I don't know if you've addressed this or are aware of it but I thought I'd mention it. It was prompted by your discussion of VZW's EVDO "Express Network." You mention that it's only in two markets and I wondered if you have come across the issue of the difference between what a wireless company calls a "market" and wirelines companies call "rate exchange areas" or "rate centers" (I'm using these terms loosely.) I had this experience at the VZW call center. It took me a little while, because the training was so poor, to grasp the concept.

BTW - VZW has purchased all of Qwest Wireless assets, making the Sprint-Qwest Wireless "virtual network" moot. The Qwest Wireless name is going to disappear.

Wireless companies tend to refer to "markets" and and wireline companies tend to refer to "Rate Centers." Loosely, in wireless, a "market" often can be compared to a "Rate Center" or area.

For example: In wireline we are used to defined "rate centers" which are generally referred to publicly as "Extended Area Service" (EAS) or "Local Calling Areas." For instance, Atlanta and Denver were the forerunners of having large local calling areas where for about a 60 mile radius from central Atlanta or Denver customers can dial locally without long distance charges, and people within this area could call over locally. Phoenix was late to this game, but it now has about an 80 mile radius of EAS. A lot of this was based on the multitude of Central Offices geographically spread though out these areas.

As wireless evolved and in order to compete and for a variety of reasons, their "market" in a specific area expanded. It was gradual and often included "regional plans" which have evolved into "national" plans.

An example of this is Arizona. There were generally three distinct markets, Northern Arizona with the primary cities of Flagstaff and Prescott, Central Arizona or Phoenix, which extended a little farther north, south, east and south than the wireline Rate Center and Tucson was southern Arizona. The markets have now been merged and "the Phoenix Market" for all practical purposes is the the I-17 corridor from Flagstaff to Phoenix, with an extension west about halfway down that corridor, AZ State Highway 69 from I-17 to Prescott, this was the former Northern Arizona Market. Then in Phoenix, when I-17 splits, the turn off to I-10 picks up and heads on down south to Tucson. The part in Phoenix where this occurs is in the former Phoenix Market but rolls into the former Tucson Market. It is now all one market and most sales and customer care people (who may or may not be in or from Arizona) have difficulty understanding that these are not only three distinct geographical areas, but political and social ones as well.

United States Census Metropolitan Statistical Areas

Often you will call a representative in some other area that deals with this "market" and say you are in Tucson or Prescott and they're response is "ok, so you're in the Phoenix Market." Which brings a reaction for several reasons but primarily because of interoperability with the wireline rate centers. There are five area codes in the state and the last thing a Tucson or Prescott customer wants is to be assigned a Phoenix area code and number for this reason. Someone on a wireline in Prescott, to reach someone in Prescott who has a wireless phone, does NOT want to have to dial 1+NPA+7D Phoenix number to reach someone in the Prescott EAS and pay long distance charge, even though to the wireless caller this is irrelevant. They're getting more educated about this.

Returning to Verizon Wirelesses EVDO Express Network in the "Phoenix" Market. That actually includes Tucson (not the former Northern Arizona Market). So really, included in that "market" are two metropolitan areas and the high speed freeway corridor in between.

Additionally, I think this points out that with wireless, the "local calling area" is really extended, in Arizona's case, statewide - more or less. There are probably only 5-10 switches through the state at most as opposed to the multitudes of switches in wirelines companies, although cell sites are multiplying rapidly. So one reason why people may be willing to put up with a lower call quality is that they can ten digit dial throughout the state without being on a national, or even regional calling plan, plus "free" long distance is now often packaged in with most rate plans. With a wireline, you have to choose a long distance carrier, deal with that carrier and deal with confusing long distance "plans" that very often have a monthly charge included.

The result? Many people are getting a basic wireline in their homes with no long distance carrier selected and make their out-of-the-rate center calls on their wireless phones. Additionally they can go about their daily business and get calls while away from their house or business and not be tied down waiting for a call back from someone. So the trade off of extended calling and mobility is worth the lower call quality to them for now. Eventually, as they rely more and more on this way of using their telecommunications devices, they will demand better call quality.

Although a lot of people are abandoning their wirelines at home, especially if they have a broadband connection that doesn't rely on a telecom wireline (as DSL does). There are many though who are just disconnecting their second and third lines originally used for dial up and fax machines but retaining at least one wireline for a variety of reasons. These reasons range from having a back up line, access to 911 with Automatic Number Identification (ANI) and Automatic Location Information (ALI), cable tv requires a wireline for pay-on-demand movies, burglar alarm systems, the pizza chains and other food delivery business require a wireline to take a order and other reasons. Still, this is reslting in a rapid decline in wirelines for wireline companies.

I hope that made sense.

J.R.

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