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Telenor CEO threatens to quit India after licence revoked
Telenor CEO Jon Fredrik Baksaas has expressed anger at the decision by India's Supreme Court to revoke the mobile licence it jointly holds with Unitech. Baksaas told Reuters that the ruling is a very serious attack on Telenor's investments, and withdrawing from the Indian market "is one alternative that is on the table."
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Baksaas |
The court's decision to cancel 122 mobile licences, which also impacts Etisalat, Russia's Sistema and many local mobile operators, follows accusations that the licences were subject to corruption when sold in 2008.
But the Telenor CEO is adamant that his company is being penalised unfairly. "We met every inch of that regulation of that licence. We have brought competition to the Indian market ... just to see a ruling that has significant retroactive consequences. It is an action that we have never seen in any country before."
Baksaas added that the move created a high level of uncertainty, and would immediately impact activities with its partner Unitech that involves investments totalling $3 billion in India.
The CEO also stated that he would ask the company's largest shareholder, the Norwegian government, to lobby the Indian government on Telenor's behalf. "That is part of the tool kit," said Baksaas.
One institutional investor told Reuters that securing the Norwegian state's help would be the only route to salvaging Telenor from the situation.
Saeed Baradar, a telecoms specialist at Societe Generale in London, told Bloomberg: [Telenor] "really needs to get out because shareholders worry that capital discipline will be broken in India." He estimated that the operator may have to pay an additional $2.1 billion to rebid for the mobile licences that have been withdrawn by the court.
However, the court ruling seems likely to benefit some of the larger mobile operators, such as Bharti Airtel, Reliance Communications and Vodafone, which remain unaffected. Observers believe this upheaval could lead to much needed market consolidation.
"This verdict is good news for established incumbent operators and, in the short term, we are likely to see some increase in tariffs," a director of consulting firm Frost & Sullivan told Reuters.
For more:
- see this Reuters article
- see this separate Reuters article
- see this Bloomberg article
Related Articles:
Vodafone inches towards Indian IPO
Vodafone targets partnerships for global growth
Vodafone overhauls Asian partnerships
Report: Ericsson and NSN battle for supremacy in India
Apple reverses ban on iPhone sales in Germany, but could stumble on iCloud
A German court ordered Apple to stop online sales of its older model iPhones and 3G-enabled iPads, but Apple managed to reverse the ruling within hours. The dust-up stems from a court injunction secured by Motorola Mobility in December after Apple failed to license Motorola wireless patents.
Apple's iPhone 3G, iPhone 3GS and iPhone 4, but not its latest iPhone 4S, were involved in the dispute, as were all 3G models of the iPad, but not the Wi-Fi-only models.
An Apple spokesperson said Motorola repeatedly refused to license its patents on reasonable terms, despite having declared it an industry standard patent seven years ago.
However, Apple may still fall to a separate ruling in Germany related to its iCloud and MobileMe push email service. A court granted Motorola's request for an injunction against Apple's push email service; Motorola argues the products infringe on its patent for a similar paging technology.
"Apple believes this old pager patent is invalid, and we're appealing the court's decision," an Apple spokeswoman told AllThingsD, which noted that Apple is likely to fight the injunction.
The battle between Apple and Motorola is just one of dozens of patent-infringement lawsuits spanning the globe and invovling just about every major smartphone manufacturer.
For more:
- see this Bloomberg article
- see this AllThingsD article
- see this Reuters article
- see this BBC News article
- see this Teltariff.de article (translated via Google Translate)
Related Articles:
Apple, Samsung legal battle comes under EU spotlight
Samsung Galaxy Tab 10.1 remains banned in Germany
Samsung moves to block iPhone 4S sales in France, Italy
Report: Apple demands Samsung stop European sales of Galaxy phones, tablets
Motorola admits Xoom tablet faces Apple lawsuit in Germany
Hutchison Whampoa boosts European holdings with €1.3B Orange Austria buy
Hong Kong-based Hutchison Whampoa is expanding its European footprint with the purchase of Orange Austria for €1.3 billion.
The deal, which is expected to be completed by mid-2012, will see Hutchison 3G Austria become the third largest operator in the country after Telekom Austria's A1 and Deutsche Telekom's T-Mobile Austria.
The merging of 3G Austria with Orange Austria will create an operator with nearly three million subscribers and around 20 per cent of the total market, noted Reuters, adding that Hutchison was expecting to generate expense and Capex synergies of at least €500 million once the integration take effect.
The acquisition will also see some assets of Orange Austria sold to Telekom Austria Group for €390 million once the sale is formally closed. These are said to include existing spectrum, base station sites, certain intellectual property rights and the MVNO Yesss Telekommunikation.
Orange Austria is jointly owned by France Telecom and UK-based Mid-Europa Partners, with the French company expecting to receive around €70 million for its 35 per cent holding in the Austrian business, which had around €1 billion of debt.
Analysts working for the financial service firm Raymond James told Reuters that France Telecom could use the proceeds to strengthen its position in the Belgium operator Mobistar. "This would also leave more than enough to pay for half of the acquisition of minority interests in Mobistar while the other half would be paid by potential tax synergies."
For more:
- see this Reuters article
- see this Bloomberg article
Related Articles:
Report: Hutchison nears deal to buy Orange Austria
Rumour Mill: Apax Partners eyes Sunrise link after Orange Switzerland buy
Orange Switzerland sale triggers high interest; but CVC reportedly excluded
France Telecom pushes for sale of Swiss, Austria and Portuguese units
Rumour Mill: Siemens searches for new Nokia Siemens CEO
A supervisory board member of Siemens has indicated that the company is looking for a new CEO for its networking equipment joint venture, Nokia Siemens Networks.
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A Reuters report said that Sibylle Wenkel, who represents the IG metall trade union on the supervisory board of Siemens, had mentioned that the finance director of Siemens, Joe Kaeser, was conducting an executive search to find an alternative to current Nokia Siemens CEO Rajeev Suri.
A report carried by Dow Jones Newswire said that Kaeser had commented in November that restructuring at NSN would impact the profits of Siemens.
NSN's future prospects are also, along with Ericsson's and Huawei's, likely to be hurt by India's Supreme Court decision to revoke over 200 mobile licences and thereby cause consolidation in the much overcrowded market.
NSN reported weaker than anticipated fourth-quarter results, and it expected to struggle in the first quarter of 2012 as it implements a massive restructuring programme.
For more:
- see this Reuters article
- see this Dow Jones Newswire article
Related Articles:
Nokia Siemens to cut up to 4,100 workers in Germany, Finland
Nokia Siemens Q4 sales drop amid restructuring
Nokia Siemens unloads WiMAX unit and 300 workers to NewNet
Nokia Siemens lets slip which units will be axed
Nokia Siemens slashes 23% of workforce in effort to save €1B
Report: Operators must reduce network costs by 50%
Deploying LTE or boosting efficiency gains in the macro network will not solve the problems of growing mobile data volumes and falling revenues per megabyte, according to a new study from Analysys Mason.
To tackle this daunting prospect, the market research firm says that operators must cut network carriage costs by 50 per cent or face an overwhelming eight-fold increase in the costs of radio access network (RAN) equipment.
According to Terry Norman, co-author of the study and lead analyst for Analysys Mason, if European operators attempt to meet the growing demand for data traffic by deploying more base stations, RAN costs could climb to $40 billion per year by 2016, compared with $5 billion per year in 2011.
"Operators can't afford to spend that sort of money," Norman said. "Therefore, operators will either accept network congestion or use pricing to control demand--neither is good business practice. The elegant solution is to make substantial efficiency improvements."
One option recommended by Analysys Mason is for operators to use small cells to carry a part of this traffic. "Because Wi-Fi is widely deployed and competitively priced, it is a leading candidate small-cell technology," Norman said.
However, the analyst warned that operators will be unable to attach adequate users to an outdoor Wi-Fi unit to relieve the congested macro cell that it is supporting. The study claims that almost 95 per cent of tablet users and 70 per cent of smartphone users will be found indoors, leaving very few heavy users of data outdoors.
While operators are already testing Wi-Fi offload, Analysys Mason recommends they extend the tests to include video services. It also suggests operators are unlikely to have the operational capability to deliver an effective Wi-Fi network and believes partnering with experienced companies is the way forward.
Of note, the study claims that the Wi-Fi industry must overcome present hurdles and deliver ‘carrier-grade' products and services, as already achieved by the femtocell industry.
The firm believes that the current battle between Wi-Fi and femtocell for small cell domination will be decided over the next two years, with the likely outcome being the convergence of the two technologies.
For more:
- see this Analysys Mason press release
Related Articles:
Increased network congestion requires fresh thinking from operators
Operators dump unlimited data offerings; file sharing blamed
Apps causing data bottlenecks, not iPhones, claims O2 CTO
O2's network in meltdown from smartphone usage
Study: Adoption of small cells and public space femtocells gathers pace
Telekom Austria's M2M division is working on 19 projects
Telekom Austria, which formed its M2M division last September, said it has won 19 M2M projects valued at €5 million. The company also said it will launch a programme this spring to expand its existing partner network and solutions portfolio. Hannes Ametsreite, CEO of Telekom Austria, predicted at the time of the launch of the new unit that M2M penetration would increase from 145 per cent to 300-400 per cent in the future. Article
Feature phones: Is the end near?
IDC's latest insight into mobile phone shipments states that the worldwide market grew more than 6 per cent in the fourth quarter of 2011. Encouraging news for the industry, given the economic uncertainties that seem to continue unabated.
But one blot on this rosy landscape was IDC's assertion that feature phones have become notably less popular and volumes are declining faster than previously anticipated.
While I'm confident IDC can justify this downward slide in feature phone shipments, I remain sceptical that smartphones--in their present format--will become the device of choice for the majority.
I watch many owners of smartphones to see what use they make of the numerous features and applications these devices can support--and from a very unscientific viewpoint, the vast majority seem to use primarily voice and messaging services.
Many users get confused and/or frustrated after attempting to access a website that fails to support mobiles. Or the handset operating system takes the user into a dialogue session that seems to offer no eventual return.
I also accept that this behaviour is age related.
But having attempted to use a smartphone myself, albeit not the latest available, I have found the experience largely unrewarding. It's not helped by poor battery life, the bulky size and unnecessary complexity.
I have been shown many times by enthusiastic owners of smartphones a specific app they've downloaded. While I can see the potential use of some, I remain sceptical as to how often these are used after the initial purchase.
So, I remain a Luddite with regard to smartphones, and hold high my rather ancient and battered feature phone as a symbol to smartphone owners that there is an alternative.
IDC's Ramon Llamas also accepts, as part of the company's mobile phone technology and trends team, that feature phones still comprise the majority of all mobile phone shipments.
"Feature phones accounted for a majority of shipments from four of the five market leaders during the quarter," Llamas said. "Even though their proportion is eroding, feature phones maintain their appeal on the basis of price and ease of use."
However, he maintains that feature phones are evolving to become more like smartphones, and will incorporate mobile Internet and third-party apps--a strategy he believes will stem the decline in shipment for these devices.
So, will everyone eventually become a smartphone owner? While the vendors and operators might encourage this, I wonder whether the average consumer will understand the benefit of making this transition. --Paul
Study: Some Kindle Fire owners disappointed in lack of 3G/4G capability
A new ChangeWave Research survey of Amazon Kindle Fire owners found some disliked the device's lack of 3G/4G capability. When asked to name their top dislikes of the Kindle Fire, the majority (27 percent) said they disliked that there was no volume button, 21 percent said they didn't like the Kindle Fire's lack of a camera, 15 percent bemoaned the device's short battery life and 12 percent said they didn't like that it lacked 3G/4G capability.
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Click here for details from ChangeWave's survey. |
Overall, the survey, which queried 254 Kindle Fire owners in North America, found that demand for Kindle Fire tablets was strong. When asked what they were most satisfied with, 59 percent of Kindle Fire owners said they liked the price of the Fire, 31 percent liked the color screen and 27 percent liked the ease of use.
Amazon's release of the Kindle Fire tablet, which runs a modified version of Google's Android platform, raised some eyebrows due to the gadget's lack of wide area wireless capabilities. The Kindle Fire currently only supports Wi-Fi wireless connections. Apple's iPad, by contrast, has supported connections to cellular networks (currently Verizon Wireless (NYSE:VZ) and AT&T Mobility (NYSE:T) in the United States) since the launch of the original iPad.
However, there is strong evidence Amazon made a wise choice in forgoing 3G/4G connections in its Kindle Fire (Amazon's first Kindle ereader launched with 3G capability, though the cost of the service was built into the gadget's sale price and it could only access ebooks and not the wider Web). ABI Research found last year that only a quarter of all iPads supported 3G connections--a clear indication that most shoppers don't consider cellular connections a necessity. After all, the addition of 3G connections into the Apple iPad 2 raises the cost by $130.
For more:
- see this ChangeWave survey
Related Articles:
Flurry: Amazon's Kindle Fire scorches rivals on Android app usage
Amazon launches tablet, new e-readers in full-on assault against Apple
ABI: 25% of iPads sport 3G connections, slightly below industry average
Shentel to become Sprint LTE affiliate
Shenandoah Telecommunications Company (Shentel) signed an addendum to its affiliate deal with Sprint Nextel (NYSE:S) that gives it access to additional 1900 MHz and 800 MHz spectrum in exchange for its building of an LTE network using Alcatel-Lucent gear that matches Sprint's Network Vision architecture.
The Sprint/Shentel affiliate deal appears to be similar Verizon Wireless' (NYSE:VZ) Rural America LTE program, which now includes 12 participating rural operator partners and is expected to see its first commercial launches early this year. Under the Verizon program, rural operators partnering with Verizon lease 700 MHz spectrum from Verizon and build and run their own LTE networks using the spectrum.
Shentel is a Sprint affiliate and has offered CDMA service in 1900 MHz spectrum in the Mid-Atlantic and Southeastern U.S. since 1995. As of the third quarter of 2011, the company counted around 341,000 wireless subscribers. In July 2010 the company also signed a deal with Sprint allowing Shentel to offer Boost Mobile and Virgin Mobile prepaid services.
Shentel said that its addendum with Sprint extends the initial terms of its affiliate deal an extra five years from 2019 to 2024. It also increases the cap on the net service fee from 12 percent to 14 percent on July 1, 2013.
For more:
- see this release
Related Articles:
Verizon's rural LTE partners to begin commercial launches in early 2012
Verizon adds 12th rural LTE partner
Verizon adds 11th operator to rural LTE program
Newest Verizon LTE rural partner planning mobile payments solution
Despite challenges, LTE catching fire among rural U.S. carriers
Battling AT&T, Dish outlines LTE Advanced buildout timeline, retail ambitions
Dish Network vehemently argued against a number of recommendations AT&T Mobility (NYSE:T) made to the FCC regarding the stipulations that should be placed on Dish's spectrum licenses. And in its filing with the FCC, Dish clarified a number of elements of its mobile broadband plan, including its preference for LTE Advanced network technology and its intention to launch a retail offering (instead of a wholesale offering).
Dish is seeking the FCC's approval to build an LTE Advanced network with the 40 MHz of S-band spectrum in the 2 GHz range it purchased from TerreStar Networks and DBSD North America. Sprint Nextel has signed off on the company's plan, and has urged the FCC to approve Dish's spectrum transfer request. However, AT&T argued that Dish should be held to the same terrestrial buildout targets that the FCC imposed on LightSquared: at least 100 million POPs within 33 months, 145 million POPs within 45 months and 260 million POPs within 69 months.
"A new, next-generation LTE Advanced retail network simply cannot be viably built in the S-Band at the pace AT&T suggests," Dish wrote in its FCC filing. The company said it needs to wait for the LTE Advanced standard to be completed and suitable equipment to be designed so that it can launch its network with LTE Advanced technology, rather than another technology.
"Building a network before LTE Advanced devices are widely available would necessitate the use of an earlier standard, followed by a migration to LTE Advanced once network and consumer devices are available," Dish wrote. "Such a requirement would needlessly trigger backward compatibility and network modernization issues and costs for Dish's proposed network."
Dish said such LTE Advanced equipment for its S-band spectrum won't be available until 2015--which indicates that the company's planned mobile broadband network won't be launched for at least the next several years.
Separately, Dish also argued that its plan to launch a retail mobile broadband offering--instead of a wholesale mobile offering similar to what LightSquared intends to do--means that it needs more time to construct its network.
"Building a retail service from the ground up takes time and careful planning. Among other things, putting a new service together will require Dish to lease tower space across the nation, develop devices in conjunction with consumer electronics manufacturers, devise competitive rate plans, extend its brand identity, expand its national retail presence, upgrade its nationwide customer support/billing system, and maintain a competitive position in device and service offerings as customer expectations and demands evolve," Dish wrote. "At every step, a new retail service will face competitive pressure from incumbents with more experience and possibly a stranglehold on tower sites and other resources."
The comments are notable as they more clearly highlight Dish's mobile broadband strategy: To build a retail offering that would be sold straight to consumers. Indeed, Dish last year filed for the "Ollo" trademark to sell mobile phones, tablets, and telecommunications services.
Hanging over the issue is widespread believe that AT&T could be interested in purchasing or leasing spectrum from Dish. AT&T has said the FCC should not restrict Dish's ability to sell or lease its spectrum to larger telecommunications companies, a stipulation the agency placed on LightSquared. Dish made no mention of that issue in its most recent filing with the FCC.
For more:
- see this Dish FCC filing
Special Report: What's so great about LTE Advanced? (Lots, actually)
Related Articles:
AT&T circling Dish? Carrier argues against restrictions on Dish's spectrum
Dish holding discussions for wireless chips, network gear and handsets
Dish CEO: We could partner with T-Mobile if AT&T deal collapses
Sprint's sprawling LTE plans now include Clearwire and LightSquared--and possibly Dish
Sprint signs off on Dish's proposed wireless venture
Dish Network trademarks Ollo for mobile video, high-speed Internet and voice products
AT&T CMO: RIM needs to innovate quickly
Executives at AT&T Mobility (NYSE:T) believe that consumers want choice when it comes to their smartphone selection and that's why the company is hoping that struggling BlackBerry maker Research In Motion (NASDAQ:RIMM) is able to turn around its fortunes and succeed in the wireless industry. "We want RIM to succeed. We like choice," said David Christopher, chief marketing officer of AT&T Mobility and Consumer Markets. "They have a strong base. But they have to innovate quickly and execute."
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Last month Jim Balsillie and Mike Lazaridis, long-time leaders of RIM, stepped down as co-CEOs and co-chairmen of the company and RIM COO Thorsten Heins was named CEO.
In a wide-ranging interview with FierceWireless, Christopher also said that the company is excited about Nokia's (NYSE:NOK) Lumia 900, the LTE-capable Windows Phone that AT&T plans to debut in the next few months. "We think the design is great and different," Christopher said. "The Microsoft OS is really good."
He also said that he believes Nokia is still a pre-eminent mobile phone brand and has a lot of "inherent good will in their brand in the U.S."
Christopher also talked about AT&T's decision to revamp its tiered data pricing plans. The company last month rolled out new pricing, and said that existing customers could keep their current plans or switch to the new plans. The new smartphone pricing provides $20 for 300 MB (up from $15 for 200 MB); $30 for 3 GB (up from $25 for 2 GB); and $50 for 5 GB, with mobile hotspot/tethering support (up from $45 for 4 GB for a data plan plus tethering).
Christopher said that the plans were in response to customers using more data, noting that the $20 per month and $30 per month plans offer 50 percent more data for just $5 more. "We think this is a good deal for the service we provide."
Christopher added that AT&T plans to continue to differentiate its wireless service from competitors by emphasizing the overall experience of its network as well as the customer experience. "Our job as marketers with LTE is not just to convey the functional benefits but also the emotional ones," Christopher said. "When everyone has a fast network, it's got to be about more than speed. It has to be about the overall experience."
Look for more on FierceWireless' interview with Christopher next week.
Related Articles:
RIM replaces long-time co-CEOs Balsillie and Lazaridis
AT&T launches API platform for HTML5 that enables in-app billing
Nokia to deliver exclusive U.S. Windows Phone devices to each carrier
Top wireless stories of the week
Check out this week's most-viewed stories across Fierce's wireless publications:
FierceBroadbandWireless
1. What's so great about LTE Advanced? (Lots, actually)
2. Qualcomm proposes 300 Gbps in-flight mobile broadband technology
3. FCC comment period keeps LightSquared hopes alive
FierceDeveloper
1. Google: Android's Menu button is dead, long live the ActionBar
2. Chris DeWolfe: From MySpace to the mobile space with 'Fluff Friends Rescue'
3. What developers can expect from Windows Phone Tango--and beyond
FierceMobileContent
1. RIM accepting Android apps for BlackBerry PlayBook OS 2.0
2. Best apps of January 2012
3. Flurry: Amazon's Kindle Fire scorches rivals on Android app usage
FierceWireless
1. AT&T shakes up management team in wake of failed T-Mobile deal
2. Analysis: Why Apple and Samsung are killing it in the smartphone market
3. AT&T circling Dish? Carrier argues against restrictions on Dish's spectrum
FierceWireless:Europe
1. Mobile operators are losing their grip on the tablet market
2. SFR chief blames Orange for enabling Free Mobile's low-cost service
3. Nokia Siemens to cut up to 4,100 workers in Germany, Finland
TracFone's Straight Talk offers SIM-only option; Samsung remains on top of U.S. handset market
Quick news from around the Web.
@FierceWireless: All eyes are on MetroPCS as #VoLTE momentum grows. Article | Follow@FierceWireless
> Corning and Samsung teamed to build Lotus Glass for some of Samsung's smartphones. Article
> Samsung said it is confident that the European Union will rule in its favor in a review of its mobile patents. Article
> Apple continues to fight to get its products sold in Germany. Article
> Samsung remains the top handset maker in the U.S. market. Article
> After discontinuing its email service in the United States, Peek is raising money for an Asian expansion. Article
> Details continue to emerge about LightSquared reportedly bribing a U.S. senator. Article
> TracFone's Straight Talk said it will offer a SIM-only option. Article
> Investors are worried that investments in Sprint Nextel won't pay off for years. Article
Mobile Content News
> Google Wallet is now available to some AT&T Mobility Android phones. Article
> A Vimeo app is now available for Windows Phone. Article
> The NFL is offering a Super Bowl app. Article
> Google's Android and Apple's iOS dominated the U.S. smartphone segment throughout 2011, ending the year with a combined 76.9 percent market share. Article
> Google unveiled a service dubbed "Bouncer" that scans the Android Market for malware. Article
> Android is reportedly more stable than iOS. Article
> The mobile websites of presidential candidates leave something to be desired. Article
> Research In Motion is offering free PlayBooks to Android developers. Article
And finally... The blow dryer that pays homage to Steve Jobs. Article
Rumor Mill: Windows Phone 8, dubbed 'Apollo,' may support NFC, multi-core processors
Microsoft (NASDAQ:MSFT) is planning to add a number of major new features to its Windows Phone smartphone operating system, and will release the upgraded platform at around the same time it releases its Windows 8 desktop and tablet computer operating system.
According to a leaked video obtained by PocketNow, as well as a number of other related leaks, Microsoft's Windows Phone 8 platform, codenamed "Apollo," will support multi-core processors and four different screen sizes. It will also run Near Field Communications technology, which is suitable for mobile wallet applications. According to the reports, Microsoft will use NFC to allow users to transmit information from Windows Phone 8 devices to tablets or computers running Windows 8 by tapping the devices against each other.
Other upgrades reportedly contained in Windows Phone 8 include built-in support for Skype (Microsoft last year agreed to purchase Skype for $8.5 billion). Windows Phone 8 will also be able to run some of the same applications as Microsoft's Windows 8 platform, and the two will share Microsoft's "Metro" design. Finally, Windows Phone 8 will make wider use of Microsoft's SkyDrive cloud storage service.
The next upgrade to Windows Phone is expected to be Tango, and Apollo is rumored to drop after that. The upgrades to Windows Phone are notable as they reflect Microsoft's intentions to ensure its smartphone platform maintains parity with the leaders in the space, Google's (NASDAQ:GOOG) Android platform and Apple's (NASDAQ:AAPL) iOS.
For more:
- see this PocketNow article
- see this GigaOM article
- see this Verge article
Related Articles:
What developers can expect from Windows Phone Tango--and beyond
Nokia design chief hints at future NFC support, wireless charging
Microsoft needs to translate Windows Phone buzz into sales
Nokia ships more than 1M Lumia smartphones, but reports $1.4B loss in Q4
The Q4 2011 global handset and smartphone market in 4 charts
The numbers are in. All of the world's major handset and smartphone makers have reported their fourth quarter numbers, and now the rankings can begin. Check out the below four charts from Strategy Analytics and IDC to see how the world's handset vendors landed in terms of shipments and market share for handsets and smartphones.
Source: Strategy Analytics
Source: Strategy Analytics
Source: IDC
Source: IDC
For more:
- see this IDC release
- see this Strategy Analytics release
Qualcomm posts surging quarterly results, confirms 'whistleblower' investigation
Qualcomm (NASDAQ:QCOM) reported booming revenue and profit in its fiscal first quarter as sales of smartphones around the globe continued to drive growth. However, the shining results were colored by the company's acknowledgement that the Department of Justice and U.S. Attorney's office have started an investigation into Qualcomm's compliance with a financial transparency and corruption law.
The chipset maker reported net income of $1.4 billion in the quarter ended Dec. 25, up 20 percent from the year-ago period and up 33 percent sequentially. Qualcomm's revenue clocked in at $4.68 billion, up 40 percent year-over-year and up 14 percent sequentially. The company shipped 156 million MSM chipset units in the quarter, up 32 percent year-over-year and 23 percent sequentially. Qualcomm also raised its fiscal 2012 guidance, banking on licensing revenue as well as its Snapdragon chipset portfolio.
Despite the rosy results, Qualcomm disclosed that it is under investigation for compliance with the Foreign Corrupt Practices Act. According to Qualcomm CEO Paul Jacobs and the company's 10-Q filing with the Securities and Exchange Commission, on Jan. 27 the company learned that the Department of Justice, SEC and U.S. Attorney's Office for the Southern District of California started a preliminary investigation. The FCPA has two main provisions, one relating to accounting transparency and another that prohibits the bribing of foreign officials to gain commercial advantage.
The new investigation is related to a prior investigation that began in 2010. According to the filing, on Sept. 8, 2010, Qualcomm was notified by the SEC's Los Angeles Regional office of a formal order of private investigation. Qualcomm said the investigation arose from a "whistleblower's" allegations made in December 2009 to the audit committee of Qualcomm's board and to the SEC.
Qualcomm said the audit committee completed an internal review of the allegations with the assistance of independent counsel and independent forensic accountants. The company said the review into the whistleblower's allegations and related accounting practices "did not identify any errors" in the company's financial statements. Qualcomm said it "believes that it is in compliance with the requirements of the FCPA and will continue to cooperate with both agencies."
For more:
- see this Qualcomm release
- see this Morningstar transcript
- see this SEC filing
- see this Reuters article
- see this Bloomberg article
- see this iSuppli release
Special Report: Wireless in the fourth quarter of 2011
Related Articles:
Qualcomm targets TVs, PCs in bid to expand beyond phones
FCC approves AT&T's $1.93B purchase of Qualcomm's 700 MHz spectrum
Report: Broadcom cracks top 5 smartphone chipset suppliers
Qualcomm moves Gobi into LTE market
What's so great about LTE Advanced anyway?
Sprint Nextel (NYSE:S), AT&T Mobility (NYSE:T) and others are expected to begin rolling out LTE Advanced network technology as soon as 2013. But what exactly does the upgrade to the LTE standard do? What features and functions will LTE Advanced deliver to users? Perhaps most importantly, LTE Advanced could boost users' upload and download speeds significantly, to 1 Gbps on the downlink and 500 Mbps on the uplink (though real-world speeds will likely be much slower). But installing LTE Advanced won't just involve flipping a switch. As Iyad Tarazi, vice president of network development and engineering for Sprint, explains, "The best way to describe LTE Advanced is to say it's a long roadmap of capabilities after you launch the first set." Click here for a FierceBroadbandWireless special report on the capabilities of LTE Advanced.
All eyes are on MetroPCS as VoLTE momentum grows
The industry is closely watching flat-rate carrier MetroPCS (NASDAQ:PCS) to see if it will deploy VoLTE in the first quarter of this year, making it the first operator worldwide to commercially launch VoLTE, the GSMA-backed standard for delivering voice calls over LTE networks.
Supporters of VoLTE include nearly all of the major operators as well as equipment vendors such as Alcatel-Lucent, Ericsson and more. In fact, Infonetics Research said last July that 78 percent of the operators that participated in its study said that they will have VoLTE, RCS (rich communication service) and/or VoIP over 3G deployed by 2013.
MetroPCS CEO Roger Linquist indicated last year that the company was planning to deploy VoLTE in the first quarter, putting it well ahead of the VoLTE curve. Verizon Wireless (NYSE:VZ), which also is pushing hard to launch VoLTE, has said it will deploy it in late 2012 or early 2013.
Of course, MetroPCS has a big incentive to move to VoLTE quickly as the technology will allow it to refarm its spectrum currently reserved for CDMA services. Verizon also wants to use VoLTE as a way to free up some legacy spectrum.
Shubh Agarwal, vice president of marketing at Mavenir, which is one of the VoLTE vendors working with MetroPCS, said that MetroPCS' network is ready to launch VoLTE and the company is currently in the midst of testing equipment and checking network performance.
However, Agarwal added that MetroPCS and others that deploy VoLTE this year and in 2013 will not have single radio voice call continuity, meaning they won't be able to deliver seamless calls between the LTE network and the 3G CDMA network, at least not until 2014. Agarwal said that there just won't be devices to support that type of handoff.
Indeed, Qualcomm (NASDAQ:QCOM) announced today that it has just completed the first voice call handover between LTE and W-CDMA using single radio voice call continuity (SRVCC). Working with Ericsson (NASDAQ:ERIC), Qualcomm said that SRVCC is the next logical step in VoLTE and when combined with circuit-switched fallback (CSFB) technology, operators can support connections on a single chip, eliminating the need for separate LTE and 3G radios and modems in one handset.
Although development is under way, multimode 3G/LTE devices are still at least a couple years from reality, making it likely that operators that deploy VoLTE in 2012 and 2013 will just have to work around this issue. Agarwal said that operators are looking at ways to optimize the VoLTE experience--either through improved coverage in high-density areas or by optimizing the LTE network--so that customers are not greatly impacted by this.
Clearly we are on the cusp of some very interesting developments in the mobile voice arena. Between the anticipated VoLTE deployments and new services such as HD voice or mobile video chat, the next-generation of mobile voice services will likely provide some interesting opportunities for operators to differentiate their services. --Sue
MetroPCS slashes base LTE smartphone plan by $10, to $40/month
MetroPCS (NASDAQ:PCS) reduced its entry-level LTE smartphone plan by $10, to $40 per month, a company spokesman confirmed.
Yesterday the flat-rate carrier started offering the $40 plan alongside its $50 and $60 LTE service plans. Customers who buy the Android-based LG Esteem, Samsung Galaxy Attain 4G and Samsung Galaxy Indulge can pair them with the $40 plan, which includes unlimited voice, texting and LTE Web browsing as well as 100 MB of multimedia streaming access. Existing LTE smartphone customers can also choose the $40 plan. Previously, the $40 plan had been restricted to the BREW-based Samsung Craft feature phone, which MetroPCS stopped offering late last year.
MetroPCS had always intended to broaden its $40 plan to all LTE smartphone users, the spokesman said, but the company stopped offering the plan to new LTE customers after it stopped selling the Craft, the carrier's first LTE phone.
MetroPCS offers a $50 plan with unlimited voice, texting, Web, email and 1 GB of multimedia streaming, as well as $60 plans that offer all of that plus unlimited streaming to either the Rhapsody music service or the carrier's MetroStudio video service. The company also intends to add the LG Connect 4G smartphone to its lineup. Additionally, MetroPCS is still testing Voice over LTE technology and plans to launch VoLTE service in 2012.
For more:
- see this page
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MetroPCS drops $40 unlimited LTE plan
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MetroPCS posts weaker Q3 net adds, but strong Android sales
IDC: Apple surpasses LG, claims No. 3 global handset spot in Q4
Through the sheer force of its record-setting iPhone sales figures, Apple (NASDAQ:AAPL) displaced longtime stalwart LG Electronics to become the world's third largest handset vendor, according to research firm IDC. The figures are notable considering Apple reached the spot on sales of only smartphones, whereas other companies on the list sell both feature phones and smartphones.
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Click here for rankings of the global handset and smartphone market in the fourth quarter, including market share and shipment figures. |
Nokia (NYSE:NOK) and Samsung retained their spots as the No. 1 and No. 2 handset vendors by volume for the fourth quarter and full year 2011, but Apple's rise highlights not only the strength of its iPhone 4S sales but also LG's continued struggles to transition to smartphones.
Overall, the worldwide handset market grew 6.1 percent in the fourth quarter to 427.4 million units, according to IDC. However, feature phone sales declined faster than expected and while growth was higher than IDC's forecast of 4.4 percent growth for the quarter, it was still weaker than the 9.3 percent growth in the third quarter. "The mobile phone market exhibited unusually low growth last quarter, which shows it is not immune to weaker macroeconomic conditions worldwide," IDC analyst Kevin Restivo said in a statement. "The introduction of high-growth products such as the iPhone 4S, which shipped in the fourth quarter, bolstered smartphone growth. Yet overall market growth fell to its lowest point since 3Q09 when the global economic recession was in full bloom."
IDC noted that Apple's introduction of the iPhone 4S in October was the primary reason it was able to leap from fifth place to third. The company reported 37 million iPhone sales in the fourth quarter, up 128 percent from the fourth quarter of 2010. Apple also still sells its older iPhone 3GS and iPhone 4 models.
Meanwhile, LG shipped 17.7 million units in the quarter, weaker than the 30.6 million it shipped in the fourth quarter of 2010 and down from its 21.1 million in the third quarter. "LG's total volumes declined for the third consecutive quarter, sinking to levels not seen since the second quarter of 2007," IDC noted. "Driving this result was a combination of waning interest in its aging feature phones and stalled smartphone volumes. In addition, from a full year perspective, LG posted the largest full year-over-year decline among the leading vendors."
LG has vowed to fight back with more smartphones, especially those equipped with LTE, and the company's handset unit posted its first operating profit after six straight quarters of losses. However, IDC noted that other smartphone vendors have strategies similar to LG's and that the company's shipment volumes in the fourth quarter barely kept it ahead of Chinese vendor ZTE's 17.1 million. ZTE has become a fixture in the top five rankings the last several quarters, usually at No. 4 or 5. According to IDC, vendor shipments are branded shipments and exclude OEM sales for all vendors.
For more:
- see this release
- see this CNET article
- see this Fortune article
Special Report: The Q4 2011 global handset and smartphone market in 4 charts
Related Articles:
LG pushes handset unit back to profit in Q4
Analysis: Why Apple and Samsung are killing it in the smartphone market
Samsung loses Q4 smartphone crown to Apple
Apple smashes sales record with 37M iPhone sales in fiscal Q1
iPad 3 rumored with LTE, quad-core processor; LightSquared accused of bribery
Quick news from around the Web.
@FierceWireless: "@phonescooper: Qualcomm Claims First VoLTE-to-WCDMA Call Hand-Off. Article via @phonescoop" | Follow@FierceWireless
> Best Buy will offer a $50 gift card for smartphones in conjunction with the Super Bowl. Article
> Sen. Chuck Grassley accused LightSquared of trying to bribe him. Article
> Sprint Nextel announced the ZTE Optik Android tablet for $99 with a service plan. Release
> Peek said it is ending its promised "lifelong service" to its U.S. users. Article
> HTC warned that its devices could provide hackers with Wi-Fi passwords. Article
> Research In Motion launched its "Be Bold" BlackBerry advertising campaign. Article
> A Nokia executive warned of slow progress this year. Article
> Ting launched its service commercially. Post
> Sprint Nextel reportedly will offer $100 toward a phone upgrade in order to prevent customer churn. Article
> Meet Xappr, the smartphone gun. Article
> Huawei appears to be preparing the "Honor" smartphone for AT&T Mobility. Article
> Rumors are pointing to an iPad 3 with LTE and a quad-core processor. Article
> Fitch Ratings predicts LG's profitability will improve in 2012. Article
> Motorola's Droid 4 could soon arrive at Verizon Wireless for $199 with a service contract. Article
Mobile Content News
> Mobile discovery solutions provider Shazam will integrate its second-screen interaction technologies across Feb. 5's Super Bowl XLVI telecast. Article
> Facebook counts around 425 million mobile users. Article
Broadband Wireless News
> Zayo and Phonoscope are among a number of companies boosting their backhaul bandwidth. Article
> Last month, Taiwan reported a massive jump in the number of WiMAX subscribers in the country, almost 85 percent growth for the six months ending November 2011. Article
> Are operators prepared to leverage the mobile cloud? Industry Voices
European Wireless News
> Everything Everywhere will begin repositioning its Orange UK and T-Mobile UK brands this week. Article
> France Telecom Orange CEO Stéphane Richard told a government committee that its 35 per cent profit margin on its mobile services is commonplace. Article
> European Union lawmakers are working on plans to further reduce roaming charges operators can levy against customers traveling abroad, according to a Reuters report. Article
And finally... Conan offers a solution to Apple's PR problem in China. Video
Senate to probe Verizon's deals with cable companies
A Senate panel will hold a hearing to explore Verizon Wireless' (NYSE:VZ) $3.9 billion purchase of spectrum from cable companies as well as the cross-marketing arrangements that are part of the deals.
Sen. Herb Kohl (D-Wisc.) said the Senate Judiciary Committee's antitrust subcommittee will probe the deals at a hearing, likely scheduled for the end of the month after the President's Day recess. "Plans are well underway for a hearing to examine the impact of Verizon's spectrum purchase from a number of cable companies and a separate marketing agreement to cross-sell each other's products," Kohl said in a statement. "The subcommittee carefully examines questions about competition in the wireless and video markets, with the ultimate goal of protecting consumers and reducing their cable and cell phone bills, and these deals are no exception."
In December Verizon agreed to pay $3.6 billion for the nationwide AWS spectrum licenses held by SpectrumCo, a joint venture of cable companies Comcast, Time Warner Cable and Bright House Networks. Separately, Verizon said it will buy Cox Communication's 20 MHz of AWS spectrum covering 28 million POPs for $315 million. All of the deals include the option of Verizon reselling cable services and cable companies reselling Verizon service. The Department of Justice and FCC still need to approve the spectrum transactions.
Representatives from Verizon, Comcast and Time Warner Cable declined to comment, according to Reuters.
Verizon and the cable companies have argued that the marketing deals should not be subject to regulatory review and that the FCC should look at the spectrum purchases in isolation. However, public interest groups have said that the cross-marketing deals could curb competition for broadband services.
News of the inquiry comes as Verizon and Comcast launched joint marketing efforts in the San Francisco Bay Area to sell bundles of wireless, cable TV, landline and residential Internet services (see related story). Verizon and Comcast launched their joint marketing campaign in Seattle and Portland, Ore., last month, and Verizon intends to expand it to other markets this year.
For more:
- see this Washington Post article
- see this Reuters article
- see this National Journal article
Related Articles:
Comcast, Verizon Wireless launch joint promotion in San Francisco
Verizon Wireless, Comcast begin joint marketing effort
DOJ probes Verizon's AWS spectrum purchases
Verizon to buy Cox's AWS spectrum for $315M
Comcast to start reselling Verizon Wireless products in early 2012
Comcast, Time Warner to end wholesale deals with Clearwire in wake of Verizon agreement
Verizon to buy SpectrumCo's AWS spectrum for $3.6B
U.S. Cellular to launch LTE-enabled Samsung tablet and smartphone
U.S. Cellular will launch LTE service covering 25 percent of its footprint in March and will introduce the Samsung GalaxyTab 10.1 tablet and Galaxy S Aviator 4G smartphone as its first two LTE devices.
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Samsung Galaxy S Aviator |
The carrier said the tablet will be available in March and that the smartphone will be available in April, but did not provide specific pricing or availability. U.S. Cellular plans to launch between five and seven LTE devices in 2012 and the carrier has long indicated that a tablet and smartphone would be its first two LTE gadgets.
The first markets U.S. Cellular will blanket with LTE include select cities in Iowa, Wisconsin, Maine, North Carolina, Texas and Oklahoma, including some of U.S. Cellular's leading markets such as Milwaukee, Madison and Racine, Wis.; Des Moines, Cedar Rapids and Davenport, Iowa; Portland and Bangor, Maine; and Greenville, N.C. The company also said the next wave of market launches will be announced later this month.
U.S. Cellular did not provide any details about its LTE pricing structure and a spokesman declined to comment.
The regional carrier, which operates in 26 states, has said that its full LTE buildout likely will take three years to complete, and that it will likely cover another 25 percent of its footprint by the end of 2012.
U.S. Cellular will likely wait until Apple (NASDAQ:AAPL) unveils an LTE-capable iPhone before considering whether to sell it, according to TDS CEO Ted Carlson. (TDS is the parent company of U.S. Cellular.) U.S. Cellular revealed in November that it had the opportunity to sell the current, non-LTE iteration of the iPhone but decided against it because it was not the right economic fit for the regional carrier.
For more:
- see this release
- see this website
Related Articles:
U.S. Cellular to launch 5-7 LTE devices in 2012
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Everything Everywhere overhauls Orange, T-Mobile brands
Everything Everywhere (EE) will begin repositioning its Orange UK and T-Mobile UK brands this week in a marketing campaign that will define Orange a premium brand and T-Mobile as a low-cost offering.
The EE marketing plan, which according to a Marketing Week report will cost around £15 million, will emphasise the key differences between the two brands. Orange will be positioned as he service that offers more than consumers expect, while T-Mobile will be positioned as a value offering, which marketing centered around T-Mobile's new "Full Monty" plan.
The new campaign will see the demise of familiar brand labels, with T-Mobile's "Life's for sharing" tag line being dropped in favour of "What Britain loves." This move will coincide with the launch of the Full Monty plan, which offer unlimited voice, texting and mobile Web usage and seems set to compete head-on with rival 3UK's "All You Can Eat" plans.
For Orange, EE will launch a new 40-second TV advertisement promoting its "Panther" price plan, which offers subscribers free access to mobile services from Sky Sports, The Times and Deezer. It will also aim to highlight how the Orange network can offer its customers new services without them being aware of the complexities.
Spencer McHugh, Everything Everywhere's director of brands, told Mobile Today: "We are extremely proud and privileged to be running two of Britain's most famous brands--T-Mobile standing for brilliant value for money, and Orange showing it goes the extra mile to offer customers more. Our assault on the market is underpinned by ensuring our two campaigns are distinct, and relate directly to the needs of the two customers bases."
Rumours have circulated over the past few months that EE might drop one or both of the Orange and T-Mobile brands or even launch a new brand to illustrate the integration between the two companies. EE CEO Olaf Swantee, had criticised the Everything Everywhere brand in October, labelling it silly.
For more:
- see this Marketing Week article
- see this separate Marketing Week article
- see this Mobile Today article
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Everything Everywhere stays tight-lipped on branding strategy
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Everything Everywhere CEO calls brand 'silly,' but analysts praise Q3 results
FranceTelecom's Richard defends 35% profit margin
France Telecom (FT) Orange CEO Stéphane Richard told a government committee that its 35 per cent profit margin on its mobile services is commonplace.
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Appearing before the French parliament's Economic Affairs Commission, Richard said that the company operates in 35 countries, so was able to make comparisons. "The level of margins in France is by no means unusual, and is at the low end of what we achieve elsewhere."
The profit margins being realised by Orange, SFR and Bouygues Telecom have become the subject of controversy since the launch of Iliad's Free Mobile last month, with Iliad CEO Xavier Niel accusing its much larger competitors of keeping mobile phone prices too high.
In a robust defence of its pricing policy, Richard told the committee: "I disagree with the sweeping and unfair judgments [on mobile pricing] when compared with the reality prior to the arrival of the fourth operator [Free Mobile]."
According to a report in the French newspaper Les Echos, Richard said that the level of margin being generated by Orange is necessary so the company could invest in maintaining its 2G and 3G networks. The exec also said that France Telecom is a "champion of the French economy," and annually invests €2.6 billion in France, including €800 million in research and development. Richard also took the opportunity to point out to the committee members the 39 per cent margins being achieved by Free for its triple-play service.
For more:
- see this Les Echos article (translated via Google Translate)
- see this Bloomberg article
- see this Reuters article
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Report: EU plans even steeper cuts to roaming charges
European Union lawmakers are working on plans to further reduce roaming charges operators can levy against customers traveling abroad, according to a Reuters report.
The EU Parliament wants to make much deeper cuts to European roaming charges than those proposed last year by European Commissioner Neelie Kroes. If successful, then the cost to a traveller making a one-minute outgoing call would fall from €0.24 under the Kroes plan to €0.15. Data roaming would be slashed from €0.50 per megabyte to €0.20 under the new scheme.
If this new proposal is adopted by the EU, then mobile operators would take a hit, since roaming charges account for 5 percent of sales and 7 percent of operating margins, according to the report.
Commenting to Reuters on how operators might react, Stephane Beyazian, telecoms analyst at investment bank Raymond James, said the mobile service providers would not welcome steeper cuts to roaming charges but could absorb them. "It would be a bad surprise, but it would not be catastrophic," he said, adding that the industry was satisfied with the Kroes proposal made last summer.
However, Angelika Niebler, a German politician responsible for guiding the proposed regulation through the EU parliament, said that mobile operators should not charge customers differently depending on where they are. "There should really be no roaming (fees) at a time when we are supposed to have a single market," Niebler said in an interview with Reuters.
The draft plan being put forward by the German politician calls for incoming calls to be reduced to €0.05 per minute by 2014, half the rate proposed by Kroes, with text messages following a similar path and also being cut by 50 per cent to €0.05. The existing EU proposal would see the roaming caps recommended by Kroes coming into force in July, with further cuts following in 2013 and 2014.
For more:
- see this Reuters article
Related Articles:
European politicians call for lower data roaming charges
EU proposal attacks 'outrageous' data roaming profit margins
Report: European Commission knife hovers over data roaming charges
Deutsche Telekom admits it got data roaming wrong
Report: Data roaming up to 1,000 times more costly for UK tablet users
Survey: Brits to spend £4.5B this year to stay top mobile shoppers in Europe
UK shoppers are predicted to purchase £4.5 billion of items this year using mobile devices, making them the leading spenders in Europe for the third year running, according to a market research survey.
The market survey, conducted by Centre for Retail Research for the shopping comparison site Kelkoo, found that UK consumers increased their spending on mobile devices from from £700 million in 2010 to an estimated £4.5 billion in 2012--a growth of 584 per cent in just two years.
According to the Kelkoo study, the UK tops the European smartphone league table with 46 per cent of mobile phone users owning such a device, and also comes in first for mobile spending per person: £192 in 2011. This compares with second-place Norway at £160 per person and third place Sweden with £147, against a European average of £99. At the bottom of the mobile spending rankings per person was Italy (£23), Spain (£43) and Poland (£45).
Additionally, the UK is predicted to lead rankings for proportion of all online spending conducted via mobile devices at 7.9 per cent. Conversely, those in Italy (5.3 per cent), Denmark (5 per cent), France (4.6 per cent) and Poland (4.1 per cent) are expected to spend the smallest proportion of their online budget using their mobiles.
Commenting on this upsurge, Kelkoo CMO Chris Simpson said in a statement: "Over the last two years, shopping on mobile phones has increased exponentially as a result of simple and secure payment systems, better functionality and increased uptake of ‘always on' mobile devices such as iPads and tablets."
For more:
- see this Kelkoo press release
Related Articles:
UK mobile payments JV opens door to 3UK
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Telefónica preps NFC for European launch within months
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Everything Everywhere, O2, Vodafone forge JV to fast-track m-commerce
Ovum: Emerging rural markets will drive next billion mobile connections
The right device and service combination will help mobile operators to attract the next billion connections, which will mainly come from remote rural areas, according to a new study from Ovum. The market research firm reports that while rural users will typically not have access to basic infrastructure or utilities, they are aware to the impact mobile phones can have on their lifestyles and are eager to invest in a convenient device. However, Ovum points to handset charging solutions as being as crucial to the next billion as the device itself. While mobile phone battery life has improved considerably in the last few years, access to electricity in remote and rural areas has not. "Emerging markets will account for the bulk of the next billion connections, and despite increasing awareness of smartphones, these users will primarily purchase entry-level and feature phones," says Ovum analyst and report author, Shiv Putcha. Article
Nokia design chief hints at future NFC support, wireless charging
Nokia (NYSE:NOK) will incorporate Near Field Communications technology into future smartphones running Microsoft's (NASDAQ:MSFT) Windows Phone software, and is also considering removing all moving parts to its phones, a senior executive said.
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Ahtisaari |
In an interview with the British newspaper The Guardian, Marko Ahtisaari, Nokia's senior vice president of hardware and software design, also espoused the idea that Nokia is focused on creating user interfaces that allow people to zip through their days faster. His emphasis on a differentiated user interface that stands apart from Apple's (NASDAQ:AAPL) iOS and Google's (NASDAQ:GOOG) Android platform is at the heart of Microsoft's sales pitch around Windows Phone and its Live Tiles.
"Touchscreens as user interfaces are immersive. My goal is give people their head up--give people a UI that's less immersive, so that we can be more present for each other, and more present for the environment that we're in right here," he said. "NFC shortcuts through dozens of pokes and taps and swipes." Microsoft has indicated it will add NFC support for Windows Phone later this year.
In a bit of design minutiae that could have broader implications, Ahtisaari said that Nokia plans to remove the flip-up plastic casing covering the Lumia 800's micro USB port in future designs. "If you can take away a moving part and make it [the phone] more beautiful in the placement of the components, we'll do it, so that's something where we can certainly keep improving," he said. "Take it to the extreme, and why are there any connectors?" The removal of all connecters, including for charging, would imply a system of wireless charging, as Hewlett-Packard had with its webOS devices.
Nokia has so far shipped more than 1 million Lumia smartphones since they went on sale in November, and the company is hoping that partnerships with T-Mobile USA, AT&T Mobility (NYSE:T) and likely other carriers will help it relaunch its brand in the U.S. market.
For more:
- see this The Guardian article
- see this separate The Guardian article
- see this The Verge article
Related Articles:
Nokia ships more than 1M Lumia smartphones, but reports $1.4B loss in Q4
Nokia predicted to ship around 1.3M Lumia phones in Q4
Nokia brings LTE-capable Lumia 900 to AT&T, stays mum on other U.S. carriers
iSuppli: Windows Phone on pace to eclipse Apple's iOS in 2015
Nokia's Weber looks beyond AT&T, T-Mobile for 2012 growth
Check out the best apps of January
Mobile applications will remain a universal obsession only as long as they continue to captivate, surprise and entertain consumers. Fortunately, the app ecosystem shows no signs of slowing up: Innovative and immersive mobile experiences are entering app stores every day. Indeed, mobile application analytics provider Flurry expects iOS and Android downloads to shatter a billion a week on a regular basis as 2012 unfolds--credit that trend not only to increasing smartphone penetration but also mounting demand for tablets. Each month, FierceMobileContent will look at the best and brightest, spotlighting the new apps that you need to download to your smartphone ASAP. And here are the winners: The best apps of January 2012: Special feature
FCC overhauls Lifeline program to crack down on fraudulent subsidized phones
The FCC voted to reform its Lifeline phone subsidy program and to stamp out waste and fraud by limiting people in the program from claiming subsidized handsets from multiple wireless carriers.
In a unanimous 3-0 vote, the FCC approved the creation of a national Lifeline database to prevent multiple carriers from receiving support for the same subscriber. The FCC said the new National Lifeline Accountability Database will build on FCC efforts in 2011, which the commission said eliminated nearly 270,000 duplicate subscriptions in 12 states following a review of more than 3.6 million subscriber records, saving $33 million.
Additionally, the FCC ordered carriers to remove from their subscriber lists Lifeline customers who don't use the free wireless service fo 60 days. The FCC also said that only one person per household can get a subsidized phone and service, though it defined a household as an "economic unit" so that separate, low-income families living at the same address can get service.
The Lifeline program offers participating carriers a subsidy of up to $10 per month per subscriber, and the program is part of the $9 billion Universal Service Fund, which the FCC is in the process of reforming. USF is paid for by wireless subscribers. Customers who qualify for Lifeline are often those who qualify for other federal benefit programs such as the Supplemental Nutrition Assistance Program (SNAP, or food stamps).
Sprint Nextel (NYSE:S) has used Lifeline, under Sprint's Assurance Wireless brand, to generate subscriber growth during the past year. However, Sprint is not the only carrier using Lifeline. Verizon Wireless (NYSE:VZ), AT&T Mobility (NYSE:T) and T-Mobile USA also use the program to offer plans to low-income customers. América Móvil's U.S. TracFone unit is the largest Lifeline service provider via its SafeLink offering, which counts more than 2 million customers (TracFone had 19.3 million total subscribers at the end of the third quarter).
The FCC also set up a $25 million pilot program to explore how Lifeline can be expanded to include broadband access in addition to landline and wireless phone use. Though the FCC's three commissioners clashed over whether to cap the total Lifeline fund, which has grown from $488 million in 2000 to $1.3 billion in 2010, they agreed that the reforms were important first steps.
For more:
- see this release
- see this Bloomberg article
- see WSJ article (sub. req.)
- see this IDG News Service article
Related Articles:
Consumer groups question whether FCC's Lifeline program reforms go far enough
Sprint leans on low-income Assurance Wireless subs for growth
TracFone expands SafeLink service to compete with Sprint offering
Straight Talk MVNO TracFone adds 515K subs in Q3
Samsung won't unveil Galaxy S III at Mobile World Congress
Samsung confirmed it will not announce a successor to its flagship Galaxy S II Android smartphone later this month at the Mobile World Congress trade show in Barcelona, Spain, squashing rumors to the contrary.
The world's second largest smartphone maker, which has capitalized on a wave of success from its Galaxy franchise, said it will wait until later this year to unveil its new flagship device. "Samsung is looking forward to introducing and demonstrating exciting new mobile products at Mobile World Congress 2012," the company said in a statement to U.K. technology site TechRadar. "The successor to the Galaxy S II smartphone will be unveiled at a separate Samsung-hosted event in the first half of the year, closer to commercial availability of the product. Samsung stays committed to providing the best possible mobile experiences for customers around the world."
Earlier rumors had indicated that the next Galaxy S phone would arrive at the major industry trade show, but according to The Verge, which cited unnamed sources, the device will arrive before the summer. According to The Verge, Samsung wants to announce the phone closer to its availability in the U.S. market. (The Galaxy S II arrived in the United States months after Samsung announced the gadget at last year's MWC.)
So what might those "exciting new mobile products" be that Samsung will introduce at this year's MWC? Speculation has centered on a refresh of the company's GalaxyTab tablet lineup, an LTE-capable smartphone running Microsoft's (NASDAQ:MSFT) Windows Phone and perhaps a tablet or other product running the Linux-based device software platform Tizen. Last month Samsung said it was considering merging its homegrown bada platform with Tizen.
Samsung reported that its fourth-quarter smartphones shipments were up 30 percent from the third quarter. However, according to analysts, Samsung in the fourth quarter lost its spot as the world's largest smartphone maker to Apple (NASDAQ:AAPL), which sold a record 37 million iPhones in the quarter. Analysts estimated Samsung shipped around 36 million smartphones in the quarter.
For more:
- see this TechRadar article
- see this The Verge article
- see this PC Magazine article
Related Articles:
Samsung loses Q4 smartphone crown to Apple
Samsung backpedals on bada/Tizen OS merger plans
Samsung surpasses 300M handset sales for first time in 2011
Report: Samsung's Galaxy S II scores high with consumers
Apple falls to Samsung in Q3 smartphone sales as overall handset shipments grow
Samsung's Q3 blowout: Gains in tablets, smartphones and feature phones