Subject: [NEXTEL-1] Seek Value Customers, Hundt Warns

From: [email-masked]
Date: Fri, 24 Oct 2003 10:56:45 -0400

Seek Value Customers, Hundt Warns
BY BRAD SMITH
OCTOBER 23, 2003

LAS VEGAS--Wireless carriers should pay less attention to generating as many new
subscribers as they can and pay more attention to their valuable subscribers, Reed
Hundt, former FCC chairman, said today.
In a keynote address at the last day of the CTIA Wireless I.T. & Entertainment
show, Hundt said 70 percent of the new subscribers coming to major U.S. carriers
are the result of churn. He added that industrywide, total net new subscribers is
in the single digits.

The wireless industry needs to take the example of the financial industry, Hundt
said, and focus more on retaining valuable customers than on acquiring new ones.
This could mean that the carriers would jettison subscribers who ultimately cost
them money.

'The fundamental problem is that you don't want to keep swapping customers back
and forth,' Hundt said, adding that carriers need to pay attention to individual
customer data so they can bill and market to them based on their overall value.

The former FCC chairman also said the one thing that has surprised him about the
wireless industry in the last few years has been its entrepreneurial capability
and innovation. The wireless industry has been much more innovative than the
wireline industry, he said, especially in moving into the broadband market.

http://www.wirelessweek.com/index.asp?layout=document&doc_id=127863&verticalID=34&vertical=Business+and+Finance&industry=

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