Lexington, KY - Twenty-five years ago this year, the cell phone was born. During a media event at Soldier Field in Chicago, Ameritech Mobile Communications made the first commercial cell phone call. On the receiving end was Alexander Graham Bell's grandson on a Motorola DynaTAC handset that weighed two and a half pounds and retailed for $3,995.
Karen Miles of Lexington wasn't present at the event but acknowledges that it changed her career and her life. As a 30-year veteran employee in the telecommunications industry, the invention of the cell phone marked a turning point for her.
At the time, she worked as an administrative assistant. She now is an Indirect account manager for Lexington and Central Kentucky. Her career development has mirrored that of the cell phone - - fast and constantly changing.
"One thing I recall most about the early cell phones is the size," she said. "They were called 'brick' phones because they looked and weighed like a brick. Most were stationary in the car and could not be removed."
Another change is the number of cell phones. As part of a media event to introduce the new cell phone on October 13, 1983, 20 new subscribers were invited to participate. Today, cell phones are owned by more than 80 percent of Americans. Their primary use isn't talking - it is sending text messages.
According to industry statistics, Ameritech Mobile signed up 12,000 subscribers in its first year. Today, Verizon Wireless, which absorbed part of Ameritech, has 68.7 million subscribers and generates $48.7 billion in annual revenue. Total wireless subscribers totaled 262.7 million, or 84 percent of the U. S. population, according to the International Association for Wireless Telecommunications.
Miles, who handles 25 stores including Wal-mart and Best Buy, said another growing trend is for younger and younger children to get phones.
"Families will come in to get their 6-year-old a phone," she said. "It used to be that 16 was the youngest, but now with so many children with both parents working, there is a need to be able to contact that child at any time."
Michelle Gilbert, public relations manager for Verizon, said cell phones for children is a growing trend, but may not be for all children. "We firmly believe that adults know what is best for their children," she said. "That's one of the reasons why there are 'usage controls' where a parent can control everything from the number of minutes to the time of day they can be used. Many parents feel this helps to develop the child's sense of responsibility."
According to the Nielsen Co., 46 percent of children ages 8 to 12 use cell phones.
Cost is another major change. "When they first came out, only rich people could afford a cell phone," Miles said. "Now, there are plans where you can get a phone for free."
The original network had 12 cell sites in Chicago. Service cost 40 cents a minute peak, 24 cents off-peak, plus a $50 a month service fee.
"We don't take the economy lightly at all - - many people are hurting," Gilbert said. "However most people consider a cell phone to be a necessity. For many of us, the cell phone has become a money saver."
Jeffrey Nelson, executive director for corporate communications for Verizon, said that competition is largely responsible for creating a success story for the consumer.
"There is now an incredible competitive environment for an industry that didn't exist 25 years ago," he said. "Over 95 percent of the population can choose from four or more wireless carriers. That's incredible competition for the consumer."
"Along with this, productivity gains have undergone a huge paradigm shift," he said. "There is fierce competition day in and day out to offer the best services and coolest devices. Consumers are the big beneficiaries."
Competition will continue as wireless providers face challenges in the future, he said.
"First, we need to get wireless services to places that don't have it yet in the United States," Nelson said. "Consumers need to be less frustrated when they get to the corner of First and Main and a call is dropped. If you can't make a call and trust that it will be reliable, how can you trust other services we might offer?"
There will be an ongoing challenge of capacity as wireless companies fill in the "Swiss cheese of coverage," he said. The issue is planning for growth in wireless services including Internet, e-mail and other needs in the workplace.
New tools married to cell phones could soon make significant impact on businesses, Nelson said. GPS (Global Positioning System) for example, is already used by repair and delivery companies to maximize their effectiveness on the road.
"Businesses see immediate use for these new services, but individuals start to want that for their use," Nelson said. "For example, these new services will allow me to start my day in the car, rather than waiting until I get to the office."
Enhanced traffic services that aid in fleet management are available in 75 cities. It has been very well-received in Louisville, Nelson said, and may be in Lexington soon.
Last year Verizon made the announcement that it plans to open up its network to other devices besides phones. There will be numerous machine-to-machine applications, Gilbert said. Among the first to be used was a battery-powered modem connecting into a sensor that dips into large storage containers. When the tank runs low, it zips off a message and lets the company know that it is low. The product will work on the Verizon network, Gilbert said. Anyone with a large storage network, such as diesel tanks or construction, could use this system, eliminating the need for on-site monitoring.
On the consumer side, even the most casual users are demanding more out of their devices today, according to Gilbert. Apple's iPhone helped to drive that awareness, she said.
"Probably the hottest, fastest growing trend is music on your phone," she said. "We entered into an agreement with Rhapsody, where we offer subscription service on your PC and sync onto your cell phone. Many devices can support thousands and thousands of songs. The memory is external, so you can put in an additional memory card."
"For the next 10 years this is a really exciting place to be," Nelson said. "There is great promise for the future."
Karen Miles agrees and cites her last 25 years in the industry as evidence that the future will bring even more changes. She said this is true due to a simple fact: "Once you get a cell phone you can't do without it. You're so productive with it - - I wouldn't be without my cell phone."