Tuesday, November 29, 2005

T-Mobile USA Hits 20 Million Mark

By Susan Rush
November 9, 2005
NEWS@2 DIRECT
http://www.wirelessweek.com/article/CA6282674.html

T-Mobile USA managed to attract more new customers than analysts had expected, pushing its subscriber base over the 20 million mark at the end of the third quarter.

The carrier added 1.06 million new customers, which was above analyst expectations calling for 870,000 additions. In the prior and year-ago quarters, T-Mobile added 972,000 and 901,000 customers, respectively. The company ended the quarter with a base of 20.3 million.

T-Mobile USA recorded net income of $458 million, up from $387 million in the second quarter of 2005 and $254 million in the third quarter of 2004. Service revenue came in at $3.15 billion, up from $3.04 billion in the previous quarter and $2.61 billion in the third quarter of 2004.

Average revenue per user (ARPU) was $53, which represents a slight dip from the $54 reported in the previous quarter and $55 recorded in the year-ago quarter. Data services revenue increased in the third quarter and now represents 8.8 percent of postpay ARPU, according to the company.
Post-pay churn dipped to 2.4 percent from 2.6 percent a year ago.

T-Mobile USA parent company Deutsche Telekom reported a quarterly sales increase of 4.8 percent.

Tuesday, February 22, 2005

Paris Hilton's Cell Phone Data Hits The Web

By Susan Rush
February 22, 2005
http://www.wirelessweek.com/index.asp?layout=newsat2direct&starting=7&pubdate=02/22/05


Paris Hilton is once again the center of online buzz. Over the weekend, phone numbers from the hotel heiress' Sidekick wireless device, which makes use of an online server, were posted on the Internet. T-Mobile is investigating how the information was accessed.

"T-Mobile's computer forensics and security team is actively investigating to determine how Ms. Hilton's information was obtained," the carrier said in a prepared statement. "This includes the possibility that someone had access to one of Ms. Hilton's devices and/or knew her account password."

The information, which was posted on Illmob.org and included phone numbers of Ashlee Simpson and Vin Diesel, among others, is no longer accessible on the site.

Although T-Mobile is not commenting on the specifics of the investigation, the carrier said it understands how important it is for its customers' information to be protected. The carrier said it is important for customers to take precautions to ensure the safety of their information, including by opting to password protect accounts and handsets, choosing complex passwords, monitoring account activity and notifying the carrier if any activity looks suspicious.

Last week, Nicholas Jacobson pleaded guilty to hacking T-Mobile's network. T-Mobile first discovered its network had been compromised in late 2003. It immediately notified authorities and in October 2004 Jacobson was apprehended.

Wednesday, February 09, 2005

Openwave Launches Outreach Express for Mobile Interactive Subscription-Based Messaging Services

2/9/2005
http://www.tmcnet.com/usubmit/2005/Feb/1115877.htm

REDWOOD CITY, Calif., Feb. 9 /PRNewswire-FirstCall/ -- Openwave Systems Inc. , the leading provider of open software products and services for the communications industry today introduced Openwave(R) Outreach Express, which enables operators and MVNOs to distribute compelling rich content and information in real-time to their subscribers on any handset.

"Operators need an integrated content and messaging solution to respond to the need to grow their communities through messaging and meet the demand for subscribers' increasing interest in content being delivered to their handsets," said Scott Ellison, IDC. "Outreach Express will allow operators to perfect their user experience for push campaigns and content, enabling them to attract and retain subscribers."
Included as part of Openwave's MMS offering, Outreach Express delivers an intuitive user experience across a range of handsets for services such as campaigns around one-time events like presidential elections returns; ongoing subscriptions to information services like football, basketball, baseball, news and weather; mobile marketing campaigns; and interactive messaging services such as reality TV voting.
Outreach Express leverages Openwave's experience and best-of-breed technology for Multimedia Messaging Service (MMS). Operators utilizing Openwave Mobile Access Gateway (MAG) product will further benefit from significantly improved message delivery times and reduced total cost of ownership of the overall solution.
"Our solution is highly optimized for application-to-person traffic and is capable of driving hundreds of messages per second delivering content when users expect it most," said Rich Wong, general manager, messaging products group, Openwave. "We are committed to working with our customers to help them offer innovative services in mobile messaging."

About Openwave
Openwave Systems Inc. is the leading independent provider of open software products and services for the communications industry. Openwave's breadth of products, including mobile phone software, multimedia messaging software (MMS), email, location and mobile gateways, along with its worldwide expertise enable its customers to deliver innovative and differentiated data services. Openwave is a global company headquartered in Redwood City, California. For more information please visit http://www.openwave.com/.

CONTACT:
Nicole Arena
Openwave Systems, Inc.
+1-650-346-4293
nicole.arena@openwave.com

Nokia creates business unit for carrier network services

Feb 9, 2005
http://www.rcrnews.com/news.cms?newsId=21398




ESPOO, Finland-Nokia Corp. said it will create a dedicated business unit within its Networks division that will focus on carrier services, including systems integration, consulting services, managed services and software for the automation and centralization of network and service management.

"The market for telecommunications-related professional services represents a considerable opportunity for suppliers," said Bosco Novak, Nokia's senior vice president for the Networks services unit. "In addition, there is a potential for further growth within areas that operators currently do in-house as core/non-core activity definitions are reconsidered. We will help our operator customers sharpen their edge in their very competitive markets through our comprehensive service offering, collaborative way of working and our strong dedicated team."

Nokia said the services unit will enhance the quality of service experience for subscribers with end-to-end integration across terminals, middleware and network equipment. The business accounted for more than 25 percent of Nokia's Networks division revenues last year.

In other Nokia news, the company reinforced its relationship with streaming media company RealNetworks Inc. Nokia uses the company's media player in its high-end mobile phones. The reinforcement comes in conjunction with RealNetworks' announcement that it will offer its RealAudio and RealVideo formats for use in other media players from the likes of PacketVideo and others.

Tuesday, February 08, 2005

FCC Clears Way For Nextel, Sprint To Merge Spectrum

February 08, 2005
http://informationweek.mobilepipeline.com/news/59301933

By W. David Gardner
In the wake of the resolution of Nextel Communications' spectrum problems, the firm's next challenge will be to merge its spectrum hodge-podge into Sprint Corp.'s spectrum. Sprint is in the process of acquiring Nextel.

Nextel accepted an FCC deal for spectrum swap Monday, which the regulatory agency valued at $4.8 billion. The agreement enables Nextel to vacate spectrum used for public safety agencies and move to valuable 1900-MHz bands. The spectrum swap had been vociferously criticized by Verizon Wireless as a "giveaway," but the latter company eventually dropped its complaint.

Although Nextel's and Sprint's frequency bands are different, one wireless expert believes they can be melded together relatively easily. "Sprint already has a substantial footprint that Nextel can roll into," said Joe Nordgaard, managing director of wireless consultancy Spectral Advantage. "It's easy to look at Nextel's new spectrum as a part of Sprint's."

Sprint has announced that it will spend $3 billion in building out a nationwide CDMA EVDO network. The network uses technology developed by Qualcomm, which has supplied similar infrastructure technology to Verizon Wireless. Nordgaard noted that, in addition to its own dedicated cell-phone business, Sprint is developing a business as a Mobile Virtual Network Operator (MVNC) reselling service to cable companies.

With the FCC issue behind them, Nordgaard said, Sprint and Nextel must now deal with a new set of issues, including handset swap-outs, billing integration, and fixing incompatible interfaces. One big feature to be addressed is Nextel's popular "push to talk" feature and how it will fit into Sprint's universe.

There is even a possible hitch to the merger: stockholders still haven't approved the deal, and there is a remote possibility they could tie up the combo.

Of the final FCC approval announced Monday, FCC chairman Michael Powell said at a press conference: "It's always gratifying to untangle a knot. I would never have left if this was [not] done." Powell recently announced his intention to leave the FCC.

The spectrum swap deal calls for Nextel to give up spectrum used also by public safety agencies. The company agreed to spend at least $2.8 billion to assist in the relocation of users over a three-year period. Sprint, which is paying $37 billion for Nextel, has said it will assume Nextel's obligations in the spectrum swap.

The Next Billion Customers (3G, Virgin Mobile)

There are still plenty of people in the world who want a cell phone. But the big companies could lose them to a new breed of entrepreneur.
February 14, 2005 Print Issue
http://www.redherring.com/Article.aspx?a=11232



It is January 20 and Richard Branson is talking on the phone dressed in his bathing suit, ready for a swim at an undisclosed Caribbean location. He is not discussing the bathing beauties on the beach but meetings scheduled for the next day in New York City with prospective bankers, part of a “beauty contest” to decide who will help his Virgin Group take Virgin Mobile USA public.

Virgin Mobile USA, a so-called mobile virtual network operator (MVNO), capitalizes on a brand, rather than a network infrastructure. It piggybacks on Sprint’s network but offers its own phones, customer service, pricing, and edgy advertising, along with a strategy it claims has helped it become “the fastest company in America to reach a billion dollars” in sales.

While Western Europe rapidly approaches saturation, mobile opportunities in markets that were once considered too risky suddenly look quite attractive. But only smaller, lesser-known players with foresight seem to be in a position to profit from opportunities in countries like China, India, Ukraine, Russia, and Nigeria. Established operators like Vodafone find themselves left out.

Among the smaller players, Mr. Branson is an exception. He is a well-known entrepreneur. Virgin Mobile UK had a $2-billion IPO last summer and it is rumored that similar numbers are being bandied around by Virgin Mobile USA.

For the complete story and the entire package of stories get the Red Herring Magazine issue dated February 14, 2005.

Friday, January 28, 2005

Cell-phone cinema

New technology lets users watch short movies and TV shows
Jan. 28, 2005, 3:25PM
By LOUIS B. PARKS
http://www.chron.com/cs/CDA/printstory.mpl/front/3012556

Your date is late. Sitting in Sam's Boat twiddling your thumbs, you experience that most unforgivable sin of the 21st century: a moment of boredom. Taking corrective action, you whip out your cell phone, attach the earpiece. Then you:

A: Call a friend.

B: Play a game.

C: Watch an episode of 24: Conspiracy, a new spinoff series of the popular Fox TV show 24.

Options A and B? They're so over. Starting Feb. 7, new weekly mini-episodes of 24 will be ready to eliminate all fear of downtime for users of Verizon's fast new EvDO broadband service.

If you can't wait for that, Sprint already has cell-phone movies available for viewing.

"While we are speaking now, there are people watching films on their mobile phones," says Beau Buck of cell-film supplier BigDigit, Inc., which programs Sprint's mFlix, part of a media package with such offerings as CNN, Fox Sports and Cartoon Network.

Got popcorn? Mobile phones are promising to become minimovie theaters in your pocket. Bored standing in line to see Million Dollar Baby? Watch a movie or two, or three or four, while you wait.

We're not talking Titanic. Mobile movies are short — 10 seconds to three minutes. Much longer would take forever to download and require huge memory to store.

But length doesn't hamper storytelling. It only takes 12 seconds to tell the grim joke of a BigDigit's Headrush. It's about the dire consequences a man suffers when his son jumps on a rubber raft he's inflating: The man's head explodes.

So far the majority of cell-phone cinema is borrowed from other media. But that's quickly changing as filmmakers begin producing films specifically to be viewed via cell phones.

BigDigit asks its filmmakers — about 1,300 worldwide — to "take into consideration the needs of the audience," Buck says. "When people are paying, they don't want to see a Coke commercial or trailer unless it's really entertaining. We offer stuff you really can't find anywhere else, shot, or at least edited, with the mobile user in mind."

24: Conspiracy falls into the made-for-phone category. A full 24-episode season of the 60-second adventures of counter-terrorism agents already has been shot. And News Corp., which owns Fox, has even coined a name for cell-phone series: mobisodes.

"We shot 24: Conspiracy for the (small) screen of a cell phone," News Corp. vice president Lucy Hood says. "The production company (not the same that does 24) did an extraordinary job of designing specifically for a cell phone."

24: Conspiracy is already being shown in Europe, where cell-phone technology is ahead of the United States. And Hood says more series are planned. "As transmission improves on handsets, that will just add to the richness of the content," she adds.

So how does it look?

Cell-phone image quality hardly rivals high-definition television, but it's coming along.

Sprint's mFlix downloads are fast — 10-20 seconds — and the image is decent but can be jerky. There's almost no jerking with the next generation EvDO that Verizon introduces to Houston and other big cities on Tuesday. That 3G (third generation) technology, already common in Europe, has a broadband look that rivals what you'd get watching little movies on your home computer.

Screen size? Tiny. But you'll be watching your 1 1/2 -inch cell screen from inches away. The Verizon LG VX8000 phone even allows you to turn the picture sideways to get a "widescreen" effect.

Most problematic is sound. Cell speakers are small. You'll often want an earpiece.

Technology aside, the real question is, are the movies worth watching?

Well, we haven't seen Citizen Kane or Raging Bull — or even Spider-Man — on cell-phone cinema yet. The little movies range from "my little brother could do that" to "Whoa, that was cool."

Rubber Chicken Loves Surfer Girl, currently on Sprint's mFlix, is one of the former. Its 139-second sequence of still shots examines the romance between a floppy bird and a plastic surf babe who has never seen the ocean.

There's clever editing and original thought, however weird, in BigDigit's bizarrely comedic Cheap Ludes, in which a vaguely obscene-looking "being" — sometimes it's good that the screen is small — runs out of an apartment on a desperate quest for something sold in a toothpick box.

"It's drive-by entertainment on the run," says Victoria Lynn Weston, director of video content provider ZoieFilms. "You get a good quick look, whether it's a comedy or drama or preview or commercial by a creative director."

BigDigit (www.bigdigit.com) and ZoieFilms (www.zoiefilms.com) each host cell-phone film festivals. The festivals may have more to do with commercial viability than art — as most festivals do — but they suggest a growing quantity and legitimacy, and they encourage new artists and work.

Since 2003 BigDigit has hosted seven editions of the World's Smallest Film Festival in cities such as New Orleans, Toronto, Atlanta and London. Most are held in conjunction with traditional film festivals or wireless events.

Atlanta-based ZoieFilms saw nearly 100 entries in its first Cellular Cinema Festival in December.

Hot cell-phone competition has all the players looking for an edge in the race for trend-setting customers. Movies and mobisodes are one front of that fight.

"We see an audience of early adopters, people who like to be the first," says News Corp.'s Hood. " 'Look what I just did on my mobile phone.' "

As technology improves, so will the speed, length and visual quality of made-for-cell shows.

"The possibilities are endless," says Verizon's Sheryl Sellaway. "It's really limitless."

louis.parks@chron.com

Microsoft narrows loss in wireless business

Jan 28, 2005
http://www.rcrnews.com/news.cms?newsId=21237

REDMOND, Wash.-Microsoft Corp. reported a 7-percent jump in overall revenues to $10.8 billion and an increase in operating income to $4.7 billion in the quarter, news that sent Microsoft's stock up slightly to $26.14 per share. Microsoft reported net income of $3.5 billion.

In the company's mobile and embedded devices business segment, Microsoft posted increasing revenues and a narrowing loss. The segment, which includes sales of Microsoft's smart phone and personal digital assistant operating systems, reported $91 million in revenues, up from the $63 million it posted in the same quarter a year ago. The segment clocked an operating loss of $4 million for the quarter, way down from the operating loss of $110 million in the same quarter a year ago.

Today's focus: What are people doing with camera phones?

By Keith Shaw
Thu 1/27/2005 6:10 PM

In a recently released survey, online photo service provider
Snapfish revealed that 56% of those surveyed (500 Americans)
said they think camera phones will replace digital and film
cameras within the next two decades.

Despite the big 20-year prediction cycle (won't we have flying
cars and time machines by then?), the survey offers some
additional data regarding the use of camera phones by consumers
these days.

For example, 62% of camera phone users are storing their images
on their phones rather than using a storage or sharing option.
Snapfish argues that this proves that getting photos off the
phone so people can do what they want with them remains one of
the biggest issues for camera phone users. While that rings
somewhat true, I'd also argue that image quality on the phones
is another driving reason - there's no reason to really transfer
the photo to make a print if the end result is a lousy photo.
Also, since most camera phones don't have memory card slots
(yet), transferring the photos from the phone to a PC or an
online service is a really big hassle. With more camera phones
coming out with new memory card slots (especially Trans-Flash
memory cards), storing and transferring photos will become much,
much easier.

In the Snapfish survey, poor picture quality was the biggest
gripe about camera phones (61%); also cited was the high cost of
sharing (31%) and difficulties in transferring photos to an
online service or PC (25%). Only 22% of camera phones are
printing their images, despite interest from 73% of those
surveyed. Again, photo print quality (80%) and price (63%) were
cited as the most important criteria for printing photos from a
camera phone.

New camera phone features that got the highest interest included
zoom (52%), automatic transfer of photos to a PC (45%) and a
flash (42%). And for the most part, people are taking photos
with their camera phones in pretty much the same places that
they take photos with digital or film cameras: at home (75%),
family gatherings (58%) or on vacation (45%).

More interesting were some of the new places people were taking
photos with their camera phones: at work (40%), sporting events
(33%), on dates (17%) and at the birth of a new child (13%). The
survey didn't say whether the photos were taken in the actual
delivery room, or after in the recovery room. And what kind of
photos are people taking with camera phones while on a date? Are
people taking photos of their blind dates so they can show to
friends later?

Anyway, the survey has me intrigued to poll the readership on
the current state of camera phones. Do you have one yet? What
have you been taking pictures of? Do you transfer the photos off
the phone, either to an online service, another phone (via
Multimedia Messaging Service) or e-mail address? Do you print
the photos?

Send e-mail to , and if you feel like it,
tell me what we'll see first in the next 20 years - a good
camera phone or flying cars.

Wednesday, January 26, 2005

Fidelity Select Wireless (RIMM Merger with NOK/MOT?)

Fidelity Select Wireless
http://www.investors.com/breakingnews.asp?journalid=25056500&brk=1

Fidelity Select Wireless must be enthusiastic with the Sprint-Nextel merger. The fund continues to maintain Sprint and Nextel among its top 10 holdings.

While the Alltel-Western Wireless transaction was announced on Jan. 10, Western Wireless from slipped from the fund's top 10 holdings as of Dec. 31. Alltel also failed to make the top 10 cut in Fidelity Select Wireless. This is one company that has the makings of a target. Verizon (VZ) and Sprint could well eye Alltel given the commonality of CDMA wireless standard they use.

Given the brutal battle for market share, handset and smart phone manufacturers may well benefit from consolidation. A thought that has recently surfaced is Research in Motion (RIMM) being an attractive target for both Nokia (NOK) and Motorola (MOT).

Fidelity Select Wireless has just upped its exposure to the handset segment by adding Motorola to its top 10 holdings while continuing to include Nokia and Research in Motion.

Monday, January 24, 2005

Top execs at Sprint, Nextel to get large incentives

Jan 24, 2005
http://www.rcrnews.com/news.cms?newsId=21163

NEW YORK-Sprint Corp. and Nextel Communications Inc. noted in Securities and Exchange Commission filings that they are offering a number of top executives bonuses if they stay with the carriers following their planned $35 billion acquisition, scheduled to close later this year.

Sprint said in its filing that its compensation committee of the board of directors agreed that all executive officers-excluding Gary Forsee, current chairman and chief executive officer, and Len Lauer, president and chief operating officer-would be eligible to receive cash incentives of 100 percent of their base salaries and short-term incentive targets. Half of the cash incentives would be paid once the merger closes, with the remaining incentives paid a year later.

Forsee will be named president and CEO of the newly named Sprint Nextel, while Lauer will serve as COO of the new company.

The filing also noted that the president of Sprint's local telecommunications division, which the carrier said it plans to spin off as part of the merger, would receive the incentive payment at the time of the spinoff as well as the one-year anniversary of the spinoff.

Published reports indicated Nextel's plans call for top executives to collect their annual base salaries and performance bonuses, as well as one-time payments equal to 150 percent of salaries and bonuses following the merger. Current Nextel President and CEO Tim Donahue, who earned a reported $29.4 million last year in salary, bonuses and stock options, would receive a separate employment retention agreement. Donahue is scheduled to become chairman of Sprint Nextel following the merger.