The Limos.com Forum Has Moved!!!

From: Quad Cities Online
By Dawn Neuses, Staff writer

Photo: Dan Videtich
Randy Steffan, owner of Accent Limousine, Davenport, soon will be able to change the calling plan on his cell phone -- which he uses for the limo business -- without changing the phone number.


Local contractor John Gilkison never is without his cell phone. If it's not pressed against his ear, it's in his pocket. It's a lifeline to work and home.

In many ways, and for many years, Mr. Gilkison has felt tied to his wireless provider, all because of his phone number.

``That is one reason I have not switched,'' he said. ``And yes, I've thought about it. There is always someone with a new program, or a new rate or new coverage. However, when you have a business and advertise your number, and a lot of people have it, it becomes real hard to switch.''

That's until Nov. 24, when the Federal Communications Commission mandates that wireless companies in the top 100 metro areas begin allowing users to take their cell-phone numbers with them when they change providers.

In the Quad-Cities, wireless providers have until May 24, or within six months of receiving a request, to transfer a number, whichever is later.

There are 146 million wireless users in the U.S. and according to a study by Management Network Group Inc. -- a national consulting firm based in Overland Park, Kan. -- 8.7 million plan to switch the day after wireless-number portability becomes available.

Another 39 million said they would switch as soon as they received a better offer. And some experts in the local wireless industry believe the better offers will come.

``A lot of people stay with one company because of their phone number,'' said Fletch Ford, president of Phonz Unwired, which has several Quad-Cities outlets. ``This is going to make the market very competitive. People are going to be fighting for different rates.

``The number of customers won't increase, but the number of available customers will increase. It'll be free reign after your contract is up.''

Melissa Wilbricht, 19, of Davenport has had her cell phone about four years and estimates that about 100 people have her number.

While her cell phone makes life easier, it's also rather expensive. She knows she could get a cheaper plan, but she says she hasn't switched because she doesn't want to change phone numbers.

It's that feeling of being ``locked in'' that has caused the FCC to mandate the new rules.

``I think the FCC is responding to complaints from consumers that they have to change their number every time they change carriers,'' said John Rooney, president and CEO of U.S. Cellular Corp., which has outlets in the Quad-Cities. Many people don't switch even when they have lousy service, he added.

Mr. Rooney said he supports number portability. ``It is great for the consumer, gives them real choice.''

He said his company has spent $50 million during the past two years getting its systems prepared for portability and training its workers. While portability costs the industry, it's unknown if all companies will pass on those costs to the consumer.

According to Management Network Group, 24 percent of large businesses are ready to switch once portability becomes available, and 33 percent of businesses that use more than one carrier are likely to consolidate corporate wireless accounts to a single carrier.

Mr. Ford said the change also will have a big impact on small businesses. ``The biggest hang-up in business-to-business deals is the phone numbers. It usually is the small businesses -- the local carpet-cleaning guy, the local car-dealership guy, or the local sign guy who has his name on his truck.''

Randy Steffen of Diversified Business Brokers, Davenport, knows what it's like to be stuck with a wireless carrier. He owns five businesses, and one in particular, Accent Limousine, is linked to the public by a cell phone.

``I've been watching over the past four years, and the industry has gotten more competitive,'' he said. ``There are a lot better options, a lot more different options for cell-phone users.

``I would have switched plans or companies a long time ago, but because I have business cards with my number on them, it was not worth it.''

James Mayfield, owner of Global Wireless in Moline, believes number portability will make service providers provide better service, but doesn't think it will have an impact on pricing or competition.

Mr. Ford disagrees. ``The contract is the No. 1 thing that holds people back from changing companies. The only other thing holding them back is their phone number.

``The industry as a whole is going to get very competitive. It is not going to happen overnight. About a year from now, you'll see it happening. All it will take is for one company to come out with a better offer.''

He said wireless companies are going to have to shift their focus a bit.

``The big companies' marketing approach has always been to go after the customers they don't have. `Here's a ton of minutes, a free phone, come sign a contract with me.' That has always been the approach of every company.

``But that approach has to change now, because they have to go after the customer they have to lose, too. That is the most interesting part of this, because no one has any idea what is going to happen,'' Mr. Ford said.

``I think one of the biggest things carriers can do to keep customers is take care of the ones they have ... The deals for new customers are a lot better than for current customers, and I think that will change.''

Steve Walker
Azusa, CA
steve@capriceshop.com
http://www.capriceshop.com