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.
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
Check out this article on Wireless Week:
http://wirelessweek.com/News/2012/05/ww-ctia-wireless-show-daily-2012/
http://wirelessweek.com/News/2012/05/ww-ctia-wireless-show-daily-2012/
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."
Wednesday
Back to Business, T-Mobile Eyes Enterprise Market
Sensing a huge opportunity to grow its business-to-business penetration, T-Mobile USA is going to add 1,000 more B2B sales people while leveraging its network capabilities, including its upgrade to LTE next year.
T-Mobile has an overall 12 percent market share in the United States but reaches only 5 percent of the $60 billion B2B market. Matt Millen, vice president of Small and Medium Business Sales, said in an interview at CTIA Wireless 2012 the carrier has launched an aggressive strategy to grab a bigger share.
This year is going to be a “restart” of T-Mobile’s B2B strategy since the failure of its merger with AT&T last year, Millen said. He said the operator is committing resources to this “reinvigorating” process, including the addition of new sales people during the next 18 months and a $4 billion network upgrade. The latter includes the installation of LTE Release 10 equipment at 37,000 cell sites nationwide.
T-Mobile announced at the show it has chosen Ericsson and Nokia Siemens Networks as its lead network upgrade vendors. The carrier said it expects to be the first in North America to broadly deploy antenna-integrated radios, which is expected to lead to accelerated deployment and reduced site loading.
The carrier also is refarming its spectrum, which includes the use of AWS spectrum it acquired from AT&T as part of the merger breakup. T-Mobile said it will use the new spectrum to launch LTE in 75 percent of the top 25 markets by the end of 2013.
Marc Rohleder, director of sales engineering for T-Mobile’s B2B sector, said the LTE upgrade on AWS spectrum will provide economies of scale as well as international roaming benefits. But he said T-Mobile will continue to emphasize the benefits for businesses from its current HSPA+ network.
Rohleder pointed to a study issued by Nielsen that ranked T-Mobile as either first or second in network quality among U.S. operators in 85 percent of the markets. “We have a network today that provides our customer needs,” he said.
T-Mobile markets its HSPA+ network as 4G, a designation some quibble with but Rohleder and Millen said the “real world” experience of the operator’s customers is what is important. They said their network speeds are comparable with LTE and provide the data rates and experience that customers want.
“We have the national footprint and the speeds that our customers need in most major markets,” Rohleder said.
In addition, Rohleder said T-Mobile also offers voice and data using Wi-Fi where those access points are available, so customers can choose that option. That is particularly beneficial internationally since roaming charges don’t apply with Wi-Fi, he said.
T-Mobile also has relaunched its small business rate plans, including a plan for a business that needs as few as one line. The new plans also include an international option that leverages T-Mobile’s ownership by Deutsche Telecom, providing up to an 87 percent discount on international calls, Rohleder said.
To coincide with national small business week, T-Mobile also announced a sweepstakes that current and prospective business customers can enter online or through retail outlets. The sweepstakes, which end June 10, will provide a “mobile makeover” for national and regional winners.
Millen said T-Mobile will continue to seek new services and products for business customers in addition to those it has launched recently. Those include partnerships with Good Technologies and iPass. The carrier also offers a mobile point-of-service payment product with a credit card reader from Square.
“One of the things we’ll do is listen to the marketplace and make determinations on solutions we have and through partners,” Millen said. “We will take full care of our business customer needs.”
FCC Touts Spectrum Policies
The head of the FCC took a swipe at his critics during a Tuesday keynote address, when he defended the agency's decision to block AT&T's merger with T-Mobile USA.
"Some have recently argued that the government’s review of transactions in the wireless space – let’s be frank, review of one specific transaction – is somehow causing a shortage of spectrum and leading that company to raise prices for consumers," he said, arguing the amount of spectrum available to operators did not shrink because the massive buyout fell through.
"The FCC’s track record here is very clear, and our review of one transaction that crossed a line simply proves that there is a line," he said.
AT&T legislative affairs chief Jim Cicconi quickly shot back in a post on the operator's official blog.
"The merger AT&T proposed last year was all about creating more capacity by combining the spectrum holdings and networks of two companies," he said. "The FCC was within its rights to withhold its approval. But it is incorrect when it denies the impact such decisions have on the price of wireless services."
Increased prices for consumers was an inevitable consequence of the spectrum crunch, Cicconi said, calling it "basic economics."
Genachowski did not dwell long on the doomed acquisition, whose announcement rocked attendees of last year's show, using the subject instead as a segue to talk about specific steps the FCC is taking to free up more spectrum for the wireless industry.
There is "no silver bullet" to solve the capacity crunch, Genachowski said. Addressing the issue will require both new sources of spectrum and more efficient use of existing assets.
The FCC plans to sell off 65 MHz of spectrum over the next three years aside from the airwaves it hopes to glean from voluntary sell-offs of television broadcast spectrum, he said. The agency is looking at ways to repurpose 1.7 GHz spectrum used by the government, but the NTIA has warned only a limited amount may be available for re-farming.
The commission is also working to revise outdated regulations that limit spectrum's use for mobile broadband services. Genachowski pointed out a number of initiatives, including the opening of white space spectrum and a proposal to convert 40 MHz of AWS-4 spectrum for terrestrial instead of satellite use, rules that would allow Dish Network to move forward with its wireless network.
The FCC also plans to vote on an order at its May 24 open meeting that will make it easier to deploy LTE in the 800 MHz band, where deployments have so far been limited by narrow channels allotments.
Also on the table are plans to make 25 MHz in the 2.3 GHz WCS band "more usable" and an initiative to open more Wi-Fi spectrum by freeing up an additional 120 MHz in the 5 GHz band, he said.
Some in the industry have expressed concerns that the FCC's incentive auction plan will free up less spectrum than previously hoped if broadcasters refuse to give up their airwaves.
The proposal has not been popular with the broadcast television industry, but Genachowski expressed confidence in the auction's success, saying "to borrow a phrase, reports of the spectrum auction’s demise have been greatly exaggerated."
Also on the keynote stage Tuesday morning was Patrick Riordan, the incoming chairman of CTIA and president and CEO of Cellcom, a regional operator based in Wisconsin.
Smaller providers and their larger rivals can use CTIA as a platform to address longstanding tensions, Riordan said. "We all know the issues between the larger and smaller carriers," he said. "We can't ignore them, we must face them... We need to unite for our common goals."
Executives from MasterCard Worldwide and Pandora later addressed the audience to tout their respective mobile payments technology and streaming Internet radio service.
Gary Flood, president of global products and solutions for MasterCard, said that "when it comes to payments, one size certainly doesn't fit all," citing a number of partnerships with Google, Intel, Isis and other providers. Pandora President and CEO Joe Kennedy listed several examples where technology shifted old paradigms and said wireless could take that a step further.
In a morning session where not all in the audience necessarily agreed with the message on stage, the innovative impact of wireless was common ground.
Tuesday
Kyocera Introduces Hydro, Rise & New Audio Technology
Kyocera is at it again, differentiating from the rest of the mid-range Android pack with subtle flares of technology that appeal to a broad customer base. The company announced two new Android phones, as well as demonstrating something called "Tissue-Conduction Audio Technology," which the company says will improve the quality of voice calls by eliminating ambient noise.
The Hydro, a water-resistant Android smartphone, is perhaps the headliner for Kyocera at this year's show. John Chier, spokesman for Kyocera, explains that the Hydro is certified protected against water damage for up to 30 minutes in up to a meter of water. Chier says a survey the company conducted showed that 70 percent of respondents said that waterproofing their mobile was important to them.
"It's something that's really an adversary of mobile phones," Chier said, citing research from TNS Global, which says it has tracked 82.5 million phones destroyed by water alone.
The Hydro, which Chier calls a mid-tier Android phone, comes running Ice Cream Sandwich and features a 3.5-inch HVGA 480 x 320 display, 1GHz Snapdragon processor, 3.2-megapixel camera, Wi-Fi and Bluetooth.
Kyocera isn't new to the business of keeping devices safe against water. "We began developing devices as early as 2008, initially in Japan, with this water-resistance technology," Chier said, noting that to date the company has a total of 16 water-resistant phones on the market.
Chier explains that the Hydro is part of Kyocera's strategy to attract consumers looking for the ruggedized devices. The company already holds three of the four SKUs in Sprint's Direct Connect portfolio. "This ruggedized area is really something we've been working hard on," Chier says. You’ll recall that Kyocera also partnered with Sprint on the quirky dual-screen Kyocera Echo.
The Hydro is set to launch sometime in late summer. Chier says there’s no carrier or pricing information available just yet.
In the interest of further addressing that mass-market audience, Kyocera recognizes that a lot of users upgrading from a simple texting phone will still want a full qwerty keyboard on their new Android device. Enter the Kyocera Rise.
Cheir refers to a recent Yankee Group study that showed 69 percent of respondents said qwerty keyboards were a “nice to have” or a “must-have” feature on their phones.
The Rise’s specs fall pretty much in line with the Hydro, although it is not water resistant and features a slide-out qwerty keyboard.
Last but not least, Kyocera is introducing a new technology that it hopes will help those who still make voice calls hear the person on the other end of the line a little better. Tissue-Conduction Audio Technology is designed to deliver sound vibrations directly to the eardrum. Chier says it’s a technology that was originally used in hearing aids but which Kyocera hopes will translate well to mobile phones.
The technology uses a specially designed Kyocera ceramic transducer to transmit sound through air as sound waves and tissue as vibrations. Chier says it shouldn’t be too much of a mystery that Kyocera is well versed in this area. The company’s name, Kyocera, is derived from two words, Kyoto and Ceramics.
“It’s a really great technology for helping overcome ambient noise for people who have difficulty hearing their cell phones,” he says.
AT&T Announces IP-Based Remote Home Monitoring
AT&T has announced plans for a new consumer-based remote home monitoring system that includes a portfolio of all-digital, IP-based home security monitoring and automation services.
Called AT&T Digital Life, the carrier says the services will give users control over various aspects of their homes – security cameras, thermostat, water systems – using any web-enabled device, including PCs, tablets and smartphones, regardless of wireless carrier.
AT&T said it plans to begin trials in Atlanta and Dallas this summer.
Specifically, AT&T says the new system will allow users to monitor devices such as cameras, window/door sensors, smoke, carbon monoxide, motion and glass break sensors, door locks, thermostats, moisture detection and appliance power controls.
The devices will be wirelessly enabled to connect to the IP-based AT&T Digital Life platform inside the home.
"AT&T Digital Life will change the way people live, work and play – and meets a clear need in the market,” said Kevin Petersen, senior vice president, Digital Life, AT&T Mobility, in a statement. “The service is smart, simple and customer centric– freeing homeowners to do the things they want to do without compromising on the things they need to do to care for family and home.”
AT&T promises professional installation of the platform, sensors and other devices, as well as 24/7 technical support and users will be able to add more services after the initial installation.
New users will be able to check the system out in AT&T stores, and it will be made available for purchase on att.com when available commercially.
The Digital Life platform includes built-in AT&T mobile Internet service and will also be capable of Wi-Fi, Z-Wave and wired broadband connections.
“Our focus is on providing our customers with a comprehensive home security and automation solution that offers the best possible customer experience, and uses the most advanced mobile internet technology on the market to make their lives easier and keep their families and property safer,” Petersen said.
In February, AT&T announced plans to launch an SDK for international providers to equip global service providers with capabilities to offer customizable, web-based home automation, energy and security services to their subscribers.
T-Mobile Hires Ericsson, NSN for LTE Build
T-Mobile USA said late Monday it has hired Ericsson and Nokia Siemens to expand its HSPA+ service and construct its new LTE network.
The infrastructure vendors supplied equipment for T-Mobile’s existing network along with Nortel, now part of Ericsson.
For T-Mobile’s new network, the two companies will roll out equipment compatible with LTE-Advanced Release 10 at 37,000 cell sites as part of the $4 billion project.
“With these partners on board and the AT&T AWS spectrum secured, we’re on track to enhance our 4G experience this year and deliver nationwide LTE in 2013," T-Mobile Chief Technology Officer Neville Ray said in a statement.
T-Mobile said it expects to be the first North American operator to deploy what it called "antenna integrated radios" designed to speed up construction of the network and address site loading.
Flush with a $3 billion breakup fee from the doomed AT&T merger, T-Mobile announced its infrastructure vendors less than three months after it decided to deploy LTE. Its LTE service is scheduled to go live in 2013 and uses AT&T AWS spectrum handed over to T-Mobile as part of the breakup fee.
Clearwire unveiled its TD-LTE plans last fall but has yet to announce suppliers for its network. It has said it is working to negotiate vendor financing.
AT&T’s AWS licenses, transferred to T-Mobile just last week, give it up to 20 MHz of spectrum for its LTE network in three-quarters of its top 25 markets. Most of its remaining markets will run on 10 MHz of spectrum.
T-Mobile is in the process of refarming some of its 1900 MHz PCS spectrum for continued expansions of its HSPA+ service. The operator said will launch HSPA+ in a "large number" of additional markets by the end of this year.
"Rolling out 4G HSPA+ services in the 1900 MHz band will also provide customers with the ability to use a broader range of devices, including the iPhone, on T-Mobile’s 4G network," it said.
Trials of its network modernization project indicated a 33 percent increase in HSPA+ data speeds and improved inbuilding coverage, the operator said. Its HSPA+ network currently covers more than 220 million people.
T-Mobile yesterday lit up its HSPA+ service in Hattiesburg, Miss., and Madison, Wis., and turned on its dual-carrier HSPA+ network in Fayetteville and Little Rock, Ark.; Lake Charles, La., and Springfield, Mo.
Nokia Siemens will upgrade T-Mobile's GSM and HSPA+ core and radio access infrastructure in "key markets" and provide LTE equipment. T-Mobile will use Nokia Siemens evolved packet core platform, including its Flexi network server and network gateway, and its Flexi multiradio 10 base station.
In addition to the equipment, T-Mobile will use Nokia Siemens NetAct network management system, self-organizing network technology and a separate multi-vendor performance manager. Other services provided by Nokia Siemens include network planning, optimization and implementation.
Ericsson will install radio, tower and switch room equipment. It also will provide a number of services including installation, commissioning, integration, migration and systems integration. T-Mobile plans to use Ericsson's antenna integrated radio, or AIR, which combines the antenna and radio into a single unit.
At CTIA: Making Money with Mobile Web & Apps
NEW ORLEANS—One of the more intriguing questions at Monday’s 5th annual Mobile Web & Apps preshow conference at CTIA Wireless 2012 was one that didn’t get answered.
Josh Rochlin, CEO of the 3-year-old mobile technology company Xtify, moderated a panel on developing, marketing and monetizing mobile apps. The session featured a panel made up of Ted Verani, senior vice president of Trilibis; Dan Lowden, vice president of Digby; Gary Yentin, CEO of App-Promo; and Derek Ting, CEO of Enflick.
The panelists focused on costs, discovery, mCommerce, security, the mobile web vs. apps and credit card relationships. At the end of the panel discussion and the question-and-answer session, Rochlin turned to the audience and asked if anyone saw a role for wireless operators in the mobile data world.
“Is there no role for the carriers here?” he asked. “Can they own the billing or own the store? I just leave that as an open question.”
That likely is a question the operators are trying to answer themselves because the carrier on-deck model hasn’t succeeded. And Monday’s Mobile Web & Apps World session focused on the mobile developer business model.
Digby’s Lowden said mCommerce is still a small market, but it is one that is growing because it offers interactions that other technologies cannot. It not only drives consumers to visit brick-and-mortar stores but gives consumers tools once they are in the store.
Digby’s main product is its Localpoint Mobile Platform, which provides analytics based on shopping in physical locations, targeted location-aware mobile messaging and tools to help brands attract and influence customers. The company’s customers include brands like Bed Bath and Beyond, Cabela’s, Toys “R” Us, and Home Depot.
Lowden said mobile apps have become the “new loyalty card” that consumers will use because many of them use the mobile web or an app to shop.
Verani, of Trilibis, said the mobile web is the most cost-effective way to reach mobile consumers, especially with the advent of HTML5 coding. Getting a mobile website up can cost as little as $5,000 and up to $200,000 depending on what goes into the site. Yentin added that site maintenance also is an important consideration that will add to ongoing costs.
Ting, of Enflick, said apps might provide better interactions with consumers but that app development is more costly because they have to be built for each platform.
How do consumers use their smartphones to buy things? One way is by using a credit card, which MasterCard hopes to make more efficient with its OpenAPI Platform.
David Butler, the product manager for MasterCard Worldwide’s OpenAPI Platform business sector, said the credit card company uses the technology to help external developers build apps that enable mobile payments. MasterCard uses the technology to enable payments, send offers and use location. Google’s mobile wallet, among others, uses the technology.
“We’re particularly excited by payments possibilities,” Butler said. “The main aim for us is to form partnerships. We really want to work with developers to see how to extend these services and get feedback on ways to improve it. We’re not just a business-to-business company.”
Atif Hussein, CEO of a mobile payments company called Paidpiper, demonstrated the use of MasterCard’s technology with Paidpiper’s new smartphone app. The demo included the exchange of Hussein’s business card, with which he loaded $10 so that it could be used to make a purchase. The implication was this was an incentive to build customer loyalty.
Monday
Shares of BlackBerry Maker Hit Eight-Year Low
TORONTO (AP) — Shares of Research In Motion (RIM) hit an eight-year low Thursday and have fallen more than 15 percent in the past three days after the company unveiled a prototype BlackBerry with new software.
THE SPARK: The prototype has caused angst for BlackBerry users and RIM investors. When new chief executive Thorsten Heins unveiled a touchscreen prototype Tuesday at RIM's annual BlackBerry World conference in Orlando, Fla., he gave no new timetable on when the much-delayed devices will be released.
Then on Wednesday, he had to reassure anxious BlackBerry users that RIM will keep making models that include a physical keyboard. He stressed that the device and new software is not the final product.
Heins also didn't announce any licensing partnerships. Some investors want RIM to generate more revenue by licensing products, like its popular BBM messenger service, to other carriers.
Jefferies analyst Peter Misek said Wednesday night that Heins said he would wait to see what kind of demand there was for BlackBerry 10 before pursuing possible licensing deals.
THE BIG PICTURE: The once iconic company is caught in a tough spot. It needs to get out its new software platform, the BlackBerry 10, while continuing to sell current models.
But sales have slumped and are likely to be pressured further as shoppers wait for the newest software to go on sale. RIM has had difficulty competing in the United States with flashier, consumer-oriented touchscreen phones such as Apple's iPhone and models that run Google's Android software.
Analysts say RIM's future depends on BlackBerry 10, although many say it may come too late. RIM has been undergoing a comprehensive strategic review for the last three months.
The ANALYSIS: Misek said that the fact that RIM released a prototype now means the new BlackBerrys won't be out until the end of the year.
Colin Gillis, an analyst with BGC Financial, said it could be a year before there are any signs that RIM's new BlackBerry 10 software is winning customers.
Gillis also faulted the company on its communications strategy, saying that RIM could have prevented BlackBerry subscribers from worrying if there would be a physical keyboard on some of the new BlackBerry models.
SHARE ACTION: RIM shares fell 70 cents, or 5.4 percent, to $12.10 in afternoon trading on the Nasdaq. The shares have lost almost three-quarters of their value over the past 12 months, and bottomed at $11.92 on Thursday, their lowest point since January 2004.
Verizon Plans 2013 Text-to-911 Service
Verizon Wireless announced a major text-to-911 push on Thursday, making it the only top-tier operator in the country to offer the emergency service.
Wireless operators have been reticent to deploy text-to-911 because of regulatory uncertainty, lack of preparedness at public service answering points and concerns about liability.
Voice calls remain the preferred way to contact emergency responders, but the ability to send text messages to 911 call centers can be critical for callers who can't make voice calls because they are deaf, or would be placed in danger by speaking.
During the 2007 Virginia Tech massacre, students sent SMS messages to 911 about the shooting, only to have them go nowhere.
Verizon plans to make the service, which will run on its CDMA network, available to "select" public safety answer points early next year.
"Our company is continuing its long-standing commitment to address the needs of public safety and our customers by offering another way to get help in an emergency by using wireless technology," Marjorie Hsu, Verizon Wireless vice president of technology, said in a statement.
A spokeswoman declined to specify which markets would get the capability first, but said Verizon plans to work with public safety officials to let local communities know about the service.
Text-to-911 requires upgrades on both the network side and at public safety answering points. Public safety answering points that receive 911 calls must be able to handle SMS messages, and operators must be able to route SMS messages to 911 services vendors, which in turn route them to responders.
Verizon has used equipment from Intrado for its first two trials. TeleCommunications Systems is providing the gateway for the service announced yesterday.
Verizon has conducted two text-to-911 trials, one in Durham, N.C., and a state-wide deployment in Vermont. The operator hasn't talked about results yet, but a public safety official from Durham told Wireless Week in a previous interview that uptake has been limited.
Between August and March, the city only received a single SMS call to 911, and it was a situation that could have been handled by a voice call, said James Soukup, emergency communications director for the city and county of Durham, N.C.
Before Verizon started a trial of the service in Vermont last month, the only statewide text-to-911 service was offered in Iowa by i wireless. The regional operator helped launched the first SMS-enabled 911 call center in Black Hawk County, Iowa, in 2009 and has since expanded the service statewide. It is still the only operator in the state to offer text-to-911.
Friday
RIM Says Will Still Make Keypads for BlackBerrys
TORONTO (AP) — Research in Motion Ltd. says future BlackBerry models will still offer physical keyboards.
Some reports suggested RIM would ditch the physical keys favored by its users, but CEO Thorsten Heins said Wednesday that RIM won't lose the focus on physical keypads.
Heins unveiled a prototype touchscreen BlackBerry on Tuesday.
But he said the new line of smartphones due for release later this year will include both touchscreens and keypads. RIM spokeswoman Tenille Kennedy also confirmed that the new BlackBerry 10 operating system will include new phones with physical keyboards.
"It would be wrong — just plain wrong" not to, Heins told reporters at an annual conference in Orlando, Fla., on Wednesday.
The Canadian company gave developers a prototype BlackBerry on Tuesday in an effort to help them develop apps for the new software system. Heins stressed that the device is not the final product.
Heins acknowledged Wednesday that RIM needs to improve its marketing and he has vowed to hire a chief marketing officer soon.
The Waterloo, Ontario-based company has long dominated the corporate smartphone market. Its BlackBerrys are known for their security and reliability. President Barack Obama even refused to part with his BlackBerry after he took office.
But the once iconic company has had difficulty competing in North America with flashier, consumer-oriented phones such as Apple Inc.'s iPhone and models that run Google Inc.'s Android software.
RIM is also dealing with a "bring your down device" trend, in which employees bring their personal iPhones or Android devices to work instead of relying on BlackBerrys issued by their employers.
Analysts say RIM's future depends on the new BlackBerry 10 software platform, although many say it may be too late.
RIM has been undergoing a comprehensive strategic review for the last three months. Heins was promoted to CEO in January after the company's two long-time chiefs stepped down.
Its stock dropped 68 cents, or 5 percent, to $12.80 Wednesday. The shares have lost almost three-quarters of their value over the past 12 months.
Jefferies analyst Peter Misek, who is in Orlando for the conference, said he was disappointed that Heins said he would wait to see what kind of traction BlackBerry 10 got before pursuing possible licensing deals for things like RIM's popular BlackBerry messenger service. He also said there was no mergers-and-acquisition talk, and said that the fact that RIM released a prototype means the new BlackBerrys won't be out until the end of the year. He said those three reasons drove down the stock.
"It's basically status quo until the end of the year and that's tough for investors to take," Misek said.
Misek said Heins did a good job leading his first conference considering he had no device or operating system to release.
"He kept it very upbeat and on message," he said. "But it's out of his hands. He inherited this."
BOKU Signs Sprint, Hires Industry Vets
BOKU today announced it will supply its direct carrier-based billing technology to Sprint, rounding out its deals with the four biggest nationwide U.S. carriers.
The Sprint tie-up means customers can make purchases online from BOKU’s merchant network of Web-based gaming companies, social networks and service providers. BOKU merchant partners on Sprint include Electronic Arts, Riot Games, Jagex, Stardoll, Kingisle and Gaia Online.
The BOKU deal is not intended to compete with Sprint’s other offers. The carrier offers Google Wallet on the Nexus S 4G from Google, as well as BilltoMobile solutions and Sprint Mobile Wallet, which stores customers’ credit card and loyalty card information, allowing them to make online purchases on their device.
As for BOKU, it also announced a direct billing agreement with Deutsche Telekom in Germany and the hiring of two key industry veterans.
“We have a ton of momentum around the globe,” says BOKU President Ron Hirson, noting relationships with more than 240 carriers worldwide. The big challenge is managing all that growth, and the two new hires are on board to help with that.
Jon Prideaux, former executive vice president for Visa, and Stuart Neal, former managing director of international development for Barclaycard, are joining BOKU as chief business officer and senior vice president of business development, respectively.
Prideaux was an early Visa Europe employee, joining the company in 1989 at a time when it had fewer employees than BOKU does now. He worked with Visa for 17 years. During his time at Visa Europe, he started Visa’s Internet division and was the lead executive on the introduction of chip and PIN technology, which has become an industry standard in Europe.
Neal joins BOKU after six years at Barclaycard, during which time he was responsible for growing its merchant acquiring division, the second largest in Europe with more than 300 staff members operating in multiple countries. He is a prominent figure in the European payments market, with expertise in deploying point-of-sale solutions. He is credited for spearheading the adoption of NFC at the point of sale in the United Kingdom.
At next week’s CTIA show in New Orleans, BOKU will be exhibiting in MasterCard’s booth.
Thursday
T-Mobile CMO Brodman to Depart
T-Mobile USA's chief marketing officer is ending his 17-year career with the company just weeks into a new ad campaign and comeback effort.
Cole Brodman's retirement goes into effect at the end of May, but he will act as an adviser to the company after he leaves his post, T-Mobile said in a statement.
Brodman was appointed to his current post less than two years ago, when he was moved from his position as chief technology officer during a management shakeup that replaced former president and CEO Robert Dotson with current chief executive Philipp Humm.
He held a number of other executive positions at T-Mobile over the years, including senior vice president of product development.
Brodman spearheaded T-Mobile's HSPA+ push, which allowed it to market "4G speeds" before it had an actual LTE network, and was instrumental in the company's adoption of Android-based smartphones. Under his leadership, T-Mobile launched the first-ever Android smartphone, the G1.
In a 2010 interview with Wireless Week, Brodman said the operating systems T-Mobile had been working with "were simply not open enough or robust enough to do the things that we thought were necessary for people to be able to communicate the way they wanted to,” he said. “When (Google's Andy Rubin) walked through the door with Android, we thought this is potentially one of the answers.”
T-Mobile did not name a successor to Brodman in its announcement. The Wall Street Journal, which first reported Brodman's departure, said marketing executive Andrew Sherrard will serve as his interim replacement.
The collapse of the AT&T buyout last year gave T-Mobile the spectrum and money it needed to finally move forward with LTE, and in February the company announced it would begin rolling out the new network in 2013.
Last month, T-Mobile rolled out new ads as part of the lead-up to a brand re-launch this fall. The "Alter Ego" advertising campaign replaced the girly ensemble of its perky brand ambassador with a leather motorcycle outfit to symbolize the "speed and capabilities" of its network.
The company's overhaul has also meant layoffs. In March, T-Mobile said it would cut 1,900 employees and close call centers in six states. More job losses could be in store as the company moves to "restructure and optimize" some of its other operations by the end of June.
Need Capital? You Might Want to Check This Out
If you’re an early-stage company heading to CTIA Wireless 2012 in New Orleans next week with a good business plan in need of financial support, you might want to hook up with Catalyst Investors.
The growth equity investment firm is looking for a few good companies, and CTIA’s annual show is a good place to hook up – if you can find each other.
Brian Rich, managing partner at New York City-based Catalyst Investors, has been attending CTIA’s annual conference for more than two decades – since before Wireless Week was launched. Full disclosure: Catalyst owns Wireless Week’s parent company, Advantage Business Media.
“We like growing businesses that are a proven commodity already,” Rich says. The firm isn’t looking at “super early” stage companies that need venture capital or the other extreme, leveraged buyouts, but “everything in between.”
One example: InSite Wireless Group, in which it invested in 2010. InSite constructs, owns and operates tower site facilities and distributed antenna systems (DAS). In 2009, Catalyst acquired an interest in MindBody; it’s a software as a service (SAAS) provider to the health, wellness and personal care industries.
What about apps developers? That’s a “maybe,” Rich says, as they usually represent a tougher business case.
Catalyst is no stranger to wireless spectrum deals, either. In December 2010, Leap Wireless International completed the acquisition of Catalyst portfolio company Denali Spectrum LLC, giving Leap control of Denali’s Chicago and southern Wisconsin markets. It also was an early investor in several other 4G players, including Clearwire, Aloha Partners (sold to AT&T) and Oneida Broadband (sold to Sprint and Clearwire).
So, with Catalyst being a provider of capital and a lot of up-and-coming companies in need of a little assist, next week’s show could prove fruitful for both sides of the deal. For more info or to inquire about setting up a meeting, visit .
Wednesday
Motorola Swings to $86M Loss in Q1, Shipments Down
Motorola Mobility yesterday reported an operating loss of $86 million for the first quarter of 2012, on $3.1 billion in revenues and a drop in total shipments of mobile devices.
Motorola said it shipped 8.9 million mobile devices, down from 10.5 million in the previous quarter. Fully 5.1 million of those devices shipped were smartphones.
This quarter, Motorola launched the Razr Maxx and DROID 4, both high-end LTE-capable Android smartphones. The company also expanded its portfolio of cheaper Android smartphones in China, Europe and Latin America with the Motoluxe and Defy Mini.
Home segment net revenues in the first quarter were $884 million, down 2 percent compared with the year-ago quarter. Non-GAAP operating earnings were $91 million compared to $81 million in the year-ago quarter.
Motorola did not hold an earnings call in light of pending approval of Google’s bid to purchase the company for $12.5 billion.
The deal is currently in a holding pattern as both companies work to secure approval from China. The transaction has been investigated and cleared in all other jurisdictions with pre-closing clearance requirements.
Motorola's portfolio of 17,000 patents played a key role in the deal. Google needed a way to bolster its intellectual property holdings to fend off patent lawsuits after placing failed bids on patent portfolios held by Novell and Nortel. Google claims that Apple and Microsoft are using their patents to wage a "hostile, organized campaign" against Android by burdening the platform with costly licensing fees.
Google said when it announced the merger in August it expected to close the deal by the end of the year or early 2012.
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