FierceWireless

What's next for the iPhone?

Phil Goldstein — Thu, 02 Jul 2009 11:25:53 -0400

Although the latest incarnation of the iPhone launched less than two weeks ago, it appears Apple is wasting no time in applying for patents for technology that it could add to future iPhone models. According to the website MacRumors.com, Apple is researching haptic display technologies, which would allow for tactile feedback on the iPhone's touchscreen--thereby countering a gripe against the device. Additional patents point to fingerprint identification technology and RFID tag readers in touchscreens. Article

Broadband stimulus guidelines call for net neutrality

Phil Goldstein — Thu, 02 Jul 2009 11:18:46 -0400

The Obama administration released grant guidelines for the government's $7.2 billion broadband stimulus package Wednesday, and the rules call for net neutrality provisions to be applied to grant winners. The stipulations may deter wireless companies wary of complying with the rules.

Grant winners will have to follow the FCC's 2005 Internet Policy statement, which prohibits companies from deliberately blocking or slowing a competitor's Internet traffic. Grant winners must "not favor any lawful Internet applications and content over others," the rules state. FCC commissioner Michael Copps has said that those rules apply to wireless companies. The new FCC chairman, Julius Genachowski, has not yet given his opinion on the issue. Public interest groups, including Free Press, applauded the net neutrality efforts.

Wireless trade group CTIA said it was still reviewing the guidelines and had no comment, according to the Wall Street Journal. However, given the group's previous comments on the matter, it's clear the inclusion of net neutrality provisions come as a blow.

In comments filed in April to both the National Telecommunications and Information Administration and the Rural Utilities Service, CTIA said that net neutrality rules "should be applied to broadband stimulus grantees within the context of its existing parameters, and not more broadly."

"Wireless networks are inherently different than the networks for which the [net neutrality] policy statement was developed," CTIA said. "The underlying network infrastructure, including spectrum, as well as the integration of the customer equipment, make wireless significantly different than other broadband networks."

For more:
- see this WSJ blog post
- see the broadband stimulus grant guidelines

TracFone's $45 unlimited offer to 'stun' rivals

Phil Goldstein — Thu, 02 Jul 2009 10:46:51 -0400

America Movil's MVNO TracFone Wireless quietly unveiled a prepaid, nationwide unlimited offering for $45 per month that includes unlimited text messaging and 30 MB of data. The service, running over Verizon Wireless' network and available at participating Wal-Mart stores, stands as another major action in the white-hot battle for limitless wireless service.

The news likely will "stun industry participants," Pali Research analyst Walter Piecyk wrote in a note to investors. Shares in regional, unlimited wireless carriers Leap Wireless and MetroPCS fell on worries of increased competition.

Piper Jaffray analyst Chris Larsen said Leap and Boost Mobile, Sprint Nextel's prepaid unit, would be especially vulnerable. Indeed, Boost's $50 unlimited talk, texting and Web browsing plan, launched earlier this year with major fanfare, generated such interest that Sprint's iDEN network clogged under the load before the carrier added capacity.

Verizon spokesman James Gerace told Reuters that the carrier would make sure its network would not be overwhelmed if the TracFone offer results in a similar spike in traffic. Gerace also said that the new plan would not make Verizon change its own retail pricing. Verizon offers an unlimited postpaid offering for $100 per month.

For more:
- see this Reuters article
- see this AP article
- see TracFone's Straight Talk site

Nokia Siemens retreats from WiMAX as LTE beckons

Phil Goldstein — Thu, 02 Jul 2009 10:18:09 -0400

Nokia Siemens Networks is transferring more of its research, development and base station production efforts from WiMAX to HSPA+ and LTE, according to Unstrung. The action follows similar moves from several other major equipment suppliers, and coincides with Nokia Siemens' plans to acquire Nortel Networks' LTE assets.

"We have already shifted a part of our resources away from WiMAX to HSPA+ and LTE," Marc Rouanne, head of radio access at NSN, told Unstrung. "We're looking for our suppliers and partners to deliver what we would have done ourselves in-house. A much larger part of the RF equipment will be supplied by our partners." Rouanne said WiMAX will have a smaller impact on the wireless market than the company previously expected; as a result, Nokia Siemens will stop making its own standalone WiMAX base station.

However, Rouanne said NSN is not jumping ship from the WiMAX market altogether. "We're not stopping, cancelling or getting out of the market," he said. "We still have a strong offering in WiMAX."

The shift in priorities is clear though; Nokia Siemens has seen an uptick in demand for HSPA+ and LTE, Rouanne indicated, which is part of the company's motivation to grab at Nortel's CDMA and LTE assets for $650 million. Bids for Nortel's wireless assets are due July 21 and an auction date is set for July 24 in New York City.

Other large vendors also have shunned WiMAX. Ericsson early on decided not to invest in WiMAX and Nortel offloaded its WiMAX efforts to Alvarion in 2008.

For more:
- see this Unstrung article

Article updated July 2 to correct information about Alcatel-Lucent.

July 4 holiday

Phil Goldstein — Thu, 02 Jul 2009 08:41:48 -0400

FierceWireless will not be publishing on Friday, July 3, in observance of the July 4 holiday. We will be back in your inbox on Monday, July 6. Enjoy the Independence Day weekend. --Phil

Zer01 goes nationwide with unlimited voice, data service

Mike Dano — Wed, 01 Jul 2009 16:31:03 -0400

After a few months of delay, MVNE Zer01 Mobile announced the nationwide launch of its unlimited, prepaid, voice and data service that the company is selling to distributors. The company said its low-cost offering can support unlimited service via mobile VoIP technology running over AT&T Mobility's network.

"Many years of research and testing have culminated in the public launch this week of the new, truly unlimited voice, data and Web mobile wireless service from Zer01 Mobile. Thanks to the ingenuity of the Zer01 Mobile engineering team, our new Veritable Mobile Convergence technology allows each smartphone user to make voice calls or transmit data through a VoIP system," explained Ben Piilani, CEO of Zer01, in a release.

The company's offering is not intended for end users. Instead, Zer01 is selling the service as a mobile virtual network enabler, meaning that the company developed the relationship with AT&T and will supply handsets and other services, but won't actively sell the service to phone shoppers. That task falls to the company's distributors, which include Buzzirk Mobile and others, according to a Zer01 spokesman. A cursory check of Buzzirk Mobile's website indeed showed an offer for unlimited voice and data service for $79.95 per month.

A Zer01 spokesman said the company is moving forward with its plans and expects to add additional distributors in the near future. The company said its system runs on Windows Mobile phones, and it will offer devices from HTC and Pharos. He said Zer01's service also includes low-cost international calling.

Zer01 unveiled its plans in March, and at the time said it would launch in April with a service for $69.95 per month. However, the company has since backed off offering that specific price, apparently to provide more flexible pricing options to distributors.

For more:
- see this release

Article updated July 1.

Counting the world's top 10 largest operators

Phil Goldstein — Wed, 01 Jul 2009 11:56:37 -0400

Ever wonder how the Tier 1 operators in the United States stack up against wireless carriers from around the globe? Well here's your answer. The following list comprises the top 10 largest mobile operators in the world, according to Wireless Intelligence. Starting at No. 10 and counting up to the world's biggest carrier, the list ranks the world's carriers by total number of connections and number of markets. Slideshow

Palm potpourri: Sales estimates rise, suitors sighted and UK launch predicted

Phil Goldstein — Wed, 01 Jul 2009 11:52:47 -0400

The Palm Pre continues to attract attention from analysts who speculate how many devices Palm has sold, as well as what the launch of webOS means for Palm's future as an independent company.

Charter Equity Research analyst Edward Synder made a splash when he wrote in a recent research note that his contacts in the manufacturing and retail channel indicate that Palm has sold 300,000 Pre units since Sprint Nextel launched the smartphone June 6. The number is higher than many other estimates. Sprint may provide more detailed sales figures when it discusses its second quarter earnings this month.

Further, Synder said Palm will ship 1 million units to Sprint in its first quarter of production. He also said that he expects Verizon Wireless to launch a webOS device in early 2010, with AT&T Mobility following shortly thereafter.

Speculation about Palm as a possible takeover target also continues. Kaufman Bros. analyst Shaw Wu said in a recent note that there is "great value in Palm as a strategic acquisition." He listed Cisco, Dell, HP, LG, Motorola, Nokia and Samsung as possible suitors for the smartphone maker.

And in one more tidbit of Pre news, the website T3 is reporting that early next week Palm will make an announcement about the Pre's UK launch. Vodafone and O2 have been eyed as possible carriers for the Pre's Euro debut.

For more:
- see this NYT blog post
- see this Barron's blog post
- see this T3 post

Survey: Consumers confused by smartphone options

Phil Goldstein — Wed, 01 Jul 2009 11:31:15 -0400

Smartphone adoption will continue to grow despite a number of market barriers, according to several new reports.

The number of smartphones shipped with open-sourced operating systems will jump from 106 million this year to 223 million in 2014, according to a new report from Juniper Research. Open-source OS vendors such as Symbian and Google, through its Android effort, are thus poised to benefit. But they won't be the only ones racking up sales; other research firms project growth throughout the entire smartphone sector. Indeed, Gartner said smartphone sales increased to 36 million units worldwide in the first quarter, and recent research from the Yankee Group said 41 percent of consumers plan to make their next phone a smartphone.

However, all of the excitement over smartphones could be tempered by the fractured market. According to a recent survey by Best Buy Mobile, fully 47 percent of consumers who currently do not have a smartphone said they were too confused by the array of smartphones and features available. More than half--53 percent--of adults over 50 expressed confusion over which model to buy.

Additionally, carriers and handset vendors may have to think about subsidizing smartphones even more than they are now, since 64 percent of those who do not have a smartphone said they don't have one because the devices are too expensive, according to the survey.

For more:
- see this Juniper release
- see this Best Buy release

Report: Economic downturn will hammer handset sales

Phil Goldstein — Wed, 01 Jul 2009 11:09:08 -0400

Plenty of analyst firms have said that 2009 will be a weaker year for handset sales, but Informa Telecoms & Media has added more gloom to the picture--the firm now predicts that because of the economic downturn, 1.04 billion fewer devices will be sold over the next five years.

The firm has revised its outlook for the next five years down 14 percent. The company said that growth is expected to pick up in 2010, but that it won't be until 2011 when the handset market recovers to 2008 levels. The one bright spot that Informa found in its new research was that sales of high-end phones will outpace low-end phones in 2009, which could be a boon to vendors looking to boost margins and carriers hoping to increase data revenue.

Nokia, the leading handset vendor by market share, has predicted that handset sales will fall 10 percent across the industry this year, and other handset makers have said they expect the market to contract this year at around that level or a by a few percentage points less.

The economic downturn will have other effects as well, Informa said. Customers are expected to keep their handsets for six to nine months longer they have in the past, prolonging the replacement cycle, and carriers are likely to move away from aggressive handset subsidies. Other firms have pointed out that weaker replacement sales could spell trouble for a market that will increasingly rely on such sales, due to increased penetration rates, over the next few years.

For more:
- see this release

AT&T, Cellular South push netbooks

Phil Goldstein — Wed, 01 Jul 2009 10:46:15 -0400

AT&T is more aggressively pushing its subsidized netbook offerings for small businesses, and regional carrier Cellular South is hinting it will jump into the netbook game.

AT&T and its computer retail partner CDW, which targets business and government markets, are offering Acer and HP netbooks models for $199 to small businesses. The offer requires a two-year contract for AT&T's $60-per-month data plan, with a cap of 5 GB. AT&T is also offering rugged Panasonic laptops and other selected models with a $150 subsidy.

Separately, Cellular South also plans to play in netbooks. The carrier hinted it will launch the Dell Dell Mini 10 netbook sometime later this summer, though it did not release pricing information. Cellular South said it will offer service plans that begin at $40 per month for 500 MB of data and increase to $60 per month for 5 GB.

The action comes as a variety of wireless carriers, both domestic and international, begin experimenting with the sale of netbooks and data service plans alongside cell phones and voice plans. The move is an effort to expand data usage as well as tap into a growing demand for the scaled-down laptops; indeed, industry research firm IDC recently reported that worldwide shipments of netbooks reached 11.6 million units last year, a figure it projected to grow at double-digit rates in the coming years.

For more:
- see this TGDaily article
- see this AT&T release
- see this Cellular South release

Related Articles:
Verizon Wireless jumps into netbook game, adjusts data plans
AT&T says subsidy model good for business
NPD Group: Netbook buyers often feel disappointed
AT&T to expand netbook offerings nationwide
AT&T, RadioShack face class action suit over netbook data plan

Nokia planning CDMA smartphone

Phil Goldstein — Wed, 01 Jul 2009 10:14:48 -0400

Nokia plans on addressing its relatively weak presence in the U.S. smartphone market by eventually producing a CDMA smartphone that large carriers such as Verizon Wireless and Sprint Nextel could launch, the company's chief executive said.

Nokia CEO Olli-Pekka Kallasvuo summed up his company's position in the United States succinctly: "We are the incumbent in the world at large," he told BusinessWeek, "in the U.S., we are the underdog." The company commands the global smartphone market, and had more than 41 percent market share in the first quarter, according to Gartner. However, its attempts to crack into the U.S. market have so far been feeble; according to Strategy Analytics, Nokia's overall share of the U.S. handset market stood at 7.9 percent, up from 6.5 percent in the first quarter of 2008.

Two of Nokia's flagship smartphones--the 5800 XpressMusic and the N97--are available in the United States, but not through a Tier 1 carrier. Regional carrier Cincinnati Bell sells the 5800 for for $149 with a two-year service contract and after a $100 mail-in rebate, and the N97 is available unlocked for $700. However, AT&T Mobility did launch the company's E71x phone earlier this spring, marking a rare bright spot in Nokia's U.S. efforts.

To address the company's U.S. gap, Nokia is looking to tap the CDMA market. "We are investing in CDMA," Kallasvuo said. "It is our ambition to come out with a smartphone in CDMA." He did not elaborate on the company's plans or say when Nokia would introduce a CDMA smartphone.

For more:
- see this BusinessWeek article

The world's top 10 largest operators in the first quarter

Mike Dano — Wed, 01 Jul 2009 09:36:29 -0400

The following list comprises the top 10 largest mobile operators in the world, according to Wireless Intelligence. Starting at No. 10 and counting up to the world's biggest carrier, the list tabulates the world's carriers by total number of connections and number of markets.

Numbers included herein are consolidated at 100 percent of all connections within a group that holds a 50 percent or greater economic interest in its operation, according to Wireless Intelligence.

Wireless Intelligence covers all cellular technologies and includes 2,215,000 individual data points spanning 800 mobile network operators in over 200 countries.

Click here to get started

With the dawn of the superphone, where is Microsoft? Page 2

Stephen Drake — Tue, 30 Jun 2009 16:20:14 -0400

There are a number of reasons IDC believes Microsoft has not yet had that iconic device:

1. What the key players listed above have in common is control: control of the device and the operating system. RIM, Apple and Palm all own both the OS and device and deliver an integrated experience. Nokia has spun off Symbian as a non-profit entity, yet the integration of Nokia and Symbian is akin to any of the three device makers and its OS. Microsoft, however, must work with all of its device manufacturers and although the company certainly has influence, each device vendor has its own sets of priorities and a growing number of devices and operating systems it is working on. Unlike the PC, the mobile device is a much more personal device, where the hardware design, look and even color play a role in customer's buying decisions

2. Technology may also play a role here. Apple, Palm and RIM have delivered capacitive touch devices, while Microsoft's key touchscreen devices from HTC are the older resistive touch technology. The experience makes a difference in the end-users' hand.

3. Cost may be a factor. With RIM, Apple and Palm, the device manufacturers own the operating system. Symbian is now a free license as is Android and other Linux operating systems. And while Palm may still license its webOS to other device manufacturers, today, Windows Mobile remains as a mobile operating system where an ODM must pay for the license. In challenging economic times this may be a differentiator. In addition, ODMs must make decisions around how many and what operating systems they will support and cost may be a factor in how many devices they launch with a particular OS. Android, for example, as a fee free OS seems to be garnering a growing number of device makers for multiple devices.

Despite not yet having a superphone, Microsoft is still in a strong market position. Windows Mobile is currently third in the world with 13% share in IDC's Converged Mobile Device market (behind Symbian and RIM's BlackBerry OS) and has about 95% share of the Ruggedized Device market.

Microsoft is also fully aware of not having a flashy device that can stand up to the icons in the market today. Expect to see something from Microsoft in the near future. Likely manufacturers are Samsung or LG. Samsung has had feature phones that have pre-sold more than a million devices, including the Samsung Ultra Touch (1.8 million devices pre-sold) and the soon to ship Samsung Jet (that incidentally is the first feature phone to support Microsoft Exchange ActiveSync and pre-sold 2 million devices). LG, also a key Microsoft ODM, is known for delivery of devices with strong user experiences and attractive UIs and form factors. The challenge in working with vendors such as LG and Samsung will be the need for Microsoft to preserve the distinctive user interface that both companies use to differentiate.

Stephen Drake is the program vice president for Mobility & Telecom research at IDC. In this position, he has responsibility for the Mobile Enterprise, Mobile SMB, Mobile Device coverage, IP Communication Services and also contributes to IDC's Unified Communication research. Visit IDC.com.

With the dawn of the superphone, where is Microsoft?

Stephen Drake — Tue, 30 Jun 2009 16:19:03 -0400

Over the past two years spawned by Apple's iPhone, a new class of iconic, need-to-have, shiny converged mobile devices (or smartphones) have come on to the scene that have had a profound impact on the smartphone market. The term superphone, coined in the media, speaks to this high-end device class characterized by its "wow factor," a real or perceived buying frenzy, or an otherwise stylish, functional and pretty-to-look-at device. And while selling 1 million devices in the first few days of availability is not a necessary criterion, it is certainly becoming the expectation from the trade press and Wall Street.

Apple's iPhone certainly set the standard with its launch two years ago and continues to reach new heights with its most recent launch of iPhone 3GS, claiming 1 million devices sold in its first weekend in the market. Verizon Wireless in launching RIM's BlackBerry Storm last November sold 1 million in less than three months. Nokia also sold 1 million of its flagship E71 devices last summer in three months. The Palm Pre, debuted last month, certainly fits the bill with its multi-touch capabilities and beautiful interface from a company that has put its stamp on the smartphone. Palm has been trying to keep up with demand as the Pre has been selling out and is on a nice pace, working towards being a million seller.

And even Android is arguably not a hit, yet the G1 (manufactured by HTC) did sell a million units for T-Mobile USA and provided significant improvement in data usage. With Android, the best is yet to come, with tremendous buzz and anticipation from developers as the likes of Samsung, Motorola and LG either launch or are expected to launch devices with this operating system. And the leading Windows Mobile device provider, HTC, currently offers four Android-based devices.

So the question is, where is Microsoft in all of this? With over 50 suppliers (and all of the major suppliers except Nokia), Microsoft has yet to produce the iconic, shiny device that users have coveted. In the past there have been a few devices that have shown some promise. The Motorola Q, Moto's first smartphone with Windows Mobile, had promise, but was known more for its large return rate with Verizon Wireless than anything else. Samsung's BlackJack, BlackJack II and most recently the Jack were all strong devices and flagship WinMo devices for AT&T, but never quite reached rock star status...Continued

Genachowski sworn in as FCC chairman, and challenges await

Phil Goldstein — Tue, 30 Jun 2009 11:37:26 -0400

After months of waiting, Julius Genachowski was sworn in as the new chairman of the FCC on Monday. And his plate is already full, as acting chairman Michael Copps set up a number of issues for the commission to tackle while Genachowski was awaiting Senate confirmation (had was nominated for the position in March). Among the more pressing issues: establishing a nationwide broadband plan; evaluating exclusive deals between handset makers and wireless carriers; and examining net neutrality rules. Article, article (sub. req.)

Rumor Mill: Is Dell working on an Android MID?

Phil Goldstein — Tue, 30 Jun 2009 11:29:35 -0400

Dell is working on a MID based on Google's Android platform, according to a report in the Wall Street Journal. The tidbit is the latest in a series of rumors and speculation twisting around Dell's possible mobile efforts.

According to the Journal report, which cited multiple, unnamed sources, early prototypes of the device are slightly larger than Apple's iPod touch. One source said the company could begin selling the device later this year, though cautioned the plan could be delayed or cancelled.

The mobile Internet device (MID) may use ARM chips, according to the report; currently Dell does not make any devices that use ARM-based chips. Dell has considered selling the product through wireless carriers, though it is unclear where those discussions stand. The company is also developing Android smartphones, the report said.

In May, Dell said it had no plans to make an Android netbook, and said a release from software solutions provider Bsquare that hinted at "Dell netbooks running Google's Android platform" was issued in error. In March, Kaufman Bros. analyst Shaw Wu said that Dell had shopped smartphone prototypes running on Android and Windows Mobile to wireless carriers, and that the prototypes had been panned.

A Dell spokesman declined to comment on the Journal report, and told FierceWireless that as standard practice the company does not comment on rumors or speculation.

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

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Motorola may aim for mid-range market with Android

Phil Goldstein — Tue, 30 Jun 2009 11:05:49 -0400

Motorola has wagered much of its handset division's future on Google's Android platform, but its strategy may not include making a big splash in the high-end smartphone segment when it debuts its Android phones later this year.

Instead, to reverse slumping market share and plummeting revenues, Motorola may focus on the mid- and low-range of the phone market with its forthcoming Android devices. "There's a lot of competition in the high-end category and not a big movement to address the lower price points," Avian Securities analyst Matt Thornton told BusinessWeek. "It's a smart move. Motorola needs to be more near-term and start making some money."

Even mid-range smartphone sales could boost Motorola's margins. Barclays Capital analyst Jeff Kvaal told BusinessWeek that he estimates that Motorola's new smartphones could boost the company's overall average selling price for handsets to $147 in the fourth quarter, up from $123 in the first quarter. According to Kvaal, Android launches could grow Motorola volumes by 20 percent to 70 million units next year.

Motorola declined to comment to BusinessWeek about its Android plans.

It appears that Motorola's efforts are bearing fruit. According to a recent report in the Wall Street Journal, T-Mobile USA and Verizon Wireless will launch Motorola-made Android phones before the end of the year, news that dovetails with comments Motorola executives made earlier this year.

In late April, Motorola co-CEO Sanjay Jha said the company would have Android devices on the market by the end of the year with multiple carriers, and not just in North America. "We are in detailed discussion with multiple carriers around the world," Jha, the head of Motorola's mobile devices division, said at the time. "It won't be one carrier in one region. It will be multiple carriers in multiple regions."

For more:
- see this BusinessWeek article

Nortel gets approval to auction wireless units

Phil Goldstein — Tue, 30 Jun 2009 10:47:39 -0400

Bidding on Nortel Networks' wireless businesses is set to begin later this month, with Nokia Siemens leading the action via a $650 million opening bid. Under a previously announced agreement, Nokia Siemens is the "stalking horse bidder" and has the ability to set the floor price for bids and match any higher offers for Nortel's businesses.

U.S. Bankruptcy Judge Kevin Gross approved the bidding process over the objections of some of Nortels' creditors and bondholders. Gross said he changed the bidding procedures to address some of the concerns after Nokia Siemens agreed to the changes.

Nortel was essentially forced to auction off its wireless assets, including its LTE unit, a Nortel executive said. George Riedel, Nortel's chief strategy officer, said in court that the company's biggest customers, including Verizon Wireless, said they were wary of buying Nortel's LTE technology because of the company's financial instability.

Wireless carriers told Nortel "we love your technology, but we are concerned about your balance sheet," Riedel said in court Monday. "Unfortunately for us, we will win the technology prize, but not the commercial business."

If Nokia Siemens secures Nortel's wireless units, it could significantly boost its presence in North America; the company has said it is confident it could win deals from companies like Verizon.

Bids are due July 21 and the auction date is set for July 24 in New York City.

For more:
- see this Bloomberg News article
- see this Reuters article

Sprint providing data services for U.S. Census

Phil Goldstein — Tue, 30 Jun 2009 10:29:49 -0400

Sprint Nextel will be the exclusive provider of mobile data services for the upcoming 2010 U.S. Census. The contract is a significant win for the carrier's newly established Business Markets Group, which focuses on enterprise and government customers.

The Harris Corporation, which is the system integrator for the Census, will have 140,000 workers out in the field using hand-held devices that will run on Sprint's CDMA network. Harris field workers started their data collection in April.

The devices--there will be 150,000 provided in all--will have GPS and fingerprint ID scanning capability. The devices will allow workers to transmit data back to the Census Bureau in near real-time, Sprint said. Additionally, Sprint will provide 1,500 mobile broadband data cards and other managed services.

The financial terms of the deal were not disclosed. However, the contract marks a milestone for the Business Markets Group, which Sprint formed in April. The formation of the group, alongside Sprint's focus on embedded wireless partnerships and wholesale deals, reflects a growing sense that the carrier will have to look beyond traditional wireless money-makers to boost growth.

For more:
- see this release

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Comcast to sell mobile WiMAX laptop cards

Phil Goldstein — Mon, 29 Jun 2009 16:06:19 -0400

Comcast said it will market wireless broadband cards for laptops on Clearwire's mobile WiMAX network in Portland, Ore. The cable company will offer the service, called High-Speed 2go, on promotion for $49.99 per month for a year, a price that includes Comcast's Internet home service and a WiFi router.

The company will offer two different data cards and service plans. One will be a 4G-only data card that works in Clearwire's "Clear" markets, while the other will work in those markets and also access Sprint's national CDMA network and be able to switch between the two. The nationwide service will cost an extra $20 per month.

The devices and pricing offerings are similar to those offered by Clearwire under the "Clear" brand and Sprint Nextel under the "Sprint 4G" brand.

Cathy Avgiris, Comcast's general manager for wireless and voice services, said the company will eventually expand its role as a reseller of Clearwire's network and sell the service in other cities. Comcast will include other wireless devices, like cell phones, as part of its offering, Avgiris said. The company plans on expanding the service to Atlanta, Chicago and Philadelphia before the end of the year.

Avgiris said that the service is meant to complement Comcast's wired broadband offering, and pointed out some of the shortcomings of wireless. "There are issues with indoor penetration, and with coverage you sacrifice speed," she told the Wall Street Journal.

In March, Comcast indicated that it would act as an MVNO for Clearwire's service. The cable company was one of the major investors in Clearwire, providing more than $1 billion of the $3.2 billion Clearwire received from Google, Intel, Time Warner and others.

So far this year Clearwire has launched mobile WiMAX in Portland and Atlanta and has soft-launched its service in Las Vegas. Sprint Nextel's WiMAX market in Baltimore is being expanded and will be converted to a Clear market later this year. Other markets that will launch this year include Chicago, Dallas/Ft. Worth and Philadelphia. The company also will convert existing pre-WiMAX markets in Seattle, Honolulu and Charlotte, N.C., to mobile WiMAX.

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

Related Articles:
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Clearwire will launch at least eight markets in 2009
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WiMAX system helps drivers see through the fog

Phil Goldstein — Mon, 29 Jun 2009 11:51:27 -0400

The San Joaquin Valley in central California is notorious for its fog. To help protect drivers, the California Department of Transportation and the California Highway Patrol deployed a WiMAX system to help monitor road conditions. In its third installment in a series on wireless broadband deployment in rural communities, FierceBroadbandWireless took a look at this system. The system was deployed earlier this year and gives drivers real-time speed and visibility information, allowing them to make adjustments on a 12-mile stretch of road. Special feature

Did Sprint promise RIM BlackBerry Tour sales?

Phil Goldstein — Mon, 29 Jun 2009 11:34:34 -0400

According to a UBS research note, Sprint Nextel promised Research In Motion certain volume sales of the BlackBerry Tour in order to launch the smartphone at a similar time as Verizon Wireless.

The note, by Phillip Huang, also indicates Sprint will heavily promote the Tour in order to encourage sales. A Sprint spokesman said the carrier does not comment on the inventory of its device portfolio.

Another significant nugget from the note is that Verizon will launch the BlackBerry Storm 2 in October. Indeed, the firm predicts RIM will have a busy second half of the year with a range of Blackberry launches.

Sprint previously announced the Tour would be available later this summer for $199.99 with a two-year contract and after $150 in rebates. Verizon declined to comment on pricing or availability information for the Tour. The phone will support CDMA EV-DO Rev. A networks in North America as well as 3G UMTS/HSPA (2100 MHz) and quad-band EDGE/GPRS/GSM networks abroad, making it a world phone. The smartphone will have a 3.2-megapixel camera, media player for music and video, support for BlackBerry App World and a microSD slot.

For more:
- see this National Post article

Boost takes swipe at MetroPCS' international calling plan

Phil Goldstein — Mon, 29 Jun 2009 11:00:45 -0400

Taking aim at rival MetroPCS, a Boost Mobile executive called MetroPCS' recently introduced international unlimited calling plan "impossible" and urged customers to take a look at the fine print.

MetroPCS last week unveiled a plan that offers unlimited international calling to more than 100 countries for $5 per month. The carrier said subscribers will be able to call more than 1,000 destinations and the feature can be added to its $40, $45 and $50 monthly service plans, including family plans. Boost Mobile, Sprint Netxel's prepaid unit, has countered that the offer is simply too good to be true.

"Anything can be profitable depending on the usage," Justin Brennan, Boost Mobile's director of prepaid business, told the OC Register. "They're obviously taking a bet on the usage. ... They're betting customers won't use it very much." Brennan said perhaps MetroPCS would force customers to upgrade to more expensive plans, or tack on taxes and fees. MetroPCS also faces settlement fees from other carriers, which vary but are generally part of the international calling business.

"We really have seen some seemingly impossible offers like this come from MetroPCS before and what happens is they disappear very quickly, which make it seem that it is too good to be true," Brennan said.

MetroPCS declined to respond directly. "We don't disclose pricing or profitability on individual products," the carrier said in a statement, according to the Register. "However, our company is extremely profitable even with the launching of new markets and we have some of the lowest operating costs in the industry." MetroPCS did not respond to further requests for comment at deadline.

For more:
- see this OC Register article

Report: Sony may develop gaming-phone hybrid

Phil Goldstein — Mon, 29 Jun 2009 10:46:29 -0400

Sony plans to develop a new product that combines mobile gaming and cell phone technology, according to a report in the Nikkei Business Daily.

The company will set up a project team as early as next month to work on the product, which will use elements of Sony Ericsson mobile phones and more traditional Sony-branding gaming devices, such as the PlayStation Portable. A Sony spokesman declined to comment on the report, according to Reuters.

Sony's handset joint venture with Ericsson has been hinting that it will meld gaming and the mobile experience. In May, Sony Ericsson unveiled three new phones, two of which were gaming-centric. The Aino is a touchscreen and media-centric phone that allows users to connect to content on their PlayStation 3 gaming console. The other phone, the Yari, has Nintendo Wii-like gesture controls.

Traditional game-makers such as Capcom have flocked to Apple's iPhone, putting pressure on Sony's mobile gaming offerings. Indeed, according to media research firm Screen Digest, Apple had $100 million in gaming revenues in the second half of 2008, or about 10 percent of the North American mobile games segment.

For more:
- see this Reuters article

Nortel creditors object to sale

Phil Goldstein — Mon, 29 Jun 2009 10:34:37 -0400

Creditors and suppliers of bankrupt Nortel Networks have filed objections to Nokia Siemens Networks' $650 million bid for most of Nortel's wireless assets.

One of the creditors, MatlinPatterson, is complaining that the current bidding process may freeze out other potential bidders. Nokia Siemens has said it wants to complete the deal by the third quarter of this year.

"These restrictions serve only to permit Nokia-Siemens to effectively lock down these valuable core assets," MatlinPatterson said in a U.S. court filing. The creditor is seeking a two-week extension of the sale process, and is arguing that more value could potentially be squeezed out of Nortel.

In other Nortel news, Light Reading is reporting that the company did not agree to sell off all of its LTE assets and is actually holding onto some key LTE patents. The deal includes the stipulation that Nokia Siemens will license "certain intellectual property necessary for the manufacture of the products and the provision of services."

Nokia Siemens also made some progress of its own on the LTE front, winning a $352 million loan from the European Investment Bank to develop its multimode radio access network technology, which allows service providers to run GSM and LTE from a single base station.

For more:
- see this Reuters article
- see this Dow Jones Newswires article (sub. req.)
- see this Light Reading article

Apple showing shortages of new iPhone

Phil Goldstein — Mon, 29 Jun 2009 10:08:05 -0400

Ten days after the iPhone 3GS went on sale, Apple is reporting shortages of the new model across the United States. The company introduced a widget to show where the shortages are in its retail stores.

The widget first appeared last summer after the iPhone 3G went on sale and supplies became tight. The updated tool now tracks availability of the new iPhone on an hourly basis. According to IFOAppleStore, a website that monitors Apple's retail operations, the new widget links directly to Apple's internal point-of-sale computers.

Over the weekend, more and more stores across the country were showing shortages of the new model, with the white 16GB iPhone 3GS in especially high demand. The widget does not cover AT&T Mobility retail stores.

Apple said it sold more than 1 million iPhone 3GS units in its first weekend of availability. Last Friday, Apple released the phone across the world in a second wave of launches.

For more:
- see this Fortune blog post

Related Articles:
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Do iPhone customers still have an incentive to jailbreak?

Lynnette Luna — Mon, 29 Jun 2009 02:40:49 -0400

PC World is bringing up an interesting question when it comes to the iPhone. Does jailbreaking the device matter anymore?

Two years ago when Apple and AT&T first introduced the device, a bevy of iPhone hackers came out of the woodwork. They found ways to bypass software locks and upload unapproved applications onto the device.

Today, the iPhone 3GS also is vulnerable to hacking, according to the hack gurus at iPhone Dev Team, but the motivation to do so may be significantly less. PC World's David Murphy points out that the device's expanded feature set--such as video capture, cut, copy and paste and eventually tethering (if AT&T ever announces that official tethering app)--reduces many reasons to jailbreak the device.

But consumers are becoming keenly aware of the applications they can and cannot have, thanks in part to organizations like Free Press. For instance, the group made a stink earlier this month because AT&T is allowing Major League Baseball fans to stream live games onto their iPhones via 3G while restricting other video streaming services such as SlingMedia, which is only enabled via a WiFi connection.

And it seems like every day we are hearing about another application Apple has rejected. The most recent was its removal of the Hottest Girls app just hours after it appeared in the App Store. Apple claims the app's topless images were added after Apple accepted it.

The main complaint among app developers has been that Apple's App Store approval policy is a mystery. It seems to accept one application yet reject others that do the same thing. Last week, Apple rejected an application from Manomio that emulates classic video games available via the Commodore 64 home computer system, complete with a virtual joystick and keyboard, portrait and landscape gaming along with a fully-licensed C64 emulator code. Apple rejected the submission, citing an SDK clause prohibiting interpreted or executable code. But the company pointed out that the App Store includes a number of applications that essentially use those same types of codes.

With the iPhone high on the agenda of groups like Free Press and application developers making a stink about their rejected apps, consumers are continually reminded that they can't access everything they want on their iPhones. Who wants to be told no? --Lynnette

Apple unleashes second wave of iPhone 3G S launches

Phil Goldstein — Fri, 26 Jun 2009 11:22:39 -0400

One week after Apple's new iPhone 3G S model went on sale, the second wave of launches has swept the globe. Lines formed in Japan and Australia, but the response seems to be similar to the first phase of launches; the new smartphone attracted crowds but not as large as previous iPhone launches. The new model also went on sale today in Austria, Belgium, Ireland and the Netherlands. Apple said that it sold more than 1 million iPhone 3G S units worldwide in the first weekend of availability. Article

Rumor Mill: Nokia may produce Android netbook in 2010

Phil Goldstein — Fri, 26 Jun 2009 11:12:33 -0400

Nokia may offer an ARM-based netbook running on Google's Android platform in 2010, according to Lazard Capital Markets analyst Daniel Amir. The handset maker has been rumored for months to be getting into the netbook game, but details have been scarce.

Nokia will sell the netbooks through wireless carriers, continuing its traditional distribution model.

"In our conversations with ODMs, we have confirmed that Nokia is planning to enter the netbook market with a Google Android, ARM-based netbook that would be sold at carriers," Amir wrote in the note. "Considering this market is dominated by the PC players, we believe Nokia could face an uphill battle to succeed in this market."

In the past, Nokia has been rumored to be looking to partner with Taiwanese computer makers Compal Electronics and Foxconn Electronics on a netbook design. However, if the ARM-based netbook plans fall through, Nokia may fall back on its relationship with Intel, which it just struck this week.

In the same research note, Amir said he expected netbooks sales to jump to 25 million in 2009, compared to 10 million in 2008, with most runnng on Intel processors and Microsoft's Windows operating system.

For more:
- see this GigaOM blog post

Time ticking on NSN-Nortel LTE integration

Phil Goldstein — Fri, 26 Jun 2009 10:58:38 -0400

Nokia Siemens Networks has said it plans to wrap up its acquisition of Nortel Networks' CDMA and LTE assets by the third quarter of this year. But pressure may be bearing down on NSN to integrate Nortel's LTE assets into its own product portfolio before the LTE market matures and more carriers pick vendors for their next-generation networks.

"Time is our enemy," said Richard Lowe, Nortel's president of carrier networks, told Telephony. "LTE is not fully commercial yet. There is still an opportunity to merge our LTE platform with another vendor's without affecting the business."

According to ABI Research, at least a dozen carriers will launch LTE networks in 2010. Many have not yet selected their vendors, with the one major U.S. exception being Verizon Wireless, which has selected Alcatel-Lucent and Ericsson as two of its main LTE vendors. AT&T Mobility and MetroPCS are two other high-profile carriers that will be selecting vendors soon. Nokia Siemens' purchase of Nortel's wireless assets for $650 million has been widely seen as a move to boost its presence in the North American market.

MetroPCS has said it will launch LTE in the second half of 2010 and AT&T has committed to a commercial launch of LTE in 2011. In May, a UBS Research note indicated that AT&T had short-listed Alcatel-Lucent, Ericsson and Huawei for its trial of LTE technology, but AT&T declined to comment on speculation on which vendors it would pick.

For more:
- see this Telephony article

Incoming Ericsson CEO charts steady course

Phil Goldstein — Fri, 26 Jun 2009 10:43:31 -0400

Hans Vestberg, who will take over as Ericsson's CEO this January, expressed confidence at maintaining the company's position as the industry's leading mobile infrastructure vendor, but said he did not plan on charting a radically different course than that of outgoing chief executive Carl-Henric Svanberg.

In several interviews after the announcement of Svanberg's departure, Vestberg came across as both a confident replacement who had been groomed to step into Svanberg's shoes and an acolyte of Svanberg's who praised his leadership. Vestberg is currently Ericsson's CFO; he first joined the company in 1991.

He told Forbes Svanberg "has done a fantastic job," and praised Svanberg's strategy. Vestberg said he would continue the focus of building through organic growth. Yet, he said that after Ericsson reported a negative cash flow $1.9 billion in the first quarter, he had taken specific steps to remedy the situation. "I always take specific action on cash," he told Forbes. "That is the main focus."

He reiterated Ericsson's support for its handset joint venture with Sony Ericsson, and said Sony Ericsson was reworking its product portfolio. But he noted critics should remember the history of Sony Ericsson. "We were two very broken companies that came together and made a fantastic journey," Vestberg told Dow Jones Newswires.

And when it comes to the competition in the infrastructure space, Vestberg sounded confident but respectful. The market has grown more competitive, with Chinese players such as Huawei and ZTE winning more contracts, and with traditional rivals like Nokia Siemens Networks, which will acquire large wireless assets for Nortel networks, showing more clout.

"Our goal is to continue to be in the leadership. Confident? You need to respect the competition," he told the Financial Times. "The organization, Carl-Henric and I, we are determined all our efforts will be there in order to stay in the lead."

For more:
- see this Dow Jones Newswires article (sub. req.)
- see this Forbes article
- see this FT article

Senate confirms Genachowski to top FCC post

Phil Goldstein — Thu, 25 Jun 2009 17:02:04 -0400

The Senate confirmed Julius Genachowski to be the new chairman of the FCC after months of delay. Genachowski was officially nominated in March and his confirmation hearing had been delayed until this month.

The Senate also confirmed current commissioner Robert McDowell for a second term at the commission. Right now he remains the lone Republican on the five-member panel. Both Genachowski's and McDowell's nominations were approved by the Senate Commerce Committee last week.

Obama announced his intention to nominate former Bush administration official Meredith Attwell Baker for the remaining Republican seat on the FCC.

Baker was formerly the head of the National Telecommunications and Information Administration at the Commerce Department. However, she came under criticism when the NTIA was forced to start a waiting list for people who were seeking coupons for digital TV converter boxes. The waiting list issue was one of the main reasons the DTV transition was delayed from Feb. 17 to June 12.

Currently the FCC is operating with just three commissioners. Michael Copps, a Democrat, has been serving as the acting chairman, and Jonathan Adelstein, also a Democrat, has been slated to leave the commission and run the Rural Utilities Service. McDowell is the other commissioner.

Baker's nomination will likely proceed along with that of Mignon Clyburn. Clyburn, a commissioner for the South Carolina Public Service Commission and the daughter of House Majority Whip James Clyburn (D-S.C), was nominated for one of the Democratic seats on the commission.

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

Related Articles:
Senate to hold hearing for Genachowski June 16
Obama to nominate McDowell for another FCC term
FCC logjam may end soon
Genachowski's nomination delayed until after Memorial Day
Senate moving on Genachowski nomination next week
Obama to nominate Mignon Clyburn for FCC seat

Palm smartphone shipments drop 62%

Phil Goldstein — Thu, 25 Jun 2009 16:41:47 -0400

Palm posted a wider net loss in its fiscal fourth quarter, showing that even though the Pre and its new webOS platform have been launched, the smartphone maker is not in the clear yet.

The company reported a $105 million net loss applicable to common shareholders in the quarter, wider than the net loss of $43.4 million it had in the year-ago quarter. The loss was narrower than expected, however.

Palm had total revenues in the quarter of $86.8 million, down 71 percent from the $296.1 million it posted in the year-ago quarter and down from its $90.6 million revenue total for the previous quarter. The company shipped 351,000 smartphones during the quarter, which is a 6 percent increase compared to the fiscal third quarter, but a 62 percent decrease on a year-over-year basis. One bright spot: As the Palm Pre launched June 6, and Palm's fiscal fourth quarter ended May 29, sales of the smartphone were not included in this quarter's earnings report. However, Palm said that demand for the Pre was exceeding expectations.

"We're successfully ramping supply to meet demand that is strong and growing," Palm CEO Jonathan Rubinstein said on a conference call, referring to the Pre. Analysts are expecting that with Rubinstein at the helm, Palm can refocus on innovation. Rubinstein took over the CEO spot from longtime Palm player Ed Colligan earlier this month.

The company did not release any official sales figures for the Pre. Sprint, the exclusive U.S. carrier of the Pre, has said it will release more sales details when it reports its second-quarter earnings next month. Analyst estimate that Palm has shipped around 150,000 Pre units so far. The company's App Catalog for webOS reached 1 million downloads, according to the mobile analytics and advertising company Medialets.

For more:
- see this release

Related Articles:
Sprint CFO says new iPhone not impacting Pre sales
Sprint breaks sales records, looks to keep Pre momentum going
Palm Pre goes on sale amid lines, tight supply
Palm sales drop in anticipation of Pre

AT&T will resell service from satellite provider

Phil Goldstein — Thu, 25 Jun 2009 11:32:23 -0400

AT&T Mobility has struck a deal with the startup TerreStar Networks, which plans to launch a satellite July 1. TerreStar is developing handsets that use both cellular and satellite technologies. AT&T is set to resell satellite services and phones from TerreStar. The satellite will provide service across the United States and Canada (including Alaska, Hawaii, Puerto Rico and the U.S. Virgin Islands), and will use licensed 2 GHz spectrum for voice service. Data speeds, however, will be fairly slow compared to many carriers' high-speed mobile broadband networks, clocking in at 64 Kbps. Initially, AT&T will resell the service to local, state and federal governments. Article

Palm's App Catalog tops 1M downloads

Phil Goldstein — Thu, 25 Jun 2009 11:25:29 -0400

Palm's App Catalog for its webOS platform has hit 1 million downloads, according to the mobile analytics and advertising company Medialets. However, the company has said it won't be drawn into an "apps race" with Apple over the number of applications available or the number of downloads.

The 1 million download mark was expected to be reached at some point this week, but the number is still fairly remarkable considering there are only some 30 applications in the App Catalog.

"We clearly have to have a product we're proud of," Mitch Allen, Palm's software chief technology officer, said in an interview with Bloomberg News. "Taking a little bit more time right now does trump the excitement that comes from having something that people can play with today."

Apple regularly touts that more than 1 billion applications have been downloaded from its App Store for the iPhone and iPod Touch since it opened last summer. Palm will publicly release the Mojo software development kit for webOS at the end of the summer.

For more:
- see this NYT article
- see this NYT blog post
- see this Bloomberg News article

Developers move into the driver's seat

Sue Marek — Thu, 25 Jun 2009 11:24:49 -0400

With voice service becoming a commodity, wireless carriers are avidly looking for ways to increase their mobile data revenues. And the quickest (and perhaps most lucrative) way to do that is by finding compelling data applications that will make consumers upgrade to smartphones, purchase data plans and buy apps.

This emphasis on data is the reason why so many carriers are forming developer communities and hosting developer-centric events. For example, Verizon Wireless announced it will host a developer event in San Jose July 28. Likewise, Sprint Nextel is hosting a developer event Oct. 26-28 in Santa Clara.

For developers, this attention from Tier 1 operators is critical because mobile carriers have a lot of clout in the ecosystem. If a carrier supports and markets an app, that can mean instant success for a developer. Of course, carriers aren't the only entities looking for talented developers. Handset makers and operating systems are also avidly searching for developers to make compelling apps that they can then use to populate their app stores.

I spoke with Roger Guranai, senior vice president of product development at Verizon Wireless, about Verizon's upcoming developer event and he said Verizon is hoping to attract hundreds of developers there. The carrier will provide a roadmap for developers and show how the carrier is planning to open up its applications ecosystem. In addition, developers will get a peek at the company's software developer kit (SDK) and also receive information on how they can get their apps in Verizon's new app store. Verizon will debut its developer portal at the event.

Of course, this new "open" agenda from Verizon doesn't mean the carrier is ditching its BREW platform, which it has been using for eight years as a venue to host its data applications and mobile content. Instead, Guranai said the company is expanding its capabilities by rolling out an open environment with open platforms, open development tools and multiple operating system environments. "Many of the developers will be able to take existing apps already developed and quickly render them on devices on our network," Guranai said.

But perhaps the most important thing developers will learn at Verizon's developer event is the financial arrangement. Guranai says the carrier will be providing incentives for developers to create apps and bring them to Verizon's devices and app store. In addition, the company will direct bill customers for the apps, which is considered an advantage over some other app stores where customers must pay for their app via PayPal or another payment method.

It's becoming increasing clear that as carriers, handset makers and operating systems all compete for the attention of the mobile developer, developers are quickly moving into the driver's seat. It's time to critically evaluate the various developer programs and decide which one makes the best business sense and can bring the most downloads to the developer. It's nice to see the developer move into the power position for a change. -- Sue

P.S. The Fierce team is working on the annual Women in Wireless feature. If you know an exceptional female executive in the wireless industry who not only has technical savvy, but is also a strong leader, send an email to sue@fiercemarkets.com and explain why we should consider her.

HTC expects 50% U.S. sales growth in 2009

Phil Goldstein — Thu, 25 Jun 2009 10:47:53 -0400

HTC said it expects its U.S. handset sales to grow by at least 50 percent this year, a growth prospect far larger than the company's overall target.

Jason Mackenzie, vice president of sales and marketing for HTC America, told Reuters that the U.S. sales growth over 2008 levels would represent sales of around 6 million phones this year. HTC forecasts a volume growth of 20 percent worldwide this year. The company has established itself as leading handset maker for Google's Android platform, which complements its status as a major vendor for Microsoft's Windows Mobile OS.

Mackenzie said the company would boost sales despite intense competition in the smartphone market from rivals including Apple, Palm and Research In Motion. Although other major handset makers have said they will release Android phones this year, Mackenzie seemed confident. "Competitively we feel very good," he said. The company released its third Android phone, the Hero, yesterday, which follows the G1 and the myTouch3G.

AT&T Mobility has been rumored to be the carrier that will first launch the Hero, which Mackenzie said will debut in the United States this fall.

For more:
- see this Reuters article

Judge tosses out class-action lawsuit against Sprint

Phil Goldstein — Thu, 25 Jun 2009 10:29:28 -0400

A U.S. District Court judged ruled Sprint will be spared from a class-action lawsuit that alleged the carrier overcharged taxes for customers using data cards and refused refunds.

Judge Robert Bryan, of the U.S. District Court of Tacoma, Wash., handed down the ruling June 23. "The plaintiffs have not proven that the benefits of adjudication of the plaintiffs' claims at one trial would outweigh the complexity of such proceeding," Bryan wrote in his ruling.

A California consumer-advocacy group, the Utility Consumers' Action Network, sued Sprint in federal court in San Diego in 2007. Bryan took over the case after judges in San Diego recused themselves in April 2008. The advocacy group said Sprint tacked on fees for text messages sent to customers who bought the data cards to access the Internet, and had sought to have the case designated as a national class-action lawsuit.

The judge said the consumer group failed to show how having their claims combined in a national class-action suit would be better or more efficient.

"While we are pleased with the judge's decision, it is procedural in nature and is the first of many to be made by the court," Sprint spokesman John Taylor told FierceWireless. "Sprint remains committed to providing fair and transparent billing practices as part of a positive customer experience."

For more:
- see this Bloomberg News article
- see this Reuters article

Related Articles:
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Sprint to pay $17.5M ETF settlement
Sprint hit with $1 billion ETF lawsuit

Ericsson CEO Svanberg to leave at year-end

Phil Goldstein — Thu, 25 Jun 2009 10:07:08 -0400

Ericsson CEO Carl-Heinric Svanberg will step down at the end of the year and become chairman of the oil giant BP. The Swedish equipment maker's CFO, Hans Vestberg, will replace him as CEO on Jan. 1, 2010.

Svanberg, who is also chairman of Sony Ericsson, will remain on Ericsson's board. He will leave the company as it is in the midst of cost cuts and as the telecom equipment markets remain in flux. Svanberg arrived in 2003 and has helped turn Ericsson into the world's largest wireless equipment vendor. The company has also become a leading proponent of LTE technology under his watch.

Vestberg has been with the company since 1991, and Michael Treschow, the chairman of Ericsson's board, expressed confidence in Vestberg's leadership abilities. Vestberg said in an interview with Bloomberg News that Ericsson would support its Sony Ericsson joint venture with more capital if needed. He also said he did not plan on deepening the cost cuts started this year. "Right now the program we announced at the beginning of the year is the program we're executing," he said.

Ericsson posted a 35 percent drop in net income for the first quarter, hit largely by its joint ventures. The company will report second quarter earnings July 24.

For more:
- see this Bloomberg News article
- see this WSJ article (sub. req.)
- see this release

Best Buy to open 40 new stand-alone mobile stores

Phil Goldstein — Wed, 24 Jun 2009 15:45:59 -0400

Best Buy plans to open 40 stand-alone Best Buy Mobile stores this fiscal year and will quintuple its share of the U.S. mobile phone market to 15 percent, the company said.

Brian Dunn, who formally took over the reins as CEO Wednesday from the retiring Brad Anderson, said mobile phones would be a key part of the company's strategy of focusing on devices featuring "connectivity." The company in February said its U.S. mobile phone share in the fourth quarter of 2008 grew to 3.2 percent, up from 1.9 percent a year earlier. At the time, Best Buy said it hoped to have a 10 percent share in a few years, a projection that does not seem so lofty compared to the 15 percent Dunn said the company is now shooting for.

Dunn, who formerly was president of Best Buy's North American retail operations, said the company is experimenting with more interactive Best Buy Mobile store layouts. These experiments will lead to more definite plans on store design, which will then be rolled out more broadly next year, Dunn said.

The electronics retailer has muscled its way into the mobile phone market. It became the first retailer to sell Apple's iPhone 3G last summer, and opened its first Best Buy Mobile outlets last fall. The company has become a go-to destination for popular phone launches. Best Buy was one of the few retailers, including RadioShack and Wal-Mart, to have the Palm Pre when Sprint Nextel launched it June 6.

The company is still the country's largest consumer electronics chain by sales, but its first quarter earnings fell 15 percent, and domestic sales at stores open at least 14 months sagged 4.9 percent in the quarter.

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

PHOTOS: The HTC Hero

Jim O'Neill — Wed, 24 Jun 2009 12:49:38 -0400

Taiwanese smartphone maker HTC unveiled its third phone based on Google's Android platform, the Hero, at a press event in London today. Building on the software innovations that it is pushing in the Touch Pro 2 and the Touch Diamond 2, HTC has added a new software element to the Hero, called Sense.

VIDEO: Verizon Communications CEO Ivan Seidenberg interviewed on 'Charlie Rose' program

Jim O'Neill — Wed, 24 Jun 2009 12:16:36 -0400

In an interview on the "Charlie Rose" program last night, Seidenberg said that it still up in the air whether or not Verizon will launch the iPhone. Check out the interview.

Source:'Charlie Rose' via YouTube

HTC Hero - A first look

Jim O'Neill — Wed, 24 Jun 2009 11:57:34 -0400

Check out the HTC Hero, the company's third phone based on Google's Android platform.

Source: YouTube

What were the top telecom VC deals in Q1?

Phil Goldstein — Wed, 24 Jun 2009 11:48:08 -0400

Venture capital in the telecom industry may not be what it once was, but the industry is still alive and well. According to data provided by the National Venture Capital Association, the top 10 venture capital deals in the first quarter in the telecom industry were worth a combined $78.7 million. It's interesting to note that many of the companies on the list are involved in wireless services. Here is a countdown of the top 10 VC deals. Slideshow

HTC debuts third Android phone, the Hero

Phil Goldstein — Wed, 24 Jun 2009 11:43:28 -0400

Taiwanese smartphone maker HTC unveiled its third phone based on Google's Android platform, the Hero, at a press event in London today.

Building on the software innovations that it is pushing in the Touch Pro 2 and the Touch Diamond 2, HTC has added a new software element to the Hero, called Sense. The software does several things, including putting a contact's photo alongside their text messages, emails and call history in a single view. Similar to the Push Internet feature that HTC unveiled at Mobile World Congress, Sense will allow users to have customizable Push widgets like weather, Twitter and email.

"We've been trained to function in this application-centric way. But that's not the way we think," HTC CEO Peter Chou told the Wall Street Journal. "Today's phones are not really designed for people," he added. Sense will be available on all new HTC devices going forward, the company said.

The phone has a 3.2-inch HVGA display, GPS, a digital compass, gravity-sensor, 3.5mm stereo headset jack, a 5-megapixel auto-focus camera and expandable MicroSD memory. The Hero also has a dedicated search button that allows users to search contacts, emails or other areas on the phone. The phone will be a tablet design, but will also have a "chin" at the end to make it more comfortable against a user's face.

The Hero will be available in Europe next month, and T-Mobile UK and Orange UK have said they will launch it. It will be available in Asia later this summer and a distinct North American version will be available before the end of the year. The company did not provide any pricing information.

For more:
- see this release
- see this WSJ article (sub. req.)
- see these pictures
- see this video of the Hero

Related Article:
Report: AT&T will have exclusive on HTC Android device

Verizon to pay $1.5M settlement over 'free' ringtones

Phil Goldstein — Wed, 24 Jun 2009 11:21:58 -0400

Verizon Wireless will pay the state of Florida $1.5 million as part of a settlement reached with the Florida attorney general for third-party charges that appeared on consumers' bills. The customers were charged for ringtones, wallpapers and other mobile content that had been marketed as free or that they didn't realize would result in a monthly charge.

The content wound up costing customers up to $19.99 per month. The charges appeared on the subscriber's wireless bill as company's names, including OpenMarket, M-Qube and M-Blox. As part of the settlement Verizon agreed to adopt "best practices" standards to protect customers from the charges. An investigation found that thousands of Florida customers had been affected by the charges.

"Consumers deserve to get their money back when a company misrepresents something as free that isn't," Florida Attorney General Bill McCollum said in a statement. "I commend Verizon Wireless for providing full restitution to their Florida customers and changing the business model to better protect consumers nationwide."

In late February, AT&T Mobility agreed to refund thousands of Florida consumers for the same problem. AT&T agreed to pay Florida $2.5 million and contribute $500,000 toward consumer education on safe Internet use. The carrier also agreed to the same kind of safeguards that Verizon will adopt.

For more:
- see this release

AT&T expands smart grid partnerships

Sue Marek — Wed, 24 Jun 2009 11:09:48 -0400

AT&T continues to expand its embedded wireless vision. The company today inked a deal with Cooper Power Systems to jointly market and sell smart grid sensor devices to utility companies. The devices are certified on AT&T's wireless network and will allow utilities to receive real-time system performance data on their grids.

Specifically, AT&T will co-sell two products: the Outage Advisor and the VARAdvisor. The Outage Advisor will help utilities locate problems such as faults on the electrical lines, which will help them anticipate outages. The VARAdvisor will control the voltage supplied to consumers and reduce on-site inspections.

In an interview with FierceWireless, Abhi Ingle, vice president, industry and mobility applications solutions at AT&T, said that the agreement with Cooper is another step in AT&T's plan to become more tightly integrated with utilities. "We have teamed with suppliers and distributors of smart grids to embed wireless in the grid," Ingle said. "We are providing a road map for the utilities that is low bandwidth and low cost. It provides ease of use and remote troubleshooting."

Ingle said that AT&T expects these type of smart grid solutions to only use about 100 Kbps of data to send the monitoring information to the utility.

For more:
- see this press release

Related articles:
Smart grids: The next wireless goldmine?
Will WiFi and WiMAX become beneficiaries of the smart grid?

MetroPCS offers unlimited international calling

Phil Goldstein — Wed, 24 Jun 2009 10:54:29 -0400

MetroPCS is offering its customers unlimited international calling to more than 100 countries for $5 per month. The deal is the latest option the flat-rate carrier has added to spruce up its prepaid offerings.

Under the new international calling feature, subscribers will be able to call more than 1,000 destinations for no extra charge other than the $5 per month fee. The company said the unlimited calling plan can be added to its $40, $45 and $50 monthly service plans, including family plans.

In April, MetroPCS added unlimited calling to select locations in Mexico for an extra $3 per month. The carrier also recently added a family conference feature that gives family members one number that rings all of their cell phones at once, placing them into a conference call.

Perhaps as a sign of its growing market clout, Standard & Poor's said MetroPCS would replace Tyco Electronics on the S&P 500 stock index. The company will join the index after the close of trading June 29.

MetroPCS reported a 20 percent increase in revenue in the first quarter, to $795 million, up from $622 million in the year-ago quarter. The carrier also had a record 684,000 net subscriber additions in the quarter.

For more:
- see this release
- see this Reuters article

Verizon CEO dances around iPhone, Android questions

Phil Goldstein — Wed, 24 Jun 2009 10:29:31 -0400

Verizon Communications CEO Ivan Seidenberg ducked a question about if--or when--Verizon Wireless would launch a version of Apple's iPhone and also did not directly answer whether the carrier would launch an Android phone before the end of the year.

In an interview on the "Charlie Rose" program last night, Seidenberg said that it still up in the air whether or not Verizon will launch the iPhone. He said the device, which is offered exclusively through AT&T Mobility in the United States, "made smart phones important, or more important." Seidenberg said it would be Apple's decision whether or not to make a version of the iPhone that would be compatible with Verizon's LTE network, which the carrier will launch in 20 to 30 commercial markets next year.

The chief executive also was careful to watch his words when talking about a report in The Wall Street Journal that said Verizon would launch a Motorola-made smartphone running on Google's Android platform before the end of the year, and said only that "it might be true."

Seidenberg praised Google's expertise with the Internet and said the more success Google has, the greater demand there will be for data services and applications. However, he noted Google provides services like search that wireless carriers either offer or would want to get into, and that this might create tension.

"They also like to provide services that in effect sometimes compete with the things that we do," Seidenberg said. "They're on the right side of most of the things that are important to us in terms of growing the business, and the places where we compete, you know, we're big boys, they're big boys, we'll talk about it when we need to."

For more:
- see this WSJ blog post (sub. req.)
- watch the interview