HSDPA

Laptop subsidies: How aggressive will operators be?

Lynnette Luna — Mon, 03 Nov 2008 02:16:09 -0500

AT&T Mobility's new partnership with Lenovo and Ericsson to reduce the cost of embedded HSPA laptops to make them similar in cost to laptops that aren't embedded could be the beginning of the laptop subsidy game in the US market. But how aggressive do operators want to be?

Laptops are flying off operator shelves in Europe, where the laptop subsidization game is running rampant. Orange in the U.K. is giving customers an HP notebook that runs on its HSDPA at no cost if a wireless data service bundle is purchased, and it has sold out of the laptops. The U.K. director of retail sales said she has been amazed at the demand for the service, which bundled 3 GB of data and 100 texts per month from the laptop. Vodafone and T-Mobile are also playing aggressively in the laptop game.

Back in March I asked a Verizon Wireless spokeswoman whether the operator had any interest in subsidizing laptops. She said Verizon had no intention of doing so. Of course, now the economy is in the pits, and analysts expect an all-out price war because of it. Subsidizing laptops would certainly spur mobile broadband adoption and lock these high-revenue users into a data contract for about two years.

Dell CEO Michael Dell predicted last month that laptop subsidies would happen soon, and John Thode, Dell's VP of small-screen consumer devices, said the announcement of such a deal would be forthcoming.

What are the implications of subsidizing laptops?

For one, operators aren't that thrilled about playing in the subsidy game as margins can decline and customer acquisition costs rise. To wit: AT&T Mobility reported selling a whopping 2.4 million iPhone 3G devices in the third quarter, but it spent $900 million in customer-acquisition costs related to the device and saw a drop in its overall operating margins from 35.3 percent a year ago to 33.8 percent. However, the operator expects the hit on margins to be short term as high ARPU users are coming on the network.

Could the same phenomena happen if operators subsidize laptops? Most of the subsidizing talk has to do with cheaper "netbooks," which are more basic notebooks designed for web browsing, email and other routine tasks and are often priced under $500. The subsidy amount for these devices would be similar to the subsidies operators make for smart phones. Chances are, subsidized netbooks will catch on quickly given the fact that PC makers are reporting brisk sales in this tough economy and have a dramatic impact on operator margins.

And I can think of other questions operators will need to answer. Selling laptops mean increased costs associated with customers service and support. Would operators essentially be entering the PC business? How much buying power will they have with PC makers given the fact that manufacturers already operate on such thin margins? What impact will subsidized laptops have on data traffic on operators' networks? Operators need to make sure they are transmitting data as cost-effectively as possible or the revenues the make will be eaten up by the costs of transmitting data. And would operators have to cut off a number of users for abusing the limits of their data plans?

At the outset, subsidizing netbooks seem like a logical step, but I suspect we'll see operators treading carefully in this uncharted territory. --Lynnette

T-Mobile boosts 3G coverage ahead of G1 launch

Phil Goldstein — Mon, 20 Oct 2008 10:31:50 -0400

T-Mobile USA announced Friday that it was expanding its 3G network coverage, broadening its UMTS/HSDPA footprint in advance of the Oct. 22 of the G1, the first phone running on Google's Android OS.

The carrier, which has lagged behind the other incumbent wireless carriers in 3G deployment, said its network had gone live in Sacramento, Calif., this week. It also said coverage would be coming to Memphis, Tenn., and Tampa, Fla., next week and to Washington, D.C., and its surrounding metro area in November.

There has also been a slight semantic change to T-Mobile's rollout. When the operator announced an aggressive rollout of UMTS/HSDPA into new markets earlier this fall, it said it would have coverage in "27 markets" by year's end, and now declares that it will be operating in "120 cities" by the end of the year.

For more:
- see this release
- see this Unstrung analysis
- see pics of the G1

Related Articles:
T-Mobile will have 3G in 27 markets by year's end
T-Mobile needs to differentiate its UMTS network

T-Mobile launches its first HSDPA handset

Peggy Albright — Sun, 07 Sep 2008 17:19:06 -0400

T-Mobile USA has begun selling its first HSDPA-capable device, a Sony Ericsson TM506 flip phone. The handset became available from T-Mobile on Friday.

T-Mobile, which activated its first UMTS/HSDPA network in May of this year, had yet to offer a phone for customers wanting the faster connectivity and applications and services HSDPA provides. The new UMTS/HSDPA handset sells for $79.99 with a two-year service agreement and a $50 mail-in rebate. The company says the device comes with a 2.0 megapixel camera, access to the My Album online photo storing and sharing service, as well as stereo Bluetooth and TeleNav maps.

T-Mobile's UMTS/HSDPA network, which launched first in New York City, now reaches to a handful of markets, including Dallas, Las Vegas, and Chicago. The company plans to have services deployed in 20 to 25 markets by the end of the year. It expects its HSDPA services to offer data speeds of 600 kbps to 1 Mbps.

For more:
- Read this article

Related Stories:
On the Hot Seat with T-Mobile USA's Neville Ray
T-Mobile rolls out UMTS in Dallas
T-Mobile USA's 3G: Better late than never?

Qualcomm, Nokia reach new patent agreement, end years of bitter disputes

Lynnette Luna — Thu, 24 Jul 2008 04:30:21 -0400

The many bitter patent disputes between Qualcomm and Nokia have finally ended. The two telecom giants announced they have entered into a new 15-year patent agreement that effectively settles all litigation between the companies, including the withdrawal by Nokia of its complaint to the European Commission and numerous lawsuits filed in the U.S., Europe and Asia. Nokia filed a complaint with the EC in October 2005 with five other companies, which led to a flurry of lawsuits between Qualcomm and its rivals and several regulatory probes into Qualcomm's licensing practices. The two were also miles apart for some time when it came to renegotiating a new license agreement that expired in April 2007.

The new deal comes on the day Qualcomm and Nokia were to appear in a Delaware court to begin a key trial over WCDMA patents, but the judge had delayed the trial by a day. Nokia claimed Qualcomm charges too much for the patents. Nokia now has been granted a license under all of Qualcomm's patents for use in Nokia mobile devices and Nokia Siemens Networks infrastructure equipment. The agreement covers a number of technology standards, including GSM, EDGE, CDMA, WCDMA, HSDPA, OFDM, WiMAX, LTE and others. Nokia also agreed not to use any of its patents directly against Qualcomm, enabling Qualcomm to integrate Nokia's technology into Qualcomm's chipsets.

The financial structure of the settlement includes an up-front payment and on-going royalties payable to Qualcomm. Nokia has agreed to assign ownership of a number of patents to Qualcomm, including patents declared as essential to WCDMA, GSM and OFDMA. The specific terms, however, are confidential.

Qualcomm investors breathed a sigh of relief, pushing the company's shares up 18.7 percent in after-hours trading.

Qualcomm delayed the release of its fiscal third-quarter results for several hours to announce the agreement with Nokia. The company's profits fell 6 percent to $748 million, or 45 cents a share, for the three months ended June 29, down from $798 million, or 47 cents a share, the previous year. Revenue grew 19 percent to $2.76 billion from $2.33 billion.

For more:
- read AP
- see this release

Related stories:
Nokia gains patent victory over Qualcomm in Germany. Nokia patent story
Nokia, Qualcomm head to court this week over CDMA patents. Nokia/Qualcomm story
Qualcomm-Nokia lawsuits continue to fly. Lawsuit story
Nokia sues Qualcomm in Europe. Nokia-Qualcomm 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

Chipmaker Infineon warns of larger loss this quarter

Lynnette Luna — Thu, 29 May 2008 11:56:58 -0400

Chipmaker Infineon warned that it anticipates a larger operating loss and flat sales for its communication chips unit this quarter. Infineon cites delays in shipping a single chip solution for Nokia's ultra low-end phones. Just last month Infineon had said the deal was on track. Infineon shares fell 7.8 percent on the news.

The chipmaker had previously forecasted higher sales and a narrower operating loss for the communications chips division. Compounding the problem is the fact that the company had received lower-than-expected orders for another project that involved HSDPA chips for an unknown device customer. Infineon last month had won business with Samsung for HSDPA chips.

Earlier this month, Infineon CEO Wolfgang Ziebartstep announced plans to step down at the end of June after the German company last quarter reported its biggest loss since it was floated by Siemens in 2000.

To read more on Infineon's woes:
- check out this report in FT.com

Related story:
Rumor du jour: HSDPA iPhone coming in June. See this HSDPA iPhone story

AT&T's HSUPA deployment is nearly complete

Sue Marek — Wed, 21 May 2008 11:07:07 -0400

With just six more markets to go, AT&T is nearing the finish line for its HSUPA network deployment. The operator expects to have its HSUPA deployment finished by next month, making it the only U.S. operator to have a fully deployed HSPA network. AT&T says that the technology will give subscribers uplink speeds between 500 Kbps and 800 Kbps. Download speeds are in the 1.4 Mbps range.

The timing of AT&T's HSUPA network completion is key because June is when the 3G iPhone is expected to make its debut, giving iPhone users access to much faster network speeds than the current iPhone, which uses AT&T's Edge data network. AT&T Mobility CEO Ralph de la Vega said recently that AT&T will have a time-to-market advantage over WiMAX with its HSUPA technology because HSUPA Release 7 will give the company 7 Mbps to 20 Mbps data speeds within the next two years.

For more:
- see this press release

Related stories:
AT&T: HSPA will provide 20 Mbps data speeds. See this story on AT&T's HSPA plans.
AT&T CTO HSDPA progressing, HSUPA in test phase. See this story on AT&T's HSPA deployment.

AT&T to launch 3G BlackBerry Bold

Brian Dolan — Mon, 12 May 2008 11:41:42 -0400

Research In Motion debuted its latest BlackBerry, called Bold, which runs on HSDPA and comes with GPS and 802.11a/b/g WiFi. The device offers increased processing power and features a silver rim, which the Wall Street Journal pegs as a nod to its budding competitor the Apple iPhone.

The BlackBerry Bold, however, includes another enhancement that works toward Apple's favor: an easier syncing capability with Apple's iTunes. RIM's co-CEO Jim Balsillie explained the syncing feature as a natural progression: "We don't view it as a competition thing, we view it as a natural sync to an application that you use in your life."

While neither AT&T nor RIM announced a specific launch date for the BlackBerry Bold, it will hit shelves this summer around the same time that Apple is expected to launch its 3G iPhone. As part of the launch for Bold, RIM is teaming up with Thomson Reuters and the Royal Bank of Canada to form a $150 million venture capital fund to encourage applications for the BlackBerry platform.

For more on the Bold:
- read this press release
- read this WSJ article (sub. req.)
- check out this article on the BlackBerry VC fund over at FierceMobileContent

AT&T adds 1.3 mil subscribers in 1Q

Tue, 22 Apr 2008 06:59:58 -0400

AT&T reported its seventh consecutive quarter of wireless revenue growth. Revenue's from the telco's wireless business were up 18.3 percent year-over-year for a total of $11.8 billion. Here's a rundown of the largest U.S. operator's key metrics for first quarter:

ARPU: Average revenue per user was $50.18 up 2 percent from the year-ago quarter. Retail postpaid ARPU growth was up 5 percent.

Data: Data revenues were up 57.3 percent to $2.3 billion from the year-earlier quarter. Data now represents 21.5 percent of AT&T's total wireless revenues, up from 16 percent in first quarter 2007. During first quarter customers sent 620 million MMS messages and 44 billion SMS messages.

3G: 11 million customers now have 3G devices. The company's UMTS/HSDPA network is available in 272 metro areas.

700 MHz spectrum: AT&T executives said that based upon the company's purchase of the 700 MHz spectrum assets of Aloha Wireless and its winnings in the 700 MHz spectrum auction, AT&T will have contiguous and unencumbered spectrum that will cover 100 percent of the top 200 markets and 80 percent of the U.S. population.

iPhone: iPhone continues to be popular with AT&T customers. Executives said during this morning's call with investors that the average iPhone ARPUs are in the mid to upper $90 range. More than 40 percent of the customers that purchase an iPhone are new to AT&T.

Unlimited plans: Prior to debuting its $99/mo. unlimited rate plan about 1.5 percent of new customers would sign up for rate plans at $99/mo. or above. Now about 4 percent sign up for the $99/mo. rate plan.

For more, see AT&T's earnings release.

Related stories:
AT&T to layoff 1.5 percent of employees. See this AT&T report
AT&T: 95% of iPhone owners surf the mobile web. See this AT&T story
AT&T, T-Mobile match VZW on flat rate, sort of. Read this AT&T report

AT&T launches Z9 with Navigator, Video Share

Tue, 01 Apr 2008 07:59:56 -0400

AT&T has inked a carriage deal with Motorola to offer the handset maker's GPS-centric MOTO Z9. The slider is available for $150 with a two-year contract and after a $50 online discount. The phone comes enabled with AT&T's TeleNav service, which it rebranded as AT&T Navigator. The handset also includes a microSD slot, stereo Bluetooth and quad-band GSM with support for 3.6Mbps HSDPA data. The Z9 is also the first Motorola handset to support AT&T's IMS application: Video Share.

For more on the Z9 at AT&T:
- read this press release

Mobile World Congress: Ericsson plugs LTE, HSPA

Mon, 11 Feb 2008 06:59:56 -0500

Ericsson used a packed press conference as a venue to plug its latest developments in LTE and HSPA. Company CEO and President Carl-Henric Svanberg said that there are 174 HSPA networks in 76 countries with an estimated 180 million HSPA subscribers. He added that data traffic now exceeds voice traffic from up to 50 percent to 1,500 percent depending upon the operator strategy.

Ericsson also used the press conference as a platform for one of its premiere customers. Telstra CEO Sol Trujillo talked about his company's success with HSDPA in the 850 MHz spectrum. Telstra deployed HSDPA in 10 months and now estimates that up to 35 percent of its base is 3G and expects to reach a 60 percent penetration of 3G by 2010.

Trujillo says that the company is planning to evolve its network to 4G using LTE.Ã‚Â In 2008 he plans to increase the speed of the 3G network to 21 Mbps and by 2009, he expects to increase it to 42 Mbps.

In other Ericsson news, the company plans to demonstrate an end-to-end LTE call on handheld devices at Mobile World Congress. LTE, which supports data rates of up to 160 Mbps, is expected to launch commercially in 2009.

Garmin launches GPS feature phone

Thu, 31 Jan 2008 06:59:55 -0500

Garmin unveiled a GSM HSDPA smartphone, called the nuvifone, that runs on its own operating system with GPS at its core. The phone includes Google local search, Garmin online services like traffic, fuel prices, hotel discounts, pedestrian navigation services, email, text, IM, camera and video camera functionality and an MP3 player. The company did not disclose the price or carrier partner for the phone, but said it would launch commercially in the third quarter.

"The real popularity of their products and brand make the prospects for this product better than their previous ones," NPD Group's Ross Rubin said in an interview. "We are starting to see more impressive user interfaces and navigation features on both smartphones and more expensive feature phones, so it's going to be challenging for Garmin to break into that field as a new brand."

Rubin seemed most impressed by the nuvifone's ability to send geotagged photos to another unit so that drivers can use that information to create driving directions on the fly.

That said, "the media features don't seem especially strong right now," Rubin noted. "[Garmin] mentions an MP3 player, but they didn't say anything about video despite the high speed radio they have in there. Garmin might be waiting to see what services their carrier partners want to push over the air. Given that they are supporting HSPA, AT&T seems like the likely carrier to carry it in the third quarter."

For more on Garmin's phone:
- read this press release

Report: 166 commercial HSDPA networks worldwide

Thu, 10 Jan 2008 06:59:55 -0500

According to a survey from the Global Mobile Suppliers Association, there are now 166 commercial HSDPA networks live in 75 countries and an additional 38 networks in the process of rolling out. HSDPA networks are widely available in Western Europe (61 networks), APAC (35), Eastern Europe (34), the Middle East and Africa (20) and the Americas and the Caribbean (16).

For more on the report:
- read this article from Silicon.com

CES: Ericsson sees mass market for modules

Tue, 08 Jan 2008 06:59:56 -0500

At the Consumer Electronics Show in Las Vegas, executives from Ericsson's new Mobile Broadband Modules business unit are touting the company's progress in embedding its HSPA modules in various consumer electronics devices, including notebook computers, digital cameras, gaming devices and more.

Ericsson's vision is very similar to that of Sprint's mobile broadband division, which has long been a champion of the idea that many consumer electronics devices will soon incorporate broadband wireless technology. However where the two camps differ is in their choice of mobile broadband technology. Sprint, of course, is championing WiMAX. Ericsson is a proponent of HSPA and eventually LTE.

Mats Norin, vice president, product area mobile broadband modules at Ericsson, says that 2008 will be the tipping point for having mobile broadband modules with HSPA technology to be embedded in consumer devices. There are 147 commercial HSPA networks worldwide and carriers are starting to drop their price points for mobile broadband services. In Sweden, for example, the operator 3 is charging $30 per month for 7.2 Mbps wireless broadband connectivity.

Ericsson is already claiming a leadership position in the embedded module area because it already has deals with two of the top seven PC manufacturers. -Sue

Sony Ericsson unveils rest of holiday phones

Wed, 07 Nov 2007 06:59:56 -0500

Sony Ericsson has unveiled three new handsets, marking the last major handset launches from the handset maker through early next year. The unveiling includes the K660 and two new Walkman phones: the W890 and the W380. The K660 is an HSDPA handset optimized for the mobile Internet with pan-and-zoom, home page, enter address and bookmark shortcut keys. The W890 is a slim candybar-style phone with a 3.2 megapixel camera, while the W380 is a Walkman handset with a clamshell form factor. The W380 has a gesture control feature that lets users mute calls at the wave of a hand.

For more on the handsets:
- check out our gallery of the phones here
- read the press release

AT&T debuts new phones, senior plan

Tue, 30 Oct 2007 07:59:56 -0400

AT&T Mobility rolled out two new handsets in advance of the holiday buying season. The Samsung SGH-a737 is an entertainment-oriented device that offers multimedia features such as the AT&T Mobile Music service and video share calling. The phone operates on the company's 3G UMTS/HSDPA network.

The other device, the Pantech duo, also uses AT&T's 3G UMTS/HSDPA network but is targeted more to the business user. The device has a full QWERTY keyboard and is powered by the Windows Mobile 6 operating system.

On the service side, AT&T also joined the ranks of Verizon Wireless and MVNO Great Call by introducing an offer geared toward the senior market. The new AT&T Senior Nation plan 200 includes 200 anytime minutes, 500 off-peak minutes and unlimited mobile-to-mobile calling for $30 per month.

For more on AT&T's phones:
- see this press release for more information on the Pantech duo.
- see this release for more on the Samsung SGH-a737
- read this RCR article for more on AT&T's Senior Nation plan

Related Articles:
AT&T retires Nokia multimedia device Report
Verizon targets seniors with Coupe Report

AT&T's HSUPA launches with Sierra data card

Fri, 19 Oct 2007 06:59:57 -0400

AT&T is now offering the Sierra Wireless AirCard 881 for AT&T data subscribers looking to take advantage of its new HSUPA network: average upload speeds for the users will be between 500 Kbps and 800 Kbps. The carrier will announce HSUPA availability in select U.S. markets later this fall. The data card will also help users take advantage of HSDPA speeds ranging between 600 to 1,400 Kbps. The data card is backwards compatible with EDGE/GPRS and mobile networks worldwide, including those in Japan and South Korea.

For more on AT&T's HSUPA launch:
- read this press release

AT&T bows first Windows Mobile 6 device

Fri, 05 Oct 2007 06:59:56 -0400

AT&T launched its first Windows Mobile 6 powered smartphone this week: the HTC Tilt. The Tilt's features include high-speed data access (UMTS/HSDPA), multiple email options, location-based services, expandable memory, and a 3-megapixel camera. The QWERTY handset's name comes from the movement of its screen, which tilts up. The Tilt will be made commercially available today both online and in retail stores for $299.99 with a two-year subscription to AT&T, after a mail-in rebate.

For more on the Tilt:
- read this article from InformationWeek

HTC sold 800,000 Touch phones

Tue, 02 Oct 2007 06:59:55 -0400

Since the HTC Touch went on sale in late July, HTC has sold 800,000 of the phones. The figure is an echo of sales of Apple's iPhone, which sold 1 million during a similar period. HTC CEO Peter Chou said: "This is better than I expected… We feel very good about our success."

HTC coupled the sales figure milestone with the launch of four new handsets, including the Advantage and the Touch Dual phone, which France Telecom's Orange will carry on its HSDPA network in the U.K., France, Romania and Poland starting this month.

For more on HTC's handsets:
- read this press release

AT&T upgrading with HSUPA next month

Tue, 25 Sep 2007 06:59:54 -0400

AT&T is set to announce that it has upgraded its mobile network with HSUPA, which will let its subscribers send photos and video from their phones to the Internet about six times faster than current speeds. The carrier plans to upgrade its networks in October and November. AT&T said that the upgrade to AT&T's high-speed network would increase upload speeds to between 500 and 800 Kbps, from its current speed of about 120 kbps. The growing popularity of blogging and social networking is driving the need for more upstream bandwidth, according to the carrier.

For more on the upgrade:
- check out this prescient rumor mill from last week