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#TBT: App messaging cuts into SMS; T-Mo charts new network path; rampant iPad rumors … this week in 2012

Editor’s Note: RCR Wireless News goes all in for “Throwback Thursdays,” tapping into our archives to resuscitate the top headlines from the past. Fire up the time machine, put on the sepia-tinted shades, set the date for #TBT and enjoy the memories!

App messaging cuts into SMS revenues
The increasing use of IP-based social messaging services by consumers cost telecom operators $8.7 billion in potential SMS revenues in 2010 and $13.9 billion in 2011, according to a new report by Ovum. Ovum defines social messaging as messaging that occurs through platforms other than SMS, MMS, or e-mail, and which is either tied to a social network or has a social component attached. Social messaging players include mobile apps, mobile social networks and even some mobile instant messaging platforms. In its report “The Casualties of Social Messaging,” Ovum reveals that it expects the decline represented nearly 6% of total messaging revenue in 2010 and 9% in 2011, and that it will continue as the popularity of messaging apps continues to grow. Ovum has warned operators to rework their legacy services if they want to secure their future position in the messaging market. “Social messaging has disrupted traditional services, and operators’ revenues in this area will come under increasing pressure,” says Neha Dharia, consumer analyst at Ovum and author of the report. … Read more

Top connected cars of ’12 include the Ford Focus
Network-connected cars are fast becoming the subject of both excitement and controversy. As the public awareness of everything from value added services through self-driving cars expands, M2M publication Connected World Magazine has named not one but four cars its “Connected Car of the Year”. Effectively connected cars, with compelling onboard features, could be a substantial market driver for more and different network connectivity. ABI Research estimated last Spring that the number of connected cars around the world would grow from 45 million at the end of last year to 210 million by 2016. The primary use of that connectivity today is for navigation and safety features, with entertainment and social networking uses trailing. That is expected to change though as young consumers grow older and cars become less dependent on human navigation. … Read more

T-Mobile US charts new network path after AT&T merger fails …
Months after having its acquisition attempt by AT&T quashed by regulators, T-Mobile USA laid out its plans for remaining a strong No. 4 challenger in the market, including $4 billion in network investments leading to the launch of LTE services next year.The carrier, which announced a similar network reinvigoration plan last year just prior to AT&T’s acquisition bid, said it plans to install new equipment at 37,000 cell sites and re-farm spectrum in the 1.9 GHz band currently used for its GSM-based services to launch HSPA+ services, which would then allow for the re-farming of its 1.7/2.1 GHz spectrum currently used for HSPA+ services to bolster the spectrum gleaned from the merger break up to launch LTE in the 1.7/2.1 GHz band. T-Mobile USA’s management noted that the spectrum received from AT&T, which still needs to move through regulatory approval, will leave the carrier with approximately 60 megahertz of spectrum across the top 100 markets, an increase from its current 54 megahertz. … Read more

… but struggles with customer defections
T-Mobile USA ended 2011 on a sour note as the carrier posted a marked increase in customer losses as well as the collapse of its planned acquisition by AT&T, both of which were somewhat related. T-Mobile USA said it lost 526,000 customers during the fourth quarter of 2011, pushing its customer base down to 33.2 million total customers on its network. The customer defections were substantially greater than the 23,000 customers it lost during the fourth quarter of 2010 and reversed the positive gain of 126,000 subscribers during the third quarter of last year. The customer losses were driven by its contract customer base, which lost 802,000 connections during the quarter, including the loss of 95,000 “connected devices” during the quarter. Prepaid customer growth did manage to grow year-over-year from 229,000 net additions in 2010 to 312,000 net additions last year, with the carrier noting it was serving 3.6 million indirect prepaid customers on its network at the end of 2011. By comparison, T-Mobile USA’s larger rivals all posted customer gains during the fourth quarter, including 2.5 million net connection additions posted by AT&T Mobility; 1.1 million net additions posted by Sprint Nextel; and 969,000 net customer additions posted by Verizon Wireless … Read more

New iPad rumors run rampant
The rumor mills seem to be running overtime in cranking out news Apple iPad related. This includes the name for the device (iPad 3? How original), specifications (faster, smaller, bigger) and release dates (tomorrow, the day after tomorrow, never). I have always found these sort of rumors fun to watch as history has shown that beyond the occasional Apple employee in need of a beer, 99% of these rumors seem to come out of nowhere and disappear into the same place. It has really become quite the industry, and one that I could only guess Apple approves of as it keeps the brand at the top of search engine results year round without having to spend a dime or lift a finger. Good gig if you can get it. It’s with this that we discuss the latest iPad device, which most expect to be unveiled in the coming weeks. Apple, which basically resurrected the tablet market from the ashes that remained of previous attempts to bring such devices to market, is now in the position of dictating terms of what those devices will be. Following the launch of the original iPad in 2010, a flood of device makers rushed to market with similar slabs sporting in most cases similar specifications to what Apple was producing. … Read more

LightSquared on the brink
LightSquared said it plans to cut nearly half of its workforce to save money, according to a Reuters report. The report notes that LightSquared plans to cut 45% of its current 330 employee base, citing the need for a “prudent and necessary cost savings measure to ensure the long-term success of the company.” Last week the Federal Communications Commission refused to grant LightSquared access to its 1.6 GHz spectrum assets needed to fuel its planned LTE-based mobile broadband network due to potential interference with certain GPS systems. This came one year after the FCC initially granted LightSquared permission to add the terrestrial component to its operation plans. The job cuts also followed a statement from LightSquared that it was holding up payment to Inmarsat in regards to a spectrum re-banding plan that was to free up spectrum assets to be used by both companies. … Read more

Not so mobile anymore?
As 4G smartphones and tablets become more prevalent, iGR has noted a change in consumer behavior – more people are likely to stay stationary while using the new devices. Contrast this behavior with the typical cellular users who, for the last 25 years or so, have moved-and-talked, usually while driving. Recent modifications to this behavior have included texting-while-driving or e-mailing-while-driving – not improvements by any stretch! Early mobile adopters traditionally leveraged wireless connectivity based on both how and where they were typically commuting. Therefore, the networks were historically designed along commonly used commute routes such as major highways and roads. Simple. Deployments were primarily driven by an agenda focused on providing coverage, which would then be leveraged to deliver the secondary concern, capacity. As the mobile ecosystem has evolved, so have the users and, subsequently, their expectations. Today end-users are requiring connectivity around the clock on more and more personal devices in order to navigate throughout the day, a life enhanced by available applications and social networking experiences. … Read more

Check out the RCR Wireless News Archives for more stories from the past.

ABOUT AUTHOR

Kelly Hill
Kelly Hill
Kelly reports on network test and measurement, as well as the use of big data and analytics. She first covered the wireless industry for RCR Wireless News in 2005, focusing on carriers and mobile virtual network operators, then took a few years’ hiatus and returned to RCR Wireless News to write about heterogeneous networks and network infrastructure. Kelly is an Ohio native with a masters degree in journalism from the University of California, Berkeley, where she focused on science writing and multimedia. She has written for the San Francisco Chronicle, The Oregonian and The Canton Repository. Follow her on Twitter: @khillrcr