New weapons, new rivals in wireless phone competition

Article Abstract:

Omnipoint Communications debuts personal communications services (PCS) in New York, and Primeco Personal Communications plans to offer PCS in 16 cities, as competition in the wireless communications arena begins. PCS provides better sound quality than cellular calls, at a significantly lower cost. The technology uses less power than standard cellular broadcasts, and it is transmitted at a much higher frequency, making it capable of sending large amounts of data in addition to voice traffic. Observers say that the new entrants into the PCS market will increase the number of consumers using the services, with some forecasting that as many as 125 million may subscribe to wireless services by 2004. Sources close to Omnipoint say that the company will charge $19.99 per month and about 49 cents per minute. The service is already causing competitor Bell Atlantic Nynex Mobile to lower its rates. Observers say more established companies may be able to trade on name recognition to retain their dominance in the marketplace.

Wired Telecommunications Carriers, Telephone Communication, Telephone Communications, Telephone services, PrimeCo Personal Communications, L.P.

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From AT&T, a cellular service with a jazzy name

Article Abstract:

AT&T announces Digital PCS, a digital version of its cellular service, drawing fire from personal communications service (PCS) vendors who charge the company with trying to mislead consumers. AT&T contends the service will meet the need of consumers until PCS is available. PCS promises clear talk at low prices, and opponents claim that using the existing cellular structure prevents Digital PSC from performing as well as true PCS, since the AT&T service is not digital from end to end. Opponents also point out that the company is using the same voice-coding system it has used in the past, so voice quality is not improved. AT&T acknowledges that sound quality is no better, but claims that Digital PCS's performance is comparable to that of true PCS. AT&T will offer true PCS by 1997, but competitors will have PCS offerings by the end of 1996. AT&T's service is $24.99 per month plus 60 cents per minute for calls outside the calling area, a per-minute fee well below typical cellular rates.

AT&T Corp., T

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Yipes! Invasion of the 9-inch antennas! A new form of wireless phone service is in the works for New York City

Article Abstract:

Omnipoint Communications is planning to offer wireless personal communications services (PCS) in New York City. The service, which will begin in Nov 1996, will employ nine-inch antennas placed about 10 blocks apart throughout the city. Omnipoint will pay $1,000 per month to apartment owners in order to install a small antenna and closet-sized base station on their buildings. Users will make calls with a telephone that is smaller than a cellular phone and employ digital technology. New York is traditionally a difficult market to enter and Omnipoint is risking $680 million in the project. The service will be less expensive than cellular services and the calls are less prone to interference. The digital technology is also less prone to eavesdropping than cellular services. Omnipoint Pres George F. Schmitt has offered the Princess of Wales $3 million to promote the service as the company's spokesperson.

Wireless network, Wireless LANs, Telecommunications systems, New York, New York

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