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Tuesday, July 26, 2011

Fwd: | 25.07.11 | Vodafone lifted by surging Q2 data revenues



-------- Original Message --------
Subject: | 25.07.11 | Vodafone lifted by surging Q2 data revenues
Date: Mon, 25 Jul 2011 09:02:27 -0400 (EDT)
From: FierceWireless:Europe <editors@fiercewireless.com>
Reply-To: editors@fiercewireless.com
To: nbrauchitsch@yahoo.com


FierceWireless:Europe, the European wireless industry's newsletter
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July 25, 2011

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Today's Top Stories
1. Vodafone beats market expectations in Q2, but S. Europe causes pain
2. T-Mobile, Orange ink Polish network-sharing deal
3. Orange unveils new digital content and design unit
4. Tele2 gains scale with Network Norway purchase
5. TomTom collides with smartphones, reports unexpected loss

Editor's Corner: Nokia's catastrophe continues with huge Q2 loss

Also Noted: Spotlight On... Juniper: Smartphone shipments to reach 1B by 2016
Orange Spain launches mobile TV service; Telefónica unveils NFC trial in Czech Republic and much more...

Wireless in the second quarter of 2011
How did the wireless industry perform in the second quarter of 2011? Check here throughout the second-quarter earnings report season for full earnings reports from the wireless industry's carriers, handset makers, equipment suppliers and others. Don't forget to check out our third quarter 2009, fourth quarter 2009, first quarter 2010, second quarter 2010, third quarter 2010, fourth quarter 2010 and first quarter 2011 wrapup pages. Special Report

News From the Fierce Network:
1. GSMA picks Barcelona to host Mobile World Congress through 2018
2. Apple paid $2.6B of $4.5B Nortel patent bounty
3. HP's Bradley: Amazon's Kindle was a big driver behind Palm acquisition


New Fierce eBook: Building a Better Backhaul Network

This eBook from FierceWireless we will look at how operators are designing better backhaul networks and planning ahead for the next round of capacity constraints. Click here to download today.




Editor's Corner

Nokia's catastrophe continues with huge Q2 loss

By Paul Rasmussen Comment | Forward | Twitter | Facebook | LinkedIn

Nokia CEO Stephen Elop put a brave face on the company's prospects for the future and its appalling second quarter results--a net loss of €368 million.

While admitting that the quarter was "disappointing," an understatement of some magnitude, Elop maintained that Nokia is making good progress with its new strategy and is starting to see a "positive impact on the health of the company."

Quite what this "positive impact" is remains unclear. Almost everywhere you look Nokia is struggling to keep its head above water. Some observers even believe the company will suffer further ignominy when it falls to No. 3 in smartphone shipment rankings once Samsung gains second place behind Apple.

With its handset business in tatters, Nokia was also damaged by its Navteq mapping division reporting a quarterly loss of €58 million, while the unloved Nokia Siemens Networks provided no comfort with a loss of €111 million.

With this sorry picture, industry analysts are increasingly puzzled as to how Elop can succeed in turning around Nokia.

IDC's research manager for European mobile devices, Francisco Jeronimo, believes it will take at least two or three quarters after Nokia launches its first Windows Phone handsets before the company will see positive results from its partnership with Microsoft.

This means it'll be almost a year before we can gauge whether Elop's gamble is starting to produce results. By this time the smartphone world will have turned several revolutions and the Windows Phone platfrom will be available on many handsets from a wide range of vendors aggressively looking to gain market share.

Equally worrying is Elop's plan to introduce up to 10 new Symbian products over the next few months. Why would customers want to purchase handsets based upon this operating system given that Symbian is a dead-end technology?

Where the CEO might find greater acceptance, at least with the financial community, is with his plan to exceed the level of operating expense cuts--already set at €1 billion by 2013--by slashing back on subcontracting, IT spend and staff travel.

What Elop desperately needs is time. But, unfortunately, the cell phone business continues to gain pace which will leave him with few options to fix the company and set it on a viable path to ensure its survival.--Paul

Read more about: Smartphones, OPEX, Quarter Results, Windows Phone
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Today's Top News

1. Vodafone beats market expectations in Q2, but S. Europe causes pain

By Paul Rasmussen Comment | Forward | Twitter | Facebook | LinkedIn

Vodafone beat market estimates by reporting first-quarter service revenue of £10.86 billion, up 1.5 per cent, slightly better than analysts' forecast of 1.4 per cent growth, helped by a 25 per cent surge in data revenue growth.

Colao

Key to achieving this growth were strong performances from Vodafone's subsidiaries in India and Turkey--with service revenue up 17 per cent and 32 per cent, respectively--which helped to offset dismal results from Spain where service revenue fell by nearly 10 per cent.

"We have made a good start to the year, reporting robust results despite challenging macroeconomic conditions across southern European economies and the impact of cuts to mobile termination rates," CEO Vittorio Colao said in a statement. 

Two of Vodafone's major markets, the UK and Germany, managed to stay positive, with growth up 1.7 per cent in the UK while Germany remained flat. Italy was down 1.5 per cent, an improvement on the previous quarter.

In May, the company said it would write down the value of its subsidiaries in Spain, Greece, Portugal, Italy and Ireland by £6.1 billion.

 "It's a robust set of numbers, if anything slightly ahead of what people were looking for," Morten Singleton, an analyst at London-based Investec Securities, told Bloomberg.

With Vodafone being the first of Europe's larger operators to unveil its quarterly earnings, Sanford C. Bernstein analyst Robin Bienenstock told Dow Jones Newswires that the company will likely have set the benchmark. Telefónica, which will detail its quarterly results later this week, is seen as very exposed to the ongoing troubles in its home market of Spain.

Looking to the future, Vodafone's CFO, Andy Halford, told Reuters that the proceeds from its recent disposal around the world had enabled the company to reduce its net debt down to £23.1 billion. He added: "I think the balance sheet is in good shape and if there are opportunities out there we can look at them but there's not a rush to do that and it's not driven by the cash position."

For more:
- see this Bloomberg article
- see this Reuters article
- see this Dow Jones Newswire article

Related Articles:
Vodafone, Telefónica and Orange suffer pain in Spain

Vodafone profits in India, pushes value of mobile in emerging markets
Vodafone Germany ramps up LTE with city deployments
Operators lobby EU for ability to charge for content delivery

Read more about: Vodafone, Termination Rates, Vittorio Colao, Service Revenues
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2. T-Mobile, Orange ink Polish network-sharing deal

By Paul Rasmussen Comment | Forward | Twitter | Facebook | LinkedIn

Deutsche Telekom (DT) and France Telecom (FT) Orange have taken another step towards greater co-operation by agreeing to share their Polish networks. The deal will see Orange's PTK Centertel, Poland's largest mobile operator, and T-Mobile's Polska Telefonia Cyfrowa share access to each others networks via a 50:50 joint venture labelled "NetWorks!."

According to Reuters, PTK Centertel says the network sharing deal is expected to save around €356 million in cash flow through 2015.

The aim is for NetWorkS! to assume responsibility for the management, planning, support, development and maintenance of the two networks, together with reducing the number of base stations to a total of 10,000. Presently, Polska Telefonia Cyfrowa has around 7,000 installed, and PTK Centertel has 6,400.

The deal will see the combined radio access network upgraded in the short-term to support the latest standards, leading to an estimated 29 per cent savings in total RAN investments over the longer term. However, the integration of the networks will not be complete until 2014, although the two operators claim that some regions will start to see the first positive effects of the deal in the first half of 2012.

The agreement, which is set to run for 15 years, will be limited to the sharing technical elements of the networks, with both operators continuing to own the networks and licenced spectrum. The sales operations of both companies will continue to compete in the wholesale and retail market within Poland.

For more:
- see this release
- see this Reuters article

Related Articles:
New owner of Polkomtel to target Orange Poland

LTE: Polish operator to focus on wholesale and rural broadband
Report: Deutsche Telekom mulls pan-European network sharing deals
European operators enter 'co-op or compete' era

Read more about: France Telecom, Poland, Deutsche Telekom, Network sharing
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3. Orange unveils new digital content and design unit

By Paul Rasmussen Comment | Forward | Twitter | Facebook | LinkedIn

Orange formed new, 70-person unit to design and manage websites for online and mobile environments. The unit, which will operate independently of France Telecom and will be based in the UK, will relaunch the Orange online web portal as its first assignment.

The new unit, called Orange Digital, will update the Orange portal to include an "On the go" function that enables users to forward stories from their desktop to their mobiles via a text message that links to the content. Orange Digital will also revamp the Orange World mobile site, with the expectation that similar work will be commissioned by Everything Everywhere for T-Mobile UK.

Dominic Collins, who has been hired to run the unit, told New Media Age that the new business unit was focused on multi-screen media consumption. "Orange Digital was set up to act like an agency and provide content design and development services for both online and mobile," he said.

He added that Orange Digital is expert in tailoring websites and enabling content to be delivered to a user based on their profile, such as what mobile they own. "This will help provide greater continuity of content between the separate screens," he said.

Negotiations to launch similar services for other mobile industry players, such as handset manufacturers, are underway, Orange Digital said. The company also expects to announce similar deals with other divisions of the France Telecom Group.

For more:
- see this New Media Age article
- see this Mobile News article

Related Articles:
Orange serves up new cloud-based UC service
Vodafone unveils Android content channel
Unilever makes mobile its key marketing strategy
Google is No. 1 mobile web site in France

Read more about: Mobile web, Orange World, France Telecom Orange, Media Consumption
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4. Tele2 gains scale with Network Norway purchase

By Paul Rasmussen Comment | Forward | Twitter | Facebook | LinkedIn

An increasingly tough Norwegian telecoms market has prompted Tele2 to look for greater scale by acquiring the mobile operator Network Norway.

Swedish-based Tele2, which formed a 50:50 joint venture with Network Norway in 2007 to deploy Norway's third GSM network, said it will pay around $140 million  (€97.7 million) in cash and will then launch an offer for Network Norway's remaining sharees. The deal values Network Norway at $265 million (€186.7 million) on a cash and debt-free basis.

Thomas Ekman, market area director Nordic at Tele2, told Reuters: "The acquisition of Network Norway will make Tele2 the clear No. 3 mobile operator in the Norwegian telecom market with more than one million customers and gives us the operational leverage that we need to complete Norway's third mobile network."

Tele2, which has been struggling to compete in Norway, claims that the country's telecoms regulator has been aggressively pushing down mobile tariffs. The impact of these cuts have seen Tele2's sales fall 8 per cent in the second quarter, while core profits, at $3.75 million, fell by 66 per cent.

The acquisition of Network Norway, which has nearly 500,000 customers, will still leave Tele2 trailing behind Telenor, which is Norway's largest mobile operator, and Netcom, owned by Sweden's TeliaSonera.

For more:
- see this Reuters article
- see this Telegeography article

Related Articles:
Telenor and MasterCard try again with m-payments pilot

TeliaSonera picks Ericsson, Huawei for Norwegian network rollout
Tele2 Russia asks to join Russian LTE research group
Tele2 and Telenor detail LTE rollout

Read more about: Teliasonera, Telenor, Mobile Operator, NetCom
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5. TomTom collides with smartphones, reports unexpected loss

By Paul Rasmussen Comment | Forward | Twitter | Facebook | LinkedIn

TomTom, Europe's leading vendor of portable navigation devices (PND), reported an unexpected net loss of €489 million for the second quarter. The company, which made a profit of €34 million in the same period a year ago, was forecast by analysts polled by Bloomberg to be on track for a €10.7 million profit.

The company said its second quarter performance was significantly hurt after writing down goodwill of €473 million from the acquisition of Tele Atlas in 2008. TomTom CFO Marina Wyatt said in a conference call with analysts that Tele Atlas map sales are dragged down if demand falls for PNDs.

Industry observers noted that consumers are increasingly using smartphones and free apps such as Google Maps in place of expensive PNDs, and TomTom is attempting to rebuild its revenues from maps and services from systems that are integrated into cars and vehicles. These include a premium live navigation service offering updates on traffic and road conditions as well as directions.

Saless of the company's technology to the automotive industry have climbed 34 per cent to €60 million in the quarter. TomTom CEO Harold Goddijn said the company is talking with car manufacturers around the world about possible contracts for in-built navigation systems.

Commenting on the latest second quarter results, Eric de Graaf of Crédit Agricole Cheuvreux, told the Financial Times: "It's clear that the company is not yet done falling."

For more:
- see this Bloomberg article
- see this Financial Times article (sub. req.)

Related Articles
Google Maps for Android adds downloads for offline access

Report: Apple building navigation service to rival Google Maps
Nokia Maps prove instant hit; TomTom not worried
Google Maps for mobile introduces live transit updates

Read more about: Google, Android, Navigation Service, TomTom
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Also Noted

SPOTLIGHT ON... Juniper: Smartphone shipments to reach 1B by 2016

Smartphones are destined to make up the bulk of handset shipments over the next five years as the number of devices shipped grows from 300 million last year to 1 billion per year in 2016, according to a new report from Juniper Research. However, the report said market competition in the sector will become so intense that the best opportunity for new entrants will be to focus on developing economy smartphones with an unsubsidised sale price of $150 or less. Juniper said  that the falling cost of smartphone components and the availability of open source operating systems, such as Android, will enable economy models to capture around a third of the overall smartphone market. Release

> Orange unveils Spain's first mobile pay-TV channel for Android and iPhone handsets. Article

> Telefónica Czech Republic has launched an NFC-based m-payments trial in co-op with several local banks and Visa. Article

> LBS developer TruePosition sued Ericsson, Alcatel-Lucent and Qualcomm alleging that they blocked the adoption of TruePosition technology for LTE. Article

> Nokia's C7 and N9 NFC phones do not support an embedded secure element or an NFC SIM. Article

And finally... American citizens will be fined if caught texting while walking. Article


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Fwd: | 07.22.11 | Verizon rides high in Q2 on iPhone, LTE device sales



-------- Original Message --------
Subject: | 07.22.11 | Verizon rides high in Q2 on iPhone, LTE device sales
Date: Fri, 22 Jul 2011 12:01:28 -0400 (EDT)
From: FierceWireless <editors@fiercewireless.com>
Reply-To: editors@fiercewireless.com
To: nbrauchitsch@yahoo.com


FierceWireless, the wireless industry's daily monitor
If you are unable to see the message below, click here to view.


July 22, 2011

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Today's Top Stories
1. Verizon notches 2.3M iPhone activations, 1.2M LTE device sales in Q2
2. Activist investor Icahn wants Motorola to monetize its patent portfolio
3. HP's Bradley: Amazon's Kindle was a big driver behind Palm acquisition
4. Apple paid $2.6B of $4.5B Nortel patent bounty
5. GSMA picks Barcelona to host Mobile World Congress through 2018

Editor's Corner: What does AT&T's usage-based pricing adoption mean for Verizon?

Also Noted: IBM
Spotlight On... How will Sprint fare in the second quarter?
T-Mobile to sell HTC Wildfire S; TruePosition renews with AT&T and much more...

Wireless in the second quarter of 2011
How did the wireless industry perform in the second quarter of 2011? Check here throughout the second-quarter earnings report season for full earnings reports from the wireless industry's carriers, handset makers, equipment suppliers and others. Don't forget to check out our third quarter 2009, fourth quarter 2009, first quarter 2010, second quarter 2010, third quarter 2010, fourth quarter 2010 and first quarter 2011 wrapup pages. Special Report

News From Across the Wireless Industry:
1. Apple mulls bid to acquire digital video service Hulu
2. Google says it rejected $100M royalty deal to use Java in Android
3. Gartner: Worldwide mobile payment volume to grow 76% in 2011


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Editor's Corner

What does AT&T's usage-based pricing adoption mean for Verizon?

By Phil Goldstein Comment | Forward | Twitter | Facebook | LinkedIn

Phil Goldstein
AT&T Mobility (NYSE:T) confirmed Thursday that it now counts 15 million subscribers using usage-based data pricing. That's up from 7 million subscribers on such plans in December 2010, and 10 million in March. The plans were first introduced in June 2010.

What does this growth trend mean for Verizon Wireless (NYSE:VZ), which began offering usage-based data pricing to new smartphone customers July 7?

First, AT&T executives have repeatedly said that the new plans have encouraged customers to switch from a feature or quick messaging phone to a smartphone. AT&T said that in the second quarter 70 percent of its postpaid sales were smartphones and 50 percent of its 68.4 million postpaid subscribers now use smartphones. Clearly, the strategy of getting more customers to switch to smartphones is working for AT&T.

AT&T offers 200 MB for $15 and 2 GB for $25. The $15 plan, coupled with a $49.99 Apple (NASDAQ:AAPL) iPhone 3GS with a two-year contract, likely helped grease the usage-based numbers for AT&T--Current Analysis analyst William Ho called the offering AT&T's "secret sauce." What also likely helped was AT&T's decision to broaden its smartphone portfolio to include more smartphones running Google's (NASDAQ:GOOG) Android, Microsoft's (NASDAQ:MSFT) Windows Phone 7 and Research In Motion's (NASDAQ:RIMM) BlackBerry to counteract the loss of its iPhone exclusivity to Verizon.

Further, AT&T's entry tier--$15 for 200 MB--allows customers to test the waters without significant investment.

What does all of this mean for Verizon? Recon Analytics analyst (and FierceWireless contributor) Roger Entner said he expects the usage-based pricing adoption trajectory at Verizon to follow the same path, just more slowly, "because there is no incentive whatsoever for someone to go from a $30 unlimited [plan] to 2 GB for $30." (New Verizon smartphone customers can choose from one of three options: $30 for 2 GB, $50 for 5 GB or $80 for 10 GB. Existing customers with the $30 unlimited smartphone data plans can keep those plans.)

Verizon spokeswoman Brenda Raney said Verizon decided to forgo a 200 MB/$15 plan for a specific reason. "The plans were chosen based upon the usage patterns of our customers and we felt like those would the best ones to meet our customers' needs," she said.

Ho said he also expects Verizon to sell metered plans slowly because the carrier does not have an entry-level 200 MB plan to lure in new smartphone customers. However, analysts generally expect smartphone users to use more than 200 MB per month--particularly those on faster LTE networks. In long run, Verizon will likely use its pricing structure to its advantage and bring in more revenue as average usage creeps up past 2 GB, and customers opt for higher usage tiers. Verizon's plans could also bring the carrier more revenue if it encourages customers to go for the higher-priced tiers with family data plans that allow subscribers to share a bucket of data between multiple devices. Verizon has indicated it plans to go this way, but had not said when it will do so.   

AT&T still hasn't revealed its LTE pricing. It's likely it will mimic Verizon's pricing, but AT&T has an opportunity to differentiate itself from its closest competitor. Indeed, there have been rumors that AT&T will offer customers the opportunity to add more data to their bucket or boost their speed for an additional fee during a billing cycle. Such add-ons might give AT&T a leg up in the usage-based pricing battle, despite trailing Verizon significantly in LTE coverage.

However, for right now, AT&T's usage-based pricing will probably win it more converts than Verizon, especially because of the entry-level tier. "From a growth curve standpoint, AT&T, with a lower price point for smartphone plans, is in a better position in converting the base," to smartphones, Ho said. How long that advantage lasts will likely be determined by what AT&T decides to do with its LTE pricing. --Phil

Read more about: Verizon Wireless, mobile data, Smartphones, LTE
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Today's Top News

1. Verizon notches 2.3M iPhone activations, 1.2M LTE device sales in Q2

By Phil Goldstein Comment | Forward | Twitter | Facebook | LinkedIn

Verizon Wireless (NYSE:VZ) experienced strong growth from sales of Apple's (NASDAQ:AAPL) iPhone 4 and its LTE devices in the second quarter, continuing trends that started in the first quarter.

Verizon second quarter

Click here for key figures from Verizon's second quarter results.

Verizon activated 2.3 million iPhones in the second quarter, slightly above the 2.2 million it activated in the first quarter--Verizon started selling the iPhone in February, well into the first quarter. Verizon rival AT&T Mobility (NYSE:T) activated 3.6 million iPhones in both the first and second quarter (AT&T also sells the older and less expensive iPhone 3GS).

In a separate move that has been expected for months, Lowell McAdam was named CEO of Verizon Communications, the majority owner of Verizon Wireless, replacing Ivan Seidenberg, who will remain chairman. McAdam is stepping up from the COO role and has been Seidenberg's heir apparent for some time now. McAdam will become CEO effective August 1. He was previously CEO of Verizon Wireless.

During the carrier's quarterly conference call with analysts, McAdam touched on the carrier's new usage-based smartphone data pricing, which was introduced July 7. He said that moving to such pricing was "like gravity" and was inevitable because of spectrum constraints. And while he said Verizon expects to see some churn as a result of the pricing changes, which only affect new smartphone customers, he said currently around 95 percent of Verizon's smartphone subscriber base uses less than 2 GB of data per month. Verizon charges $30 per month for 2 GB.

Here is a breakdown of Verizon's key metrics for the quarter:

LTE: Verizon said its LTE network is now live in 102 markets, and the company will expand to 175 markets covering 185 million POPs by year-end. The company sold 1.2 million LTE devices in the quarter, up from 500,000 in the first quarter, and introduced three new LTE devices: the Samsung Droid Charge, LG Revolution and the MiFi 4510L LTE Mobile Hotspot by Novatel Wireless. On the company's earnings conference call with analysts, Verizon Communications CFO Fran Shammo said that 69 percent of Verizon's net retail postpaid additions in the quarter were from LTE devices or the iPhone.

Smartphones: The carrier said that 36 percent of its postpaid subscriber base are now smartphone customers, up from 32 percent in the first quarter and 21 percent in the year-ago period. Verizon said 63 percent of its smartphone sales in the quarter were to customers new to the smartphone category.

McAdam said the carrier is about a quarter behind pace on smartphone adoption based on its expectations from January."We expected an iPhone refresh this summer. We expect it will probably be sometime in the fall, and I think you'll see a significant jump there when we get to that point," he said. "Our fourth-quarter lineup is going to be very robust. I think we're going to have, probably in my entire career, the best fourth-quarter" device lineup, he said.

"Verizon is not taking the share of the smartphone category that we thought they would," wrote Jonathan Chaplin of Credit Suisse in a note on the carrier's earnings. "Smartphones accounted for 70 percent of sales at AT&T compared to 60 percent at Verizon. AT&T sold 3.6 million iPhones compared to 2.3 million at Verizon."

However, Technology Business Research analyst Ken Hyers offered a different take. "AT&T added more iPhone subscribers in 2Q11--3.6 million, compared to Verizon's 2.3 million. But Verizon also sold 1.4 million 4G LTE smartphones and recorded 2.2 million net subscriber additions for the quarter, raising its entire wireless subscriber base to 106.3 million, while AT&T added 1.1 million customers in 2Q11, bringing it to 98.6 million subscribers. In the race to add customers, Verizon clearly demonstrated that size, a 4G network, plus savvy marketing, really does matter."

Subscribers: Verizon notched 2.2 million total net subscriber additions, including 1.3 million retail postpaid customers, its highest since the fourth quarter of 2008, and up from 461,000 retail postpaid additions in the year-ago period. The carrier also added 890,000 wholesale and other connections. These additions exclude acquisitions and adjustments. At the end of the second quarter, Verizon had 106.3 million total connections, an increase of 6.6 percent year-over-year, including 89.7 million retail customers and 16.6 million wholesale and other connections. Verizon said that 9 percent of its retail postpaid subscriber base upgraded their phone in the second quarter.

ARPU: The carrier's retail postpaid average revenue per user grew 1.9 percent, or $1, from the year-ago quarter to $54.12. Retail postpaid data ARPU increased to $21.26, up 15.2 percent year-over-year.  Retail service ARPU also grew 1.9 percent, to $52.49.

Churn: Verizon's retail postpaid churn was 0.89 percent, the company's lowest since second-quarter 2008. Total retail churn was 1.22 percent.

Financials: The company's wireless service revenues in the quarter clocked in at $14.7 billion, up 6.6 percent year-over-year. Data revenues totaled $5.8 billion, up $1.1 billion, or 22.2 percent, from the year-ago period, and represented 39.5 percent of all service revenues. Total revenues were $17.3 billion, up 10.2 percent from the year-ago quarter. The carrier's EBTIDA margin was 45.4 percent.

For more:
- see this release
- see this McAdam release

Special Report: Wireless in the second quarter of 2011

Related Articles:
AT&T adds 3.6M iPhones in Q2, still confident on T-Mobile deal
Verizon activates 2.2M iPhones in Q1, sees strong ThunderBolt demand
Wireless operators' Q2 highlights will include connected devices and Sprint's network deals
Sprint scolds Verizon's tiered data plans with new unlimited ads

Verizon confirms it will ditch unlimited smartphone data plans starting July 7

Read more about: Verizon Wireless, subscriber numbers, Apple, Lowell McAdam
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Ten Things That Will Be Different
A Year From Now


A Special Webinar & Report by Mark Lowenstein


July 28, 2pm ET

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2. Activist investor Icahn wants Motorola to monetize its patent portfolio

By Phil Goldstein Comment | Forward | Twitter | Facebook | LinkedIn

Motorola Mobility (NYSE:MMI) should explore options for monetizing its vast patent portfolio, according to billionaire activist investor Carl Icahn, adding more ferment to the speculation over wireless and technology patents.

Icahn, who owns 11.36 percent of Motorola's shares and is the company's largest single shareholder, said in a filing with the Securities and Exchange Commission that he met with Motorola this week. In the filing, he noted that Motorola's patent portfolio is "substantially larger" than Nortel Networks' portfolio, which was sold in a bankruptcy auction earlier this month to a consortium of companies for $4.5 billion.

In a series of interviews, Icahn sought to both explain his position and seemingly ratchet up pressure on Motorola to do something to monetize its patent assets. He told the Wall Street Journal that the company is actually worth $13 billion, significantly more than its $7.5 billion market value. He said that Motorola Mobility CEO Sanjay Jha and the board should not be solely focused on the company's operating businesses, handset and set-top boxes.

Icahn told the Journal that one option would be spinning off the handset and set-top box units as an operating company, and licensing the patents to it free. Alternatively, he said, Motorola could sell the patent portfolio and license back to the operating company the patents it needs.

The investor sounded similar themes in an interview with Reuters. "In any event we shouldn't let the tail wag the dog," Icahn said. "The patent portfolio may be the company's most valuable asset."

Motorola said in a statement provided to news outlets that its board and management team continuously review its "strategic direction and opportunities that it believes are in the best interests of the company and all of its shareholders."

Speculation around patents increased this week after wireless technology and licensing firm InterDigital said it may sell off some of its patents or sell the entire company. Both Google (NASDAQ:GOOG) and Apple (NASDAQ:AAPL) are reportedly interested in InterDigital. Apple was a major player in the Nortel consortium. 

For more:
- see this WSJ article (sub. req.)
- see this Reuters article
- see this Bloomberg article

Related Articles:
Motorola CEO Jha open to software partnership
Reports: Google interested in scooping up InterDigital
InterDigital explores putting itself up for sale
HTC buys graphics firm S3 for $300M, gets patent trove
Apple, Ericsson, RIM and others win Nortel patents for $4.5B

Read more about: Google, Apple, Nortel Networks, Patents
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3. HP's Bradley: Amazon's Kindle was a big driver behind Palm acquisition

By Sue Marek Comment | Forward | Twitter | Facebook | LinkedIn

ASPEN, Colo.--Hewlett-Packard was carefully watching Amazon.com's success with its Kindle e-reader, and that success played a role in HP's decision to acquire Palm and its webOS software platform for $1.2 billion in April 2010. "Kindle was a big driver for us to look at webOS," said Todd Bradley, executive vice president of the Personal Systems Group at Hewlett Packard, during a panel discussion at the Fortune Brainstorm Tech conference here. 

From left: Frank Meehan, founder and CEO of INQ Mobile; Stephen Hoover, CEO of PARC, a Xerox company; George Colony, founder, chairman and CEO of Forrester Research; Todd Bradley, executive vice president of the Personal Systems Group at Hewlett Packard; and moderator Geoff Colvin of Fortune.

Bradley's comments about Amazon are particularly interesting since Amazon has recently been named as a potential partner for licensing the webOS software. Just last week, Jon Rubinstein, who had been heading up HP's webOS efforts but is now in charge of product innovation at HP's Personal Systems Group, touched on negotiations HP is holding over licensing webOS, and said Amazon.com might make a useful partner.

"I would say Amazon would certainly make a great partner, because they have a lot of characteristics that would help them expand the webOS ecosystem," he told the blog This is my next. "As to whether there's been discussions or not...that's obviously not something I'm going to comment about." 

At the Fortune event, Bradley also said that he believes that tablets will be an "important supplement to what people already have," adding that these devices are intended for consuming data. HP launched its TouchPad webOS tablet earlier this month, but is positioning it as an enterprise-friendly device that will compete more heavily with Research In Motion's (NASDAQ:RIMM) PlayBook than with Apple's (NASDAQ:AAPL) iPad.

However, Forrester Research Founder, Chairman and CEO George Colony said he is much more bullish on the tablet market and believes it will be much more than a supplemental device. Colony noted that his company believes that one-third of the U.S. population will own a tablet by 2014.

Related Articles:
HP's DeWitt focused on webOS market penetration, working with Rubinstein
HP reorganizes webOS leadership team
Will other companies license HP's webOS? And will this strategy work?

HP positions TouchPad as enterprise play, not iPad killer
HP confirms talks to license webOS, Samsung reportedly interested
HP partners with AT&T for TouchPad, Wi-Fi version coming July 1

Read more about: Palm, Amazon, Todd Bradley, webOS
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4. Apple paid $2.6B of $4.5B Nortel patent bounty

By Phil Goldstein Comment | Forward | Twitter | Facebook | LinkedIn

Apple (NASDAQ:AAPL) paid $2.6 billion for its portion of Nortel Networks' patent portfolio of more than 6,000 patents, according to a filing Apple made with the Securities and Exchange Commission. The portfolio was sold in a bankruptcy auction to a consortium of six companies for $4.5 billion.

Apple made the disclosure in its quarterly 10-Q filing with the SEC, and noted that the purchase is subject to regulatory approval. The company did not disclose any details beyond the price. While the sum is substantial, it is still relatively small compared to the $76.2 billion cash hoard Apple has amassed as of the end of the second quarter.

The winning coalition included Apple, EMC Corp., Ericsson (NASDAQ:ERIC), Microsoft (NASDAQ:MSFT), Research In Motion (NASDAQ:RIMM) and Sony. RIM said it will pay $770 million for its share of the patents, and Ericsson said it will pay $340 million for its share. That leaves $790 million between EMC, Microsoft and Sony. Nortel's patents cover a wide range of technologies, including wireless video, Wi-Fi, social networking, semiconductors and, most notably, LTE .

In other patent news, Apple is reportedly interested in bidding for wireless technology and licensing firm InterDigital, according to Bloomberg. Reports have indicated Google (NASDAQ:GOOG) is negotiating with InterDigital, which said this week it is exploring strategic options, including a possible sale. Google was the "stalking horse" opening bidder in the Nortel auction, but ultimately lost out.

InterDigital develops and licenses circuitry designs, software and wireless technologies. InterDigital's stock has a market value of $1.95 billion, and the firm holds about 8,800 patents and has about 10,000 patent applications in process around the world. According to a report in the Wall Street Journal, InterDigital is looking for a price that not only reflects the value of its patents, but the long-term recurring revenue from licensing those patents.

For more:
- see this Apple SEC filing
- see this GigaOM post
- see this Bloomberg article
- see this WSJ article (sub. req.)

Related Articles:
Reports: Google interested in scooping up InterDigital
InterDigital explores putting itself up for sale
HTC buys graphics firm S3 for $300M, gets patent trove
Apple, Ericsson, RIM and others win Nortel patents for $4.5B

Read more about: Google, Apple, Nortel Networks, Patents
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5. GSMA picks Barcelona to host Mobile World Congress through 2018

By Phil Goldstein Comment | Forward | Twitter | Facebook | LinkedIn

The GSMA selected Barcelona, Spain, as the host city for the Mobile World Congress trade show through 2018, ensuring that the Catalonian hotspot will remain the mecca for the industry's largest trade show for years to come.

Barcelona will continue to host the Mobile World Congress trade show.

Barcelona beat out finalists Milan, Munich and Paris for the host spot, and the GSMA said that besides hosting the conference, the city will also develop a range of other programs and activities that will span the entire year.

"We are thrilled to announce that Barcelona will be the Mobile World Capital for the next seven years," GSMA CEO John Hoffman said in a statement. "All of the cities who competed for this title presented extremely innovative and compelling bids, but in the end, Barcelona truly demonstrated that it deserves the title of the Mobile World Capital, with its combination of outstanding exhibition and conference facilities, its transportation and hospitality infrastructure, its commitment to expanding the reach of mobility throughout Barcelona, Catalonia and Spain, and the strong support of the public and private sectors. This is an exciting time for Barcelona and for the mobile industry as a whole."

In a statement, the GSMA said the selection was based on many criteria and took into consideration all aspects of what the host cities can offer. The GSMA said the 18-month process started with 30 cities. In August 2010, the trade group narrowed it down to six--Amsterdam, Barcelona, Cologne, Milan, Munich and Paris--before whittling it down to four cities.

The trade show has been held in Barcelona since 2006, when it was still called 3GSM World Congress. Before that, the show, which regularly draws close to 50,000 attendees, was held in Cannes. The show remains a hotspot for wireless players all over the world, particularly those based in Europe. In recent years, the Consumer Electronics Show in the United States has taken on greater prominence in the pantheon of wireless trade shows.

For more:
- see this release
- see Fierce's coverage of the 2011 MWC

Related Articles:
GSMA CEO Conway steps down, and successor is not apparent
GSMA names six potential cities for Mobile World Congress 2013
Who were the winners and losers at MWC 2011?

Read more about: Mobile World Congress, GSMA
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Also Noted

ISMS Network & Service Assurance for Communication Service Providers - Sept 13, 12 pm ET

4G LTE networks are expected to provide a comprehensive and secure IP-based mobile broadband solution to laptop computers, smartphones, and other intelligent mobile devices. Early 4G deployments have shown that management is not only more complex, but 4G does not solve many of the issues that are inherent to 3G wireless networks. View this webcast to learn how several carriers are tackling these issues.


SPOTLIGHT ON... How will Sprint fare in the second quarter?

Click below to vote on this week's poll:

And click here to vote on previous FierceWireless poll questions.

Quick news from across the Web

@FierceMobiCo: #Google says it rejected $100M royalty deal to use #Java in #Android - FierceMobileContent: Article | follow@FierceMobiCo

> An antenna developer announced it won a lawsuit against Samsung. Article

> T-Mobile USA spent $1 million on lobbying in the second quarter. Article. AT&T spent $4.9 million during the same period. Article

> According to Good Technologies, the Apple iPad is being activated more often in businesses than Android smartphones. Article

> The Research In Motion BlackBerry PlayBook tablet was certified for use in the U.S. government. Article

> Legislators in San Francisco approved a modified bill that requires cell phone makers to disclose radiation information on their products. Article

> TruePosition announced AT&T Mobility renewed its location-services contract for another five years. Release

> AT&T Mobility said it improved its network to handle traffic from the San Diego Comic Con. Release

> Research In Motion announced it acquired JayCut. Post

> HTC released a phone designed to support a Twitter-style service in China. Article

> Nokia's N9 arrived at the FCC. Article

> T-Mobile USA will sell the HTC Wildfire S for $80 with a contract starting Aug. 3. Article

Mobile Content News

> Pandora's CEO said the service isn't filling its entire mobile ad inventory. Article

> Apple is reportedly planning a bid for Hulu. Article

> The number of subscribers using mobile payment options will increase from 102.1 million worldwide in 2010 to 141.1 million in 2011, according to new research. Article

> Twitter is reportedly close to finalizing an $800 million round of funding. Article

And finally... Try on some pants and get a free phone. Article


Events


* Post listing: Click here.
* General ad info: Click here.

> CTO Telecom Summit - September 18-21, 2011 - Montelucia Resort, Scottsdale, AZ

The CTO Telecom Summit, September 18-21, 2011, will bring together CTOs to discuss IT topics and trends currently affecting the industry. The 2011 agenda has been revamped to include focus groups, think tanks, and analyst Q&As, all of which encourage meaningful conversations between delegates, analysts and solution providers. Learn more.

> BlackBerry DevCon Americas - Oct. 18-20 - San Francisco, CA

The showcase event for mobile developers. Join thousands of BlackBerry enthusiasts & experts for sessions, hands-on labs, demos and much more. Learn how you can maximize your investment in mobile development for the BlackBerry platform. Register early & save at www.blackberrydevcon.com.

> The Open Mobile Summit: Registration now open, act now! - November 2-4 2011 - San Francisco, CA

Meet the most influential and the most innovative in converging mobile, Internet, media and apps at the thought leadership event of the year. Act now - click here!

> Appcelerate - November 4, 2011 - San Francisco, CA

Registration now open! Meet the leaders of the Mobile app economy. The CEOs of the hottest app publishers share their secrets on making, marketing and monetizing mobile apps. Don't miss out, this event sells out! Click here for more info.

> Android Developers Conference - November 6-9 - San Francisco

AnDevCon is the world's premier event for Android apps development and management. It features top experts and is 100% Android focused. Fierce subscribers receive a $100 discount off the Full Passport by inserting code MEDIASPONSOR when prompted on the eRegistration page at www.andevcon.com



Marketplace


* Post listing: Click here.
* General ad info: Click here.

> The workhorse of the WiMAX industry is finally available to the rest of the telecom world!

The OOD-54DX-GP-42 WiMAX enclosure from DDB Unlimited, Inc. is the superior design in 4G Telecomm cabinets, constructed of aluminum which is as rigid as steel. This enclosure is NEMA rated at class 250 type 4X and offers the protection needed for any severe outdoor environment. With a large stock and "best in the industry" pricing, this enclosure is top of the line in the 4G telecomm industry. For more info on our full product line click here

> eBook: Path to 4G

In this eBook we will explore the current state of 4G deployments in the U.S., the role of devices in attracting consumers and more. Download this new eBook brought to you by FierceWireless.

> New eBook: Building a Better Backhaul Network

This eBook from FierceWireless we will look at how operators are designing better backhaul networks and planning ahead for the next round of capacity constraints. Click here to download today.

> eBook: OTT Delivery: An Online Video Revolution That Changed TV Forever

This eBook from FierceOnlineVideo, will look at which segment stands to benefit the most from this new delivery vehicle, and which stands to lose, as the nascent video revolution marches forward.Click here to download today.

> Turbo charge your apps with direct access to network API's from Sprint

Network services such as LBS, SMS, MMS, geofencing, presence and more are available through the Sprint Services Framework via a simple Web 2.0 web service. These services can be used for any development interface including browsers, servers, embedded devices and mobile applications. Sign up today!

> New Fierce eBook: Cashing in on the Cloud Services Opportunity

This eBook from FierceTelecom we will explore the trends, benefits and challenges service providers have in building a profitable cloud service business.Click here to download today.

> Looking for a better mobile Web experience?

Experience 20-30% faster page downloads, up to 70% faster JavaScript execution, HD video at 30 fps. Download the White Papers from the Qualcomm Innovation Center, Inc and Qualcomm's Web Technologies and begin to optimize the mobile Web to perform like the wired Web.

> New Fierce eBook: Realizing Mobile Video's Promise

This eBook from FierceMobileContent will look at some of the technologies necessary to deliver a quality mobile video experience as well as delve into the various business models necessary for making this a reality. Click here to download today.



Jobs


* Post listing: Click here.
* General ad info: Click here.

> Radio Network Trainer, Wireless WorkForce in San Diego, CA

Wireless WorkForce Technical Training is seeking one or more full or part-time trainers to train students on the installation of microwave and radio access network equipment at our San Diego California facility. The ideal candidate(s) will meet the following criteria: *Alcatel Lucent radio access network and microwave equipment experience *Extensive knowledge and experience in microwave network installation... Learn more.

> Sr. RF Engineer at SyChip, Inc. in Plano, TX

If you have RF Engineering experience in wireless technology – this is a great OPPORTUNITY to join an exciting company and to become a part of a winning team Murata Electronics North America, Inc., a leading international electronic component sales organization, is seeking a Senior RF Engineer for our Plano, Texas office. Learn More!

> Atoll RF Planning / Optimization Tool Product Support Engineers at Forsk, Chicago, IL

Forsk is looking for support engineers for its RF planning & optimization software, Atoll. Main responsibilities will be: Technical support for existing customers (hotline, emails); Support during evaluations (remote and on-site); Pre-sale/Post-sale training & mentoring sessions... Read more.

> Need a job? Need to hire? Visit FierceWirelessJobs

Announcing FierceWirelessJobs, the new FierceMarkets careers site. Find the perfect job or post your openings at http://www.fiercewireless.com/jobs.