Tuesday, February 21, 2006

Double-dialers swell cellphone ranks

Now that seemingly every American has a cellphone, wireless companies have a new way to add subscribers: sell them another.

About 16% of wireless customers have two mobile phones - one for personal use and one for business, says a new online survey by research firm Compete. It was near zero five years ago, says Compete analyst Adam Guy.


"There are frankly times when I have calls on both ears," says Chris Murray, an executive at Internet-based phone company Vonage.


While many cellphone jugglers are using a BlackBerry or other voice/e-mail device - known as a personal digital assistant or PDA - for business, some are simply toting two cellphones. The practice is helping wireless providers boost subscribers in a largely saturated market, says analyst Roger Entner of Ovum.


Driving the trend: More large companies are doling out mobile phones or PDAs to employees and restricting them to business use. About 70% of Fortune 100 companies supply them and pay monthly service fees. And 25% bar personal calls on them, up from 12% three years ago, says Michael Voellinger of Telwares, a telecom expense consultant for large companies.


In the past, nearly all companies let employees either use their personal cellphones and recover the costs of their business calls, or use corporate devices and reimburse the company for personal calls.


But many employers now want all workers using a standard device to obtain better bulk rates and ensure e-mail security, Voellinger says.


Many companies also don't want workers frittering away their days itemizing calls. "Expense reports are expensive to process," In-Stat analyst Allyn Hall says.


Yet even when employees can make personal calls on business phones, many are keeping their cellphones. Reasons include:


•Separating personal and business lives. Marketing director Lisa Maerowitz of San Diego held on to her mobile phone when her employer provided a cellphone last year. She keeps one in each back pocket. "When (the personal) phone rings, I'll know my kids need attention or whatever. And I want to be able to turn off the business phone when I'm not on the business clock," she says.


•Keeping a familiar number. When salesman Mike Oullette of North Attleboro, Mass., got a BlackBerry from work a year ago, he kept his cellphone because he "didn't want to have to update friends about a new number."


•Low-priced plans. Wireless companies offer free nights and weekends or family plans that make it economical to retain a second phone for personal use.


•Better coverage. Oullette likes having T-Mobile and Verizon phones because each provides better coverage in different areas.

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