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Wireless execs caution against unrealistic hype

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ATLANTA - Two points of agreement emerged from an exchange between the heads of Cingular Wireless and Verizon Wireless last week at SuperComm 2001: Wireless data services shouldn't be expected to earn significant revenue for awhile, and the industry must police itself or risk the regulator's gaze.

Blaming the poor reputation of Wireless Access Protocol on "unrealistic expectations and overzealous marketing," Cingular CEO Steven Carter cautioned a packed crowd against making the same mistakes with 3G wireless services. "We can't create the demand first, and then invent what people want," Carter said.


SuperComm roundup
All the news from the show.

His counterpart at Verizon concurred. "I think all of us in the industry share in the guilt of overhyping" wireless data services, Dennis Strigl said. Carriers should get back to the fundamentals - alleviating network congestion, improving service to rural areas, eliminating bad roaming experiences and making customer service more available, he said.

"The industry could find ourselves in the cross hairs of regulators that want to regulate our service levels," he said.

Verizon plans to launch a public safety campaign beginning in the first week of July, coinciding with Independence Day. Carter mentioned recent legislation in some states to ban drivers from using cell phones in cars, but did not specifically connect Verizon's public safety efforts to preempt measures against further regulation.

"The sensible use of cell phones enhances life," Carter said. Citing statistics that about 2% of accidents are caused by cell phone distraction, Carter said there were more dangerous distractions than phones but "we could see the incidence rise if we don't educate."

Chidi is a correspondent with IDG News Services' Boston bureau.

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