Wireless Carriers

Carrier metrics: ARPU, Churn and more

Sue Marek — Mon, 11 Aug 2008 12:11:15 -0400

During the second quarter of 2008, U.S. wireless carriers kept their average revenue per user steady thanks to growing data revenues. In addition, churn levels remained low while net adds climbed (at least for some operators). Check out the top U.S. operator metrics here.

Applications spur open environment

Sue Marek — Mon, 04 Aug 2008 11:58:30 -0400

Wireless carriers have notoriously exerted control over the mobile applications users can access via their cell phones. But the iPhone is helping operators realize that openness can spur more data usage--which is a winning proposition for them. Article

AT&T asks FCC to deny Sprint-Clearwire merger

Lynnette Luna — Fri, 25 Jul 2008 11:31:13 -0400

AT&T has asked the FCC to deny the planned merger between Sprint Nextel and Clearwire. The operator, which has the largest subscriber base in the U.S., argued that the venture would eventually use spectrum leased from schools, cities and nonprofits and that the spectrum hasn't been fully accounted for in the proposed merger. Earlier this year, Clearwire and Sprint announced their intention to combine their WiMAX businesses with the help of $3.2 billion from Intel, Google, Comcast, Time Warner and Bright House.

AT&T argues that when it purchased Dobson Communications last year, the FCC took into account spectrum AT&T has not yet accessed. In its filing, AT&T states that Clearwire and Sprint "openly state that they intend to compete with other national wireless providers--including AT&T--yet they fail to make the required showings necessary for the commission's review."

AT&T said Sprint and Clearwire, in listing their spectrum holdings, have discounted some spectrum they intend to use because it isn't operational yet. If the FCC would take into account all of the combined entity's spectrum holdings, the merger would be put under much higher scrutiny, AT&T argued.

For more:
- read Dow Jones

Related story:
A breakdown of the Sprint-Clearwire deal. Sprint-Clearwire deal story

Acer in talks with Europe's operators for 3G mini laptop

Lynnette Luna — Tue, 15 Jul 2008 12:18:38 -0400

Acer said it is in discussions with European operators T-Mobile International, Vodafone Group and Orange to supply mini laptops with built-in 3G. The company says it is also talking to Taiwanese operators Chunghwa Telecom and Taiwan Mobile. Acer's Aspire one already includes 802.11b/g but left room to install WiMAX or 3G modules. The 3G module Acer would add web access using HSDPA and HSUPA (High Speed Downlink/Uplink Packet Access) The Aspire one is priced between US$399 and $499 standalone, but mobile service providers could subsidize part of that cost to encourage people to sign up for a 3G contracts.

Some European operators such as Vodafone and Orange already sell subsidized laptops in certain markets. U.S. operators haven't been interested as they already don't like the subsidy game. A report issued by Pyramid Research last year suggested that wireless carriers that sell laptops in their stores may help improve uptake of their wireless broadband services.

Another mini-laptop maker in talks with European operators is Asustek Computer with its Eee PC. Taiwan's Elitegroup Computer Systems (ECS), says it has already signed up wireless service providers in Europe to distribute its G10IL netbook.

For more:
- check out TechWorld

Related story:
Should operators subsidize laptops? 3G laptop story

FCC will field test white space devices

Sue Marek — Fri, 11 Jul 2008 11:10:48 -0400

The FCC will begin field testing white space devices next week to see whether the devices that access unused television airwaves, called "white spaces" will interfere with television broadcasts. Companies such as Google and Microsoft want to use this unused spectrum to develop new mobile communications devices, however the initiative has raised the ire of the National Association of Broadcasters, which argues that "white space" devices may interfere with existing television broadcasts. Meanwhile, wireless carriers and the CTIA have advocated auctioning off the white space spectrum. And some carriers, such as T-Mobile and Sprint, think the spectrum should be used for backhaul.

The FCC plans to move its white space testing to residential areas and at least one sport's venue. So far many of the white space devices have malfunctioned during the tests, however Philips has a prototype that was able to detect operating television channels.

For more:
- see this article (sub req.)

Related articles:
Google's Page pushes white-space agenda
Sprint, T-Mobile advocate white space for backhaul
ESPN, NFL invite FCC to test white-space devices during football season

Tower climbing a deadly job

Sue Marek — Wed, 09 Jul 2008 11:52:33 -0400

Maintaining cell phone towers is the deadliest job in the country, according to the Occupational, Safety and Health Administration. There were five tower climbing fatalities during a 12-day span this Spring and seven deaths overall this year. During the National Association of Tower Erectors conference earlier this year, Edwin Foulke Jr., head of OSHA, said that the majority of fatalities are the result of climbers not being tied off to a safe anchorage point at all times or relying upon faulty personal protection equipment.

OSHA is investigating recent tower deaths and has partnered with the NATE to develop training programs to improve workplace safety and increase awareness among wireless providers, tower companies and general contractors about occupational dangers.

For more:
- see this RCR story

Qualcomm embraces the widget idea

Sue Marek — Fri, 30 May 2008 10:43:13 -0400

Building on the growing personalization phenomenon, Qualcomm Internet Services is announcing Plaza, a platform-agnostic service that provides a framework for widget development enabling operators to provide users with personalized access to the mobile Internet. Plaza will let operators and developers produce and deliver Internet-based content across devices. "We are leveraging our service delivery ecosystem with BREW and bringing it to the Widget delivery platform," said Andrew Gilbert, executive vice president and president of Qualcomm Internet Services, MediaFLO Technologies and Qualcomm Europe, in an interview with sister publication FierceMobileContent.

Plaza is intended to let operators personalize their subscribers' mobile Internet experiences and drive additional revenue. According to Gilbert, Plaza lets subscribers build a widget catalog easily and seamlessly. "It's a great way to deliver and consume content in a mobile environment. It's easy to get access to the web. We will help the operator ensure these widgets are trusted, certified and part of the good experience for customer," Gilbert said. "We also will strengthen the brand value of the operator and deliver it as part of an overall package to the operator. It ties with recommendation and profiling. They come together as part of this rich and open BREW experience."

Plaza is not device-dependent, but operators can personalize and certify them. Qualcomm is also working with developers to develop widgets for Plaza.

For more on Plaza:
- read this release

Related stories:
Qualcomm launches consumer portal via Ntelos
Qualcomm moves into off portal

FCC may cap early termination fees

Sue Marek — Wed, 21 May 2008 11:49:51 -0400

According to the Associated Press, the FCC is quietly negotiating with wireless carriers to reduce termination fees that carriers charge customers when they cancel their contracts. Many carriers still charge customers $175 for quitting their service contract early. The FCC is supposedly proposing that wireless carriers give customers up to 30 days after they sign a cell phone contract or until 10 days after they receive their first bill to cancel their service without penalty.

The plan would not put an end to all early termination fees, however but would reduce the fees based upon how long the customer sticks with the contract. In exchange for agreeing with the plan, wireless carriers would not be held accountable in state courts when they are sued by angry customers over the termination fees.

Many operators already pro-rate their early termination fees, a practice first championed by Verizon Wireless back in 2006. T-Mobile, Sprint, AT&T and Verizon Wireless have all said that they will pro-rate their fees.

For more details:
- see this AP story

Related stories:
T-Mobile USA to pro-rate ETFs, too. See this T-Mobile story.
AT&T changes ETF policy. Read this AT&T story.
Verizon makes good on ETF promise. See this Verizon article.

Vodafone makes first mobile Internet acquisition

Lynnette Luna — Tue, 20 May 2008 11:39:43 -0400

Vodafone made its first acquisition in the mobile Internet space, paying $49 million in cash for Zyb, a private Dutch company that provides social networking and contacts management technology--two hot applications in the mobile space. Zyb enables mobile users to back up their contacts on a website and offers IM services and calendar-sharing with other users online, a service that could morph into a platform for mobile advertising. The deal is part of Vodafone's "total communications" strategy in the newly created Internet Services division to offer services beyond the mobile phone.

For more about Vodafone's Internet strategy:
- check out this article from the Financial Times

T-Mobile USA to merge with Sprint Nextel?

Mon, 05 May 2008 06:59:58 -0400

According to a report from the Wall Street Journal, T-Mobile USA parent company Deutsche Telekom is mulling a bid to acquire Sprint Nextel. The acquisition would lead to a combined T-Mobile USA and Sprint Nextel, which would make for the largest wireless carrier in the U.S. Sprint Nextel boasts a market capitalization of $22 billion after its revenue fell to $40.1 billion in 2007 from $41 billion a year earlier--the operator also booked a net loss of $29.5 billion in the fourth quarter due to a non-cash goodwill impairment charge of $29.7 billion. At the end of its fourth quarter, Sprint was still the No. 3 carrier with 53.8 million subscribers. With 28.7 million customers at the end of December, T-Mobile USA lags a distant fourth, but a merger with Sprint would roughly triple its subscriber base and vault the company ahead of AT&T and Verizon Wireless.

Sprint uses CDMA technology and T-Mobile USA uses GSM, which has led some to predict LTE could be the technology that bridges the two carriers. That, of course, leaves Sprint's WiMAX build out plans in the lurch. Would regulators really allow the No. 3 and No. 4 U.S. carriers merge?

For more on the report:
- read the full article at WSJ (sub. req.)