Service providers stay hands-off on hands-free

Beginning today, drivers in the state of California and Washington cannot talk on their cell phones while driving unless they use a hands-free device, and drivers under age 18 can’t use either. The law was signed back in September 2006, giving drivers almost two years of warnings in the state of California. While the impending change brought several retailers a boon to their sale of hands-free accessories, service providers thus far have remained quiet on the issue.

“I think service providers are missing the boat,” said Paul Murdock, head of Bluetooth maker Iqua’s US operations. “They understand they need to provide this for their consumers, but what I have not seen so far is an understanding of the risk that consumers will be talking less on the phone – just setting their phone down in the car as opposed to talking -- because they don’t want to get a ticket.”

The Bluetooth market is one obvious benefactor to the new laws. According to Murdock, almost half of all Bluetooth headsets are sold in the Northeast, where the only three states that had statewide hands-free laws prior to today are situated. These include New York, instituted in 2001, New Jersey and Connecticut, as well as Washington D.C. and the Virgin Islands. When you combine these states’ populations, about 30 million in total, it comes to just over half of those living in California and Washington state.

Some carriers in these regions have been sending their customers SMS notifications on the upcoming change, but outside of that, there has been little broad-based education leading up to the new laws. It may be the case that they are more focused on other areas of mobility or that they are waiting for a nationwide initiative on hands-free regulation.

“There’s no effort on the part of operators to educate consumers about the risk of tickets,” Murdock said. “Cellular operators are typically very national in their thinking, so that will change as the laws go more nationwide…Operators need to push this message about, ‘Get a Bluetooth headset, and we’ll sell it to you and keep them talking in the car.’ It adds greater utility to the device and spurs a good conversation. Operators have not really capitalized on this legislative phenomenon.”

Murdock expects widespread adoption of Bluetooth won’t come about until the fall. An early proactive group of adopters will purchase a wired or wireless headset, but it may take a few months before word of mouth starts kicking in, he said. This will happen once people start getting ticketed for driving on the phone – a fine of $20 for a first offense and $50 for subsequent offenses.

“The real key here is that a lot of these consumers haven’t had a compelling reason to buy a Bluetooth headset yet,” Murdock said. “They think, ‘I’m not one of those guys in a suit and tie walking around talking to themselves.’ [Hands-free laws] turn Bluetooth from being a business man’s tool into something that everyone needs.”

Iqua, which focuses on solar-powered Bluetooth, makes both wired and wireless Bluetooth headsets and is launching the VizorSun – like a speakerphone for the car that attaches to the visor and recharges itself under the car’s windshield – in July. Iqua is also increasing its marketing efforts and hoping the new laws will ultimately help sales, especially in California, a state known for being environmentally conscious and sunny.