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 those sepia-tinted shades, set the date for #TBT and enjoy the memories!
A&T Mobility prepares for imminent iPhone launch
AT&T Mobility says more than a million customers have signed up for information regarding the much-hyped iPhone, and Apple Inc.’s Steve Jobs has said that he expects the device to sell around 10 million units in 2008. An April survey by M:Metrics found that an estimated 19 million U.S. mobile-phone users considered themselves strongly interested in buying an iPhone, despite the hefty $500 or $600 price tag and the fact that most of them (67%) would have to switch carriers due to AT&T Mobility’s exclusive rights to sell the phone in the U.S. for the first five years. “That kind of latent demand is something I don’t think we’ve ever seen before,” said Mark Donovan, senior VP and senior analyst at M:Metrics. But if the carrier does manage to add so many customers quickly, it could face significant challenges in handling the onslaught of new activations, new customers crowding its stores, and customer service inquiries related to the iPhone. Both AT&T Mobility and Apple have kept mum on most details about the device and service as well as their preparations for the initial feeding frenzy and the longer-term handling of high demand. Analysts compared the introduction of the iPhone to the launch of highly anticipated video gaming systems such as Sony Corp.’s Playstation3 and the Nintendo Wii. Donovan, noting that the launch will take place on a Friday, described the launch as “very much like you’d launch a movie. After a big opening weekend, the question is always, can that be maintained? That’s going to be a function of what the consumer-generated buzz on the iPhone becomes, not what the advertising and marketing machine is putting out, which is what we’re getting now.” … Read more
Sprint’s WiMAX strategy
Sprint Nextel Corp. is determined to push WiMAX into existence and then ubiquity, and the company may explore a range of financial and strategic options in order to make that happen, CEO Gary Forsee told an industry conference earlier this week. Forsee said that he has been “very clear … that there are opportunities for us to do a number of things, strategically and potentially financially, that could ensure that the business plan is achieved, that the technology is ubiquitously deployed, and financially that our shareholders could perhaps see some benefit of that before waiting the four or five years before the business would return [a profit.]” Forsee added that Sprint Nextel would consider working with several kinds of companies that might be interested in making an investment in WiMAX: companies with a “self-interest in seeing WiMAX deployed,” such as the vendors and partners that the carrier is currently working with; companies who could “bring tonnage” (read: usage) to the network under wholesale arrangements; or companies that are interested in helping build a WiMAX network to help ensure ubiquity of coverage.
The Wall Street Journal reported that Sprint Nextel is in conversations with Clearwire Corp. to potentially spin off its WiMAX operations, due to pressure from shareholders who are nervous about the cost of the infrastructure investments while the company’s wireless customer metrics are still lagging. Such a deal might encompass a spinoff or a less far-reaching partnership such as a roaming agreement or spectrum acquisition from Clearwire, the WSJ reported, citing anonymous sources familiar with the matter. For his part, Forsee noted that Sprint Nextel has experience in various structures from joint ventures to spinoffs and that the company would “look at all of those opportunities” as well as at keeping the operations on the carrier’s own balance sheet. “We believe this is part of the future of the company, and maintaining control is going to be very important,” Forsee said. … Read more
Sprint buys more 2.5 GHz spectrum
Bell Industries Inc. said it would sell an undisclosed chunk of 2.5 GHz spectrum to Sprint Nextel Corp. for $13.5 million, pending approval by the Federal Communication Commission. FCC approval is expected prior to the deal’s closing in 45 to 90 days, according to Bell. The two parties to the deal are not disclosing details on the spectrum’s geographic location-for “competitive reasons,” according to Sprint. Bell’s 8-K filing with the Securities and Exchange Commission cited “licenses for the operation of Broadband Radio Service channels.” BRS typically refers to spectrum in the 2.5 GHz band but conveys nothing about geographic location. Specific details would be “more appropriate” coming from Sprint Nextel, said Kevin Thimjon, Bell’s CFO. The licenses in question were originally acquired by Bell in its purchase of SkyTel Corp.-a paging, telemetry, two-way messaging and e-mail subsidiary-from Verizon Communications Inc. late last year. The spectrum licenses were not producing revenue for Bell, according to the company. Because Sprint Nextel’s roadmap focuses heavily on deployment of a WiMAX network in the 2.5 GHz range, that is certain to be the focus of speculation about the deal’s context. … Read more
AT&T set to sunset TDMA markets
AT&T Mobility announced it will begin shutting down its TDMA network in 18 markets this year. The move is an attempt to get the carrier’s customers to migrate to its GSM network, a more spectrally efficient network technology. The carrier said it plans to shut down TDMA service in markets stretching from New Mexico to Texas to Kentucky, and that all 18 markets will be off by July 15. AT&T Mobility said it plans to shut down the remainder of its TDMA network early next year. The carrier declined to disclose the number of subscribers who will be affected by the move, but it did say that only 1% of its calling traffic runs over its TDMA network. AT&T Mobility said it would waive its early termination fee for TDMA customers who want to churn to another carrier, though it claims most of those customers have likely already fulfilled their contract obligations. … Read more
Verizon’s EV-DO Rev A network bigger than Sprint’s
Although the nation’s No. 3 carrier has announced plans to launch a WiMAX network and is looking at an array of options to help drive the technology into ubiquity, Sprint Nextel Corp. today announced that its CDMA2000 1x EV-DO Revision A network continues to expand and now covers more than 203 million people nationwide. The carrier added that the service is available in more than 10,000 cities and 900 airports. Not to be outdone, Verizon Wireless responded with some numbers of its own claiming its Rev. A network covers 208 million pops across the country. … Read more
Parsing mobile TV adoption, revenues
SANTA MONICA, Calif.-It’s not the cash cow most in the wireless industry hope it will be, but mobile television is already producing some steady revenue streams and showing signs of growth, Levi Shapiro, director of audiences at Telephia, said in opening remarks at a panel here at the Digital Hollywood conference. “The good news is it’s about a $150 million revenue for (the first quarter of 2007),” he said. “We have 3.6% penetration of mobile video in the United States.” With more than 8.4 million people paying for mobile video offerings in the past 30 days, the average U.S. mobile video revenue per user is around $7.50, he said. “Really it’s a craving for entertainment, short-form entertainment,” Shapiro said. Craig Shapiro, head of content strategy and acquisition at Helio L.L.C., insisted that the mobile virtual network operator is not a media company intent on creating content, marking a striking difference between its approach and that of Amp’d Mobile Inc., which recently filed for bankruptcy protection. “We want to work with the creative community to procure content,” he said. Helio’s Shapiro argued that the wireless carriers are cutting mobile video adoption short. “Pricing from other operators here in the United States has held back video tremendously,” he said. … Read more
Yes, there was a Hummer phone
If you’re a manly man and you’ve stubbed out your cigar long enough to buy a manly vehicle, you may well settle on the Hummer. Your next logical move then is to acquire a Hummer mobile phone, designed and distributed by ModeLabs Group, a customized design manufactuer. But wait. ModeLabs Group is French and based in Paris. Can a manly man really acquire such a phone? Not to worry. The phone itself may not give you away. The good news is that the slider phone (another manly touch) is inspired by the wheels and grille of Hummer vehicles. It gets better: The phone will be available in yellow, khaki and sand colors. To top that, the phone allows personalization by snapping on camouflage battery covers. The mobile Hummer-it lacks wheels, the assumption being that men will carry it or transport it in their vehicles-will be launched first in Europe first and other countries “very soon,” according to GM and ModeLabs. The phone is triband GSM phone-though GM and ModeLabs don’t specify which bands-and offers stereo Bluetooth, a USB port, 2-megapixel camera and an MP3 player, among other features. … Read more
700 MHz, first responder comms and universal broadband access
Sen. John Kerry (D-Mass.) said the Federal Communications Commission should write 700 MHz rules that foster innovative wireless broadband services and improved first-responder communications. Kerry, decrying the declining stature of United States in broadband penetration compared with other countries, said the upcoming 700 MHz auction offers the opportunity to move the country closer to President Bush’s goal of universal, affordable broadband access by the end of 2007. “Dramatically expanding wireless broadband may not be the silver bullet that solves all of our broadband challenges-but it will certainly be a step in the right direction,” stated Kerry in a letter to FCC Chairman Kevin Martin. “Ultimately, the commission should establish auction and service rules that maximize the likelihood of innovation and competitive entry in the broadband wireless market.” Kerry did not mention Frontline Wireless L.L.C. by name, but his press release embraces many of the themes in the startup’s campaign to create national wireless license whose operator would serve the broadband needs of consumers and public-safety agencies. The FCC is expected to issue auction rules in the next month or so, with an eye toward starting the auction in December. Kerry, a Senate Commerce Committee member, also advocated strong buildout requirements as proposed by the FCC. “This spectrum should not sit dormant in the hands of winning bidders. We cannot allow this spectrum to be hoarded by large companies who don’t intend to use it, which stifles innovation and the growth of competitive networks. It is imperative that care is taken to avoid warehousing of this spectrum,” the Massachusetts lawmaker said. … Read more
Check out the RCR Wireless News Archives for more stories from the past.
