Articles by Mark Lowenstein
My view is that the AWS-3 auction results will lead to some pretty important changes in the makeup of the wireless industry.
On the eve of CES and as we usher in 2015, I'd like look at some industry sectors where I think mobile could have a greater impact. First though, some context around the concept of 'disrupt': In my view, there are three "types" of impact that mobile has had on business.
When I think of the many aspects of our daily lives that mobile has helped to improve or simplify--navigation, finding a restaurant, comparison shopping, fitness tracking, all manner of personal information management--the grocery shopping experience is one that has been virtually untouched by mobile.
At the time of this writing, the AWS-3 auction has passed the $30 billion mark, with weeks possibly still to go. We could be looking at a $40-$50 billion auction, which is 4-5x Wall Street's initial consensus expectations. And what are the government's plans for this money? From what I understand, about $7 billion is earmarked for the FirstNet public safety network, with the remainder going to the Department of the Treasury to help pay down the deficit. Yes, you read that right.
The recent developments in mobile payments are a classic example of a rising tide lifting all boats. As soon as Apple Pay became active, the curiosity factor drove more than 1 million iPhone users to launch their long-neglected Passbook app, download their credit card onto their device, and try out the service. Then, all of the sudden, CurrentC (the brand of Merchant Customer Exchange), and SoftCard (the brand of the AT&T/Verizon/T-Mobile JV), from whom we'd heard zilch in about a year, sprung to life. That you couldn't ring up your Huggies purchase at CVS with your iPhone became this week's #firstworldproblem.
There have been three broad themes to the FCC under Chairman Tom Wheeler, reinforced in his remarks at the recent CTIA trade show: more competition, more spectrum, and an open, non-discriminatory Internet. The significant items on the FCC docket that play into these themes--the pending AT&T-Direct TV and Comcast-TWC deals, the 600 MHz incentive auctions, and the ongoing discussions on network neutrality--show that the FCC has taken a lot on, and has had a lot thrown at it. An intransigent Congress and the upcoming mid-term elections are an additional wildcard that could impact how and how quickly these major items are addressed.
Dear Marcelo, Welcome to this exciting and challenging role. Although you are surely aware of the challenges Sprint has faced over the past few years, your predecessor, Dan Hesse, made some of the right calls, especially with regards to thinking long-term with the network rip and replace. Your single greatest opportunity is to leverage that network, as it is completed, into a differentiated value proposition, for both the industry and for customers. Here are some thoughts on how to attract and retain subscribers, grow the business, and make Sprint great again.
T-Mobile cleverly coined the term "uncarrier" to market its maverick moves, changing the game in several aspects of mobile services over the past eighteen months. As the market becomes more competitive, and as the delta between the traditional levers of price, network, device, and value-added services continues to narrow, it is an interesting exercise to consider other "outside the box" moves that wireless operators might initiate. So, here's my contribution of ten 'uncarrier' moves I'd like to see.
With the continued growth in demand for data and proliferation of private and public Wi-Fi hotspots, the idea of a 'Wi-Fi First' wireless service has become a favorite discussion topic. Republic Wireless and Scratch Wireless are two MVNOs that are already offering a Wi-First (my term) service, using the Sprint network as cellular backup when not within Wi-Fi coverage. The leading cable MSOs, who have formed the Cable WiFi Alliance, have deployed hundreds of thousands hotspots, and are turning millions of home routers into "neighborhood hotspots" by issuing a second, "public' SSID. Many believe that the cable companies will eventually offer a Wi-First service as a value-add to their broadband customers and as a way of competing with cellular.
This is a critical time in the communications and digital media industries. I'm not arguing for a spate of new regulations, but we do need the public sector to be proactively engaged and involved, in two respects.