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April 4th, 2009

Las Vegas telecoms show fizzles out

Posted by: Sinead Carew

The CTIA’s annual U.S. wireless technology showcase in Las Vegas was quieter than usual this year as vendors sent fewer employees and rented less floor space for their booths in an effort to crimp spending due to the recession.

Aside from a lot of talk about cellphone applications and a software store launch from BlackBerry maker Research In Motion, the show offered few surprises.

A handful of operators and vendors, however, offered insights into their technology strategies — even if they were less than keen to indicate how their businesses were faring exactly. Some even launched new gadgets.
    
AT&T, the exclusive operator for the iPhone, used the show as an opportunity to talk up application sales for its less fancy phones, which have brought it $1 billion in revenue in the last few years. In comparison, it does not get a revenue share for iPhone apps, which kicked of the craze for application stores when they launched last year.

However, the carrier noted that its more traditional phones are a much bigger business than high-profile, advanced devices like iPhone.

“About 25 percent of our portfolio is smartphones. That means that 75 percent of them are not,” AT&T chief marketing officer David Christoper told reporters at a lunch on the sidelines of the show on Thursday.
    
AT&T, behind only Verizon in subscriber numbers, also talked about the need to offer new pricing options for mobile data in future. It is expected to be a year or more behind Verizon Wireless in upgrading its network to a high-speed technology known as “long term evolution”.

But when it does, likely in 2011, it expects to cut data access fees and stop charging for phone calls by the minute. Instead it may charge data access fees based on how much netwok capacity a customer uses up.

“It will be an environment where people buy the amount of data they need,” Ralph de la Vega, the head of AT&T’s mobility business, told reporters. “We’ll be able to sell them a lot more data than we do today for a lower price.”

Qualcomm investor relations executive Bill Davidson declined to comment on prospects for a general return for chip demand, but in an interview with Reuters, he said that the company is expecting big growth from markets such as China and India.

While China is often cited as the emerging market for wireless growth, Davidson said the expected award of licenses to build 3G high-speed networks in India, could bring even more growth.

“The Indian market is going to be a very good market for 3G, even more so than China, because its under-served on the wireline side,” Davidson said in an interview.

At its booth, Qualcomm showed a prototype consumer electronics charger called eZone, which could charge as many as five gadgets such as phones, cameras or music players simultaneously. The gadgets are placed in no particular order on a flat rectangular plate that is plugged into a power source.

Qualcomm said it is talking to different device manufacturers about incorporating the technology in their devices. If it brings the product to market it would likely have partner companies manufacture the device.

(Reuters Photo: Ralph de la Vega  at CTIA by David Becker)

April 2nd, 2009

Palm Pre at CTIA: Look, don’t touch

Posted by: Sinead Carew

At a show where reporters have cellphones and other devices thrust into their hands around every corner, Palm took a novel approach: treat its hot, unreleased handset like Forbidden Fruit.

Palm showed off its upcoming Pre smartphone at the CTIA annual wireless showcase in Las Vegas. The company was still very, very coy about its launch date for the device except to say that it will appear on Sprint’s shelves before July 1.

It was also very careful about letting reporters play with the device to the extent that the product demonstrator, Tina, would not let it fully out of her hands. Reporters were allowed to play with the keyboard — as long as the demonstrator was able to keep her hands on the phone. One reporter asked if she could feel the weight of the phone in her hand, but TIna again kept her hands on part of the phone.

(Perturbing? Some said no. Some say so…)

Touching and holding issues aside, the demonstration showed many of the features that have fueled buzz about the Pre. Tina made a phone call from the device and showed Pandora, the streaming music discovery service, and Sprint applications such as mobile TV (which looked great) and its Nascar application.

The device, which also allows easy movement between different applications, is seen by some as Palm’s big chance to claw back market share from rivals such as Apple iPhone. At the same time it represent to some the basket referred to in the cliche: “don’t put all of your eggs in one basket.”

Palm said on Wednesday that it was widening the availability of its developer kit for third-party software vendors to more developers from very select group to more developers but that availability would still be limited until “later this year. ” At a wireless show where much of the discussion this week is about wireless application stores, that may be a disappointment for some Pre-enthusiasts.

(Mediafile did touch the Pre at CES. Watch the video here.)

(Photo: The Pre at CES, Reuters)

February 20th, 2009

Will Boost’s “so wrong” ads bring it to the masses?

Posted by: Sinead Carew

How would you widen your appeal beyond an audience of  14-24 year-olds to say the 18-35 year-old demographic? Some companies might give their advertising a gentler or more grown up tone. Others might throw in a service credit or some airmiles. 
Boost Mobile has decided the right theme is “wrong”
Investors already thought its recently-launched $50 unlimited mobile service plan was so competitive their first reaction was to sell shares in rival companies. The plan’s arrival in a terrible economy plagued with job cuts is also expected to draw crowds. 
But to make sure Boost, a unit of Sprint Nextel, launched an ad campaign designed by Santa Monica-based ad agency 180 LA, to stand out from the clutter. 
One has a coroner eating lunch over a dead body and at one point holding an internal organ in one hand and sandwich in the other. Is this wrong? he asks. Not as wrong like high prices. 
Then there’s a girl on a bike questioning if there’s something wrong about her flowing long arm pit hair.  The answer is of course that its not as wrong as sneaky charges in phone bill.
And what about the cute pig who’s tucking into a plate of ham at the dinner table. 
“Is this so wrong? Its delicious.” says the pig. “I’ll tell you what’s wrong, a cellphone company that advertises one price and charges you hidden fees well north of that.”
Sprint said yesterday that Boost has been taking in 6 times more customers than it is losing since the new plan was launched Jan. 22. Now that  the campaign launched this week on national TV it will be interesting to see the effect on sales.
(Photos: Boost)

February 9th, 2009

Hands-on with Amazon’s Kindle 2.0

Posted by: Reuters Staff

Online retailer Amazon.com unveiled a slimmer version of its Kindle digital book reader on Monday, with more storage and faster page turns.

Reuters’ Franklin Paul had a chance to see the new unit in action, as Laura Porco, Director, Kindle Books, demos its text-to-speech and buy on the fly features.

January 26th, 2009

Picture gets darker for 8,000 Sprint workers

Posted by: Sinead Carew

Employees of embattled wireless service Sprint had yet another reason to complain on Monday after the company, which has been losing customers for years, announced 8,000 job cuts.

However, even after they’ve been booted out in the cold, these workers will likely still be reminded of their previous job by the sight of their old boss Dan Hesse, when he moonlights as lead actor in Sprint’s sepia-toned TV commercials on top of his day job as CEO of a struggling wireless company. 
    While Hesse’s dual lead man/CEO role may be saving the company some money, a few experts have wondered whether the commercials are doing more harm than good to Sprint, which has been roundly criticized for its marketing message. 
    Or perhaps it’s just a coincidence that the company has continued to report steep customer losses since the ads started to run soon after Hesse took on the job just over a year ago.

(Photo: Still shot of Dan Hesse in Sprint ad)

August 22nd, 2008

Verizon, Google nears deal

Posted by: Kenneth Li

google-logo2.jpgMedia companies aren’t the only ones who needed Google’s help. The Wall Street Journal is reporting Verizon and Google are nearing a wide-ranging agreement that will see Google as the default search provider on Verizon handsets.

It’s not the first time the two have reportedly come close to landing a partnership. They were in discussions last year as well. 

At issue, according to the report, is Google’s desire to save information from user searches in order to enhance the relevancy of its ads. Verizon, like other carriers, have been unwilling to part with such valuable consumer data. Another hang-up is the revenue split from the ads.

Regardless, Google’s Android phones are expected to hit the market shortly, making deals like this just one part of the Internet search leader’s massive mobile ambitions.

Keep an eye on:

  • Courts warn media companies on take-down notices (Wired)
  • Advertising slowdown continues, says WPP (Reuters)
  • Apple’s iPhone 3G launches in India with no mass hysteria and a price tag of $700 (Reuters)

(Photo: Reuters)

March 26th, 2008

Cable, Sprint up ante on rivals

Posted by: Kenneth Li

cellphone-guy.jpgTwo sectors may be getting a new lease on life after the Wall Street Journal reported news that a handful of the top U.S. cable operators are exploring a joint venture with Sprint Nextel and Clearwire to create a national high-speed wireless network to fight off the telcos for subscribers.

Without a big infusion of cash, WiMax technology could be a non-starter in the U.S. So far, Sprint has planned to introduce the service in three markets.

Expanding beyond that may prove a tough sell for Sprint shareholders who had widely criticized its commitment last year to spend $5 billion on WiMax by 2010. Sprint is also struggling to keep its existing customers from leaving.

But with an estimated $3 billion in potential investment from Comcast, Time Warner Cable, Bright House Networks, Google and Intel, Sprint and Clearwire are poised to make life uncomfortable for AT&T, Verizon, DirecTV and EchoStar.

The cable industry has also dabbled in offering wireless services over the past few years, notably with Sprint. But with wireless penetration in the United States at over 80 percent, coming to market with a me-too offering won’t cut it anymore.

Is this the dawn of a new broadband arms race?

(WSJ)

Keep an eye on:

  • Banks to Clear Channel: No way. (Reuters)
  • Motorola to spin off handset division. (Reuters)
  • Take-Two to Electronic Arts: Still NO. (Reuters)
  • Fewer reporters on the U.S. presidential campaign trail? Blame the blood-letting in the newspaper industry. (NYT)

(Photo: Reuters)