Dish Network to Sell Mobile Phones
http://www.wirelessweek.com/news/2012/12/report-dish-sell-mobile-phones-blockbuster-stores
http://www.wirelessweek.com/news/2012/12/report-dish-sell-mobile-phones-blockbuster-stores
Thursday
Monday
CNET: iOS, Android, and Web traffic: Same old, same old
iOS, Android, and Web traffic: Same old, same old: http://news.cnet.com/8301-1035_3-57556846-94/ios-android-and-web-traffic-same-old-same-old/?tag=mobile_social
Wednesday
Apple Introduces iPhone 5
Thinnest, Lightest iPhone Ever Features All-New Aluminum Design, Stunning 4-Inch Retina Display, A6 Chip & Ultrafast Wireless
SAN FRANCISCO—September 12, 2012—Apple® today announced iPhone® 5, the thinnest and lightest iPhone ever, completely redesigned to feature a stunning new 4-inch Retina™ display; an Apple-designed A6 chip for blazing fast performance; and ultrafast wireless technology*—all while delivering even better battery life.** iPhone 5 comes with iOS 6, the world’s most advanced mobile operating system with over 200 new features including: the all new Maps app with Apple-designed cartography and turn-by-turn navigation; Facebook integration; Passbook® organization; and even more Siri® features and languages.
“iPhone 5 is the most beautiful consumer device that we’ve ever created,” said Philip Schiller, Apple’s senior vice president of Worldwide Marketing. “We’ve packed an amazing amount of innovation and advanced technology into a thin and light, jewel-like device with a stunning 4-inch Retina display, blazing fast A6 chip, ultrafast wireless, even longer battery life; and we think customers are going to love it.”
iPhone 5 is the thinnest smartphone in the world, with an all-new 7.6 mm anodized aluminum body that is 18 percent thinner and 20 percent lighter than iPhone 4S. Designed with an unprecedented level of precision, iPhone 5 combines an anodized aluminum body with diamond cut chamfered edges and glass inlays for a truly incredible fit and finish.
The new 4-inch Retina display on iPhone 5 delivers even more pixels than iPhone 4S, making the already incredible Retina display even better. By making the screen taller, not wider, iPhone 5 is just as easy to use with one hand so you can tap, type and scroll the same way you always have, while enjoying even more of your content including amazing apps optimized for the larger Retina display, widescreen HD video, a full five days of your Calendar and more of every web page.
iPhone 5 supports ultrafast wireless standards including LTE and DC-HSDPA, so you can browse, download and stream content even faster. To support the latest LTE technology, Apple has pioneered a unique single-radio LTE solution that provides blazing fast speeds while fitting perfectly into the new remarkably thin design. iPhone 5 features dual-band 802.11n Wi-Fi support for a wireless experience up to 150 Mbps.***
The all-new A6 chip was designed by Apple to maximize performance and power efficiency to support all the incredible new features in iPhone 5, including the stunning new 4-inch Retina display—all while delivering even better battery life. With up to twice the CPU and graphics performance, almost everything you do on iPhone 5 is blazing fast for launching apps, loading web pages and downloading email attachments.
The 8 megapixel iSight® camera is the most popular camera in the world and with iPhone 5, it’s even better. The new camera is completely redesigned with incredible optical performance, yet amazingly it’s 25 percent smaller than the camera in iPhone 4S. The new iSight camera in iPhone 5 features a sapphire crystal lens cover that is thinner and more durable than standard glass with the ability to provide crystal clear images. The new panorama feature lets you capture jaw-dropping panorama images of up to 28 megapixels by simply moving the camera across a scene in one smooth motion. New video features include improved stabilization, video face detection for up to 10 faces and the ability to take still photos as you record. A new FaceTime® HD front facing camera makes FaceTime calls incredibly clear and can also be used for self portraits and recording 720p HD video. iPhone 5 also allows you to share photos with friends and family using iCloud’s Shared Photo Streams.
iPhone 5 features the new Lightning™ connector that is smaller, smarter and more durable than the previous connector. The all-digital Lightning connector features an adaptive interface that uses only the signals that each accessory requires, and it’s reversible so you can instantly connect to your accessories. The Lightning-to-30-pin Adapter is also available to connect iPhone 5 to legacy 30-pin accessories.****
iPhone 5 introduces new enhanced audio features including a new beam-forming, directional microphone system for higher quality sound, while background noise fades away with new noise canceling technology. iPhone 5 now includes support for cellular wideband audio for crisper word clarity and more natural sounding speech. Wideband audio will be supported by over 20 carriers worldwide at launch. iPhone 5 comes with the new Apple EarPods™ featuring a breakthrough design for a more natural fit and increased durability, and an incredible acoustic quality typically reserved for higher-end earphones.
iPhone 5 comes with iOS 6, the world’s most advanced mobile operating system with over 200 new user features including: an all new Maps app with Apple-designed cartography, turn-by-turn navigation and an amazing new Flyover™ view; Facebook integration for Contacts and Calendar, with the ability to post directly from Notification Center; Passbook, the simplest way to get all your passes in one place; new Siri features, including support for more languages, easy access to sports scores, restaurant recommendations and movie listings;***** Siri and Facebook-enabled apps like Photos, Safari® and Maps; and Shared Photo Streams via iCloud®.
Pricing & Availability
iPhone 5 comes in either white & silver or black & slate, and will be available in the US for a suggested retail price of $199 (US) for the 16GB model and $299 (US) for the 32GB model and $399 (US) for the 64GB model. iPhone 5 will be available from the Apple Online Store (www.apple.com), Apple’s retail stores, and through AT&T, Sprint, Verizon Wireless and select Apple Authorized Resellers. iPhone 5 will be available in the US, Australia, Canada, France, Germany, Hong Kong, Japan, Singapore and the UK on Friday, September 21, and customers can pre-order their iPhone 5 beginning Friday, September 14. iPhone 4S will also be available for just $99 (US) and iPhone 4 will be available for free with a two-year contract.****** iOS 6 software will be available on Wednesday, September 19 as a free software update.
iPhone 5 will roll out worldwide to 22 more countries on September 28, including Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, Hungary, Ireland, Italy, Liechtenstein, Lithuania, Luxembourg, Netherlands, New Zealand, Norway, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden and Switzerland.
* LTE is available through select carriers. Network speeds are dependent on carrier networks, check with your carrier for details.
** Battery life depends on device settings, usage and other factors. Actual results vary.
*** Based on theoretical speeds, actual speeds may vary.
**** Sold separately.
***** Not all features are supported in all countries.
****** Availability varies by carrier.
Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad.
Tuesday
Sprint Ramps LTE with 100-City Rollout
Sprint plans to turn on its LTE network in more than 100 new cities in the coming months as it moves aggressively to catch up with Verizon Wireless and AT&T.
The operator said Monday construction was underway in markets including Boston, Chicago, Indianapolis, Los Angeles, New Orleans, New York, Philadelphia and Washington, D.C.
Installation of LTE equipment is in "various stages" in every city, Sprint Communications Manager Heather Wong said in an interview. Specific launch dates have not been announced. A full list of the cities is available in Sprint's announcement.
"We're definitely on track in our plans," Wong said. Sprint expects to have its LTE buildout largely completed by the end of next year along with the rest of its network modernization efforts.
The 100-city rollout is a considerable ramp from Sprint's current 19-city LTE footprint. Verizon Wireless' LTE network is available in more than 370 markets and AT&T's LTE service is live in about 60 markets.
Investors are keeping a close eye on Sprint's execution of the complex network overhaul, which has it simultaneously decommissioning its iDEN network and replacing its base stations with new multimode equipment that supports LTE.
The operator, which carries a significant amount of debt on its balance sheet, is hinging its turnaround efforts on network improvements and the LTE deployment.
The operator said Monday construction was underway in markets including Boston, Chicago, Indianapolis, Los Angeles, New Orleans, New York, Philadelphia and Washington, D.C.
Installation of LTE equipment is in "various stages" in every city, Sprint Communications Manager Heather Wong said in an interview. Specific launch dates have not been announced. A full list of the cities is available in Sprint's announcement.
"We're definitely on track in our plans," Wong said. Sprint expects to have its LTE buildout largely completed by the end of next year along with the rest of its network modernization efforts.
The 100-city rollout is a considerable ramp from Sprint's current 19-city LTE footprint. Verizon Wireless' LTE network is available in more than 370 markets and AT&T's LTE service is live in about 60 markets.
Investors are keeping a close eye on Sprint's execution of the complex network overhaul, which has it simultaneously decommissioning its iDEN network and replacing its base stations with new multimode equipment that supports LTE.
The operator, which carries a significant amount of debt on its balance sheet, is hinging its turnaround efforts on network improvements and the LTE deployment.
Report: Next iPhone May Not Have it Easy in U.S.
While Apple has not confirmed an iPhone 5, all signs point to an announcement tomorrow.
Investors in recent weeks have pushed Apple stock to record highs on rumor alone, with shares of the stock trading at $680 last Friday. But do record share prices necessarily portend record sales? Maybe not, at least here in the United States.
Stephen Baker, vice president of industry analysis for NPD Group, says that the iPhone might be a big hit around the world, but conditions might not be ripe for record sales here in the America.
In a post on NPD's official blog, Baker notes there are a few variables that could leave Apple's iPhone 5 sales just shy of the usual otherworldly expectations heaped upon the company's products.
Baker contends that the iPhone 5's success in this country may have little to do with "the strength of the new product offering, its hardware configuration, its marketing, or even its competition," but rather the simple fact that the U.S. smartphone market appears to have matured.
Key to Baker's argument is the flattening of postpaid smartphone sales recently, which hasn't been the case for past iPhone launches.
According to NPD, overall smartphone sales in the United States have been driven largely by pre-paid smartphones, with total smartphone unit-volume sales rising just 9 percent in the second quarter of 2012, compared to the second quarter 2011. Year-over-year post-paid smartphone unit sales were flat, while pre-paid smartphone unit volume almost doubled, rising 91 percent year over year.
Also, Baker argues that Samsung and Apple have already chewed up most of what they can take from Research In Motion and Nokia's market share.
"There is no clear #3 player to steal market share from, Samsung/Android and Apple have run away from the pack in the last year," Baker wrote.
Finally, Apple will be launching this latest model less than a year since it introduced the 4S, leaving many consumers trapped in 2-year contracts with little or no subsidy on an upgrade. Supposing the next iPhone costs $200 on contract, AT&T customers who bought into a contract with the iPhone 4S would have to pay $450 for the iPhone 5, which is what that carrier calls an "early iPhone upgrade discount."
To be sure, the iPhone 5 will be met with applause from Apple's loyal fans, but Baker appears to be asking the question for how long that base can afford to support Apple's record sales number with every successive device.
"Apple will have a highly successful launch, of that there can be no doubt," Baker wrote, "but the inevitability of easy market share gains in the U.S. is not quite so apparent this time around, as it has been in the past."
Apple is expected to unveil the next iPhone at an event in San Francisco tomorrow, with a launch later this month. Is expected that the new iPhone will have a larger screen, as well as LTE connectivity. -Andrew Berg of Wireless Week
Investors in recent weeks have pushed Apple stock to record highs on rumor alone, with shares of the stock trading at $680 last Friday. But do record share prices necessarily portend record sales? Maybe not, at least here in the United States.
Stephen Baker, vice president of industry analysis for NPD Group, says that the iPhone might be a big hit around the world, but conditions might not be ripe for record sales here in the America.
In a post on NPD's official blog, Baker notes there are a few variables that could leave Apple's iPhone 5 sales just shy of the usual otherworldly expectations heaped upon the company's products.
Baker contends that the iPhone 5's success in this country may have little to do with "the strength of the new product offering, its hardware configuration, its marketing, or even its competition," but rather the simple fact that the U.S. smartphone market appears to have matured.
Key to Baker's argument is the flattening of postpaid smartphone sales recently, which hasn't been the case for past iPhone launches.
According to NPD, overall smartphone sales in the United States have been driven largely by pre-paid smartphones, with total smartphone unit-volume sales rising just 9 percent in the second quarter of 2012, compared to the second quarter 2011. Year-over-year post-paid smartphone unit sales were flat, while pre-paid smartphone unit volume almost doubled, rising 91 percent year over year.
Also, Baker argues that Samsung and Apple have already chewed up most of what they can take from Research In Motion and Nokia's market share.
"There is no clear #3 player to steal market share from, Samsung/Android and Apple have run away from the pack in the last year," Baker wrote.
Finally, Apple will be launching this latest model less than a year since it introduced the 4S, leaving many consumers trapped in 2-year contracts with little or no subsidy on an upgrade. Supposing the next iPhone costs $200 on contract, AT&T customers who bought into a contract with the iPhone 4S would have to pay $450 for the iPhone 5, which is what that carrier calls an "early iPhone upgrade discount."
To be sure, the iPhone 5 will be met with applause from Apple's loyal fans, but Baker appears to be asking the question for how long that base can afford to support Apple's record sales number with every successive device.
"Apple will have a highly successful launch, of that there can be no doubt," Baker wrote, "but the inevitability of easy market share gains in the U.S. is not quite so apparent this time around, as it has been in the past."
Apple is expected to unveil the next iPhone at an event in San Francisco tomorrow, with a launch later this month. Is expected that the new iPhone will have a larger screen, as well as LTE connectivity. -Andrew Berg of Wireless Week
iPhone 5 faces U.S. market share challenges, says analyst
The iPhone 5 may have a tough time carving out a greater chunk of market share in the U.S., says NPD Group analyst Stephen Baker.
Expected to launch tomorrow, the new iPhone is already being touted as a blockbuster product by many analysts. But in a blog posted today, Baker said he thinks the iPhone 5 faces a different and more challenging enviroment than the one encountered by the iPhone 4 or even 4S.
Expected to launch tomorrow, the new iPhone is already being touted as a blockbuster product by many analysts. But in a blog posted today, Baker said he thinks the iPhone 5 faces a different and more challenging enviroment than the one encountered by the iPhone 4 or even 4S.
BlackBerry sinks to zero sales in 'a meaningful number' of stores
Research In Motion has several things to worry about. But who knew shelf space was one of them?
Pacific Crest analyst James Faucette told All Things Digital in an interview published today that his retail checks indicate "BlackBerry sales were largely unchanged in August versus July; however, we detected meaningfully lower inventory levels versus a month ago." Translation? Carriers are content with fewer BlackBerrys, since they might not sell many of them.
Pacific Crest analyst James Faucette told All Things Digital in an interview published today that his retail checks indicate "BlackBerry sales were largely unchanged in August versus July; however, we detected meaningfully lower inventory levels versus a month ago." Translation? Carriers are content with fewer BlackBerrys, since they might not sell many of them.
T-Mobile Launches Campaign to Lure iPhone Users
T-Mobile USA, the only "Big 4" phone company that doesn't sell the iPhone, now wants to snag used ones from AT&T.
Starting Wednesday, when Apple is expected to reveal a new iPhone model, T-Mobile will start advertising that AT&T iPhone owners who are out of contract can switch to T-Mobile.
"We expect that consumers will start trading in older devices," said Harry Thomas, T-Mobile's director of marketing. "For every person waiting in line for the next model, a lot of them have to find a secondary market for that older device."
Apple Inc. hasn't said anything about a new iPhone, but it is expected to announce the iPhone 5 at an event it has scheduled in San Francisco on Wednesday. Sales would likely start later this month.
Signing an iPhone up for T-Mobile service has been possible for years, and the company says it has more than a million iPhones on its network. But they suffer a big penalty in data speeds, taking about 50 times longer to download files than on AT&T Inc.'s network.
This year, T-Mobile is reshuffling the frequencies on its network, which will let it match or even exceed AT&T's data speeds on iPhones. For now, that will be evident only in a few spots here and there in such cities as New York, Seattle, Las Vegas and Washington.
Sprint and Verizon iPhones of the "4'' model won't work on T-Mobile's network at all. The later iPhone 4S will work if it's been hacked, but that's not something T-Mobile wants to get into.
AT&T iPhones have to be unlocked using codes that AT&T will supply after the customer's contract is up.
T-Mobile, the U.S. cellphone business of Deutsche Telekom AG of Germany, has bought 3,000 iPhones and spread them out in its stores, so salespeople can demonstrate the iPhone working.
T-Mobile's pitch will center on its unlimited data plan, which it reintroduced last week. AT&T stopped signing up new customers to unlimited plans two years ago, and now slows down service drastically for the rest of the billing cycle once those still on old unlimited plans reach a certain level of data usage.
In Atlanta and New York, T-Mobile will be giving away $100 gift cards to customers who sign their iPhones up for two-year contracts.
Starting Wednesday, when Apple is expected to reveal a new iPhone model, T-Mobile will start advertising that AT&T iPhone owners who are out of contract can switch to T-Mobile.
"We expect that consumers will start trading in older devices," said Harry Thomas, T-Mobile's director of marketing. "For every person waiting in line for the next model, a lot of them have to find a secondary market for that older device."
Apple Inc. hasn't said anything about a new iPhone, but it is expected to announce the iPhone 5 at an event it has scheduled in San Francisco on Wednesday. Sales would likely start later this month.
Signing an iPhone up for T-Mobile service has been possible for years, and the company says it has more than a million iPhones on its network. But they suffer a big penalty in data speeds, taking about 50 times longer to download files than on AT&T Inc.'s network.
This year, T-Mobile is reshuffling the frequencies on its network, which will let it match or even exceed AT&T's data speeds on iPhones. For now, that will be evident only in a few spots here and there in such cities as New York, Seattle, Las Vegas and Washington.
Sprint and Verizon iPhones of the "4'' model won't work on T-Mobile's network at all. The later iPhone 4S will work if it's been hacked, but that's not something T-Mobile wants to get into.
AT&T iPhones have to be unlocked using codes that AT&T will supply after the customer's contract is up.
T-Mobile, the U.S. cellphone business of Deutsche Telekom AG of Germany, has bought 3,000 iPhones and spread them out in its stores, so salespeople can demonstrate the iPhone working.
T-Mobile's pitch will center on its unlimited data plan, which it reintroduced last week. AT&T stopped signing up new customers to unlimited plans two years ago, and now slows down service drastically for the rest of the billing cycle once those still on old unlimited plans reach a certain level of data usage.
In Atlanta and New York, T-Mobile will be giving away $100 gift cards to customers who sign their iPhones up for two-year contracts.
Saturday
Wednesday
Apple Asks Judge to Block Sales of 8 Samsung Devices
In the wake of its victory against Samsung, Apple has petitioned a U.S. court to block the sale of eight Samsung devices.
In its filing with the court, Apple cited seven patent violations as its reason for requestion the eight Samsung devices be blocked from sale in the United States.
Specically, Apple targeted seven Galaxy devices - Galaxy Prevail, Galaxy S 4G, Galaxy S2 AT&T, Galaxy S2 Skyrocket, Galaxy S2 T-Mobile, Galaxy S2 Epic 4G, Galaxy S Showcase, Galaxy Prevail - as well as the Droid Charge.
Those eight devices are not insignificant. According to documents provided to the court by Samsung, they accounted for $1.3 billion in sales for Samsung during the first half of 2012.
Apple was recently awarded $1.05 billion in damages when a jury decided that Samsung had "wilfully" copied Apple's iPad and iPhone. An injunction hearing is scheduled to take place on Sept. 20.
Industry analyst Jeff Kagan, says traditionally cases like the one between Apple and Samsung would result in the winner charging the loser a fee while the devices remain on the market. In this case, however, Kagan says Apple might not be so forgiving.
"There is nothing traditional about this case. I think Apple has it's eyes on Samsung's jugular," Kagan wrote in emailed comments.
Still, Kagan doesn't think this is the end of Samsung in any way.
"Either way this is just a short term problem for Samsung," he said. "I am sure they are busy, behind the scenes, developing their next replacement technology and will update their phones as soon as possible.
Since the jury's decision was announced, Samsung stock has plummeted, while Nokia, RIM and Apple have all seen considerable gains.
In its filing with the court, Apple cited seven patent violations as its reason for requestion the eight Samsung devices be blocked from sale in the United States.
Specically, Apple targeted seven Galaxy devices - Galaxy Prevail, Galaxy S 4G, Galaxy S2 AT&T, Galaxy S2 Skyrocket, Galaxy S2 T-Mobile, Galaxy S2 Epic 4G, Galaxy S Showcase, Galaxy Prevail - as well as the Droid Charge.
Those eight devices are not insignificant. According to documents provided to the court by Samsung, they accounted for $1.3 billion in sales for Samsung during the first half of 2012.
Apple was recently awarded $1.05 billion in damages when a jury decided that Samsung had "wilfully" copied Apple's iPad and iPhone. An injunction hearing is scheduled to take place on Sept. 20.
Industry analyst Jeff Kagan, says traditionally cases like the one between Apple and Samsung would result in the winner charging the loser a fee while the devices remain on the market. In this case, however, Kagan says Apple might not be so forgiving.
"There is nothing traditional about this case. I think Apple has it's eyes on Samsung's jugular," Kagan wrote in emailed comments.
Still, Kagan doesn't think this is the end of Samsung in any way.
"Either way this is just a short term problem for Samsung," he said. "I am sure they are busy, behind the scenes, developing their next replacement technology and will update their phones as soon as possible.
Since the jury's decision was announced, Samsung stock has plummeted, while Nokia, RIM and Apple have all seen considerable gains.
Tuesday
Wednesday
Monday
Wednesday
Site Maintenance- Under Construction
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Verizon to ditch phone plans, go with shared plans
Verizon to ditch most phone plans, introduce plans 'shared' among family members, devices
NEW YORK (AP) -- Verizon Wireless, the nation's largest cellphone company, is dropping nearly all of its phone plans in favor of pricing schemes that allow consumers to share data usage among up to ten phones and other devices.
The new plans will let individuals add non-phone devices like tablets and laptops to their plans, as well as the phones of family members.
The change takes effect June 28.
It's the biggest revamp in wireless pricing in years, and one that's likely to be copied by other carriers. AT&T Inc. has already said that it's looking at introducing shared-data plans soon.
Verizon's new "Share Everything" plans include unlimited phone calls and texting, and will start at $90 per month for one smartphone and 1 gigabyte of data. If used only with a smartphone, "Share Everything" prices are lower than for current plans with unlimited calling and texting, but higher than plans with limited calling and texting.
Bigger savings will come for those who add more devices like tablets to their plans. In such cases, the new pricing system will be cheaper compared to getting separate data plans for each device. That gives Verizon a chance to capitalize on the growing popularity of tablets. Few consumers put tablets on data plans, probably because they dread paying an extra $30 or so per month, on top of their phone bills.
Under "Share Everything," adding a tablet to a plan will cost $10 per month. Adding a USB data stick for a laptop will cost $20.
Verizon's limited-calling and texting plans will disappear, except for one $40-per-month plan intended for "dumb" phones. Verizon is keeping its limited-data plans for single non-phone devices, like the $30 tablet plan.
Current Verizon customers will be able to switch to the new plans or keep their old ones, with one exception. Those who have unlimited-data plans for their smartphones won't be able to move those to new phones, unless they pay the full, unsubsidized price for those phones. (For example, an iPhone 4S that costs $200 with a two-year contract costs $650 unsubsidized, with no contract.)
Verizon stopped signing people up for unlimited-data plans last summer. The industry as a whole is moving away from the plans, since the data capacity of their networks is limited.
Under the new plans, subscribers can stop worrying about monitoring the number of calling minutes or text messages their families use in a month, but they'll have to keep a close eye on data consumption. Verizon will allow subscribers to adjust their data allowance from month to month, but if they go over their monthly allotment, that will cost $15 per gigabyte.
The data allowances start at $50 per month for 1 gigabyte. That's enough for prudent two-smartphone users who use Wi-Fi a lot, but Verizon recommends getting 2 gigabytes for $60. After that, each additional 2 gigabytes cost an extra $10 per month.
Under "Share Everything," Verizon will stop charging extra for letting devices act as "mobile Wi-Fi hotspots." That means subscribers who have a recent smartphone could use it to connect a tablet to the Internet, without paying the extra $10 per month for a tablet.
Verizon had telegraphed the move toward shared plans, but had not revealed the details or pricing.
Verizon Wireless is a joint venture of New York-based phone company Verizon Communications Inc. and Vodafone Group PLC, a British cellphone company with wide international interests.
NEW YORK (AP) -- Verizon Wireless, the nation's largest cellphone company, is dropping nearly all of its phone plans in favor of pricing schemes that allow consumers to share data usage among up to ten phones and other devices.
The new plans will let individuals add non-phone devices like tablets and laptops to their plans, as well as the phones of family members.
The change takes effect June 28.
It's the biggest revamp in wireless pricing in years, and one that's likely to be copied by other carriers. AT&T Inc. has already said that it's looking at introducing shared-data plans soon.
Verizon's new "Share Everything" plans include unlimited phone calls and texting, and will start at $90 per month for one smartphone and 1 gigabyte of data. If used only with a smartphone, "Share Everything" prices are lower than for current plans with unlimited calling and texting, but higher than plans with limited calling and texting.
Bigger savings will come for those who add more devices like tablets to their plans. In such cases, the new pricing system will be cheaper compared to getting separate data plans for each device. That gives Verizon a chance to capitalize on the growing popularity of tablets. Few consumers put tablets on data plans, probably because they dread paying an extra $30 or so per month, on top of their phone bills.
Under "Share Everything," adding a tablet to a plan will cost $10 per month. Adding a USB data stick for a laptop will cost $20.
Verizon's limited-calling and texting plans will disappear, except for one $40-per-month plan intended for "dumb" phones. Verizon is keeping its limited-data plans for single non-phone devices, like the $30 tablet plan.
Current Verizon customers will be able to switch to the new plans or keep their old ones, with one exception. Those who have unlimited-data plans for their smartphones won't be able to move those to new phones, unless they pay the full, unsubsidized price for those phones. (For example, an iPhone 4S that costs $200 with a two-year contract costs $650 unsubsidized, with no contract.)
Verizon stopped signing people up for unlimited-data plans last summer. The industry as a whole is moving away from the plans, since the data capacity of their networks is limited.
Under the new plans, subscribers can stop worrying about monitoring the number of calling minutes or text messages their families use in a month, but they'll have to keep a close eye on data consumption. Verizon will allow subscribers to adjust their data allowance from month to month, but if they go over their monthly allotment, that will cost $15 per gigabyte.
The data allowances start at $50 per month for 1 gigabyte. That's enough for prudent two-smartphone users who use Wi-Fi a lot, but Verizon recommends getting 2 gigabytes for $60. After that, each additional 2 gigabytes cost an extra $10 per month.
Under "Share Everything," Verizon will stop charging extra for letting devices act as "mobile Wi-Fi hotspots." That means subscribers who have a recent smartphone could use it to connect a tablet to the Internet, without paying the extra $10 per month for a tablet.
Verizon had telegraphed the move toward shared plans, but had not revealed the details or pricing.
Verizon Wireless is a joint venture of New York-based phone company Verizon Communications Inc. and Vodafone Group PLC, a British cellphone company with wide international interests.
Monday
Apple Set to Unveil Next-Gen iOS
Apple is expected today to unveil iOS 6 , the company’s next iteration of its mobile operating system at its 5-day annual Worldwide Developers Conference (WWDC).
“We have a great WWDC planned this year and can’t wait to share the latest news about iOS and OS X Mountain Lion with developers,” said Philip Schiller, Apple’s senior vice president of worldwide marketing.
Apple unveiled iOS 5 at last year’s event, and speculation has run rampant recently about what kinds of changes Apple will unveil this year. Reports of deep integration of Facebook and a new Apple maps product are tops on most lists of possibilities.
Ahead of today’s event, Google’s Executive Vice President of Android, Andy Rubin, tweeted last night that Google is currently activating 900,000 Android devices per day. Incidentally, Rubin also put an end to rumors that he might be leaving Google, tweeting, “No plans to leave Google. Oh, and just for meme completeness -- there are over 900,000 android devices activated each day :-)”
Apple will undoubtedly push back against Rubin’s claims during today’s opening keynote at WWDC. The company has a long history of running down its impressive stats, revealing everything from device activation numbers to total number of app downloads.
Apple’s late CEO, Steve Jobs, famously contended that Android’s numbers were inflated, because he said Google included upgrades in its activation numbers, while Apple only includes new activations.
As of the first quarter 2012, Android controlled 56.1 percent of the smartphone market by operating system, according to Gartner. Apple’s iOS followed in second place with 22.9 percent of the market, up from 16.9 percent in the first quarter of 2011.
“We have a great WWDC planned this year and can’t wait to share the latest news about iOS and OS X Mountain Lion with developers,” said Philip Schiller, Apple’s senior vice president of worldwide marketing.
Apple unveiled iOS 5 at last year’s event, and speculation has run rampant recently about what kinds of changes Apple will unveil this year. Reports of deep integration of Facebook and a new Apple maps product are tops on most lists of possibilities.
Ahead of today’s event, Google’s Executive Vice President of Android, Andy Rubin, tweeted last night that Google is currently activating 900,000 Android devices per day. Incidentally, Rubin also put an end to rumors that he might be leaving Google, tweeting, “No plans to leave Google. Oh, and just for meme completeness -- there are over 900,000 android devices activated each day :-)”
Apple will undoubtedly push back against Rubin’s claims during today’s opening keynote at WWDC. The company has a long history of running down its impressive stats, revealing everything from device activation numbers to total number of app downloads.
Apple’s late CEO, Steve Jobs, famously contended that Android’s numbers were inflated, because he said Google included upgrades in its activation numbers, while Apple only includes new activations.
As of the first quarter 2012, Android controlled 56.1 percent of the smartphone market by operating system, according to Gartner. Apple’s iOS followed in second place with 22.9 percent of the market, up from 16.9 percent in the first quarter of 2011.
T-Mobile Readies 1900 MHz HSPA+ Test Network at Moscone
T-Mobile USA is testing an HSPA+ network on its 1900 MHz PCS spectrum at San Francisco’s Moscone Center, where Apple will hold its World Wide Developer Conference (WWDC) next week.
In a statement, T-Mobile said the test network was deployed as part of a routine network upgrade inside Moscone Center and timing ahead of Apple’s event was purely coincidental. The network would allow attendees with an unlocked AT&T iPhone to use T-Mobile’s test network with one of the carrier’s prepaid data plans.
T-Mobile reports that it has over 1 million iPhones on its network already. As part of its $4 billion network modernization initiative, the company plans to refarm its 1900 MHz PCS spectrum, currently devoted to 2G customers, for use in deploying an HSPA+ network that would welcome a more diverse group of unlocked devices onto its network.
The company has said it hopes to have that network rolled out in a number of markets by the end of the year.
Without actually offering the iPhone as part of its portfolio, the question of the day for T-Mobile has been how to attract new customers without Apple’s iconic device.
During a first quarter earnings call, CEO Philipp Humm stressed that 45 percent of T-Mobile's gross customer additions were unsubsidized, SIM-only customers who bring their own devices to the network.
To add some perspective to how bleak T-Mobile USA's fourth quarter 2011 customer losses were, consider that the loss of 510,000 branded contract customers in the first quarter was in fact a 28 percent improvement sequentially.
Apple's WWDC runs from June 11-15 at San Francisco's Moscone Center. Google will hold its IO developers conference at the same location less than two weeks later, from June 27-29.
In a statement, T-Mobile said the test network was deployed as part of a routine network upgrade inside Moscone Center and timing ahead of Apple’s event was purely coincidental. The network would allow attendees with an unlocked AT&T iPhone to use T-Mobile’s test network with one of the carrier’s prepaid data plans.
T-Mobile reports that it has over 1 million iPhones on its network already. As part of its $4 billion network modernization initiative, the company plans to refarm its 1900 MHz PCS spectrum, currently devoted to 2G customers, for use in deploying an HSPA+ network that would welcome a more diverse group of unlocked devices onto its network.
The company has said it hopes to have that network rolled out in a number of markets by the end of the year.
Without actually offering the iPhone as part of its portfolio, the question of the day for T-Mobile has been how to attract new customers without Apple’s iconic device.
During a first quarter earnings call, CEO Philipp Humm stressed that 45 percent of T-Mobile's gross customer additions were unsubsidized, SIM-only customers who bring their own devices to the network.
To add some perspective to how bleak T-Mobile USA's fourth quarter 2011 customer losses were, consider that the loss of 510,000 branded contract customers in the first quarter was in fact a 28 percent improvement sequentially.
Apple's WWDC runs from June 11-15 at San Francisco's Moscone Center. Google will hold its IO developers conference at the same location less than two weeks later, from June 27-29.
Sprint's Clearwire Stake Dips Below 50%
Sprint's stake in Clearwire has dropped past the 50 percent mark, allowing the operator to increase its voting rights without taking on Clearwire's default risk.
Sprint sold off 77.4 million voting shares last June to reduce its liability for Clearwire's debt should the company go into bankruptcy, since its majority stake in Clearwire made it vulnerable to claims from creditors.
Recent fundraising efforts by Clearwire have reduced Sprint's economic interest in the company to below 50 percent, from 54 percent a year ago. The change allowed the company to reclaim full voting rights while avoiding cross-default risk.
"Given recent equity issuances by Clearwire, Sprint’s economic interest has declined to below 50 percent," a Sprint spokesman said today in a statement. "Now that our economic interest has fallen below 50 percent, we are reclaiming our full voting rights so that our voting rights and economic rights are once again aligned."
Sprint has bought back all the shares it gave up a year ago, according to a document Clearwire filed this morning with the Securities and Exchange Commission
Sprint sold off 77.4 million voting shares last June to reduce its liability for Clearwire's debt should the company go into bankruptcy, since its majority stake in Clearwire made it vulnerable to claims from creditors.
Recent fundraising efforts by Clearwire have reduced Sprint's economic interest in the company to below 50 percent, from 54 percent a year ago. The change allowed the company to reclaim full voting rights while avoiding cross-default risk.
"Given recent equity issuances by Clearwire, Sprint’s economic interest has declined to below 50 percent," a Sprint spokesman said today in a statement. "Now that our economic interest has fallen below 50 percent, we are reclaiming our full voting rights so that our voting rights and economic rights are once again aligned."
Sprint has bought back all the shares it gave up a year ago, according to a document Clearwire filed this morning with the Securities and Exchange Commission
Tuesday
Last Lawsuit Dropped Against FCC White Space Order
The last remaining court challenge to the FCC's white space order was withdrawn Monday when the wireless microphone industry formally dismissed its petition for review of the regulations.
The cancellation of the suit removes the last legal hurdle for the regulations, which allow devices to use vacant spectrum between television channels.
The white space spectrum has been touted for a variety of uses, including rural broadband, machine-to-machine connectivity and so-called "Super Wi-Fi." The opening of the white space spectrum in 2010 marked the FCC’s first significant release of unlicensed spectrum in more than two decades.
The Alliance of Resident Theatres and a number of other groups including News Corporation, the National Basketball Association and the National Football League filed a Petition for Review in a District of Columbia Appeals Court in 2009.
The suit reflected concerns that FCC's 2008 white spaces order would create significant reliability issues with wireless microphones, which also use white space spectrum.
Under a second set of FCC white space regulations put forth in 2010, locations where wireless microphones are used, such as theatres and stadiums, can be registered in the FCC's white space database, protecting them from interference from other devices using the unlicensed spectrum.
It also set aside two channels for wireless microphones in 13 major markets. White space devices also must be able to "sense" wireless microphones as an added precaution against interference.
The dismissal of the suit comes one month after the National Association of Broadcasters dropped its petition for review of the 2008 white space order. The court had held both lawsuits in abeyance as the FCC reviewed petitions for its second report and order.
The FCC issued an order addressing the petitions for reconsideration on April 5, resulting in the cancellation of the two remaining complaints against the white space regulations.
The cancellation of the suit removes the last legal hurdle for the regulations, which allow devices to use vacant spectrum between television channels.
The white space spectrum has been touted for a variety of uses, including rural broadband, machine-to-machine connectivity and so-called "Super Wi-Fi." The opening of the white space spectrum in 2010 marked the FCC’s first significant release of unlicensed spectrum in more than two decades.
The Alliance of Resident Theatres and a number of other groups including News Corporation, the National Basketball Association and the National Football League filed a Petition for Review in a District of Columbia Appeals Court in 2009.
The suit reflected concerns that FCC's 2008 white spaces order would create significant reliability issues with wireless microphones, which also use white space spectrum.
Under a second set of FCC white space regulations put forth in 2010, locations where wireless microphones are used, such as theatres and stadiums, can be registered in the FCC's white space database, protecting them from interference from other devices using the unlicensed spectrum.
It also set aside two channels for wireless microphones in 13 major markets. White space devices also must be able to "sense" wireless microphones as an added precaution against interference.
The dismissal of the suit comes one month after the National Association of Broadcasters dropped its petition for review of the 2008 white space order. The court had held both lawsuits in abeyance as the FCC reviewed petitions for its second report and order.
The FCC issued an order addressing the petitions for reconsideration on April 5, resulting in the cancellation of the two remaining complaints against the white space regulations.
Monday
AT&T, Rivals Square Off on Interoperability
AT&T and its smaller competitors faced off on whether the lower 700 MHz band should be made interoperable in statements filed with the FCC late Friday, the deadline for the first round of comments on the issue.
The FCC is considering a proposal to collapse AT&T's band class 17 - comprised of the lower 700 MHz B and C blocks - into band class 12, comprised of the lower 700 MHz A, B and C blocks. The agency has not yet taken up establishing interoperability in the upper 700 MHz band held by Verizon Wireless.
Integrating the two bands could make it easier to roll out LTE service on lower 700 MHz band 12 spectrum, as many regional operators with band 12 spectrum have struggled to find compatible LTE equipment and devices because their band lacks the scale and maturity of the ecosystem for AT&T's band 17. It could also make it easier for regional providers to get LTE roaming.
AT&T argued that the change would open its customers to "substantial" interference problems from the A block, which lacks a guard band between broadcast television transmissions in adjacent Channel 51.
“If we were forced to band 12, we would open up our customers’ LTE devices to interference challenges they don’t see today,” Joan Marsh, vice president of AT&T’s federal regulatory affairs, said in an interview. “We would move from a world where we are protected from interference to one where we would have to try to overcome significant interference issues.”
Tests conducted by Vulcan Wireless showing interference is not a major problem are "unreliable," AT&T said.
"With literally nothing on the benefit side of the scale, any risk of harm should doom the unprecedented regulatory intervention the A Block licensees propose," AT&T said in its comments.
If the FCC puts the proposed interoperability mandate into effect, AT&T says it would have to abandon its development of band 17 LTE devices, overhaul its device design plans and reconfigure its network to add in support for band 12.
AT&T also argued that establishing interoperability would not help band 12 operators with legacy CDMA networks, as AT&T's LTE phones fall back to its GSM network and would have to be redesigned to fall back to CDMA. The Rural Cellular Association, which represents many band 12 licensees, has called that argument a "red herring."
Regional providers including U.S. Cellular and C Spire Wireless, both owners of band 12 licensees, claim that AT&T is overstating the interference issues to maintain its unique band class, precluding its competitors from benefitting from its LTE ecosystem.
"The proponents of Band 17 offered various technical justifications for the creation of that subset band, but real-world testing has shown those justifications were simply a pretext for a band that serves as an anti-competitive tool to further entrench the wireless duopolists," C Spire said.
The interoperability issue goes back to the FCC’s 2008 auction of the 700 MHz band and the 3GPP’s subsequent standards-setting process. When the spectrum was auctioned, the lower 700 MHz A, B and C blocks were a single band, band 12. Smaller providers buying up lower A block and B block licenses expected the equipment and phones they bought would be compatible with the entire band.
But after the auction closed, AT&T and its vendors then asked the 3GPP to create a separate band class for its lower B block and C block holdings to protect it from Channel 51 interference in the A block. The 3GPP agreed to create band 17, and AT&T’s LTE network and devices became incompatible with band 12.
C Spire Wireless recently sued AT&T, Motorola Mobility and Qualcomm over the interoperability issue, alleging the three firms colluded to manipulate the standards-setting process and delay development of equipment and devices for band 12. The Mississippi-based provider has been unable to use the band 12 spectrum it paid $191.5 million for at the FCC's 2008 auction because it can't procure compatible smartphones. The LTE network it plans to launch in September will instead run on its AWS and PCS holdings, a strategy that gives it less headroom to handle customers' data demands.
The FCC is considering a proposal to collapse AT&T's band class 17 - comprised of the lower 700 MHz B and C blocks - into band class 12, comprised of the lower 700 MHz A, B and C blocks. The agency has not yet taken up establishing interoperability in the upper 700 MHz band held by Verizon Wireless.
Integrating the two bands could make it easier to roll out LTE service on lower 700 MHz band 12 spectrum, as many regional operators with band 12 spectrum have struggled to find compatible LTE equipment and devices because their band lacks the scale and maturity of the ecosystem for AT&T's band 17. It could also make it easier for regional providers to get LTE roaming.
AT&T argued that the change would open its customers to "substantial" interference problems from the A block, which lacks a guard band between broadcast television transmissions in adjacent Channel 51.
“If we were forced to band 12, we would open up our customers’ LTE devices to interference challenges they don’t see today,” Joan Marsh, vice president of AT&T’s federal regulatory affairs, said in an interview. “We would move from a world where we are protected from interference to one where we would have to try to overcome significant interference issues.”
Tests conducted by Vulcan Wireless showing interference is not a major problem are "unreliable," AT&T said.
"With literally nothing on the benefit side of the scale, any risk of harm should doom the unprecedented regulatory intervention the A Block licensees propose," AT&T said in its comments.
If the FCC puts the proposed interoperability mandate into effect, AT&T says it would have to abandon its development of band 17 LTE devices, overhaul its device design plans and reconfigure its network to add in support for band 12.
AT&T also argued that establishing interoperability would not help band 12 operators with legacy CDMA networks, as AT&T's LTE phones fall back to its GSM network and would have to be redesigned to fall back to CDMA. The Rural Cellular Association, which represents many band 12 licensees, has called that argument a "red herring."
Regional providers including U.S. Cellular and C Spire Wireless, both owners of band 12 licensees, claim that AT&T is overstating the interference issues to maintain its unique band class, precluding its competitors from benefitting from its LTE ecosystem.
"The proponents of Band 17 offered various technical justifications for the creation of that subset band, but real-world testing has shown those justifications were simply a pretext for a band that serves as an anti-competitive tool to further entrench the wireless duopolists," C Spire said.
The interoperability issue goes back to the FCC’s 2008 auction of the 700 MHz band and the 3GPP’s subsequent standards-setting process. When the spectrum was auctioned, the lower 700 MHz A, B and C blocks were a single band, band 12. Smaller providers buying up lower A block and B block licenses expected the equipment and phones they bought would be compatible with the entire band.
But after the auction closed, AT&T and its vendors then asked the 3GPP to create a separate band class for its lower B block and C block holdings to protect it from Channel 51 interference in the A block. The 3GPP agreed to create band 17, and AT&T’s LTE network and devices became incompatible with band 12.
C Spire Wireless recently sued AT&T, Motorola Mobility and Qualcomm over the interoperability issue, alleging the three firms colluded to manipulate the standards-setting process and delay development of equipment and devices for band 12. The Mississippi-based provider has been unable to use the band 12 spectrum it paid $191.5 million for at the FCC's 2008 auction because it can't procure compatible smartphones. The LTE network it plans to launch in September will instead run on its AWS and PCS holdings, a strategy that gives it less headroom to handle customers' data demands.
Samsung Galaxy S III hits Sprint, T-Mobile on June 21
Credit- (CNET)
Samsung Electronics' latest flagship smartphone, the Galaxy S III, will arrive at Sprint Nextel and T-Mobile USA on June 21.
At Sprint, the highly anticipated smartphone will cost $199.99 for the 16 gigabyte version, and $249.99 for the 32GB version. T-Mobile also confirmed it would arrive on the same day, but didn't provide pricing information.
U.S. Cellular will also get the phone, but it doesn't launch with the regional carrier until July.
Samsung is preparing for a major launch of the Galaxy S III, with Verizon Wireless and AT&T also committing to selling the phone this summer. Over the past two years, Samsung has worked to build up the Galaxy S brand. It now stands as the second most line of smartphones behind Apple's iPhone.
That Samsung is selling the phone in the U.S. speaks to the strength of the Galaxy S name. When the phones first emerged here, the carriers insisted upon slight tweaks and variations to the device, allowing each carrier to stand apart. Even the second generation got slight tweaks, including a different name at Sprint, with Verizon opting to skip the phone entirely.
Like the iPhone, the Galaxy S III is consistent across carriers.
The Galaxy S III will come with a dual-core Snapdragon processor optimized for 4G LTE network, a slight change from the quad-core processor that the international version uses. That's because there currently aren't any quad-core processors that play well with cellular radios, similar to the situation with the HTC One X.
The Galaxy S III is a slim handset with a 4.8-inch HD Super AMOLED display. It supports 4G LTE and HSPA+ 42 speeds, has an 8-megapixel camera (hands on) with 1080p HD video capture and playback, and a bevy of software features to complement and enhance Android's Ice Cream Sandwich operating system.
Samsung has also given the Galaxy S III 2GB of RAM and a very large, removable 2100mAh battery. There will be support for 16GB or 32GB of expandable memory, depending on the carrier, it seems.
Another nice touch, the Galaxy S III is topped with Gorilla Glass 2.0, a stronger, thinner type of the premium glass brand that Corning, Gorilla Glass' maker, unveiled this past January at CES.
Thursday
Apple’s Cook Talks Jobs, Products at D10
Apple CEO Tim Cook remained true to the company's culture of secrecy yesterday in an interview at The Wall Street Journal's All Things Digital D10 conference.
"Never have I seen the things I can't talk about today," Cook said, according to a transcript provided by MacRumors. "The juices are flowing. We have some incredible things coming out."
The comments come ahead of Apple's upcoming World Wide Developer Conference (WWDC), where the company typically unveils an update to its mobile operating system while new hardware introductions are also a possibility.
When asked by the Journal's Walt Mossberg what’s coming at the conference, Cook remained true to form. “That's a great question, but I'm not going to answer it,” he said.
Cook commented on a number of different Apple products. Specifically, he said that the iPad is still in the “first inning,” a particularly mysterious comment given recent rumors that the company is thinking about a smaller iPad, possibly in the 7.5-inch size range.
Cook said that he’s been laughed at by many for saying in the past that he believed the tablet market would eventually exceed the PC market. “I bet there's a lot of people in this audience that use their iPad a lot more than they use their computer,” Cook said. “And I love my Mac. But I find myself spending more and more time on my iPad.”
On the AppleTV, a product that many are saying Apple has plans to expand upon in ways that will revolutionize the way people view television in the same way the iPod revamped the music industry, Cook echoed former Apple CEO Steve Jobs’ comment on the product, saying it’s a work in progress.
“I love the product. But I think Apple TV is more something that you keep pulling the string to see where it goes,” he said.
While Cook might have been guarded about Apple’s future products, his talk was an interesting glimpse of a CEO who is beginning to shape his own place beneath the long shadow of his predecessor. Just this past week, Cook turned down $75 million in dividends owed to him, at a time when even CEOs who have left companies in shambles exit with huge gold parachutes.
Cook credited Jobs as a “genius” and “visionary,” saying he “was an original and there isn't another one of those being made.” And while Jobs was undoubtedly the lifeblood at Apple, Cook maintains that he left behind a supporting cast that will carry on his legacy, noting that no one person could do what Apple has done.
“You could have an ‘S’ on your chest and a cape and you couldn't do it all,” Cook said. “[Jobs] brought great people to the company and set a standard for who they brought in. That built an incredible company… I wouldn't get overly focused on who does what piece. The company doing all the things we're doing, there are a lot of key people.”
So what do we know about Apple that we didn’t know before Cook took the stage at D10? Not a lot, but there are a couple of things that hadn’t previously been officially confirmed. For instance, the ‘S’ in the iPhone 4S stands for ‘Siri,’ while the ‘S’ in the iPhone 3GS stands for ‘Speed.’
The world undoubtedly will find out more from Apple on June 11, when Cook takes the stage with some of those “incredible things” he can’t talk about.
"Never have I seen the things I can't talk about today," Cook said, according to a transcript provided by MacRumors. "The juices are flowing. We have some incredible things coming out."
The comments come ahead of Apple's upcoming World Wide Developer Conference (WWDC), where the company typically unveils an update to its mobile operating system while new hardware introductions are also a possibility.
When asked by the Journal's Walt Mossberg what’s coming at the conference, Cook remained true to form. “That's a great question, but I'm not going to answer it,” he said.
Cook commented on a number of different Apple products. Specifically, he said that the iPad is still in the “first inning,” a particularly mysterious comment given recent rumors that the company is thinking about a smaller iPad, possibly in the 7.5-inch size range.
Cook said that he’s been laughed at by many for saying in the past that he believed the tablet market would eventually exceed the PC market. “I bet there's a lot of people in this audience that use their iPad a lot more than they use their computer,” Cook said. “And I love my Mac. But I find myself spending more and more time on my iPad.”
On the AppleTV, a product that many are saying Apple has plans to expand upon in ways that will revolutionize the way people view television in the same way the iPod revamped the music industry, Cook echoed former Apple CEO Steve Jobs’ comment on the product, saying it’s a work in progress.
“I love the product. But I think Apple TV is more something that you keep pulling the string to see where it goes,” he said.
While Cook might have been guarded about Apple’s future products, his talk was an interesting glimpse of a CEO who is beginning to shape his own place beneath the long shadow of his predecessor. Just this past week, Cook turned down $75 million in dividends owed to him, at a time when even CEOs who have left companies in shambles exit with huge gold parachutes.
Cook credited Jobs as a “genius” and “visionary,” saying he “was an original and there isn't another one of those being made.” And while Jobs was undoubtedly the lifeblood at Apple, Cook maintains that he left behind a supporting cast that will carry on his legacy, noting that no one person could do what Apple has done.
“You could have an ‘S’ on your chest and a cape and you couldn't do it all,” Cook said. “[Jobs] brought great people to the company and set a standard for who they brought in. That built an incredible company… I wouldn't get overly focused on who does what piece. The company doing all the things we're doing, there are a lot of key people.”
So what do we know about Apple that we didn’t know before Cook took the stage at D10? Not a lot, but there are a couple of things that hadn’t previously been officially confirmed. For instance, the ‘S’ in the iPhone 4S stands for ‘Siri,’ while the ‘S’ in the iPhone 3GS stands for ‘Speed.’
The world undoubtedly will find out more from Apple on June 11, when Cook takes the stage with some of those “incredible things” he can’t talk about.
Wednesday
HTC One X and EVO 4G LTE clear Customs, still no official Sprint launch date
Summary: The two latest HTC Android devices are now shipping through Customs and should be arriving at stores soon. Pre-orders arrived for Sprint customers, but an updated in-store launch date has not been announced.
A couple of weeks ago, the major Sprint launch of the HTC EVO 4G LTE was held up due to enforcement of an injunction resulting from an Apple lawsuit. According to The Verge the HTC One X and HTC EVO 4G LTE have now been cleared by US customs and should be available for US customers soon. I know that pre-orders for the Sprint EVO 4G LTE were delivered as I refused shipment of mine because I just couldn’t handle the slow data speeds with an unknown rollout of LTE in my area.
James covered the workaround that HTC took in regards to hyperlinks and the patent that Apple filed suit against. I actually saw these settings a while ago in the HTC One X so the devices really should not have been held up as they were in compliance from the beginning. We still do not have an official launch date for the HTC EVO 4G LTE from Sprint, but as I said pre-order customers are getting the devices now. You should be able to pick up the HTC One X at an AT&T store too as these were available for a while, but the restock was held up by Customs.
It’s a shame that the devices were already modified by HTC, but were still held up since Sprint had spent quite a bit of money advertising the big pre-Memorial day launch of the HTC EVO 4G LTE and the delay may have ended up losing customers. Also, HTC and Sprint sent out free cases to those who pre-ordered the device and even though I refused shipment I received one too. I may be giving it away on Twitter soon if I can’t figure out who to return it to at HTC.
A couple of weeks ago, the major Sprint launch of the HTC EVO 4G LTE was held up due to enforcement of an injunction resulting from an Apple lawsuit. According to The Verge the HTC One X and HTC EVO 4G LTE have now been cleared by US customs and should be available for US customers soon. I know that pre-orders for the Sprint EVO 4G LTE were delivered as I refused shipment of mine because I just couldn’t handle the slow data speeds with an unknown rollout of LTE in my area.
James covered the workaround that HTC took in regards to hyperlinks and the patent that Apple filed suit against. I actually saw these settings a while ago in the HTC One X so the devices really should not have been held up as they were in compliance from the beginning. We still do not have an official launch date for the HTC EVO 4G LTE from Sprint, but as I said pre-order customers are getting the devices now. You should be able to pick up the HTC One X at an AT&T store too as these were available for a while, but the restock was held up by Customs.
It’s a shame that the devices were already modified by HTC, but were still held up since Sprint had spent quite a bit of money advertising the big pre-Memorial day launch of the HTC EVO 4G LTE and the delay may have ended up losing customers. Also, HTC and Sprint sent out free cases to those who pre-ordered the device and even though I refused shipment I received one too. I may be giving it away on Twitter soon if I can’t figure out who to return it to at HTC.
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Is Facebook dumb for wanting a smartphone?
Summary: Most agree that it is not a matter of can Facebook build a phone but should they? Zuckerberg seems to think so.
The New York Times is reporting that Facebook is again trying to build a smartphone (again).
Based on the recent headlines, most are betting against Facebook’s phone success with headlines like “The Most ill-fated idea since the Palm Pre” from and TechCrunch’s Alexia Tsotsis’ writing, “It’ll be a miracle if the Facebook phone doesn’t suck”.
Most agree that it is not a matter of can Facebook build a phone (most agree they can’t) but should they?
Many are asking is there even a need for a Facebook phone? Mark Zuckerberg seems to think so.
Facebook is constantly optimizing, making the product better, while trying to increase their customer base. That may have been a good strategy when you only had the private equity folks to impress, but now that Facebook is publicly traded company they no doubt feel a substantial increase in pressure to grow the pie - rather than simply producing improvements or variants of their core product.
To live up to expectations and hype, Facebook needs not only to innovate, but to do so in a way that is transformational, bypassing adjacent opportunities altogether. Firms who are able to pull this off are very well rewarded (think of iTunes). Those who are not, well, they stand to lose a lot of money.
Much of the criticism leveled at Facebook is that they have no track record of producing anything like a phone. Hardware and software development are completely different endeavors with vastly differing skill sets.
To that end, Facebook has been reportedly hiring up former Apple iPhone and iPad engineers. While that may seem like a good idea, hiring former Apple employees resulted in both a very nice touchscreen smartphone and the death of the Palm Pre. A smartphone that I owned at one time.
Clearly to make money at the smartphone business Facebook will need margins like Apple or Samsung who fragmented the Android market. Both companies have been at the hardware game for years, and Facebook will be starting so far behind the leaders that whatever they produce will need to be a game changer.
All of this, I agree with. Facebook developing software, I can get behind. Facebook producing, selling and supporting hardware, well, they are just so far out of their league that it is improbable.
Regardless, many are suggesting that Facebook partner up with a hardware vendor. They already have the operating system which includes all of the basics, not to mention everything that comes from the recent Instagram purchase. But I don’t see Facebook as the partnering type. They are more apt to make an acquisition.
Like the recently completed the acquisition of Motorola Mobility by Google, I suspect that Facebook will soon announce the intention to acquire some hardware vendor.
Facebook certainly has the funds to purchase any number of small hardware providers, thanks to their recent IPO. The question is, which one? If you know any industry insiders, now is the time to buy them lunch and get the inside scoop!
The New York Times is reporting that Facebook is again trying to build a smartphone (again).
Based on the recent headlines, most are betting against Facebook’s phone success with headlines like “The Most ill-fated idea since the Palm Pre” from and TechCrunch’s Alexia Tsotsis’ writing, “It’ll be a miracle if the Facebook phone doesn’t suck”.
Most agree that it is not a matter of can Facebook build a phone (most agree they can’t) but should they?
Many are asking is there even a need for a Facebook phone? Mark Zuckerberg seems to think so.
Facebook is constantly optimizing, making the product better, while trying to increase their customer base. That may have been a good strategy when you only had the private equity folks to impress, but now that Facebook is publicly traded company they no doubt feel a substantial increase in pressure to grow the pie - rather than simply producing improvements or variants of their core product.
To live up to expectations and hype, Facebook needs not only to innovate, but to do so in a way that is transformational, bypassing adjacent opportunities altogether. Firms who are able to pull this off are very well rewarded (think of iTunes). Those who are not, well, they stand to lose a lot of money.
Much of the criticism leveled at Facebook is that they have no track record of producing anything like a phone. Hardware and software development are completely different endeavors with vastly differing skill sets.
To that end, Facebook has been reportedly hiring up former Apple iPhone and iPad engineers. While that may seem like a good idea, hiring former Apple employees resulted in both a very nice touchscreen smartphone and the death of the Palm Pre. A smartphone that I owned at one time.
Clearly to make money at the smartphone business Facebook will need margins like Apple or Samsung who fragmented the Android market. Both companies have been at the hardware game for years, and Facebook will be starting so far behind the leaders that whatever they produce will need to be a game changer.
All of this, I agree with. Facebook developing software, I can get behind. Facebook producing, selling and supporting hardware, well, they are just so far out of their league that it is improbable.
Regardless, many are suggesting that Facebook partner up with a hardware vendor. They already have the operating system which includes all of the basics, not to mention everything that comes from the recent Instagram purchase. But I don’t see Facebook as the partnering type. They are more apt to make an acquisition.
Like the recently completed the acquisition of Motorola Mobility by Google, I suspect that Facebook will soon announce the intention to acquire some hardware vendor.
Facebook certainly has the funds to purchase any number of small hardware providers, thanks to their recent IPO. The question is, which one? If you know any industry insiders, now is the time to buy them lunch and get the inside scoop!
Samsung Begins Europe Sales of Latest Smartphone
SEOUL, South Korea (AP) — Samsung Electronics Co., the world's largest maker of mobile phones, said its third-generation Galaxy S smartphone went on sale Tuesday in 28 European and Middle Eastern countries, hoping to cement its lead over Apple's iPhone.
The Galaxy S III smartphones hit the shelves in countries including France and Britain. By the end of July, nearly 300 mobile operators around the world will be selling the device.
Buyers of the new smartphone in five European countries will also be the first to get their hands on Samsung's music streaming service.
In Germany, France, Spain, Italy and Britain, the Galaxy S III will be shipped with access to the Music Hub — an iTune's like service allowing users to listen to music as well as buy and store it. Samsung said the service has a 19-million song catalog.
Samsung said the initial response to the new smartphone was positive. At Vodafone Group, pre-sale orders for the Galaxy S III outstripped those of any previous Android-based smartphones, according to Samsung.
The Galaxy series of smartphones is widely acknowledged in the industry as a success for Samsung, turning it from a smartphone also-ran into a viable competitor with the iPhone from Apple Inc.
While Apple has kept the screen size of the iPhone the same in every upgrade since 2007, Samsung increased the screen size of its highest-end smartphone in its two major updates. The latest Galaxy phone screen is nearly twice as big as the iPhone screen.
The 4.8-inch S III also features more computing power that supports voice commands and an eye-movement tracking feature to keep the screen from dimming.
The music service, which is available in free and paid versions, can recommend new tunes based on a user's listening preferences.
The paid service allows uploading and storage of music files on servers that can be accessed from more than one Internet-connected device at a cost of €9.99 per month, Samsung said.
Unlike Apple, which uses its in-house operating system and iTunes music service, Samsung has relied on Google's Android operating system for its flagship smartphones.
Samsung's music service is a result of its acquisition of mSpot Inc., a Palo Alto, California-based provider of music and movie streaming services on the Web and mobile devices.
The Korean firm has been making efforts to increase homemade mobile content, such as its own messaging application, hoping that these features will boost consumer loyalty.
Samsung overtook Apple in smartphone sales for the first time in the first three months of this year, according to research firm Strategy Analytics. The Suwon, South Korea-based company sold 44.5 million smartphones in the January-March quarter, compared with Apple's 35.1 million iPhone sales.
Market watchers expect that Apple may use its annual conference for developers next month to announce the yearly upgrade to the iPhone, which then can go on sale as early as July.
Aside from being big rivals in the smartphone market, Samsung and Apple have also a close business relationship. Samsung supplies mobile chips and display panels for iPhones and iPad tablet computers, counting Apple among its biggest clients.
The Galaxy S III smartphones hit the shelves in countries including France and Britain. By the end of July, nearly 300 mobile operators around the world will be selling the device.
Buyers of the new smartphone in five European countries will also be the first to get their hands on Samsung's music streaming service.
In Germany, France, Spain, Italy and Britain, the Galaxy S III will be shipped with access to the Music Hub — an iTune's like service allowing users to listen to music as well as buy and store it. Samsung said the service has a 19-million song catalog.
Samsung said the initial response to the new smartphone was positive. At Vodafone Group, pre-sale orders for the Galaxy S III outstripped those of any previous Android-based smartphones, according to Samsung.
The Galaxy series of smartphones is widely acknowledged in the industry as a success for Samsung, turning it from a smartphone also-ran into a viable competitor with the iPhone from Apple Inc.
While Apple has kept the screen size of the iPhone the same in every upgrade since 2007, Samsung increased the screen size of its highest-end smartphone in its two major updates. The latest Galaxy phone screen is nearly twice as big as the iPhone screen.
The 4.8-inch S III also features more computing power that supports voice commands and an eye-movement tracking feature to keep the screen from dimming.
The music service, which is available in free and paid versions, can recommend new tunes based on a user's listening preferences.
The paid service allows uploading and storage of music files on servers that can be accessed from more than one Internet-connected device at a cost of €9.99 per month, Samsung said.
Unlike Apple, which uses its in-house operating system and iTunes music service, Samsung has relied on Google's Android operating system for its flagship smartphones.
Samsung's music service is a result of its acquisition of mSpot Inc., a Palo Alto, California-based provider of music and movie streaming services on the Web and mobile devices.
The Korean firm has been making efforts to increase homemade mobile content, such as its own messaging application, hoping that these features will boost consumer loyalty.
Samsung overtook Apple in smartphone sales for the first time in the first three months of this year, according to research firm Strategy Analytics. The Suwon, South Korea-based company sold 44.5 million smartphones in the January-March quarter, compared with Apple's 35.1 million iPhone sales.
Market watchers expect that Apple may use its annual conference for developers next month to announce the yearly upgrade to the iPhone, which then can go on sale as early as July.
Aside from being big rivals in the smartphone market, Samsung and Apple have also a close business relationship. Samsung supplies mobile chips and display panels for iPhones and iPad tablet computers, counting Apple among its biggest clients.
Tuesday
FCC Action Clears Sprint CDMA, LTE on 800 MHz
Sprint will be able to use its 800 MHz spectrum for CDMA and LTE after the FCC passed regulations yesterday permitting more flexible use of the band.
The FCC had previously limited 800 MHz licensees to 25 KHz channels with a bandwidth of 20 KHz, regulations which effectively precluded Sprint from using its 800 MHz spectrum for anything other than iDEN.
“Today’s unanimous vote by the FCC paves the way for Sprint and other 800 MHz licensees to deploy advanced 3G and 4G technologies in the band," Sprint government affairs executive Vonya McCann said in a statement.
Sprint petitioned the FCC for the rule change after it decided to shut down its iDEN network and repurpose the vacant 800 MHz spectrum for CDMA and LTE. SouthernLINC Wireless, a regional iDEN operator which also holds 800 MHz licenses, joined Sprint in pushing the government to open the band to additional uses.
Thursday's rule change will allow Sprint to move forward with its spectrum refarming plans, a key component of its network upgrade project.
The operator is currently using its 1900 MHz spectrum for LTE and plans to add in 800 MHz as early as next year. Sprint plans to use carrier aggregation, a feature of LTE-Advanced, to bond its 800 MHz and 1900 MHz holdings into a single channel for its LTE network.
Sprint has so far taken about 1,900 iDEN sites off the air, and expects to decommission 9,600 by the end of the third quarter.
Sprint first petitioned the FCC for a rule change to exceed the channel spacing and bandwidth requirements of its 800 MHz SMR licenses in June of last year. The FCC denied its request for a declaratory ruling but issued a notice of proposed rulemaking that led to the regulations passed this week.
There were few opponents to the proposed regulations, save for some groups expressing concern about potential harmful interference with public safety operations in the 800 MHz band. The FCC's new rules include provisions to protect public safety users in the band.
The FCC had previously limited 800 MHz licensees to 25 KHz channels with a bandwidth of 20 KHz, regulations which effectively precluded Sprint from using its 800 MHz spectrum for anything other than iDEN.
“Today’s unanimous vote by the FCC paves the way for Sprint and other 800 MHz licensees to deploy advanced 3G and 4G technologies in the band," Sprint government affairs executive Vonya McCann said in a statement.
Sprint petitioned the FCC for the rule change after it decided to shut down its iDEN network and repurpose the vacant 800 MHz spectrum for CDMA and LTE. SouthernLINC Wireless, a regional iDEN operator which also holds 800 MHz licenses, joined Sprint in pushing the government to open the band to additional uses.
Thursday's rule change will allow Sprint to move forward with its spectrum refarming plans, a key component of its network upgrade project.
The operator is currently using its 1900 MHz spectrum for LTE and plans to add in 800 MHz as early as next year. Sprint plans to use carrier aggregation, a feature of LTE-Advanced, to bond its 800 MHz and 1900 MHz holdings into a single channel for its LTE network.
Sprint has so far taken about 1,900 iDEN sites off the air, and expects to decommission 9,600 by the end of the third quarter.
Sprint first petitioned the FCC for a rule change to exceed the channel spacing and bandwidth requirements of its 800 MHz SMR licenses in June of last year. The FCC denied its request for a declaratory ruling but issued a notice of proposed rulemaking that led to the regulations passed this week.
There were few opponents to the proposed regulations, save for some groups expressing concern about potential harmful interference with public safety operations in the 800 MHz band. The FCC's new rules include provisions to protect public safety users in the band.
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PayOne Adds Direct Carrier Billing Through T-Mobile
PayOne, formerly PaymentOne Corporation, a provider of mobile payments solutions, today announced a direct carrier billing relationship with T-Mobile USA.
PayOne's agreement with T-Mobile further expands the company's worldwide PayOne Global Carrier Network (PGCN) and direct footprint.
"We are pleased to be working closely with T-Mobile to expand mobile payments, as T-Mobile has always been an innovator, and to provide their consumers with a simplified experience for life's regular habits," said Brad Singer, executive vice president of PayOne, in a statement.
PayOne's Mobile payment services and PGCN currently connects over 4 billion consumers with merchants in over 80 countries across 1200 operators. PayOne's solutions span virtual currency and goods, digital services, mobile in-app purchasing and remote convenience purchases such as city parking or movie tickets.
"The PayOne partnership enables us to expand the digital goods and services we enable our customers to buy with their phone," said Ian McKerlich, vice president Product Development, T-Mobile USA, in a statement. "We look forward to working with PayOne and expanding the utility of mobile payments."
PayOne's agreement with T-Mobile further expands the company's worldwide PayOne Global Carrier Network (PGCN) and direct footprint.
"We are pleased to be working closely with T-Mobile to expand mobile payments, as T-Mobile has always been an innovator, and to provide their consumers with a simplified experience for life's regular habits," said Brad Singer, executive vice president of PayOne, in a statement.
PayOne's Mobile payment services and PGCN currently connects over 4 billion consumers with merchants in over 80 countries across 1200 operators. PayOne's solutions span virtual currency and goods, digital services, mobile in-app purchasing and remote convenience purchases such as city parking or movie tickets.
"The PayOne partnership enables us to expand the digital goods and services we enable our customers to buy with their phone," said Ian McKerlich, vice president Product Development, T-Mobile USA, in a statement. "We look forward to working with PayOne and expanding the utility of mobile payments."
Sprint Gets $1B Loan for Ericsson Network Gear
Sprint has landed a $1 billion credit facility that will provide extra cash for its network upgrade project.
The money will be used to buy equipment from Ericsson, one of Sprint's three vendors for the overhaul.
Deutsche Bank and a group of other banks are providing the loan, due in March 2017. Separately, Sprint announced it was paying off $1 billion of debt maturities due next year.
Sprint has raised about $7 billion in debt since late last year to meet a funding gap caused by its $15.5 billion gamble in the iPhone and its costly infrastructure project.
The investments are at the center of Sprint’s efforts to revitalize its business. The network modernization will replace Sprint’s iDEN network with a CDMA-based push-to-talk service and allow Sprint to roll out LTE.
Sprint already has come out with its first LTE devices. Its LTE network is slated for a mid-year launch in six major cities including Houston, Dallas, San Antonio, Atlanta, Kansas City and Baltimore.
It raised $4 billion in debt last November and tapped the capital markets for another $2 billion in February to help pay off some of its debt, pay for its network build and provide potential funding for Clearwire.
The debt is at the high range of the amount of money Sprint told investors last fall it would have to raise to keep its business running through 2013, when it estimated it would need between $5 billion and $7 billion to address its funding requirements.
Sprint's stock has taken a beating over the past year, losing about half its value from June 2011. Despite improving some of its customer metrics and selling 1.5 million iPhones, the company's losses grew to $836 million in the first quarter, from $439 million the previous year.
The money will be used to buy equipment from Ericsson, one of Sprint's three vendors for the overhaul.
Deutsche Bank and a group of other banks are providing the loan, due in March 2017. Separately, Sprint announced it was paying off $1 billion of debt maturities due next year.
Sprint has raised about $7 billion in debt since late last year to meet a funding gap caused by its $15.5 billion gamble in the iPhone and its costly infrastructure project.
The investments are at the center of Sprint’s efforts to revitalize its business. The network modernization will replace Sprint’s iDEN network with a CDMA-based push-to-talk service and allow Sprint to roll out LTE.
Sprint already has come out with its first LTE devices. Its LTE network is slated for a mid-year launch in six major cities including Houston, Dallas, San Antonio, Atlanta, Kansas City and Baltimore.
It raised $4 billion in debt last November and tapped the capital markets for another $2 billion in February to help pay off some of its debt, pay for its network build and provide potential funding for Clearwire.
The debt is at the high range of the amount of money Sprint told investors last fall it would have to raise to keep its business running through 2013, when it estimated it would need between $5 billion and $7 billion to address its funding requirements.
Sprint's stock has taken a beating over the past year, losing about half its value from June 2011. Despite improving some of its customer metrics and selling 1.5 million iPhones, the company's losses grew to $836 million in the first quarter, from $439 million the previous year.
Friday
T-Mobile's Front Line Strategy: Retail Expansion
Much of the focus on T-Mobile USA's turnaround efforts has been on its LTE launch and rebranding.
But beyond the new mobile broadband service and the symbolic change of its spokeswoman's wardrobe lies the front lines – its retail stores.
T-Mobile is moving aggressively to open more brick-and-mortar locations. A big part of its strategy is what it calls its "T-Mobile Premium Retailer" program, or TPR, an initiative that started in 2007 to allow outside companies to run T-Mobile-branded retail stores.
The locations run through the Premium Retailer program are identical in appearance to stores owned by T-Mobile. That’s a big difference from independent dealers, who typically go with their own store formats.
To a lay person, there's no way to distinguish between a store owned by T-Mobile and a store operated by a third party through the TPR program – same employee dress code, same training, same inventory, same internal systems.
The only difference is that they're owned by entrepreneurs with knowledge of the local market instead of corporate employees in far-off offices.
At the beginning of 2011, T-Mobile had 450 stores operating through the program. It opened 375 locations last year during the turmoil of the proposed AT&T merger and is on track to open another 375 stores this year. It passed the 1,000 mark this week with the opening of a store in Pompano Beach, Fla.
By the end of 2012, it plans to have 1,200 TPR stores nationwide. That's more than one-third of the 2,000 company-owned locations it expects to have open by year-end.
Michael Sentowski, vice president of national dealer programs, said in an interview that before the TPR program got started, T-Mobile was "lacking distribution."
"Our competitors had a stronger foothold in branded distribution," he said. "We felt the best way to get there was with third-party partners."
Sentowski said the retail stores that run through T-Mobile's Premium Retailer program are integral to the operator's performance goals.
"It all comes down to driving churn down and loyalty up," he said. "We've got to continue to build stores where our customer base is. That's something we've been lacking."
T-Mobile has been adding TPR stores at a faster clip than company-owned stores. An average of 240 TPR stores have been opened each year since the program got its start, compared to an average of 100 company-owned locations opened each year.
Neither Sentowski nor a T-Mobile spokeswoman could comment specifically on the program's financial benefit to the operator nor could say how much autonomy store owners had when making decisions.
Carl Ducato, president of TPR participant Catcorp, told Wireless Week it was "obvious it was going to be very successful" when he sat down with T-Mobile to discuss the program.
The initiative was so compelling that Catcorp decided to exit its businesses selling phones for other providers and make T-Mobile its exclusive focus.
Ducato declined to comment on specifics of Catcorp's contract with T-Mobile, but said Catcorp gets paid on commission for products and services.
Since it opened its first T-Mobile-branded stores in June 2009, Catcorp has added about 40 additional stores in the Miami, Atlanta, Tulsa, Wichita, Kan., and Springfield, Mo., markets.
"We're committed to growing our business," Ducato said. More store openings are planned for later this year as part of T-Mobile's broader expansion efforts.
T-Mobile is also in the process of remodeling both company-owned and TPR stores. It overhauled 700 stores in 2011 with a new design and will remodel the remainder of its locations this year.
T-Mobile may be in the midst of a major retail expansion, but that doesn't mean it's indiscriminate in where it opens new stores. Like other operators, it has detailed specifications for where new sites should be located.
According to documents provided by the operator, potential sites should be located near shopping centers serving minimum populations of 75,000 within three miles of the store.
High-traffic areas with car counts between 25,000 and 50,000 per day are "ideal," and T-Mobile prefers areas with a strong residential and daytime population with a median household income of $40,000 or more. Other characteristics sought in a potential site include shared parking, signage, and square footage between 1,000 to 2,500 square feet with at least 20 feet of frontage.
But beyond the new mobile broadband service and the symbolic change of its spokeswoman's wardrobe lies the front lines – its retail stores.
T-Mobile is moving aggressively to open more brick-and-mortar locations. A big part of its strategy is what it calls its "T-Mobile Premium Retailer" program, or TPR, an initiative that started in 2007 to allow outside companies to run T-Mobile-branded retail stores.
The locations run through the Premium Retailer program are identical in appearance to stores owned by T-Mobile. That’s a big difference from independent dealers, who typically go with their own store formats.
To a lay person, there's no way to distinguish between a store owned by T-Mobile and a store operated by a third party through the TPR program – same employee dress code, same training, same inventory, same internal systems.
The only difference is that they're owned by entrepreneurs with knowledge of the local market instead of corporate employees in far-off offices.
At the beginning of 2011, T-Mobile had 450 stores operating through the program. It opened 375 locations last year during the turmoil of the proposed AT&T merger and is on track to open another 375 stores this year. It passed the 1,000 mark this week with the opening of a store in Pompano Beach, Fla.
By the end of 2012, it plans to have 1,200 TPR stores nationwide. That's more than one-third of the 2,000 company-owned locations it expects to have open by year-end.
Michael Sentowski, vice president of national dealer programs, said in an interview that before the TPR program got started, T-Mobile was "lacking distribution."
"Our competitors had a stronger foothold in branded distribution," he said. "We felt the best way to get there was with third-party partners."
Sentowski said the retail stores that run through T-Mobile's Premium Retailer program are integral to the operator's performance goals.
"It all comes down to driving churn down and loyalty up," he said. "We've got to continue to build stores where our customer base is. That's something we've been lacking."
T-Mobile has been adding TPR stores at a faster clip than company-owned stores. An average of 240 TPR stores have been opened each year since the program got its start, compared to an average of 100 company-owned locations opened each year.
Neither Sentowski nor a T-Mobile spokeswoman could comment specifically on the program's financial benefit to the operator nor could say how much autonomy store owners had when making decisions.
Carl Ducato, president of TPR participant Catcorp, told Wireless Week it was "obvious it was going to be very successful" when he sat down with T-Mobile to discuss the program.
The initiative was so compelling that Catcorp decided to exit its businesses selling phones for other providers and make T-Mobile its exclusive focus.
Ducato declined to comment on specifics of Catcorp's contract with T-Mobile, but said Catcorp gets paid on commission for products and services.
Since it opened its first T-Mobile-branded stores in June 2009, Catcorp has added about 40 additional stores in the Miami, Atlanta, Tulsa, Wichita, Kan., and Springfield, Mo., markets.
"We're committed to growing our business," Ducato said. More store openings are planned for later this year as part of T-Mobile's broader expansion efforts.
T-Mobile is also in the process of remodeling both company-owned and TPR stores. It overhauled 700 stores in 2011 with a new design and will remodel the remainder of its locations this year.
T-Mobile may be in the midst of a major retail expansion, but that doesn't mean it's indiscriminate in where it opens new stores. Like other operators, it has detailed specifications for where new sites should be located.
According to documents provided by the operator, potential sites should be located near shopping centers serving minimum populations of 75,000 within three miles of the store.
High-traffic areas with car counts between 25,000 and 50,000 per day are "ideal," and T-Mobile prefers areas with a strong residential and daytime population with a median household income of $40,000 or more. Other characteristics sought in a potential site include shared parking, signage, and square footage between 1,000 to 2,500 square feet with at least 20 feet of frontage.
Tuesday
Google Takes Over Motorola
Google has appointed Dennis Woodside as CEO of Motorola Mobility, wasting no time taking over control of the company after CEO Larry Page announced this morning via a blog post that Google has officially closed its $12.5 billion acquisition of the handset manufacturer.
Sanjay Jha, the CEO behind the former Motorola Mobility’s turnaround, will stay on to ensure a smooth transition as Woodside takes over control of the company.
Page credited Woodside with increasing Google’s revenue in the U.S. from $10.8 billion to $17.5 billion in less than three years.
Motorola Mobility said in a statement that the acquisition will enable Google to “supercharge the Android ecosystem” and will enhance competition.
Motorola Mobility will remain a licensee of Android and Android will remain open. Google has maintained since announcing the proposed acquisition back in August of 2011 that it will run Motorola Mobility as a separate business.
“Our aim is simple: to focus Motorola Mobility’s remarkable talent on fewer, bigger bets, and create wonderful devices that are used by people around the world,” Woodside said in a statement.
The announcement comes after China’s antitrust ministry announced yesterday that it had approved the acquisition on condition that Google keep Android open for use by other OEMs. China’s caveat presumably has at heart the interest of Chinese OEMs ZTE and Huawei, both of which manufacture phones around the Android operating system.
While Motorola’s handset division is undoubtedly a boon for Google going forward, the company has owned up to coveting Motorola’s extensive patent portfolio, which includes more than 17,000 patents. After losing out on an auction of Nortel's patents, Google had been searching for ways to protect Android from patent litigation.
Sanjay Jha, the CEO behind the former Motorola Mobility’s turnaround, will stay on to ensure a smooth transition as Woodside takes over control of the company.
Page credited Woodside with increasing Google’s revenue in the U.S. from $10.8 billion to $17.5 billion in less than three years.
Motorola Mobility said in a statement that the acquisition will enable Google to “supercharge the Android ecosystem” and will enhance competition.
Motorola Mobility will remain a licensee of Android and Android will remain open. Google has maintained since announcing the proposed acquisition back in August of 2011 that it will run Motorola Mobility as a separate business.
“Our aim is simple: to focus Motorola Mobility’s remarkable talent on fewer, bigger bets, and create wonderful devices that are used by people around the world,” Woodside said in a statement.
The announcement comes after China’s antitrust ministry announced yesterday that it had approved the acquisition on condition that Google keep Android open for use by other OEMs. China’s caveat presumably has at heart the interest of Chinese OEMs ZTE and Huawei, both of which manufacture phones around the Android operating system.
While Motorola’s handset division is undoubtedly a boon for Google going forward, the company has owned up to coveting Motorola’s extensive patent portfolio, which includes more than 17,000 patents. After losing out on an auction of Nortel's patents, Google had been searching for ways to protect Android from patent litigation.
Thursday
MetroPCS Mulls Unlocked LTE iPhone
MetroPCS may consider targeting unlocked iPhones when an LTE version of the device becomes available, executives said at an investor conference today.
The operator does not offer the iPhone and has not encouraged customers to bring unlocked versions of the popular smartphone onto its CDMA network, but that could change if Apple makes the device compatible with LTE, CFO Braxton Carter said at the annual J.P. Morgan Global Technology, Media and Telecom Conference this morning.
"If you have LTE iPhones out there, it could be an opportunity in the future," Carter said.
MetroPCS would not necessarily offer the device itself. Instead, customers with unlocked LTE iPhones could run them on MetroPCS' network. President and COO Tom Keys, who also spoke at the conference, said that the company has "really not tried to go with a flashing of iPhones as a strategy" for its CDMA network.
Rumors about an LTE iPhone have circulated but it is not clear when Apple will come out with the device.
If an LTE-capable iPhone were to materialize, MetroPCS would not be the first operator to try to bring on board unlocked versions of the device. T-Mobile USA estimates more than 1 million iPhones currently run on its network even though the operator itself does not sell the smartphone.
Aside from the hypothetical iPhone, MetroPCS spoke in more concrete terms about its LTE device strategy.
The prepaid provider is working to migrate its customer base off its legacy network onto LTE so it can refarm spectrum currently tied up supporting CDMA. But the plan has been stymied by the lack of low-cost LTE smartphones, a major barrier to getting the company's cost-conscious customer base to buy the new devices.
"We're in a transition period right now as we wait for low-cost LTE handsets," Carter said.
The three LTE smartphones MetroPCS currently offers on its website range from $250 to $330, compared to feature phones starting at about $50. It is working on "three or four" LTE handsets below the $150 range and other devices below the $100 mark, Keys said.
It could be some time before those phones hit shelves, however. Keys said the devices "may not be there by December," the important holiday shopping season. The operator's handset lineup for next year will phase out CDMA devices even as prices drop for the low-end phones.
"We're going to see an opportunity for manufacturers to come out with a really interesting price point on (CDMA) 1X devices but we don’t' want to do that," Keys said. "At the end of 2013, 95 percent of the lineup will be 4G LTE."
It only plans to release one or two feature phones next year, Keys said. He does not anticipate a “forced migration” of its customer base.
MetroPCS expects to finish constructing the remaining 15 percent of its LTE network by the end of the third quarter.
Once the buildout is complete, it will have between 102 million to 104 million people covered within its footprint, Keys said. He declined to list specific speeds of the network, which runs on narrower spectrum than the LTE service of larger providers.
However, Braxton said the company is working on the "densification" of its network in urban areas, using small cells and microwave backhaul to add capacity. The company has cash set aside for buying spectrum and continues to look for opportunities to buy licenses, he said.
The operator does not offer the iPhone and has not encouraged customers to bring unlocked versions of the popular smartphone onto its CDMA network, but that could change if Apple makes the device compatible with LTE, CFO Braxton Carter said at the annual J.P. Morgan Global Technology, Media and Telecom Conference this morning.
"If you have LTE iPhones out there, it could be an opportunity in the future," Carter said.
MetroPCS would not necessarily offer the device itself. Instead, customers with unlocked LTE iPhones could run them on MetroPCS' network. President and COO Tom Keys, who also spoke at the conference, said that the company has "really not tried to go with a flashing of iPhones as a strategy" for its CDMA network.
Rumors about an LTE iPhone have circulated but it is not clear when Apple will come out with the device.
If an LTE-capable iPhone were to materialize, MetroPCS would not be the first operator to try to bring on board unlocked versions of the device. T-Mobile USA estimates more than 1 million iPhones currently run on its network even though the operator itself does not sell the smartphone.
Aside from the hypothetical iPhone, MetroPCS spoke in more concrete terms about its LTE device strategy.
The prepaid provider is working to migrate its customer base off its legacy network onto LTE so it can refarm spectrum currently tied up supporting CDMA. But the plan has been stymied by the lack of low-cost LTE smartphones, a major barrier to getting the company's cost-conscious customer base to buy the new devices.
"We're in a transition period right now as we wait for low-cost LTE handsets," Carter said.
The three LTE smartphones MetroPCS currently offers on its website range from $250 to $330, compared to feature phones starting at about $50. It is working on "three or four" LTE handsets below the $150 range and other devices below the $100 mark, Keys said.
It could be some time before those phones hit shelves, however. Keys said the devices "may not be there by December," the important holiday shopping season. The operator's handset lineup for next year will phase out CDMA devices even as prices drop for the low-end phones.
"We're going to see an opportunity for manufacturers to come out with a really interesting price point on (CDMA) 1X devices but we don’t' want to do that," Keys said. "At the end of 2013, 95 percent of the lineup will be 4G LTE."
It only plans to release one or two feature phones next year, Keys said. He does not anticipate a “forced migration” of its customer base.
MetroPCS expects to finish constructing the remaining 15 percent of its LTE network by the end of the third quarter.
Once the buildout is complete, it will have between 102 million to 104 million people covered within its footprint, Keys said. He declined to list specific speeds of the network, which runs on narrower spectrum than the LTE service of larger providers.
However, Braxton said the company is working on the "densification" of its network in urban areas, using small cells and microwave backhaul to add capacity. The company has cash set aside for buying spectrum and continues to look for opportunities to buy licenses, he said.
T-Mobile Gives Update on Layoff Numbers
T-Mobile USA has revised the number of jobs that will be cut in its latest restructuring round.
The operator had said earlier this week it would lay off 900 workers, but said Wednesday afternoon those cuts will be partially offset by the addition of new employees mainly in the Puget Sound area of Washington, its home state.
It will "move quickly" to hire 550 people, bringing the net number of jobs lost to just 350, less than half the cuts previously estimated.
T-Mobile said the layoffs will not affect its engineers, front-line retail employees or customer service reps in its remaining call centers. Its call center workers were the primary targets of a round of layoffs in March that closed seven facilities and slashed 1,900 jobs.
The new hires will "support the needs of the business and strategic opportunities," T-Mobile said. The operator previously stated it was hiring 1,000 sales reps for its enterprise segment, but clarified yesterday that those positions will take "years" to fill, compared to the near-term horizon for the jobs announced yesterday.
T-Mobile employed about 32,000 people at the end of March, according to the most recent earnings statement of parent company Deutsche Telekom. Its workforce has shrunk nearly 12 percent over the past year.
The operator had said earlier this week it would lay off 900 workers, but said Wednesday afternoon those cuts will be partially offset by the addition of new employees mainly in the Puget Sound area of Washington, its home state.
It will "move quickly" to hire 550 people, bringing the net number of jobs lost to just 350, less than half the cuts previously estimated.
T-Mobile said the layoffs will not affect its engineers, front-line retail employees or customer service reps in its remaining call centers. Its call center workers were the primary targets of a round of layoffs in March that closed seven facilities and slashed 1,900 jobs.
The new hires will "support the needs of the business and strategic opportunities," T-Mobile said. The operator previously stated it was hiring 1,000 sales reps for its enterprise segment, but clarified yesterday that those positions will take "years" to fill, compared to the near-term horizon for the jobs announced yesterday.
T-Mobile employed about 32,000 people at the end of March, according to the most recent earnings statement of parent company Deutsche Telekom. Its workforce has shrunk nearly 12 percent over the past year.
Sprint: Mergers on Back Burner, Not Off the Table
Sprint plans to wait until its finishes upgrading its network before seriously considering merging with another company, but it is not altogether dismissing the possibility of a near-term deal, its top executive said.
Speaking at an investor conference Wednesday, CEO Dan Hesse said the company's primary focus through 2013 would be its $5 billion overhaul project, "then let's talk about consolidation in 2014 when we have all this behind us."
A merger sooner than that "is not ideal" in part because of Sprint's rock-bottom stock price, which has lost about half its value since last summer, but it would consider a merger sooner than that if the "synergies" were right, Hesse said at the annual J.P. Morgan Global Technology, Media and Telecom Conference.
Hesse expressed confidence that the government was open to further consolidation in the wireless industry even after the FCC and Justice Department blocked AT&T from acquiring T-Mobile USA.
Sprint was one of the most vocal opponents to the transaction, claiming it would give AT&T and Verizon a veritable “duopoly” hold on the market, but maintains that mergers and acquisitions could be beneficial for other providers like itself.
“Washington would be receptive to consolidation to provide more balance" to the dominant position of AT&T and Verizon, Hesse said. "I honestly believe that both the DOJ and FCC have an open mind with respect to additional consolidation and want to see a competitive wireless industry."
Sprint was said to have been close to a merger agreement with MetroPCS in February, only to have its board of directors nix the deal at the last minute.
Hesse’s comments came after rumors circulated last week that AT&T had recently held merger negotiations with Leap Wireless International. Also making the rounds in the rumor mill was a report that Deutsche Telekom was considering merging T-Mobile with MetroPCS.
Mergers and acquisitions provide a quick path to growth for wireless operators in the mature U.S. market, where acquiring a new subscriber typically means luring it away from another provider.
The number of active devices outpaced the country's population at the end of last year, and though many executives have pointed to connected devices as a potential source of new customers, the saturation of the customer base limits operators’ potential for organic growth.
Speaking at an investor conference Wednesday, CEO Dan Hesse said the company's primary focus through 2013 would be its $5 billion overhaul project, "then let's talk about consolidation in 2014 when we have all this behind us."
A merger sooner than that "is not ideal" in part because of Sprint's rock-bottom stock price, which has lost about half its value since last summer, but it would consider a merger sooner than that if the "synergies" were right, Hesse said at the annual J.P. Morgan Global Technology, Media and Telecom Conference.
Hesse expressed confidence that the government was open to further consolidation in the wireless industry even after the FCC and Justice Department blocked AT&T from acquiring T-Mobile USA.
Sprint was one of the most vocal opponents to the transaction, claiming it would give AT&T and Verizon a veritable “duopoly” hold on the market, but maintains that mergers and acquisitions could be beneficial for other providers like itself.
“Washington would be receptive to consolidation to provide more balance" to the dominant position of AT&T and Verizon, Hesse said. "I honestly believe that both the DOJ and FCC have an open mind with respect to additional consolidation and want to see a competitive wireless industry."
Sprint was said to have been close to a merger agreement with MetroPCS in February, only to have its board of directors nix the deal at the last minute.
Hesse’s comments came after rumors circulated last week that AT&T had recently held merger negotiations with Leap Wireless International. Also making the rounds in the rumor mill was a report that Deutsche Telekom was considering merging T-Mobile with MetroPCS.
Mergers and acquisitions provide a quick path to growth for wireless operators in the mature U.S. market, where acquiring a new subscriber typically means luring it away from another provider.
The number of active devices outpaced the country's population at the end of last year, and though many executives have pointed to connected devices as a potential source of new customers, the saturation of the customer base limits operators’ potential for organic growth.
Wednesday
WW CTIA Wireless 2012 Show Daily, Days 1, 2 and 3 | Wireless Week
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Tuesday
Study: Phone Company Customer Satisfaction Evens Out
NEW YORK (AP) — Improvements in customer satisfaction at Sprint Nextel and AT&T have narrowed differences among the Big 4 wireless carriers to the point that they're basically even in terms of pleasing their subscribers, according to a study released Tuesday.
The American Customer Satisfaction Index puts Sprint, AT&T, T-Mobile USA and Verizon Wireless within two points of each other on a 100-point scale of customer satisfaction.
That's the smallest spread since the survey started looking at all four companies in 2005. It's also within the margin of error at plus or minus three points.
Last year, AT&T clearly trailed the pack, while Sprint and Verizon led. That was a surprising development for Sprint, which was last as recently as four years ago. Sprint CEO Dan Hesse has made improvements in customer service central to his tenure.
AT&T recovered this year, with a three-point increase to 69. It shares that score with T-Mobile USA, the No. 4 carrier by size. Verizon and Sprint are at 70 and 71, respectively.
The survey was developed by the University of Michigan, but is now run by a private company, ACSI LLC. It surveyed about 6,000 households in the first quarter for the annual report.
For the phone companies, the satisfaction index has a limited relevance to actual customer loyalty, which the companies report quarterly. For instance, T-Mobile customers are far more likely to leave the carrier than AT&T's are, even though they have the same score.
T-Mobile is the only company among the Big 4 that doesn't sell the iPhone. That probably matters to customers. The ACSI for the first time published a score for Apple as a phone manufacturer. At 83 points, it handily outranks other manufacturers measured, including Samsung Electronics Co., HTC Corp. and Motorola Mobility Holdings.
VZW Kicks Off Cox Cross-Selling
Verizon Wireless today kicked off cross-selling in Oklahoma City and Tulsa, Okla., with a third cable partner from its AWS deal, Cox Communications.
The arrangement allows customers to purchase Verizon smartphones and tablets at Cox stores. Likewise, Cox video, Internet and voice services are being sold at Verizon stores.
"We've made it easy to experience the entertainment and communications services of Cox with the country's fastest wireless network of Verizon Wireless," said Percy Kirk, Cox senior vice president and general manager for Oklahoma, in a statement.
The companies are offering customers who sign up for service bundles prepaid cards ranging from $100 to $400.
The marketing arrangement between the two companies was forged last year at the same time Cox agreed to sell its AWS spectrum to Verizon. Verizon also signed similar cross-selling deals with Comcast, Time Warner Cable and BrightHouse Networks when it purchased their AWS spectrum. The four cable operators were once part of a group called SpectrumCo formed to purchase AWS licenses during the FCC's 2006 auction.
Verizon already has begun offering products from Comcast and Time Warner Cable in some markets, leaving BrightHouse Networks as the sole remaining operator in the AWS deal that hasn't moved forward with cross-selling.
The agreement to sell each other's products and services received considerable scrutiny during a Senate hearing earlier this spring, when lawmakers questioned whether it amounted to a non-compete agreement between Verizon and the cable companies.
The AWS transaction is still being reviewed by the FCC, which has questioned Verizon over the cross-selling deals but appears to lack jurisdiction over the arrangements.
Cox had originally split from the other three operators in SpectrumCo to build its own wireless network, but eventually scrapped the plan to use its own spectrum in favor of an MVNO deal with Sprint. That strategy also failed and Cox stopped offering its wireless service. Its agreement last December to sell its spectrum to Verizon opened another path for it to pursue its wireless ambitions through a cross-selling arrangement.
Monday
Best Buy: Dunn Did Not Misuse Company Resources
An independent investigation of Brian Dunn, the ex-CEO of Best Buy, confirmed that he violated company policy by "engaging in an extremely personal relationship with a female employee that negatively impacted the work environment," but added that Dunn did not misuse company funds or resources during the affair.
Dunn, who is married with three sons, stepped down in April. Dunn had been CEO and director since June 2009 and was a 28-year veteran of the company.
The investigation also determined that the chairman of the Board of Directors, Richard Schulze, acted inappropriately when he failed to bring the matter to the Audit Committee of the Board of Directors in December 2011, when the allegations were first raised with him.
Best Buy said today that it has elected director Hatim Tyabji, former CEO of Bytemobile, to succeed Schulze as chairman, effective at the conclusion of the annual meeting in June. Tyabji, currently chairman of Best Buy’s Audit Committee, has served as a director since 1998.
In a statement, Shulze said that Dunn denied allegations of the affair when Shulze brought them to his attention.
"[I] told him his conduct was totally unacceptable and contrary to Best Buy’s policies and everything I, and the Company, stand for,” Shulze said, adding that he understood and accepted the findings of the Audit Committee.
Tyabji praised Shulze’s leadership, saying in a statement that his vision "changed the landscape of American retail."
Meanwhile, Dunn has reached a separation agreement with Best Buy that is comprised of a previously earned bonus for 2012 ($1,140,000), vesting of previously awarded restricted stock ($2,542,569), a severance payment ($2,850,000) and an unused vacation payment ($106,742), which total out at an estimated $6,639,311.
Shares of Best Buy were up slightly at $19.62 in early trading Monday.
Friday
C Spire says LTE Delay Unrelated to iPhone
C Spire Wireless is breaking its silence on the cause of a nine-month delay of the launch of its LTE network.
The service was scheduled to be launched at the end of last year but C Spire missed the deadline without explanation and then announced its LTE network would light up in September.
Some attributed the delay to expenses related to its launch of the iPhone last November, but Eric Graham, C Spire’s vice president strategic and government relations, went on the record Wednesday blaming the delay on interoperability issues between the different band classes in the 700 MHz band.
"The delay in our LTE launch was completely unrelated to our iPhone launch," Graham said in an interview.
The postponement had nothing to do with the iPhone and everything to do with its inability to get devices and equipment for its 700 MHz band class, he said.
C Spire holds spectrum in the lower A block, lower B block and lower C block, as do many other regional providers. Its band class 12 spectrum is not compatible with AT&T's band class 17 spectrum or Verizon’s band class 13 even through all the licenses are in the 700 MHz band.
C Spire’s unique band class has made it difficult to find manufacturers willing to make smartphones compatible with its spectrum. Launching LTE with only a limited selection of devices wasn't an option for C Spire, and the company decided to wait until it was able to secure a more competitive portfolio before moving forward.
"To be effective you have to have a complete portfolio of devices," Graham said.
The scheduled start date for C Spire's LTE service is on track for later this summer, but Graham declined to say whether the company would actually be using its 700 MHz holdings or had decided to use repurposed spectrum until it can find devices compatible with band class 12.
C Spire "does not anticipate any further delays," Graham said, but when asked if that meant the company had secured the necessary band 12 phones for its service, Graham would only say the company is "continuing its efforts on interoperable lower 700 MHz devices. He also declined to say whether Samsung, the vendor announced for its original LTE plans, would also provide equipment for its revised deployment.
U.S. Cellular recently launched LTE service on its band 12 spectrum but is only selling one smartphone with the service - and while its Samsung Galaxy S Aviator retails for $200 and has only recently come to market, Verizon has had similar smartphones on shelves since last spring and is selling many of them at half the cost of U.S. Cellular’s LTE smartphone.
U.S. Cellular federal affairs executive Grant Spellmeyer conceded the difficulties of using its band 12 spectrum at a Wednesday panel appearance at CTIA’s conference in New Orleans.
“The challenges have been enormous,” he said. “It is the number one regulatory issue facing our company… the devices that we purchase (aren’t as cheap) as they should be and deployment is not as rapid as it otherwise would be.”
The lack of roaming for U.S. Cellular’s LTE service is a “significant competitive challenge.”
Devices made for US Cellular's LTE service will not be able to roam on the LTE networks of its larger competitors. The lack of roaming could make its LTE service less attractive to customers who will only be able to access its faster data rates within its regional network footprint, compared to the nationwide LTE footprint offered by Verizon and other top-tier operators.
“The problem is I need a band 13 for Verizon or band 17 for AT&T and at this point the manufacturers have been unable to deliver that,” Spellmeyer said.
Graham, who also appeared on the panel with Spellmeyer, expressed similar frustrations.
“How can we deploy LTE if they can't get the service when they leave our footprint?” he said.
C Spire, whose 900,000 customers make it the largest privately held wireless provider in the country, did not anticipate running into interoperability issues when it shelled out about $200 million for a regional chunk of lower A and lower B block spectrum during the FCC's 2008 auction.
It was not until after the auction concluded that the 700 MHz band was chopped up into incompatible chunks that left companies like U.S. Cellular and C Spire with band 12 spectrum at a competitive disadvantage to AT&T and Verizon, whose nationwide holdings made LTE roaming a less critical issue.
"This is the first time a band class has been introduced that is more restrictive than the band class it replaces. This is the first time as far as I'm aware in the history of wireless that they came in... and lopped off an existing band class," Graham said during the panel.
Other band classes such as AWS and PCS have different partitions, but unlike the 700 MHz band, the various portions are interoperable.
The FCC took up the issue at its March 21 open meeting, when it passed a proposed rulemaking addressing interference issues that could arise from making lower portions of the 700 MHz band interoperable. The agency is also considering how to proceed if it finds that interoperability doesn't pose significant problems with interference.
The proposal has received broad support from regional operators. AT&T has said its LTE service could be degraded if it was forced to make its network interoperable with other 700 MHz bands.
But time is running out for operators with band 12 spectrum. There are significant penalties for failing to build out their networks by the deadlines set under the FCC’s build out requirements.
Licensees of the lower A and B blocks must build out 35 percent of the area covered by their licenses by next summer. Though there are some limited exceptions based on when operators actually got possession of the license, the regulations are considered to be tougher than the substantial service requirement typical to other bands.
Failure to meet the 2013 deadline could mean licensees may lose two years on the timeline to meet the requirement to meet the 70 percent mark after 10 years, meaning they would only have a total of eight years to roll out service to nearly three-quarters of the land spanned by their spectrum. The FCC has the option to take away licenses from operators failing to meet the deadlines.
Regional operators actually pushed for the more restrictive requirements to prevent spectrum speculation and warehousing, only to find themselves facing possible penalties as they scramble for solutions to the interoperability issue.
Steve Berry, head of the Rural Cellular Association, summed up the situation during an appearance at CTIA’s conference.
“The FCC allowed the bifurcation of the band and is slowly but surely addressing the inequities in the market,” he said. “Unfortunately, it’s taking a lot longer to put humpty dumpty back together than it took to pull it apart.”
Isis Adds American Express to Mobile Wallet
Isis added more plastic to its mobile wallet yesterday when it signed up American Express to its contactless payments platform.
Isis, a three-way mobile commerce joint venture between AT&T, T-Mobile USA and Verizon Wireless, said American Express customers will be able to use its mobile wallet to make NFC payments after the service goes live later this year.
American Express first announced it would support Isis on its payment network last year but this is the first it has said it will allow its cards to be included in the mobile wallet. Its U.S. Consumer, Open Small Business and Serve cards will be available with Isis.
Visa, MasterCard and Discover will also allow Isis on their payment networks, but have not said whether their cards will be included in the Isis mobile wallet. Chase, CapitalOne and Barclays added their cards to the wallet in February.
Isis had originally planned to build its own payments network but later scrapped the strategy and now will use systems set up by existing payments vendors.
Austin, Texas, and Salt Lake City will be the first launch markets. Isis has not listed a date for when the service will light up but has said it will be during the first half of this year.
Isis contactless payments system needs both NFC-based smartphones and compatible payment terminals. Top handset makers including HTC, Motorola Mobility and Samsung have agreed to come out with smartphones compatible with the mobile wallet service, and Isis has hired DeviceFidelity to develop a product that adds NFC to phones lacking the technology.
On the point-of-sale side, VeriFone, Ingencio, ViVOtech and Equinox Payments announced in March they would include Isis' mobile payments system in current and future payment terminal lines.
Tracfone Ups Prepaid Stakes with Simple Mobile Buy
Tracfone Wireless is acquiring Simple Mobile in a deal that could help it kick off a SIM-only service to the U.S. market.
Simple Mobile has more than 1 million customers and runs on a SIM-only model - it doesn't sell phones, but instead sells prepaid SIM cards that can be used to activate about 200 different GSM phones including the iPhone. It claims to be T-Mobile USA's largest MVNO.
America Movil, Tracfone's Mexico-based parent company, issued few details about the transaction in its announcement Thursday. It did not disclose how much it is paying for Simple Mobile, but said it expected the deal to close this quarter.
The acquisition is "likely the first step in a broadening strategy," BTIG Research Analyst Walter Piecyk said in a research note. "The move comes at an opportune time as unlimited pre-paid operators Leap Wireless and MetroPCS are struggling with the rapidly rising costs of smartphone subsidies and post-paid operators are cracking down on their previously liberal upgrade policies."
Piecyk pointed out that other CDMA prepaid providers like Cricket, MetroPCS, Boost Mobile and Virgin Mobile USA are precluded from competing with their own SIM-only service since CDMA phones doesn't use SIM cards.
H20 Wireless, an AT&T MVNO, also offers SIM-only service but its plans are less competitive than Simple Mobile's.
Tracone, a U.S. subsidiary of Mexico's America Movil, claims to be the largest prepaid provider in the country with 19.8 million subscribers. It sells prepaid wireless debit cards and low-cost handsets at gas stations, big box stores, pharmacies and other retailers.
The Simple Mobile announcement came just days after America Movil made a bid for Dutch wireless provider Royal KPN NV.
America Movil is owned by Carlos Slim, ranked by Forbes as the world's richest man with a net worth of $69 billion as of March 2012. The Mexican government fined the telecommunications giant $1 billion last year for monopolistic practices, but revoked the penalty this week.
Facebook Intros App Center
Facebook this week launched the App Center to give developers another way to grow their social apps. In coming weeks, Facebook users will be able to access the App Center on the web and in the iOS and Android Facebook apps.
In a blog post, the company said the App Center will become the new, central place to find apps like Draw Something, Pinterest, Spotify, Battle Pirates, Viddy and Bubble Witch Saga. The apps will come with a detail page designed to help people see what makes an app unique and let them install it before going to an app.
Discovery long has been a big pain point in the apps ecosystem, points outYankee Group’s senior analyst Jason Armitage. Facebook has deep insight into the interests of nearly a billion users, a service that members log into several times a day and rich analytics on engagement. In return, he said, Facebook will get improved visibility into mobile device users and the promise of future revenue from in-app ads and payments.
“Will Facebook's channel prove compelling to developers?,” Armitage asks. “Yankee Group sees strong incentives for Web developers and companies that want to escape the two main app storefronts to use the App Center. But don't expect wholesale migrations by top developers.”
Apple can point to existing billing relationships with customers, while Google has attractive in-app commerce features, he said. “For developers of premium apps, Facebook will become another – not the unique – distribution platform. However, Facebook's entry will place pressure on the Big Two to revisit the terms offered to their partners.”
Facebook revealed in an amended IPO filing this week that more than half of its 900 million users now access its mobile site, but because ads on its mobile site are limited, that has not resulted in an increase in ad revenue. As more people use Facebook on mobile than on desktop, that may negatively affect the company’s financial results.
Ericsson Not Ditching the ‘Low End’
Ericsson plans to hold on to its services businesses, refuting recent predictions by rival Nokia Siemens Networks (NSN) that infrastructure vendors will be forced to shed their “low end” deals.
Nokia Siemens executives told reporters this week that the “be-all” model of its larger competitors “can’t survive.” The money-losing company sold off a number of its units last year as part of a turnaround effort that has narrowed its focus to infrastructure, particularly LTE.
NSN marketing executive Barry French forecast that other infrastructure vendors like Ericsson would soon follow suit and shed their less-profitable businesses.
But Vish Nandlall, who oversees Ericsson's operations in North America, says that's not a strategy the company plans to pursue any time soon.
"It's one more thing that gives us the critical advantage," he said in an interview. "There are very few vendors that can provide the support that we do to the vendors."
Ericsson's services business comprised about 40 percent of its first-quarter sales at nearly $3 billion, a 18 percent increase over last year. Its managed services deals in the United States include large contracts with Sprint and Clearwire.
"We think that as we move from just being a network and equipment OEM to an actual partner to the operators, they're benefitting from the scale and presence in North America that Ericsson provides and it gives us an opportunity to them as they build their network," he said.
Ericsson already has considerable market share in the United States, having landed LTE infrastructure deals with all of the top four operators after announcing a new contract with T-Mobile USA this week.
Nandlall declined to comment on financial specifics of the $4 billion project, but said "you could probably draw a direct line to our existing market share" of about 50 percent.
Ericsson has a solid grip on LTE market, particularly in North America, a strategy that helped it weather a major downturn in its CDMA business last quarter. Operators are slashing investment in legacy 3G technologies to focus spending on next-generation networks.
Ericsson has found a niche where others have struggled to survive amid steep price competition from Chinese vendors Huawei and ZTE. Its profits more than doubled during the first quarter even as Alcatel-Lucent, its primary competitor, warned of weaknesses in its business despite managing to swing into the black. NSN’s losses swelled to $1.3 billion and sales fell 7 percent during the same period.
Nokia Siemens sold its microwave backhaul business, fixed line unit and WiMAX operations late last year and then cut 23 percent of its remaining workforce. By contrast, Ericsson last year acquired Telcordia and announced in February it was buying Wi-Fi specialist BelAir Networks.
Sprint on Network Overhaul: It Will Work
Sprint is hitting back against Verizon Wireless' suggestions that its forthcoming LTE network will be slower than the competition because it is launching in a narrower band of spectrum.
"(Verizon Wireless CEO Dan Mead) alluded to the fact that with a 2x10 MHz versus 2x5 MHz, yes, you will have differences in peak speed," Sprint network executive Bob Azzi said at a Wednesday media briefing, referring to comments made during a keynote session the previous day, when Mead was said to have pointed out Verizon's 20 MHz of spectrum for its LTE network would give it greater speeds than a 10 MHz deployment, the amount of spectrum currently available to Sprint for its LTE service.
"We are very confident this dog will hunt," Azzi said. "This will be a very good experience for our customers."
Sprint has repeatedly said its LTE network will be on par with the competition but has shied away from providing specific data rates.
Iyad Tarazi, vice president of network development and engineering, again declined to say how fast Sprint's LTE network would be, but said customers wouldn't be able to distinguish between Sprint's service and the service of its competitors.
"You will see a really competitive performance," he said during the briefing.
Verizon markets its LTE network as having average speeds of between 5-12 Mbps on the downlink. Tarazi said last fall that Sprint’s planned LTE Advanced network could beat Verizon's LTE data rates when it launches next year. He did not repeat the statement during the Wednesday event.
Sprint's initial LTE deployment will run on its 1900 MHz holdings, giving it just two 5 MHz channels for the service. It plans to eventually use its 800 MHz spectrum to beef up its LTE pipe once the iDEN shutdown completes, but the strategy must first be approved by the FCC.
Azzi said Sprint's 800 MHz spectrum may not come into play until 2014, though the strategy could become viable as early as next year. A delay with the 800 MHz spectrum would push out its LTE Advanced deployment.
Sprint also plans to use Clearwire's still-unbuilt TD-LTE service to supplement the capacity of its network and will eventually move to LTE Advanced.
Sprint says it will launch in six major cities by mid-year including Dallas, Atlanta, Houston and San Antonio.
Sprint is ripping out its old gear and replacing it with new equipment from Alcatel-Lucent, Ericsson and Samsung. About 700 of the new sites are live and construction is under way on 3,000 sites, Azzi said.
"Everything's ready to go from a technology perspective – we won't have any hiccups from things that don't work and could be impactful across large parts of the country," he said.
The new infrastructure will significantly improve Sprint's coverage and capacity, with "major reductions in in-footprint roaming, drops and blocks, latency and stutter."
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