Wireless Data Still Looking for Momentum in U.S.

From zero to 1.8 million subscribers in the first year of a new wireless service would be OK for one carrier. But that is the total number of wireless-data subscribers in the United States today, according to a recent report from the Yankee Group.

Starting in September 1999 - when Sprint PCS first introduced its Wireless Web - U.S. wireless subscribers have been kicking the tires of data services. But few have gotten past the test-drive stage.

A recent Yankee Group report showed that as of 3Q00, AT&T Wireless claimed 270,000 wireless-data subscribers; Nextel, 200,000; Sprint PCS, 320,000; and Verizon, 300,000. Cingular is just now entering the market.

The carriers agreed, for the most part, with these numbers. AT&T Wireless said users of its PocketNet service now numbered 300,000. Sprint said that in addition to its 320,000 Wireless Web subscribers, 400,000 customers who don't subscribe to the service logged on at least once. Verizon said its figures showed 400,000 Mobile Web subscribers as of 3Q00.

The varying figures may stem from differing definitions of the words subscriber and user. For the purposes of its report, the Yankee Group defined a wireless-data subscriber as someone who used the service at least once per month. Carriers, on the other hand, may have defined subscribers as those who logged on once or twice.

"There's really no compelling reason to use it yet," said Knox Bricken, the analyst who compiled the report.

Barriers to wireless-data uptake include the millions of Americans with access to desktop PC connections, which are far more user-friendly than a wireless phone.

Other reasons for the take-it-or-leave-it consumer attitude include high latency, walled gardens and the lack of a killer app.

"I don't think it's a cost barrier," Bricken said.

That killer app could be improved wireless access to e-mail, music (MP3) integration or any number of add-ons.

Some sluggishness is to be expected with any new service. But compared to Japan and Europe, where wireless-data usage ramped up quickly, the United States still is looking for an ignition spark to start its wireless-Web engine.

With 2001 just around the corner, it's time to start thinking about new year's resolutions. Sure, wireless carriers can resolve to lower prices, offer better customer services or improve voice-service quality, but those are all givens each and every year. Why not take the road less traveled and pledge to make wireless a super hero as well as a super industry?

American carriers need only look to their mates down under to see wildly successful pro-environment programs in action. Sponsored by the Australia Mobile Telecommunications Association, the Australian wireless industry has recycled approximately 30 tons of wireless phones, batteries and accessories since 1999. The program, which initially recycled batteries only, collected more than 100,000 batteries during its first six months of operations. The Mobile Phone Industry Recycling Program is funded by participating manufacturers and carriers including Ericsson, Nokia, Orange, Telstra and Vodafone. The companies chip in about 40 each from the sale of new mobile handsets.

Other programs that help carriers make a difference:

- CollectiveGood refurbishes donated wireless phones for reuse by economically challenged people in the United States and Latin America. For information, contact Seth Heine at 770-856-9021 or visit www.collectivegood.com.

- The CTIA Call to Protect program collects and refurbishes wireless phones to donate to victims of domestic violence. For information, contact Heidi Fincken at 202-785-0081 or visit www.wirelessfoundation.com.

- The Rechargeable Battery Recycling Corporation (RBRC) recycles NiCd batteries from wireless phones and other rechargeable devices. RBRC provides everything needed to set up recycling centers in carriers' retail stores, free of charge. Visit www.rbrc.org.