On-Line

GSM CARRIERS LOOK FOR STRENGTH IN NUMBERSIf GSM carriers are worried about the coverage and 1-rate plans of AT&T, Nextel and Sprint, they aren't saying. But a couple of recent announcements show they're not taking any chances, either.

The new GSM Alliance-UWCC partnership, which aims for interoperability between AMPS, GSM and TDMA, will help all three camps cobble together seamless global coverage and migrate to 3G. But perhaps the biggest benefit is economy of scale.

"GSM carriers will have a more favorable wholesale cost structure for roaming airtime, therefore improving gross margins and adding value to the bottom line," said Jim Murrell, Powertel vice president of business development. "GSM carriers will benefit from 2-way, reciprocal roaming rather than 1-way only. GSM customers will enjoy lower retail prices relative to other technologies because of the combined world volume of phones and accessories built to the new standard. The agreement obviates the need to cover so-called 'GSM holes': Chicago, Dallas and New Orleans."

Others, such as Omnipoint president George Schmitt, see license re-auctions as a better way to plug those holes. But with those benefits a year or more away, both Omnipoint and Powertel are looking at new rate plans as a way to fend off competition.

Omnipoint's first flat-rate plans debuted March 1. Under one Omnirate Network plan, subscribers pay 59 dollars and 99 cents for 300 local and long-distance minutes from within Omnipoint's network. Signing a 1-year contract increases those minutes to 500. Omnirate North America plans start at 99 dollars and 99 cents for 700 minutes to and from anywhere in the United States and Canada.

The next day, Powertel unveiled its Group Billing plan, where a business or other organization pays a monthly 10 dollar per-user fee. For calls made within the 12-state Powertel network, airtime is billed at a flat rate of 10 cents per minute and includes long distance. Outside, it's 50 cents per minute. Two restrictions: A 5-line minimum, and total monthly charges for the group must average at least 40 dollars per line.

Both carriers' plans should help attract business users, a lucrative segment already heavily courted by AT&T, Nextel and Sprint. Ironically, for a camp that's long touted itself as a global standard, GSM's best bet could be those who stick close to home.

"Most consumers use their phones when traveling within a 200-mile radius of their homes," said Kevin Inda, Powertel vice president of public relations and investor relations.