Menace to Society?

Wireless phones are great safety tools, right? They save lives in emergencies and offer a sense of security to travelers. For the wireless industry, however, the word safety has become a double-edged sword. Consider these headlines: "Dropped Cell Phone Leads to Fatal Crash," "Fatal Crash Puts Focus on Dangers of Cell Phones," "Road Hazards Include Phones, Officials Say," "Reach Out and Crash Into Someone," "Car Phones as Big a Menace as Drunken Driving."

Not exactly the "safety" image the wireless industry wants to be touting.

Every day there are new stories and studies correlating wireless phones and traffic accidents. According to The New England Journal of Medicine, the risk of a collision when using a cellular phone is four times higher than when the phone is not in use, making it as dangerous as driving while drunk. And considering that of the 57 million wireless users, 85% use their phones at least occasionally while driving, these statistics are catching some attention. It was only a matter of time before consumers and politicians got involved to look for solutions, namely legislation requiring hands-free kits in vehicles. According to Pat Kennedy, chairman & CEO for CellPort Labs, there are already at least nine countries (Australia, Brazil, England, Italy, Israel, Malaysia, Singapore, South Africa and Switzerland) that have laws related to hands-free kits.

Is the United States next? Although no one knows for sure, one thing is clear: There are mixed feelings about the necessity of these mandates.

"I think it's a good idea," said Steve Wright, Superior Communications Products customer relations coordinator. "There are more and more studies about accidents with people using cellular phones that aren't on hands-free kits."

But, he added, "the whole industry will fight it," because there are products such as plug-ins and eliminators that will lose business if you mandate hands-free kits. According to Wright, the standard plug-in would basically be wiped out of business, and it's probably the biggest-selling item on the market.

The Cellular Telecommunications Industry Association (CTIA) is against legislation, but cites another reason. According to Jeffrey Nelson, director for communications at CTIA, there simply isn't enough data yet available to pinpoint hands-free kits as the right solution.

A recent report from the National Highway Traffic Safety Administration (NHTSA) supported CTIA's reasoning. It stated that "at this time there are insufficient data to indicate the magnitude of any safety-related problem associated with cellular phone use while driving. This is a consequence of inadequate reporting, and thus it cannot be determined whether a problem requiring action exists."

"We need to be really careful about mandating a solution until we really understand exactly what the problem is," Nelson said. "I have not seen any evidence that says hands-free is the answer. Or even that hands-free makes a definite improvement."

In fact, some studies report that the actual conversation contributes to accidents, not necessarily holding the phone or dialing, which means hands-free kits wouldn't necessarily solve the problem. According to The New England Journal of Medicine, statistics show that it doesn't make a difference whether the cellular phone is hand-held or installed in the automobile.

Even with both hands free, drivers had an increased number of accidents. The NHTSA also reported that conversation rather than dialing is the most frequently related factor to traffic accidents.

"Most of the studies you see don't make the correlation between dialing, but with talking even with hands-free, you're still talking in the car," said Melissa May, AirTouch Cellular Southern California region spokesperson. "Studies show that it's the same level of distraction as dialing your radio. So, do we take radios out of cars? They also make the same correlation with talking to a passenger; it's distracting to have a passenger in the car because you're talking to them. ... I don't think legislators want to outlaw having passengers in the car."

But CellPort's Kennedy points out that the problems go beyond conversation. There are some instances where appropriate hands-free kits can help. According to Kennedy, some accidents occur because people are holding onto a phone instead of the steering wheel. Hands-free kits hold the phone in place, so drivers aren't reaching for the phone when they should be concentrating on the road.

"We're hearing more and more about cellular phones flying off (the seat) and not being tethered down or secured," Kennedy said.

Regardless of the industry's approval or disapproval, several states already have taken steps to introduce legislation to ban cellular phone use while driving. Last year, for example, Sen. Leonard P. Stavisky introduced a bill that would prohibit drivers from talking on cellular phones while driving in New York State. Other states such as California, Illinois, Minnesota and New Jersey have introduced similar legislation.

"It is being proposed in several states right now," said Rob Finerty, Andrew Wireless Products product manager. "There's a lot of public awareness, and that spurs legislation. All you need is a couple high-profile accidents with cellular phones, and all of a sudden there will be legislation."

According to May, such mandates are bad news for the industry.

"There are many people that only use their phones in case of an emergency. If you're requiring them to have a hands-free kit and there's some penalty associated with that, then you may end up inhibiting the value of a cellular phone," she said. "There are so many good things that cellular does, to introduce something that inhibits the value of wireless would be a shame."

LUXURY PRODUCT OR SAFETY DEVICE? Although some carriers and vendors don't want hands-free kits legislated, most still heavily tout them as a safety device.

"We're really selling safety," Finerty said. "It's total convenience; there's no question about it. But when you bring safety into it, you have a whole new dimension of marketability."

According to CTIA's Nelson, people do buy hands-free kits with safety in mind, and it's up to the industry, not the government, to provide those solutions to consumers.

"It is important that the wireless industry give consumers as many options as possible for making their own choices about personal safety," he said.

It would seem that all of the recent attention on safe driving would pique more consumer interest in these products. But according to vendors and carriers, hands-free kits still are primarily a high-end user, luxury product.

"They (high-end users) always have been attracted to them," AirTouch's May said. "They are primarily popular for the business user or high-volume user. ... For the safety and security users, low-volume users, they are just not that attractive."

One of the main reasons is high pricing. High-end hands-free kits can run anywhere from $75 to $400. Andconsumers who still receive phones for free or even $50 aren't likely to pay $300 or $400 for a hands-free kit.

"It's out of the question," Finerty said. "People won't even think about it."

This is a trend carriers would like to change.

"Cost is always a variable," May said. "This is not something that we want to keep as a luxury product.

We've been trying for years to get the prices of hands-free down with different options. We are constantly looking for ways to cut the costs of car kits so they are more accessible to the public. It's definitely something we're trying to do with the equipment manufacturers."

For example, May suggested, car kits usually are 3W boosters and a phone is six tenths of a watt. When you pop the phone into the car kit, it jumps to 3W. Why not take out the technology that bumps the power and just have a simple lower-cost car kit?

According to Wright, lowering prices isn't that easy. Prices will stay high simply because of the high cost of the different components involved in the kits.

There are lower-priced solutions available, but according to Wright, buying a cheaper product isn't always worth the investment. The quality of the product and service behind it are critical factors, he said. In other words, you get what you pay for.

Regardless of costs, quality always is an issue. And next year, many hands-free vendors may be making product adjustments for that reason. Currently, the Telecommunications Industry Association is reviewing architecture to help define a specification for vehicular-to-portable phone interface. According to CellPort's Kennedy, a ballot is expected this spring. Depending on how it is enforced, hands-free-kit manufacturers will have to evaluate their product lines for possible product adjustments.

Even if specifications improve kit quality, there are still limitations associated with installation. A lot of the cost associated with hands-free kits is having someone professionally install them, which takes time and money for the carrier and customer. According to Finerty, companies such as Andrew are making efforts to tweak products for easier installation, which will cut costs in half.

Some car companies also are making hands-free installation easier and cheaper for customers by installing kits at factories and dealerships, according to Brian Stern, director of business development for CellPort. Stern also noted that the secondary market for installers is once again emerging to focus on hands-free kit installation.

"We know of a couple of companies that are in the process of setting up businesses where they go out and work nationwide on offering those capabilities," he said.

CONVINCING CUSTOMERS Meanwhile, as the industry addresses these issues, carriers must convince low-end consumers to invest in hands-free products. After all, they represent a significant source of future revenue stream. But since industry representatives don't want the government to require customers to purchase them, how do you get them to buy the products?

Andrew's Finerty has one solution: Instead of giving away phones, give away hands-free kits. Because holding a phone is uncomfortable when you're driving, hands-free kits allow comfortable communication, which means users talk more. According to Finerty, carriers can give away hands-free kits and double airtime without doubling the work involved.

AirTouch's May agreed that car kits increase usage and said this suggestion is "certainly an interesting prospect," but she's not convinced it is an economical avenue.

"It's actually very expensive for us to buy hands-free kits as it is phones. It takes a lot more phone usage for us to get to a break-even point," she said. "So, I'm not sure that's economical."

But Finerty is ready to prove his case. He has offered to donate 100 kits to carriers to give to their mid-range users. Giving away 100 kits to customers will provide the data to demonstrate that a customer's usage will double, Finerty said.

Whether or not you are ready to give away hands-free kits, Finerty said that wireless carriers should make increased efforts at promoting, marketing and educating consumers on the availability and options of hands-free devices.

"People aren't really 100% educated on hands-free," Superior's Wright agreed.

May admitted that usually carriers don't like to spend much effort on promoting accessories such as hands-free kits.

"They aren't typically something that's promoted because not everyone wants or needs them," she said. "We like to promote things that are very popular."

But, she said, AirTouch is taking steps to improve its hands-free promotion, specifically through its annual safety week. The carrier uses the week not only to educate phone users on safety such as calling 911, but also on how to use the phone and be safer on the road. It offers tips on safe driving, which includes installing a hands-free kit. As part of its promotion, the carrier held an in-store sweepstakes to win a digital phone with a car kit. AirTouch also ran a sale on all of its car kits for the week.

Ameritech also took advantage of National Wireless Safety Week last summer to promote safe driving. It partnered with the AAA of Michigan and the Michigan State Police for a public awareness program that encouraged safe driving and responsible use of wireless phones.

But once-a-year promotions aren't enough. Point-of-sale is a great time to influence customers.

"It's not the focus of what's going on in the retail outlets," Finerty said. "You'll see a lot of information about the handsets, talk time, etc, but not much focus on accessories, except the charging device. There's just not much focus on hands-free."

Carriers are starting to recognize the importance of these selling efforts. According to May, hands-free kits are "everywhere" in AirTouch's stores so customers can see how they actually are mounted in cars. AirTouch also displays a "safety zone," which features brochures and information pieces on how to drive safely.

These efforts from carriers and the entire industry will be the key to increasing awareness of hands-free kits, regardless of whether they ever become legal mandates or not. Because the bottom line is to convince customers and politicians that wireless is not a menace to society, but a valuable safety device.

The National Highway Traffic Safety Administration (NHTSA) report listed several recommendations that will help address safety issues related to wireless phone use:

*Improve data collection and reporting.

*Improve consumer education.

*Initiate a broad range of research to better define and understand the problem.

*Address issues associated with use of wireless phones from vehicles to access emergency services.

*Encourage enforcement of existing state laws to address inattentive driving behavior.

*Work with states on legislative options.

*Use the National Driving Simulator and instrument vehicles to study optimal driver/vehicle interfaces.

*Develop a sound basis for carrying out cost-benefit analysis.

Many phone and accessory manufacturers are introducing new hands-free solutions this year. Here are just a few highlights of the many new products now available:

*Andrew Wireless Products is introducing its line of Voyager hands-free systems. According to Rob Finerty, product manager, Andrew is designing its new products with several key features in mind.

"We're making it as unobtrusive as possible, so it blends in with the dashboard," he said. "We're trying to make them convenient to use and design them so you can keep your antenna connection while in privacy mode. We're also trying to make them installer friendly so the installation time is lower."

For information, visit the web site at www.andrew.com, or call 630-250-9900.

*CellPort Labs is showcasing its CellPort universal hands-free system for portable phones. It provides hands-free and privacy-mode communication, and it allows the vehicle's electrical system to power and charge the phone. An external antenna improves range and clarity. The product supports AMPS, TDMA, CDMA, GSM and iDEN.

For information, visit the web site at www.cellport.com, or call 303-541-0722.

*NEC America is releasing low-end and high-end hands-free solutions. The low-end product plugs into the cigarette-lighter adapter for all NEC's analog phones. NEC also is developing an installed solution, which will be compatible with TDMA, CDMA and some analog phones.

For information, visit the web site at www.nec.com, or call 516-753-7000.

*Noise Cancellation Technologies is entering the hands-free market with its ClearSpeech product, a digital hands-free, full-duplex speakerphone. It features an algorithm that reduces background noise and acoustic echo for improved phone calls. The Clear-Speech Noise Reduction algorithm is designed to remove stationary noise from an input speech signal. It adapts to background noise changes for consistent performance.

For information, visit the web site at www.nct-active.com, or call 203-961-0500.

*Superior Communications Products is introducing adapters for its SpeakEasy hands-free headset, which it released late last year. The SpeakEasy headset is a universal piece that fits over the user's ear and plugs into the headset. But because not all phones have a headset cord outlet, Superior created an adapter that will plug into the phone's data port.

"It gives you hands-free capability at low cost," said Marcelle Greene, Superior marketing manager. "It's really comfortable and offers great sound quality because it's right next to your ear."

The company also is releasing a version of its MobileTalk product that works with digital phones. First introduced in 1995, the kit plugs into the cigarette-lighter port, powers the phone, charges the phone, and includes a built-in speaker and microphone for a portable hands-free solution.

For information, visit the web site at www.superiorcommunications.com, or call 1-800-522-4727.