Cellular services are a deep-pocketed company s game. After paying billions of dollars for their frequency licenses, wireless companies must invest billions more to build the infrastructure that the service actually runs on. The companies building these networks don t expect them to pay off for a decade or longer. There are also expensive mobile switching centers, which connect all the cell cites in a geographic area. In big cities, there are extra costs such as leasing rooftop space for antennas on tall buildings.
Marketing is another big expense.
Consumers are faced with a plethora of choices, from analog to digital, voice to Web-enabled, from handset to personal digital assistant. Typically, wireless service is packaged in various mixes between expensive business-day use and cheaper weekend use. Some companies offer nationwide pricing plans, and others charge roaming fees when users leave their service areas. Wireless Web access is beginning to focus heavily on ecommerce. Under one scenario, consumers would be able to shop even as they physically pass real-world stores that would transmit relevant signals to passing vehicles.