Regional Operator Rolls Out Data Play

RCR Wireless
September 22, 2003
Article by Dan Meyer

Following more than 15 months of trials, regional wireless operator U.S. Cellular Corp. commercially launched its Easyedge data service today, providing customers with access to the carrier's expanding CDMA2000 1x network and throwing its hat into an increasingly competitive data market that has to this point been dominated by nationwide operators.

U.S. Cellular noted the Qualcomm Inc.-developed BREW-based offering, which it has been testing in its Knoxville, Tenn., market, will include access from both personal computer cards and 1x-based handsets. The PC cards initially will be offered to U.S. Cellular's business accounts at launch and expanded to retail locations next year. The 1x-enabled handsets will be offered in eastern Tennessee and Iowa at launch and expand to the carrier's Wisconsin, Chicago and central/western Illinois markets next month, followed by the Missouri, Oklahoma, Nebraska, Indiana and New England markets in November.

The carrier added that its remaining markets will launch as its 1x overlay plan continues to progress, and it expects to have 75 percent of its network covered by the end of this year.

Analysts applauded U.S. Cellular's launch, noting the financial benefits of wireless data services should not be limited to the nationwide operators.

"Data is a very good way to add value and revenue to an offering, and smaller carriers should not leave the data space just to the big guys," said Roger Entner, program manager of wireless and mobile services at the Yankee Group.

While U.S. Cellular's PC card option is expected to offer customers Internet access at speeds in excess of 100 kilobits per second, the carrier said its handset offering will include more than 60 applications, including downloadable content, which it expects to drive adoption of the service.

"We expect certain games and downloadable applications to be the main driver for the service," said John Cregier, senior director of data strategy and services at U.S. Cellular, who noted the carrier has seen encouraging adoption of its downloadable ring tones.

The Yankee Group's Entner added that in addition to providing customers with access to more content, the BREW financial model should prove appealing to smaller CDMA carriers, which was highlighted by rural operator Midwest Wireless' launch of its BREW-based services earlier this year.

"BREW is an ideal way for smaller CDMA players because it comes in at a smaller price point since Qualcomm is handling all the back-office systems," Entner said.