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NewsNovember 22, 1993

The cellular telephone business was first switched on in Chicago in October of 1983. That was a decade ago. By the end of 1983, there were only about 8,000 cellular customers in the nation. By the end of this year, there will be about 14 million cellular telephone users in the nation, with almost 10,000 new customers signing up each day...

The cellular telephone business was first switched on in Chicago in October of 1983.

That was a decade ago. By the end of 1983, there were only about 8,000 cellular customers in the nation. By the end of this year, there will be about 14 million cellular telephone users in the nation, with almost 10,000 new customers signing up each day.

It didn't take long for the new mobile phone system to catch on. By 1985, the industry was introduced to more cities, and by the 1990s, the cellular industry was booming.

The number of U.S. subscribers grew 75 percent, to 3.5 million by December of 1989, 5.3 million by December of 1990, and by June of 1991, the customer base had grown to six million, and was growing at a phenomenal rate of a million users every six months, according to the Cellular Telephone Industry Association (CTIA).

"The cellular industry, even better, is one of the lucky few to be recession-resistance since its start," said Laura Klassen, assistant manager of marketing communication for CyberTel, one of two cellular phone carriers in Southeast Missouri.

"The industry has proven to save both time and money for businesses," she added. "They increase and improve the customer responsiveness of a business."

Other benefits include safety and convenience.

In fact, safety is the number one reason that people are buying cellular phones these days.

"At CyberTel, we are hearing a number of stories from customers concerning their uses of cellular telephone," said Klassen, of the St. Louis office. "Most agree that having a telephone in the car gives them a sense of security."

Chris Picket, Southwestern Bell Mobile Systems, agrees.

"People purchase cellular telephones for a variety of reasons," said Pickel. "But, safety is the number one reason. We're seeing a lot of family plans so that mom can keep up with the children. It provides a sense of security.

"The cellular system was invaluable in helping people deal with the floods of 1993," said Pickel. "At times when communications were so vital, mobile systems offered more than a phone line. It also offered a life line."

Bell Mobile Systems is the second carrier which serves the Southeast Missouri area.

Cellular telephones use radio waves to transmit calls. A cell is the area that one radio transmission tower can reach. The cellular network is made up of several strategically placed radio transmission towers.

As the mobile telephone user drives from one area to the next, his/her call is being channeled through the closest radio tower. As the driver moves from one cell to the other, his call is mechanically "handed off" so that the signal is transmitted to the next cell without any disruption in the call.

Cellular phones are available in four types:

-- Telephones installed in the vehicle.

-- Transportable phone -- a phone that comes in a carrying bag and can be taken out of the car.

-- Hand-held portable -- small enough to fit in a coat pocket, and battery powered.

-- Car-to-car phone -- can be transferred between vehicles, usually plugs into a cigarette lighter.

Cellular telephone users can now travel major U.S. highways and have access to cellular service throughout the country.

When a user travels outside his cellular service company's coverage area, he becomes a "roamer" customer of another system. They are then charted a "roaming rate," determined by the cellular service company that operate the area where the call is placed.

Cellular telephones can cost anywhere from a few hundred dollars to a couple thousand dollars, depending on the features of the telephone. The average monthly bill of cellular services is $75, according to the Cellular Telephone Industry Association (CTIA).

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The cellular industry is regulated by the FCC, which licenses up to two cellular service operations within a given area. The Unite States is zoned into 734 areas, with almost half of them in densely population Metropolitan Statistical Areas (MSAs). The remainder are located in Rural Service Areas (REAs).

In Missouri, St. Louis, Kansas City, Columbia and Springfield are MSA. The state has 19 RSAs, including ape Girardeau which is designated RSA MO-18.

All cellular sales and service centers are agents of CyberTel and Southwestern Bell Telephone.

Cellular phone usage has been a big advantage for business.

During one 1991 study on productivity gained through cellular phone uses, it was found that sales representatives made five more customer calls each week, cut more than 9,000 miles off the odometer, and earned up to $10,000 more annually on sales.

A 1991 Gallup Poll showed:

-- Fifty-six percent of cellular owners believe their phones have helped raise company sales.

-- Seventy-four percent believe their phone has made their life less stressful, because it helps them make the most of their personal time.

-- Fifty-four percent believe cellular has improved their relationship with a spouse.

Cellular phones also promote safety:

-- Stranded motorists can call for help from their vehicles instead of having to leave the car.

-- Cellular phones allow for speedier reporting of accidents.

-- Cellular users often alert police to drunken drivers.

-- Cellular telephones are also used in home and business alarm systems.

CyberTel, headquartered at St. Louis, was founded in 1970 and today is the oldest and largest paging provider in the St. Louis area. It was the first cellular operator in St. Louis, winning the FCC bid to serve the St. Louis area in 1984.

CyberTel operates cellular service in Western, Central and Southern Illinois as well as on the Hawaiian island of Kauai.

CyberTel opened its local offices at 500 N. Kingshighway in October of 1991. The Cape Girardeau operation includes the counties of Perry, Cape Girardeau and Bollinger.

With the Ste. Genevieve operation, CyberTel operates north of Cape Girardeau, along the Interstate 55 corridor to St. Louis.

CyberTel's parent company, Ameritech, was the first cellular carrier, deploying the nation's first cellular system in Chicago in October of 1983.

Southwestern Bell Mobile Systems (SBMS) has been involved in the cellular business 10 years, and has more than 100 towers throughout its coverage area.

SBMS, headquartered in Dallas, is a subsidiary of Southwestern Bell Corp., and provides cellular service to more than 960,000 customers in 29 metropolitan markets and 25 rural service areas throughout the United States.

The immediate Midwest coverage area blankets some 750 square miles along Interstate 55. Combined with the St. Louis system, the cellular coverage area is more than 6,400 square miles.

The license to provide cellular service in Missouri rural service areas 18 and 19 first was issued to ALLTEL Mobile Communications Inc. In August 1991, SBMS and ALLTEL announced the formation of the Eastern Missouri Cellular Limited Partnership, of which SBMS is the general partner.

The local office of SBMS is situated at 837 N. Kingshighway.

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