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JUNE 14, 2004
By Olga Kharif Coming Soon: Wireless Directory Assistance [Page 2 of 2] BABY STEPS. Here's how the database will work: At least at first, listings won't be published. Instead, wireless service providers will simply place the numbers of customers who want to be listed in the database. Initially, that might only constitute 5% to 20% of subscribers, according to various estimates. "But you've got to start somewhere," says Telewares' Wilson. Verizon Wireless has its doubts, however, and it won't be cooperating with the database project. "We don't see a lot of demand for this," says a Verizon spokesperson, who adds that the Baby Bell regards privacy concerns as an issue. Rivals see the situation differently. "A lot of our customers want this," says Paul Reddick, vice-president for business development and planning at Sprint PCS, part of telco Sprint (FON ) and which boasts 21.3 million subscribers. Customers would have to make an explicit decision to opt in, says Reddick, adding that those who fear being pestered by telemarketers will be able to include their numbers in a do-not-call registry. AVOIDING FEES. Wireless carriers are really excited about the prospect that the database could be used to launch additional services. For example, local towing companies might pay extra to be listed high up in the directory, as they can now do in the paid listings compiled by Internet search engines, says Martin Dunsby, vice-president for sales and operations at wireless consultancy InCode Telecom in San Diego. Eventually, the carriers might also publish wireless phone numbers in a printed directory -- and make a nice profit from that as well. What's more, every time wireless customers reach out to directory assistance, they will also be using more wireless minutes. Finally, wireless companies not associated with local telcos will be able to avoid certain directory look-up fees. The local telcos own a database of regular phone numbers, and when you call 411 on your cell phone, the outsourced directory service contracted by your wireless service provider pays for looking up the number in that database, then passes that cost on to you -- along with a hefty markup. But with wireless-to-wireless calls, those fees to the local telcos can be avoided, says Robert Rosenberg, president of telecom consultancy Insight Research in Boonton, N.J. As more people abandon regular phones for cell phones, wireless directory assistance will prove a necessity. And as the wireless carriers track and encourage that migration, you can also bet they're seeking ways to profit from it. Yes, chances are that wirelesses directory assistance will remain more expensive than the land-line model -- but that expense may seem well worthwhile when it's finally possible to have another way of reaching the person whose cell number you forgot to program into your handset.
 Kharif covers technology for BusinessWeek Online in Portland, Ore. Edited by Beth Belton
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