

Magnus said BAM still will allow customers to talk directly with CSRs; the activity gives customers choices.

On the handset side, Wolf Pavlok, Motorola senior vice president and general manager, personal networks group, said Web-enabling requires adding software and increasing processing power and volatile memory.

"It's not a major modification," he said, "but I don't want to trivialize it."

GENERATING EXCITEMENT Since OTA technology is ready, it is up to carriers to generate excitement within their own companies and with customers.

Dumont said Lightbridge held a client conference where it presented the OTA activation process. Carrier representatives from various departments, including sales and marketing, acquisition, and fraud, attended. Not surprisingly, fraud folks were not as enthusiastic about voiceless communications as other department personnel were, she said.

"However, now in Internet time, faceless activation isn't new to the market," she said.

It is important to work with all constituents to assure them that OTA is as safe as any other form of activation.

"Now it's a matter of people wrapping their arms around (the technology)," she said.

As for customers, OTA will grow due to the Internet's popularity and people doing all types of communications, including purchasing, via the technology.

"Most folks in the last year have shopped Web stores," she said. "Adoption wasn't as rapid (as expected), but now consumers are wrapping their arms around how to use the Web."

Beyond the BAM partnership, numerous other carriers have announced plans to provide OTA activation. AirTouch will begin offering the service in Sacramento, CA, and will target eastern U.S. markets in 1Q00. Sprint PCS said the service is "coming soon" but did not give specific details, and PrimeCo said it is looking into the possibility of offering the service.

ACTIVATION: NO KILLER APP Many companies looking at OTA activation say the feature alone is not why OTA capabilities are so exciting, and it is not the first area they are looking into.

Phone.com's Linder said capabilities such as roaming-list management are on the front end of OTA capabilities, and self-service activation and other customer-care features are on the back end.

"Activation is the end of the road (for OTA)," he said.

Beyond managing roaming lists, other network operations will become much more efficient under OTA systems, including dealing with split area codes and assigning new area codes to phones without customers having to do anything but leave handsets on. Other network-initiated information downloads will aid in updating the systems as well, but those aren't the end-all reasons either. Customers will be able to do more to customize their own service.

"Activation will not necessarily be the biggie; other services will be," said Tom Murphy, Sprint PCS director of media relations. "But you have to offer (activation) too."

BAM's Magnus said a variety of possibilities are out there when it comes to OTA. The hard part is determining which features customers really want. He cited a variety of ring tones and icons for the phone's screen, which OTA provisioning can provide, as features customers may want.

"The possibilities are endless," he said. "We are talking to a lot of folks about what customers will be interested in. (We are looking at) what's simple to do. If it's too complex, it's not going to work."

In the customer-care universe, activation is only the first step. Beyond that, carriers' offerings can include enabling customers to check their account balances, add a new feature or switch rate plans -- all from a menu on the handset.

Another key area, according to Lightbridge's Dumont, is retention. Lightbridge is working on retention applications using OTA technology that allow carriers to keep in touch with customers via the wireless network and increase the carrier's value with customers.

BAM's Magnus said carriers always must keep customers in mind while developing OTA capabilities.

"The key to retention is simplicity and making customers happy. If they have to struggle, they may make another choice next time," he said.

Controlling churn is a part of wireless business. Although carriers can work on retention plans so customers do not switch to competitors, sometimes it is impossible to keep customers, such as when they move out of their coverage area. Harry Brix, Brix Group chairman, said 25% of churn is due to moving or changing jobs.

But that doesn't mean those customers have to be a total loss.

American Wireless, a Brix Group subsidiary, provides activation services for hundreds of wireless agents with its network of 44 carriers in 26 U.S. markets. It helps carriers make commissions off of moving customers. By hooking these customers up with carriers that serve the areas to which the customers are moving, carriers can earn the commissions that agents would have once the customers set up service in their new neighborhoods.

To make managing activations easier for all involved, American Wireless has developed a program to consolidate hundreds of different distribution points and bring them together to create a single account for a carrier. It simplifies the process for the national or regional carrier, putting a number of formerly small-size outlets into one large account, making its process more efficient.

For smaller agents, benefits range from regular, weekly compensation to assistance in advertising, training, fulfillment and other back-office activities.

"Typically the agent is out of pocket quite awhile," said Jim Dunham, American Wireless senior vice president & general manager. Most carriers pay their agents commissions at the end of the following month, whereas American Wireless pays commissions weekly.

Dunham said the company's program has worked especially well for non-traditional wireless agents such as businesses that offer business-to-business services (mailing services, copier sales, long-distance service or small PBX system sales).