Generally Speaking
Posted: 01/1999
Generally Speaking
fortune to hear retired Army Gen. Colin L. Powell–courtesy of Sprint Corp.–speak at the
recent Telecommunications Resellers Association (TRA) conference in Orlando, Fla. Over the
course of an hour, he regaled us with the many stories that make up a lifetime. His were
not so different than yours or mine, except that they included quite a different cast of
characters–Norman Schwartzkopf, Ronald Reagan and Mikhail Gorbachev, to name a few.
In telling this audience of telecom executives of his retirement as chief of staff, the
general recalled one of his first civilian duties. The White House communications staff
informed Powell they would be removing the state-of-the-art, government-provided
communications systems that long had occupied his home office. What would he like to
replace it? they asked. His reply: Call the phone company and order a phone.
"General," they said, "you’ve been away a long time."
While Mr. Powell managed to procure a new phone from the local WalMart, and,
presumably, ordered long distance service from his carrier of choice, his tale belongs to
a genre that grows less humorous in direct proportion to its swelling ranks.
And it is larger than you might think. More than a decade after AT&T Corp’s
divestiture of the Bell system, some 10 percent of consumers still are unaware which
company is their long distance carrier, according to a survey published in November 1998
by Insight Research Corp., Parsippany, N.J.
In Insight’s poll of 1,018 Americans, 6 percent of them said they did not know which
company provides their long distance service. Another 4 percent were confused, incorrectly
citing the regional Bell operating company (RBOC) or local telephone company as their long
distance service provider.
Why are these consumers confused? Insight blames the bill.
"Look at the telephone bill–it’s the RBOC logo on the envelope, it’s their name
on the monthly check," says Insight’s President Robert Rosenberg. "These results
confirm the phone bill’s mind-share influence–something that may play a big role in the
RBOCs’ long distance market entry. The RBOCs could potentially capture that uncertain 10
percent by utilizing their direct billing advantage."
What’s 10 percent? A poor tip. A low interest rate. But very nearly the combined market
share of all the competitive long distance carriers less the Big Three.
Got your attention? Good. I’d hate to have to summon the bark of retired Army Gen.
Powell. At a rumored $75,000 a shot, few, save Sprint, can afford it.
Khali Henderson
Editor-in-Chief
