PERSONAL COMMUNICATIONS SERVICES

BUSINESS OPPORTUNITIES for PCS

Beyond owning spectrum licenses and operating a PCS system, many opportunities exist for small telecommunications companies which do not have access to large amounts of capital. Some of the regional operation companies that have obtained licenses have indicated that they may subcontract some PCS support services.

Opportunities for DEs can be explored in the following ancillary areas:

  1. Design, manufacture, and/or distribution of radio and switching equipment.

  2. Construction and installation
  3. Site acquisitions and leasing (technical & legal serv., real estate, consulting)

  4. System design and engineering

  5. Relocation of current microwave (railroads, utilities, police) users

  6. Marketing
  7. Subscriber Services

  8. Consulting Services

  9. Tower or Cell Management

  10. Legal counsel, accounting services, and other professional services.

PCS Bidder To Integrate Credit Card With SIM

Candidate PCS operator GO Communications Corporation, Alexandria, VA, could become one of the first companies to use GSM smart cards to handle nonmobile telephone applications. Inviting proposals for the production of up to one million GSM smart cards over the next three years, GO said it wanted credit card functionality integrated on the cards. It would also expect them to handle the purchase of paper airline tickets which would be remotely downloaded to the GO card for use at the airport.

The GO smart card contract will depend on its success in the forthcoming C block auction of PCS (Personal Communications Service) licenses in the USA.

Go Communication intends to offer smart cards for sale by mail at retail outlets and kiosks. The purchase of a card will get a coupon to buy a PCS handset at any retail store. The handset will come with pre-programmed free minutes and will be compatible with any GSM handset.

Founded in February 1994, GO is backed by Fidelity Capital, Mitsubishi Corporation and other investors. It has signed a 10 year supply agreement with Northern Telecom for GSM-based PCS network equipment and services.

Wireless Phones For US PCS Market

Telular Corporation, Buffalo Grove, Illinois, and Northern Telecom are jointly to develop fixed wireless subscriber terminal for the US Personal Communications Services market. The products, incorporate Telular's patented intelligent interface technology and Nortel's GSM technology are scheduled for quarter four 1995.

Players/Competition

PCS will enter a much more competitive ennvironment than cellular did at its outset when the FCC lecensed only two celllular providers per market. The first firm in operation typically become the market leader in terms of market share. PCS will compete with the two cellular providers in each market and an ESMR. In addition, there could be multiple PCS providers in each market. The FCC expects there to be at least four new PCS providers in each area. The MTA broadband acution winners represent the following market players: Longdistance carriers; Local exchange carriers; cellular service providers; and cable companies.