Sprint Launches One of the Industry's Most Customer-Friendly Policies on Pro-Rated Early Termination Fees |
New Policy is Addition to Sprint's Growing List of Initiatives Designed to Improve the Customer Experience OVERLAND PARK, Kan.--(BUSINESS WIRE)--Oct. 31, 2008--Sprint (NYSE:S) today announced details of its new customer-friendly pro-rated early termination fee (ETF) policy, effective November 2, 2008. Under the new policy, Sprint's ETF of $200 will decrease by $10 increments per month beginning in month six of a wireless customer's contract. Nine months later (the 15th month of the contract), Sprint customers have the lowest pro-rated ETF fee in the industry of $100. What's more, the ETF could drop as low as $50 before a customer's contract term expires. The pro-rated ETF policy applies to all new service agreements beginning on or after November 2, 2008, regardless of whether you are a new customer with a new service agreement or an existing customer who has renewed your service agreement. It does not apply to service agreements entered into prior to November 2, 2008. "This policy gives customers additional flexibility, as every month of service a customer completes after month six, the amount of their ETF is reduced," said Will Souder, vice president for Sprint operations and business planning. "We are giving wireless consumers more reasons to choose and stay with Sprint by providing the best customer experience in the industry through customer-friendly policies, simplified and industry-leading pricing such as Simply Everything, and the Now Network, which gives customers exceptional communication services in an instant." In addition to the new policy, Sprint will continue its policy of giving customers 30 days to try Sprint service. With the Right Plan Promise, if a customer is not completely satisfied with Sprint, his or her service, phone or network coverage, the customer can simply return the undamaged phone and deactivate service within the 30 days. Sprint returns the customer's activation fees and waives the early termination fees, and customers are only responsible for charges based on their actual usage. The return policy varies slightly for existing customers. Visit www.sprint.com/returns for specific details. |
Friday, October 31, 2008
Sprint Offers Early Termination Fee Reduction!
Sunday, June 29, 2008
Helio No More!: Virgin Mobile strengthens its 18-24 Demographic Monopoly?
Today Virgin Mobile USA announced that it will buy Helio from SK Telecom and Earthlink for about $39 million. In return, SK Telecom will invest in Virgin Mobile USA and acquire about 17 million shares of Virgin Mobile USA, as well as two seats on its board. Virgin will acquire Helio's customers, handset inventory, and will have access to its post-paid billing systems, allowing Virgin Mobile USA to begin offering post-paid accounts. Virgin also expects that it will be able to negotiate better rates with its network operator partner Sprint, and will explore how to best offer Helio's content and other services to its existing customer base. The companies expect the deal to close during the third quarter of 2008.
Monday, June 16, 2008
New Sprint Pricing: Trying to Reinvent the wheel, and stop the churn
Sprint Simplifies Pricing, Makes Picking the Perfect Plan As Easy As 1-2-3
New Streamlined Options Include Share Plans with Unlimited Data and Messaging for Less Than Competitors
OVERLAND PARK, Kan.--(BUSINESS WIRE)--June 12, 2008--Sprint (NYSE:S) is giving customers an easier way to budget for their monthly wireless expenses with the launch on June 15 of new simplified pricing plans. Building on the popularity of Sprint's $99 Simply Everything(SM) plan, new share plans for families will include unlimited messaging and data for one low price, so there's no calculator needed to figure out wireless costs for the whole family's favorite services.
"These days, many families are facing tight finances, and unexpected extra charges on a wireless bill can make budgeting difficult - but with Sprint plans that include all the services customers want for one low price, they can have peace of mind that they're getting a lower price than competitors offer," said Will Souder, vice president of pricing for Sprint. "We want customers to be able to easily see the value in these options, so we've removed the clutter of more complicated plans. Customers can quickly compare and see which plan is best for them."
The new simplified pricing makes choosing the right plan to fit each customer's needs and budget as easy as 1 - 2 - 3:
1. Choose an individual plan for a single line or a share plan for multiple lines.2. Choose voice only, voice with unlimited messaging, or voice with unlimited messaging and unlimited data.3. Choose the number of minutes.
For individuals, new voice-only Talk plans will be available for $39.99 for 450 minutes or $59.99 for 900 minutes. These plans join the Talk/Message/Direct Connect(R) plans introduced in February at $49.99 for 450 minutes, $69.99 for 900 minutes or $89.99 for unlimited minutes; and the Everything plans introduced in February at $69.99 for 450 minutes, $89.99 for 900 minutes or $99.99 for Simply Everything with unlimited minutes.
Thursday, June 12, 2008
3G iPhone: It's here, it's faster, it's chepaer, it's better
Monday, June 9, 2008
Watch Out iPhone: Samsung Omnia joins the touch screen game
Thursday, June 5, 2008
And Then There Were Four: Verizon Wireless Buys Alltel!
Under the terms of the agreement, Verizon Wireless will acquire the equity of Alltel for approximately $5.9 billion. Based on Alltel’s projected net debt at closing of $22.2 billion, the aggregate value of the transaction is $28.1 billion.
The parties are targeting completion of the merger by the end of the year, subject to obtaining regulatory approvals.
Once this transaction closes, customers of both companies will have access to an expanded range of products and services, including a premier lineup of basic and advanced devices and an expanded IN Network calling community. Alltel customers also will benefit from advanced services including over-the-air downloadable music from a three-million-song library, and a network that is nationwide, for a uniform coast-to-coast experience. They also will be able to take advantage of industry-leading consumer policies, including Test Drive and Worry Free Guarantee®.
“This move will create an enhanced platform of network coverage, spectrum and customer care to better serve the growing needs of both Alltel and Verizon Wireless customers for reliable basic and advanced broadband wireless services,” said Lowell McAdam, Verizon Wireless president and chief executive officer.
Alltel serves more than 13 million customers in markets in 34 states. This includes 57 primarily rural markets that Verizon Wireless does not serve. The transaction puts the Alltel markets and customers on a path to advanced 4th generation services as Verizon Wireless deploys LTE technology throughout its network over the next several years. Alltel’s customers also will reap the benefits of Verizon Wireless’ Open Development initiative, which welcomes third-party devices and services to use the Verizon Wireless network.
Verizon Communications, the owner of the majority stake in Verizon Wireless, expects that the transaction will be immediately accretive, excluding transaction and integration costs. “This is a perfect fit, with Alltel’s high-value post-paid customer base, its solid financials, our common network technology, and significant, readily attainable synergies,” said Ivan Seidenberg, Verizon chief executive officer and chairman of the Verizon board. “Verizon Wireless’ acquisition of Alltel clearly provides opportunities for enhanced value for Verizon shareholders.”
Alltel President and Chief Executive Officer Scott Ford will continue in his current position as head of Alltel until the merger is completed.
“Both Alltel and Verizon Wireless have long track records of delivering a high-quality customer experience in the marketplace,” Ford said. “The combination of our two companies will continue and improve upon that heritage as, together, we can more quickly deliver an expanded range of innovative products and services to our customers.”
Verizon Wireless expects to realize synergies with a net present value, after integration costs, of more than $9 billion driven by reduced capital and operating expense savings. Synergies are expected to generate incremental cost savings of $1 billion in the second year after closing.
Alltel and Verizon Wireless both use a common network technology, which provides advantages of a seamless transition for Alltel customers, ease in integrating the two companies’ networks, and scale efficiencies in operating the larger integrated network.
Morgan Stanley acted as financial advisor to Verizon Wireless on this transaction and is providing bridge financing. Debevoise & Plimpton LLP acted as legal advisor to Verizon Wireless.
Citibank, Goldman Sachs and RBS advised the sellers on the transaction. Wachtell, Lipton, Rosen & Katz acted as legal advisor to Alltel, and Cleary Gottlieb Steen & Hamilton LLP and Ropes & Gray LLP acted as legal advisors to the sellers.
About Verizon Wireless Verizon Wireless operates the nation’s most reliable wireless voice and data network, serving 67.2 million customers. Headquartered in Basking Ridge, N.J., with 69,000 employees nationwide, Verizon Wireless is a joint venture of Verizon Communications (NYSE: VZ) and Vodafone (NYSE and LSE: VOD). For more information, go to: http://www.verizonwireless.com/. To preview and request broadcast-quality video footage and high-resolution stills of Verizon Wireless operations, log on to the Verizon Wireless Multimedia Library at www.verizonwireless.com/multimedia.
About Alltel Alltel delivers voice and advanced data services nationwide to more than 13 million customers. Headquartered in Little Rock, Arkansas. Alltel is a Forbes 500 company with annual revenues of nearly $9 billion.
Friday, May 30, 2008
The End of Termination Fees! Okay, maybe not the end, but a beginning for sure.
More Flexibility for Wireless Customers
San Antonio, Texas, March 31, 2008
AT&T (NYSE:T) today announced a new approach to early termination fees (ETFs) that provides greater flexibility for wireless customers.
Beginning on May 25, the company's new and renewing wireless customers who enter into one- or two-year service agreements will no longer be required to pay a single, flat early termination fee. Instead, that fee, which is $175, will be progressively lowered by $5 during each month, every month, for the term of the contract. (The single, flat ETF will continue to apply to new and renewing customers who enter into one- or two-year service agreements prior to May 25.)
The company noted that it continues to offer options for those customers who do not want term commitments or ETFs, including:
Buy a phone at full price and go on a month-to-month service plan.
Bring your own compatible GSM device. With this option, you can buy a SIM (subscriber identity module), slip it into the back of the phone, and select a month-to-month service plan.
Choose one of AT&T's GoPhone prepaid wireless plans.
Tuesday, May 27, 2008
The 8 Megapixel Camera Phone: Coming Soon!
By William M. Bulkeley
Companies Featured in This Article: Taiwan Semiconductor Manufacturing
In a development that may provide a significant improvement in camera-phone picture quality, semiconductor maker OmniVision Technologies Inc. said it has developed a "radically different" image sensor that can squeeze many more pixels on a tiny chip.
OmniVision, which last year became the leading supplier of image sensors for the world's handset makers, said it expects eight-megapixel sensors will start appearing in high-end phones in 2009. Currently, almost all camera phones have sensors of three megapixels or less.
Monday, May 26, 2008
Verizon's Moto W755: New Motorola Razr Wanna Be...
Today, 1:55 PM by Rich Brome updated Today, 2:09 PM
Verizon Wireless has started selling the Motorola W755, a thin clamshell phone with an all-new design. The W755 has most of the same features and specs as the RAZR V3m, but adds stereo Bluetooth and external touch controls for controlling music, Bluetooth, and the ringer. Features in common with the V3m include 1.3 megapixel camera, color external display, microSD memory card slot, and GPS navigation. The W755 is available now in purple and black from verizonwireless.com, for $69.99 with 2-year contract and online discount.
Friday, May 23, 2008
Alltel to be sold at Best Buy: Showing off their service to potential suitors?
Alltel Wireless announced that it will begin selling products and service at Best Buy locations within its carrier footprint.
Starting May 25, Best Buy shoppers will be able to activate Alltel Wireless service, make changes to their calling plans and add services such as wireless Internet and Alltel Wi-Fi while in the store. Initially, the carrier will offer the LG Glimmer, the BlackBerry Curve, the LG Scoop, the Motorola RAZR V3a, the Motorola ROKR Z6m and the Alltel Hue in Best Buy stores, with more handsets coming by July.
Alltel said in all it will now offer service in about 40 Best Buy retail locations across its service footprint.
“We’re really excited to be in Best Buys,” said Lucie Pathmann, director of marketing communications for Alltel Wireless. “We think it will improve our customers retail experience having not only Alltel owned-and-operated retail stores, but also Best Buys in their local communities.”
No Contracts: The End of Termination Fees?!!
WASHINGTON (AP) -- The government is quietly negotiating to help cell phone customers avoid expensive fees when they cancel contracts with wireless companies, The Associated Press has learned.
The Federal Communications Commission is considering a plan that would cap cancellation fees for cell phones.
Cell phone companies routinely charge customers $175 or more for quitting their service early. Under a proposal to the Federal Communications Commission, the wireless industry would give consumers the opportunity to cancel service without any penalty for up to 30 days after they sign a cell phone contract or until 10 days after they receive their first bill.
The proposal also would cap such fees and reduce them month by month over the course of a contract based on how long customers have left, according to people familiar with the offer speaking on condition of anonymity because the FCC has not accepted it. The plan would not abolish cancellation fees entirely.
In exchange for the government's approval, the agreement would let cell phone companies off the hook in state courts where they are being sued for billions of dollars by angry customers. If approved by the FCC, the proposal also would take away the authority of states to regulate the charges, known as early termination fees.
The nation's No. 2 wireless company, Verizon Wireless, offered the proposal to the FCC for its review after high-level meetings with senior FCC officials. It did so in consultation with other leading wireless companies, whose executives indicated they would not oppose its provisions, people familiar with the offer told the AP.
The FCC declined to comment.
Consumers who have paid such fees describe them as exorbitant.
"It's ridiculous," said Ric Causey of Allen, Texas, who paid $600 in termination fees to Sprint on contracts for three cell phones after he canceled service because of what he said was poor reception around Dallas.
"I understand the fine print, but I ended up paying $200 per phone just to switch service," Causey said. He complained to executives to no avail. "I never got any satisfaction," he said. "I figured I'd deal with it later, but I never got reimbursed."
Causey, a freelance video producer, said he never imagined refusing to pay the fees out of fear it would hurt his credit rating.
Wireless companies said the cancellation fees are necessary to recover the cost of cell phones, which they subsidize under long-term service contracts, and to defray their costs for signing up new customers. Consumer groups said the fees are unreasonable and intended to discourage customers from switching among providers.
The expensive fees have led to class-action lawsuits in several states and legislative proposals on Capitol Hill and in state legislatures around the country.
The industry's proposal would link cancellation fees to actual costs incurred by a wireless company, and it would require companies to prorate any fees over the course of the contract. Verizon Wireless currently reduces such fees but never below $60. Other major providers, including AT&T Inc., have announced plans to prorate fees.
The proposal also would prohibit a wireless company from imposing a termination fee on customers who change terms of their contract or end one contract period and begin another.
Verizon Wireless is a joint venture between Verizon Communications Inc. and the Vodafone Group PLC of Britain. Verizon Wireless, with about 66 million subscribers, is the second-largest wireless company behind AT&T Inc., with 70 million customers.
The wireless industry is increasingly worried about a series of long-running, class-action lawsuits in state courts. One lawsuit against Sprint Nextel is under way in California, and plaintiffs in a New York case in arbitration are seeking $1 billion in refunds.
Federal law prohibits states from regulating wireless rates but gives them authority over some terms and conditions under wireless contracts. The industry's Washington lobbying group, CTIA, previously asked the FCC to consider cancellation fees to be rates, which would preclude state governments and courts from any jurisdiction over them.
In September, Sens. Amy Klobuchar, D-Minn., and Jay Rockefeller, D-W.Va., introduced the "Cell Phone Consumer Empowerment Act," which would require prorated fees and a 30-day window for customers to exit a contract.
Sunday, May 18, 2008
Virgin Mobile and Facebook: A match made in heaven
Virgin Mobile USA, Facebook Team Up on App
Thursday, 10:20 AM by Eric M. Zeman
The new marketing program, called Fund My Phone, will let Virgin Mobile USA subscribers earn minutes toward their accounts through their friends' use of Facebook. The service is based on Sugar Mama, and in exchange for viewing ad spots, creative materials and answering a few questions, subscribers can earn up to 75 extra voice minutes per month. Subscribers can also earn minutes by filling out surveys, or responding to text message-based advertising campaigns. The application needs to be downloaded to a PC and installed as a Facebook application. The number of minutes Virgin Mobile USA subscribers earn through the program depends on how their Facebook friends interact with the content in that application.
Friday, May 16, 2008
iPhone: Exclusive no more?
Apple has signed iPhone deals that show it is willing to deviate from its insistence on having only one service provider sell its cell phone in each country.
As iPhone aficionados await the unveiling of new and faster models, they can look to the deals signed in recent days in Europe for hints of Apple's new attitude toward service providers. Apple has signed agreements with service providers in Italy and Austria as well in a handful of smaller countries show that the company can deviate from its insistence on exclusivity.
Orange on Friday said it will sell the iPhone in several countries including Austria, where Deutsche Telekom has had the exclusive deal with Apple to sell the iPhone. Orange also will market the iPhone in Belgium, the Dominican Republic, Egypt, Jordan, Poland, Portugal, Romania, Slovakia, Switzerland, and some African countries.
More Personal Tech Insights
It isn't clear whether that new attitude will affect AT&T (NYSE: T)'s five-year exclusive contract with Apple to sell the iPhone in the U.S. The European arrangements may not be possible in the states. And there are other issues: Verizon (NYSE: VZ) Wireless and Sprint Nextel (NYSE: S) both run on CDMA wireless infrastructure, not the GSM technology that AT&T and the iPhone use. So they aren't likely candidates to offer the iPhone. One option: T-Mobile, which uses GSM. Its German parent, Deutsche Telekom, has been selling the iPhone in Europe.
Tuesday, May 13, 2008
Sprint; The Demise of a Giant?
May 12 (Bloomberg) -- Sprint Nextel Corp., the U.S. mobile- phone company that lost more than a million customers last quarter, said it may sell some assets after its net loss swelled to $505 million.
The first-quarter net loss expanded to 18 cents a share, from $211 million, or 7 cents, a year ago, Overland Park, Kansas- based Sprint said today in a statement. The company said it's considering shedding some assets, as well as renegotiating credit terms, to meet obligations to lenders.
Sprint lost 1.07 million contract customers last quarter, fewer than forecast, and said the declines will improve ``marginally'' this quarter. Customers have fled over complaints about service after the $36 billion acquisition of Nextel Communications Inc. Nextel may be worth as little as $5 billion now, according to Cowen & Co. analyst Tom Watts in New York.
``The first quarter was ugly, but that was also expected,'' said analyst William Power of Robert W. Baird & Co. in Dallas. ``Hopefully, the first quarter is the low-watermark point in terms of subscriber growth.''
Standard & Poor's lowered Sprint's debt rating to junk on May 1, saying the company could come close to violating its lenders' terms. Under its credit agreements, Sprint must keep its debt at 3.5 times earnings, excluding interest, tax, depreciation and amortization, over its most recent four quarters. The ratio was at 2.9 times earnings at the end of last quarter, up from 2.5 at the end of 2007.
Monday, May 12, 2008
iPhone: Extinct?...First generation phones are disappearing
Apple Store's US and UK sites run dry of iPhones, 3G imminent?
Newest BlackBerry looks sweet; Bold 9000 leaves a satisfying taste
Today, 8:00 AM by Eric M. Zeman updated Today, 9:12 AM
Today Research In Motion announced its next-generation smartphone, the 9000 Bold. The Bold is the first 100% new smartphone from RIM in over a year. It has brand new hardware, but keeps the bar-style form factor, QWERTY keyboard layout and the trackball for navigation. It features tri-band HSDPA 3G radios for international 3G roaming, along with 802.11 a/b/g Wi-Fi and built in GPS.
Saturday, May 10, 2008
The Glyde; A Verizon Stud or Dud?
Verizon Wireless debuts the Samsung Glyde
Posted by Kent German Post a comment
Presenting the Samsung Glyde...(Credit: Corinne Schulze/CNET Networks)
Samsung and Verizon Wireless on Thursday announced the Samsung Glyde (aka the SCH-U940), a touch-screen cell phone based on the Samsung SGH-F700. All signs originally pointed to a May 9 release date, but Samsung and Verizon had an itchy trigger finger. But no matter what the reason, sooner is always better, particularly if it involves putting a high-profile device through its paces with a review.
Thursday, May 8, 2008
Best Buy; testing the foreign cell phone market
By STEVE KARNOWSKI – 7 hours ago
MINNEAPOLIS (AP) — Consumer electronics chain Best Buy Co. Inc. is establishing a foothold in the European market with a $2.1 billion investment in the continent's largest cell phone retailer, allowing the American company to roll out its trademark big box stores in Europe, the companies said Thursday.
The London-based Carphone Warehouse Group PLC will put its 2,400 Carphone Warehouse and Phone House stores in Europe into the new joint venture.
In a conference call with analysts, the companies said they have been speaking for four years and have collaborated for two, developing the Best Buy Mobile concept for Best Buy stores in the U.S., and bringing Best Buy's Geek Squad, a 24-hour computer support task force, to Europe.
"We are partnering with an incredibly powerful and incredibly successful organization," said Charles Dunstone, chief executive of The Carphone Warehouse.
Executives from both companies declined to say how many Best Buy stores will open in Europe, or in which markets, because they didn't want to tip off the competition. However, they did say the stores will come in a range of sizes and will start opening next year.
Brad Anderson, chief executive of Best Buy, based in Richfield, Minnesota, said they will maintain Best Buy's reputation for aggressive price competition.
Carphone Warehouse's current European retail management team initially will remain in place, supplemented by additional personnel from Best Buy as the joint venture develops, the companies said.
RBC Capital markets analyst Scot Ciccarelli wrote the deal offers Best Buy "an intelligent and low-risk strategy to enter the European market," rather than starting from scratch.
He noted that Carphone Warehouse gets to keep its international business, receives an injection of cash to pay down debt and invest in operations, and will benefit from Best Buy's consumer electronics experience. RBC rates Best Buy stock a "top pick," its highest rating.
But Bank of America Equity Research analyst David Strasser, who has a "neutral" rating on the stock, wasn't enthusiastic. He wrote that Best Buy is "taking on significant exposure and balance sheet risk, at a time of increasing uncertainty in both the electronics industry and the broader retail environment."
However, he noted that the companies know each other well, and Best Buy will be entering the European market with a proven local partner. He said the accelerated rollout of Best Buy Mobile now planned for all Best Buy stores this year will be a strong improvement from Best Buy's previous wireless program. It could hurt U.S. competitor Radio Shack Corp.
But Strasser questioned the timing of the deal.
"Buying exposure in Europe and rolling out Best Buy stores in Europe is risky, in our opinion. ... (W)e believe the European consumer is heading into a U.S.-like slowdown after a robust spending period. Second, the success of U.S. retailers in Europe is pretty poor," he wrote.
Because of the deal, Best Buy is dropping its plan to buy back $800 million worth of its shares in its current fiscal year, which began March 2. The company said it expects the joint venture to add about $5 billion to its revenues and 5 cents to 7 cents per share to earnings for the year.
The Carphone Warehouse Group will continue as sole owner of its fixed line telecoms business in the United Kingdom, which includes TalkTalk, AOL Broadband and Opal; and its share of the Virgin Mobile France joint venture.
Carphone Warehouse shares fell 3.4 percent to 289 pence ($5.65) in London. Best Buy shares fell $1.40, or 3.2 percent, to $42.05.
The deal is subject to approval by Carphone Warehouse shareholders at its annual general meeting in August. It's expected to close by the end of August.
Associated Press writer Robert Barr contributed to this report from London.
Tuesday, May 6, 2008
HTC; Diamond in the Rough
posted Today, 6:28 AM by Rich Brome updated Today, 8:44 AM
HTC today announced the Touch Diamond, a finger-touch device with a new HTC user interface based on Windows Mobile 6.1. The thin device has HDPSA/HSUPA, a VGA display with auto-rotation, and a custom YouTube application. It will be available from all major European carriers in June, and most of HTC's major carrier partners worldwide later in the year. The new TouchFLO 3D user interface includes an extensive interface with special finger-touch versions of major applications. Carriers can have custom themes and applications fully integrated into TouchFLO 3D. The Touch Diamond also has a 3.2 megapixel camera with autofocus, 4GB of on-board memory, Bluetooth 2.0+EDR, 802.11b/g Wi-Fi, and GPS.
more info at HTC »more info at Cool Hunting »
Monday, May 5, 2008
The Next Cellular Giant?
Deutsche Telekom May Bid for Sprint Nextel
Purchase Would Aid Effort to Move Beyond A Tough Home Market
By MIKE ESTERL in Frankfurt and DANA CIMILLUCA and in LondonMay 5, 2008; Page B3
Deutsche Telekom AG is weighing a bid to acquire Sprint Nextel Corp. that could catapult the German telecommunications giant's wireless arm, T-Mobile USA, to the No. 1 position in the U.S., according to people familiar with the matter.
Deutsche Telekom's deliberations are at a preliminary stage and management may very well turn away, these people cautioned. If a bid is launched for Sprint Nextel, which has a stock-market capitalization of $22 billion and is the No. 3 player in the U.S. wireless market, it could still be weeks, or even months, away, they added.
The potential bid is being considered as the former German monopoly scouts for acquisitions in countries outside the German market, where it has seen its revenue shrink in recent years amid rising competition and falling prices. Last year, it booked just over 50% of its revenue outside Germany for the first time.
T-Mobile is a distant No. 4 in the U.S. wireless market, with 28.7 million customers at the end of December. It invested heavily last year to acquire new wireless spectrum and is eager to expand. By acquiring Sprint Nextel, it could roughly triple its client base in the U.S. and surpass leaders AT&T Inc. and Verizon Wireless, a joint venture of Verizon Communications Inc. and Vodafone Group PLC.
Bonn-based Deutsche Telekom increasingly is focusing on its international wireless businesses as its domestic fixed-line services slump. Its wireless businesses generated more than half of the company's €62.5 billion ($96.3 billion) in revenue and €19.3 billion in operating profit last year.
The U.S. has been the biggest growth engine. T-Mobile USA added 3.6 million customers last year, boosting its revenue to $19.3 billion from $17.1 billion in 2006. In February, Deutsche Telekom completed its $1.6 billion acquisition of U.S. carrier SunCom Wireless Holdings Inc., which had 1.1 million customers.
The German company has a stock-market capitalization of $79 billion and money to spend after whittling down its debts in recent years.
Deutsche Telekom has looked more closely at Sprint Nextel since the U.S. company's share price has fallen below $10, far below its 52-week high of $23.42. The German company also may opt to strike while the euro is near record highs against the dollar, according to people familiar with the matter.
Still, there are many arguments against Deutsche Telekom making such a move, these people add, with one of them describing it as "a long shot." One major complication is that T-Mobile USA uses different wireless technology than Sprint Nextel, which would complicate the integration of their networks and increase costs. It is also unclear if U.S. regulators would permit a tie-up of the No. 3 and No. 4 carriers.
Adding Sprint Nextel to its roster also would saddle Deutsche Telekom's management with another big restructuring task in addition to its German operations.
Sprint Nextel has been struggling to retain customers, and its revenue slipped to $40.1 billion last year from $41 billion in 2006. The U.S. carrier booked a net loss of $29.5 billion in the fourth
quarter, triggered by a noncash goodwill impairment charge of $29.7 billion.
Deutsche Telekom's management also is busy with a deal that would give it roughly a 25% stake in Hellenic Telecommunications Organization SA, or OTE, Greece's dominant telecommunications company. It agreed in principle in March to buy an initial 20% stake for €2.5 billion, but negotiations with the Greek government over management powers have been difficult.
Bluetooth Prepaid; the new standard
Friday, May 2, 2008
iPhone: Faster, Bigger, Better!
By W. David GardnerInformationWeek Thu May 1, 11:52 AM ET
With new models of the iPhone expected to be introduced next month, it seems certain the price of at least one model of the iconic mobile phone will drop sharply to track recent iPhone price cuts in Europe. In addition, Fortune magazine reported this week that AT&T, the exclusive U.S. iPhone supplier, is planning to cut $200 from the price of the low-end iPhone.
Exclusive iPhone providers in the U.K. and Germany cut prices last month at least partly to clear their decks for new models. Germany's T-Mobile started the cuts by slashing handset prices from $487 to $120; T-Mobile charges more than $125-a-month for some data plans, however. In the U.K., O2 and Carphone cut prices, bringing the 8 GB iPhone model to about $200.
The iPhone hasn't sold as well in Europe as it has in the U.S., where it commands a large -- and at time emotional -- user base.
According to Fortune, the $200 iPhone would carry a two-year contact and would have to be purchased from AT&T. Rebates won't be offered in Apple's retail stores, where an 8 GB iPhone sells for $399 and a 16 GB version for $499.
Hampered by the slow speed of AT&T's Edge network, iPhone users are expecting AT&T will announce models that will operate on its speedy UMTS/HSDPA, or 3G, cellular network. In the meantime, iPhone users can access high-speed networks when they can find a Wi-Fi access point.
The marketplace is also expecting iPhone models with more memory, possibly a 32 GB version. The Fortune report said the $200 version is "likely to be locked or programmed so buyers can't take the cheaper iPhone to another phone service."
Also last month, Italian media sources said an iPhone with UMTS/HSDPA capability is slated to be on the market in Italy this summer and that Telecom Italia Mobile won't have an exclusive deal with Apple to market the device.
Monday, April 28, 2008
Cell Phone Withdrawl; A certifiable illness
If you can't spend ten minutes without your cell phone, you may have a diagnosable mental illness. According to an article in the American Journal of Psychiatry, if you text or talk on your cell too much you may have a problem. They have even created an official title for the obsession nomophobia, the fear of not having your cell phone.
Matthew Whoolery's a psychology professor at BYU Idaho. Talking about the concerns with the increase in cell phone use, he asked the question, "When did we need to be reachable 24 hours a day, all the time?" This is being asked throughout the psychology world, resulting in the idea that the constant need for your cell phone is turning into a real mental problem. Are you surprised? As a nation we drive, talk, text, and take pictures on the phone, our lives revolve around it.
Students walking around BYU Idaho's campus seem mixed on their need for their phones.
When Ren Garner was asked if he was obsessed with his cell phone, he said, "it's my life ... pretty much."
Trevor Deursch said he wasn't "obsessed with it, I can live without it." But he continued, "I need it around, just in case.
While Imari Molifua was positive on his response, "I am not obsessed with my cell phone."
Whether people will admit to an "obsession" with their phones, they have it around, all of the time.
When Garner was asked if his phone was with him all of the time, he answered yes. He said, "I feel naked without it." He even sleeps with his phone.
Rebecca Simmons says she couldn't live without her phone. She has it with her always. When asked what she would do if she lost her phone, she said, "I'd have withdrawals, kinda like an addict."
This constant need may have one simple explanation. Whoolery said, "maybe it is way back in evolution or something, there is this desire to be in constant communication." He continued, "to be reachable and call somebody whenever you want, is such a convenience, it becomes an expectation."
Imari summed it up best, "your friend is in your pocket pretty much, you can reach them any time."
There are four distinct symptoms to diagnose a phone obsession as a mental illness.
Excessive Use - choosing the phone first, neglecting everything else.
Withdrawl - feeling depressed or anxious when you aren't with your phone.
Tolerance - not realizing the amount of time spent while using the technology.
Negative Repercussions - you miss out on life.
Whoolery explained the negative repercussions. He said, "you can't spend hours a day doing something which is not work or school and not have repercussions."
The problem doesn't end there. Whoolery said, "we're not accomplishing the goals we would if we were talking to someone ... they are not the same."
Researchers say, the ultimate solution to the problem is just to turn off your phone. For most that's not an option. Whatever it takes to wean away from the phone, even a little bit, will save you from a lot of stress.
AT&T and Verizon win 700mhz auction
FCC: Issues Kept Bidders From 700 MHz Safety Spectrum
An agency report says fears of payments defaulting if negotiations failed as well as the costs of building out and operating the D block kept companies away.
By W. David Gardner InformationWeek April 28, 2008 02:20 PM
In delving into why the D block public-safety spectrum failed to attract any serious bids in the FCC's recent 700 MHz auction, the FCC inspector general uncovered a series of reasons prospective bidders were scared off from bidding while clearing for-profit adviser Cyren Call of any influence in the bidding.
Inspector General Kent R. Nilsson said "uncertainties and risks associated" with deployment of the D block were the chief reasons serious bids didn't materialize for the D block, which has pubic-safety segments. Nilsson cited potential bidders' fears of payments defaulting if negotiations failed as well as the potential costs of building out and operating the network.
The Nilsson report, released late Friday, also pointed to the "negotiation framework with PSST (Public Safety Spectrum Trust Corporation)" as a potential factor in the auction.
"The scope of the investigation focused on Cyren Call's meetings with potential bidders and whether the information provided at these meetings affected potential bidders' involvement in the auction," the report states.
After the report was issued, Morgan O'Brien, chairman of Cyren Call Communications, said: "Regarding whether Cyren Call's statements to potential bidders deterred bidding in the D Block, the report said, 'This investigation has concluded that the lease payment estimates ... were informational in nature, were not made in bad faith and by themselves had no deleterious effect on the auction.' "
The inspector general's report said that Cyren Call officials had met with Frontline Wireless and Verizon (NYSE: VZ) Wireless officials to discuss an estimated spectrum lease payment of $50 million to $55 million a year for 10 years. The lease payment, the report stated, would have been included in the PSST business plan. Frontline was created to bid in the auction, but the company dropped out before the auction began.
Qualcomm, which bid $472 million for the D block spectrum, was the only bidder, but since the FCC had placed a reserve price of $1.3 billion on the spectrum, the bid was not taken seriously.
The auction raised nearly $20 billion and was dominated by the nation's two leading wireless service providers -- Verizon Wireless and AT&T. The FCC and congressional leaders have said they are interested in seeing the spectrum rebid or provided in some way for public-safety use. In the auction, the D block was envisioned as providing spectrum for both public safety and commercial use.
Katana LX; Sanyo scores again
In keeping both fashionable and functional, the Sanyo Katana LX comes with a decent feature set and then it's all dressed up in a reasonably attractive (and colorful) shell. Recently announced by the good people at Sprint, the Katana LX follows in the flipping tradition of previous Katana phones.
Trumpet Mobile; Pre-paid for adults and kids alike
Tim McElligott 04/02/2008
Trumpet Mobile announced a national distribution agreement with RadioShack this week in which the MVNO 's prepaid wireless services will be available at more than 4,300 RadioShack locations.
Trumpet Mobile’s go-to-market strategy includes is an international remittance feature that through a partnership with Western Union allows subscribers transfer money from the United States to Latin America and the Caribbean from their mobile phones.
Trumpet Mobile [http://www.trumpetmobile.com] also offers the industry’s first prepaid family plan, a competitive low prepaid domestic rate plan of 10 cents per minute, international long distance rates as low as three cents per minute, messaging for as low as five cents per message, and a loyalty reward program that gives mobile subscribers bonus minutes for airtime usage.
The company is targeting the unbanked and under-banked population in the United States, which numbers as much as 40 million. Eighty percent of these are users of mobile phones and currently conduct more than $13 billion annually in alternative financial services transactions.
“There are a lot of MVNOs out there, but only Trumpet is focusing on this growing under-banked and credit-challenged demographic,” said Craig McNeil, chief technology officer at Affinity Mobile.
RadioShack [http://www.radioshack.com] will be selling phones for as little as $19.99. The remittance functionality is not in the phones, but is built into the mobile application delivery environment (MADE) platform which is owned and operated by Trumpet’s parent company, Affinity Mobile, and interfaces with the Western Union [http://www.westernunion.com] backbone through the use of a debit card called the Trumpet CashCard..
“Loading money onto the card and making mobile money transfers with your Trumpet Mobile phone is safer than carrying cash in your back pocket," said John Carney, chief executive officer of Affinity Mobile.
The company also formed an alliance with mFoundry, a mobile financial platform provider, to leverage its Spotlight Financial Platform in order to enable full mobile banking, payments, coupons, loyalty, contactless services and other transaction types.
With this alliance, Affinity Mobile will be the provider for international money transfers, airtime top-ups, instant access prepaid debit accounts, bill pay and other services.
Affinity Mobile also said this week it has appointed Todd Achilles as its managing director. Achilles will lead the development and deployment of the company’s MADE solution. MADE provides mobile wallet, mobile payment and mobile transfer services to network operators, financial institutions and retail merchants. It is the enabling platform for Trumpet Mobile.
Prior to Affinity Mobile, Achilles served as the general manager for HTC Corporation, a leader in smartphones. There, he led HTC’s business in North and Latin America. Like CEO Carney, Achilles also worked at T-Mobile USA. He was in sales, engineering, product development and marketing.
