Cell Phone Service

Sprint eyes nationwide femtocell availability

Dan O'Shea — Thu, 31 Jul 2008 09:57:33 -0400

Sprint Nextel has a reputation for launching innovative services before other wireless carriers, an approach that usually gives it an early market edge though sometimes only briefly. Now more than ever, as the company tries to do everything it can to recover from a troubled merger and poor market performance, we can expect Sprint to look for that market edge again by sticking to it innovation guns. The carrier said this week it will expand its Airave femtocell pilot program to make the home base stations available nationwide over its network, with sales of Samsung fentocells set to begin Aug. 17.

Sprint was one of many carriers worldwide conducting femtocells trials or limited pilot programs. It's broader launch will test the viability of femtocells at a time when wireline telcos continue to lose landline market traction. However, Sprint also will take an economic risk in charging for both the femtocell and the service, rather than subsidizing the femtocell.

For more:
- check out this coverage at Telephony

Related articles:
Femtocells have been heading toward a tipping point. Femtocell report
Femtocells might also be on Comcast's agenda. Femtocell report

Vodafone Italia FMC solution hits home

Dan O'Shea — Mon, 02 Jun 2008 08:59:40 -0400

Vodafone Italia has released a new broadband switch/router for the home that could be a key enabler of future fixed-mobile convergence. The carrier's Station box, developed with Huawei Technologies, is for use with ADSL2+ broadband connection and extends WiFi or Ethernet coverage throughout the home, but most notably, it can deliver 3G connectivity to Vodafone's wireless network via a USB connection. The switch/router supports seamless switching between wireline broadband and wireless, so Vodafone's 3G coverage could piggyback its way into customer homes. T-Mobile USA offered a somewhat similar take on FMC with a low-key rollout of VoIP and wireless over broadband in Dallas and Seattle earlier this year.

One of the differences with Vodafone is that if Vodafone expands availability of the station to other markets, it could do so in areas where it increasingly is becoming a wireline broadband provider through acquisition, meaning it can own both the coverage within the home and the broadband pathway into it. The recent wireline acquisition strategy and this pursuit of FMC could very well be remembered as hallmarks of the Arun Sarin era now ending its run at Vodafone.

On another note, could such strategies, if they catch on with carriers, be dangerous to the health of vendors who have bet on femtocell technology? I am not sure, but I am hoping to ask a few industry experts their opinions on the matter when I moderate a femtocell panel on Wednesday, June 18 at NXTcomm in Las Vegas. Hope to see you there. (How's that for a shameless plug?)

For more:
- read this post at GigaOM
- and more coverage at Telecoms: Italy

Related articles:
Orange to enable FMC picocell service. Orange report
T-mobile tries out femtocells; will U.S. follow? Femtocell report

$50 billion Bharti Airtel/MTN deal bites the dust

Tue, 27 May 2008 06:59:54 -0400

A deal worth an estimated $50 billion between India's Bharti Airtel and the South African MTN Group hit the rocks this weekend after takeover target MTN tuned the tables and decided it wanted to takeover BA. BA quickly called off negotiations, saying BA shareholders would have been hurt by the deal that "would not capture the synergies of a combined entity."

Bharti officials had planned to use the acquisition--its first major move outside India--to springboard the company from an Indian company into a multinational. The two providers are of similar size.

MTN officials declined comment.

For more:
See the Gadsden Times article

Related articles:
- MTN left with single bidder, Voda goes own direction. MTN report
- Rumor Mill: Who's bidding for South Africa's MTN? Bharti story

Embarq to end wireless partnership with Sprint

Thu, 15 May 2008 06:59:56 -0400

Independent telco and Sprint Nextel spin-off Embarq confirmed that it will end its wireless resale partnership with its former parent company next year. It is a sad situation, being jilted by one's offspring after they move out on their own--you can no longer tell them to go to their room. With Qwest Communications ending its own resale deal with Sprint recently, Sprint is unfortunately getting a lot of experience with the feeling of not being wanted. Consider its retribution for Sprint claiming Embarq's former CEO Dan Hesse as its own.

Embarq reported has only 112,000 wireless customers; it hoped a Sprint alliance would bring it 1 million. That is a big discrepancy between hope and reality, but you also have to wonder if the hopes may have been unrealistic. In a market full of very competitive national giants (as opposed to being lazy incumbents), can a somewhat smaller telco with less wireless experience really expect to land 1 million customers? And if a telco like Qwest or Embarq truly wants wireless success, is having a wireless resale partnership really enough? It will be interesting to see how much better off Qwest is with new partner Verizon Wireless and how much better a partner Embarq can find.

For more:
- read this report at The Wall Street Journal

Related articles:
- Embarq lost Hesse to Sprint Nextel last December. Embarq report
- First Qwest, now Embarq rethinks Sprint deal Qwest report

Will Pivot's demise be a boon for telcos?

Fri, 02 May 2008 06:59:54 -0400

Some interesting follow ups to Pivot's plunge to obscurity ...

A new survey from Compete says consumers would be very interested in buying their wireless service from their existing telco or cable supplier. The survey, released this week, said an online poll showed 43 percent of consumers would be "likely" or "very likely" to consider cell service from their existing telecom provider. Only 19 percent said they currently have bundles cell service.

Quad-play bundles from AT&T and Qwest Communications generated just under 60 percent awareness, while consumer awareness around services like the Pivot venture remains low.

Some 56 percent of survey respondents currently purchase telco services from multiple providers, most likely due to limited bundle options, being locked into current rates and contracts or not having certain services available to their geographic area.

For more:
- Read the story in TelephonyOnline

Related articles:
Why Pivot mattered
Comcast was pretty excited about Pivot at this time last year.

AT&T looks toward growth in India

Fri, 25 Apr 2008 06:59:55 -0400

AT&T, which this week reported more landline losses but huge wireless gains in the first quarter-its wireless revenue shot up almost 50% to $2.9 billion--looks like it's planning to tap into India's emerging market, reports India's Economic Times.

AT&T is no stranger to the Indian sub-continent. In 2004, it sold its 33% stake in Birla AT&T (now Idea Cellular), but recently has established national and international long-distance licenses there.

But it's admittedly the lure of wireless wealth that has the American giant looking to reestablish its place. Telecom presentation has risen from 2% to 25% in just three years.

For more:
- See the full story in the Economic Times or in Business Week

Russian telcos look to Asia for growth

Fri, 25 Apr 2008 06:59:54 -0400

It's the Cold War all over again.

U.S. telcos looking to expand their market and market share will be facing off with a more aggressive and more competent foe as Russia's telco's-some of the most financially sound companies in the world--look to grow in the nascent southern and southeastern Asian markets, reports Business Week.

Russian mobile use has exploded, growing from 1.35 million users in 2000 to more than 170 million users in 2007. That growth begs a major question, one U.S. telcos have been wrestling with for a while: when customers discover the ease of use and portability of cell phones, what happens to their landlines?

The Russians--led by Mobile TeleSystems--plan to invest billions of dollars in their new targets of opportunity. Dominoes, anyone?

For more:
- Read the full Business Week article

Cable TV firms withdraw from Pivot venture

Thu, 24 Apr 2008 06:59:56 -0400

The major cable TV companies who had joined with Sprint Nextel to create the Pivot wireless venture are pulling out of the deal, news first reported by BroadbandReports. Their withdrawal does not come as a big surprise, as both Sprint and the cable TV firms-Comcast, Time Warner Cable, Cox Communications and Advance Newhouse-had stopped marketing Pivot. Also, there have been reports that some cable players were considering investing in a new Sprint-Clearwire WiMAX joint venture, which put future development of the Pivot offering in doubt.

Pivot reportedly had not had much impact with consumers. This also looks like a case of a new technology and the pace of the mobile broadband evolution altering what should constitute a cable player wireless offering. Though, WiMAX is no sure thing either, if the new joint venture happens, it presumably would allow the cable guys to offer a 4G as cutting-edge as Sprint's eventual offering. And speaking of "eventual," Sprint also has delayed its Xohm WiMAX service roll out because of backhaul capacity and billing system issues.

For more:
- read this Dow Jones wire story at CNN Money
- here's the original story at BroadbandReports
- TelephonyOnline reports of the Xohm delay

Related articles:
Cable companies' interest in investing in the Sprint Clearwire joint venture became apparent last month. Cable report
Timeline--Sprint's ill-fated Pivot. Pivot report

Vodafone says it's not easy being green, but it'll try

Tue, 22 Apr 2008 06:59:54 -0400

In recognition of Earth Day, this bit on Vodafone going green: The company said it's planning to cut CO2 emissions by 50 percent by 2020, using its 2006-2007 reduction emissions as a starting point.

"It is good for the environment but also makes sense for the business," said CEO Arun Sarin. "It resonates from a financial perspective, as improving energy efficiency helps us to control costs. We have reviewed the options, including carbon offsetting, and have concluded that the most effective strategy is to cut our CO2 emissions directly. There are no simple solutions to what is a complex challenge but, through operational changes and technological innovation, we will focus on improving energy efficiency in our networks, which account for 80 percent of our emissions."

The company said it will introduce solar chargers for its handsets to allow users to also cut their own carbon footprints.

Tom Delay, CEO of the Carbon Trust, said Vodafone's move was "what consumers expect and want to see from leading businesses in the UK and abroad."

For more:
- Read ZDNet's full story

Qwest CTO discusses technology trends

Mon, 21 Apr 2008 06:59:55 -0400

Qwest Communications CEO Pieter Poll, in the first installment of a two-part interview with Telephony, discusses the telco's interest in fixed-mobile convergence, wireless broadband and the need for a unified interface to integrated in-home networks. Poll did not offer any revelations, though his positive views on femtocells and Wi-Fi as possible fixed-mobile convergence solutions are intriguing, and his support for open networks and third party application partnerships is right in line with current trends. Poll also discusses Qwest's interest in a unified content interface for multi-device in-home networks, saying the company is working hard to figure this out. Poll's comments follow comments made a few months ago by Qwest CEO Ed Mueller, in which Mueller noted that no one in the industry had so far developed a such a unified interface.

For more:
- check out this interview at Telephony

Related articles:
Qwest also wants to see a faster evolution to 100 Gbps transport Qwest report
Qwest gets ready for the DNC Qwest report