Cingular to turn on zoom, catch up with video

Cingular Wireless on Monday will turn on a faster network in the Triangle that will zip data at least four times quicker and let customers watch video on phones.

The nation's largest mobile-phone company will compete with carriers such as Verizon Wireless and Sprint, which already sell such services in the market. Though a year later than rivals, Cingular is betting that its mix of channels -- including CNN, HBO and Fox News -- and a network that's faster than the one it now operates will attract subscribers.

"We might not be first to the dance, but we're the best dressed," said Laurie Parker, a spokeswoman for the company.

Video is the newest front in the wireless wars, with mobile-phone companies rushing to add technical wizardry and wring more cash from customers. They've spent billions to move sound and images faster. Now, they need a return on that investment.

New services let them command higher fees from customers. In addition to buying a new handset, for instance, subscribers to Cingular's video features need a calling plan and a data plan. That can easily top $70 a month.

While prices vary, Verizon Wireless and Sprint customers seeking the advanced features can expect similar requirements and fees.

Additional revenue is one benefit, said Miro Kazakoff, senior associate with the wireless group at researcher Compete in Boston.

Another is retention.

"If carriers can offer exclusive content, then they can attract and retain customers who may stay in part because of specific content," he said. In other words, if a subscriber gets hooked on a show, they might be less likely to switch to another carrier.

In marketing materials, Verizon touts wireless video showing celebrity and sports interviews. Channels offer news and weather. Sprint last month began a service that lets subscribers watch full-length movies on their mobile phones.

According to Compete research, almost three-quarters of mobile-phone customers, when asked, say that they would like to watch video on their mobile phones.

But only a small fraction of them are buying. Kazakoff said the percentage is in the low single digits.

Carriers will continue to adjust their offerings to win over more subscribers.

"We're just starting to see the beginning of that investment turning into consumer services," Kazakoff said. "Will all those services survive and generate revenue? That's the big question still waiting to be seen."