Tuesday, March 8, 2011

Sirius Canada Uses Fonolo

Fonolo, the company that makes it easier and less frustrating to call large companies, announced today that Sirius Canada, the country's leading audio entertainment company, has signed an agreement to use Fonolo to improve the calling experience for its subscribers.

Fonolo's visual dialing solutions enable callers to connect directly to the right agents, bypassing phone menus and eliminating hold times. This technology, first pioneered with Fonolo's award-winning consumer service, now empowers businesses to improve the customer experience while reducing call center costs. Since October of 2010, Fonolo has been available on the Sirius website, contributing to a notable rise in caller satisfaction.

"Content is King" Again?

Over the past several decades, lots of observers have debated whether "distribution" or "content" is "king" of the ecosystem. Earlier in the history of the cable TV business, when networks were more limited in capacity, shelf space was limited, cable had few competitors and so "distribution" seemed to be "king."

As capacity has ceased to be such a choke point, and as competitive distribution mechanisms have flourished, though, one might have argued that "content" once again grabbed back some of the power.

That of course has lots of implications for distributors, but it would be very hard to find many examples of "distributors" having the upper hand in the professional video ecosystem. On the other hand, one might well argue that user-generated content remains an area where distributors such as Facebook and Google continue to have significant power, compared to content providers.

Studio executives seem to recognize in ways they did not generally seem to believe a couple of years ago that online distribution is a valuable channel they will use. They just don't intend to allow distributors to take a disproportionate role in the ecosystem, and that also includes protecting existing cable, satellite and telco distribution channels from cannibalization.

A Great Way to Waste 2 3/4 Minutes

Jen Aniston, Smartwater, lots of yellow lab puppies, dancing babies and other time-wasting images....

U.S. Mobile Sustainable Market Share Might Require Consolidation

Huge fixed costs explain why the number of facilities-based access providers seems always to be a small number, no matter what regualtory frmaework is employed, economists at the Phoenix Center for Advanced Legal and Economic Policy Studies  have argued. In fact, the starting point for analysis should always be that there were be only a few facilities-based providers of any communications or video service, notably in the terrestrial facilities business, and especially when referring to networks using some form of wired access. See read more here

By direct implication, excessive competition will, over the longer term, "always" revert to a small number of providers, in large part because only a small number of providers can actually invest and make a profit. To be sure, the analysis is a bit different in a multi-product market, than in a single product market. In other words, the hurdle rates for a fixed-line provider with just one product will have different dynamics than markets where each contestant sells three to four anchor products.

The obvious example is minimum market share in the fixed-line market where entertainment video, voice and broadband access are the anchor products. An executive from a rural cable TV provider, at a time when the sole product was "cable TV," once was asked what would happen if the company's penetration rate of homes dropped from 70 percent to 65 percent. "We'd be out of business" was the reply, so sensitive was that firm to the arrival of a single competitor, when there was but one product.

In today's market, where three products are key, the hurdle rate can be far lower, in part because even a smaller number of subscribing households might buy two to three products, allowing any single contestant to survive or thrive on a smaller base of customers. In other words, were that same company able to sell voice, broadband access and video, meaning three separate revenue streams, even shrinkage of video customers substantially below 65 percent would not be a catastrophy, provided an equivalent or greater revenue stream could be generated from sales of the additional products, even to fewer numbers of customers.

Still, there are limits. Consider a sample market where entry costs are equivalent for all facilities-based contestants at 15 units. Where one firm operates, it gets 100 percent of possible profits. Where there are two contestants, profit falls to 40 units. Where there are three contestants, profit falls to 20 units per firm. With the potential entry of a fourth firm, profits drop to 12 units, leaving the fourth firm under water. The fourth firm rationally decides not to enter the market.

The particulars of each real-world market will diverge from the hypothetical example, but the point is that there are some clear limits to the potential profitability of contestants in the fixed-line access business, even when triple play services are possible.

Verizon Wireless has the highest market share in the U.S. mobile market. It also has the highest profit margin. AT&T is second in share, and second in margin. Sprint is third in share, and third in margin.

Why You Should Buy A Xoom Instead Of An iPad

There are a handful of features that some think are enough to justify buying an Android tablet over an iPad, argues Steve Kovach of Business Insider. Apple iPad fans probably won't be swayed by the arguments.

Sprint and T-Mobile USA in Merger Talks?

Deutsche Telekom AG has held talks to sell its T-Mobile USA unit to Sprint Nextel Corp. in exchange for a major stake in the combined entity, Bloomberg said. “In general, all options are open in the U.S. -- the sale of the whole business or of parts,” Deutsche Telekom Chief Financial Officer Timotheus Hoettges said read more

Talks have been on and off, and a deal may not be reached, sources suggest. Such rumors have floated before, and observers have noted the high risk of integration, with any new entity operating multiple different networks (GSM, CDMA, iDEN, WiMAX). Of course, Sprint has said it will shut off the iDEN network, and almost certainly will light a new Long Term Evolution network. Granted, it is typical for any major carrier to support at least two networks concurrently. Supporting four networks would be quite challenging, in terms of gaining scale economies from any merger of T-Mobile USA and Sprint. read more.

On the other hand, the reason such rumors or talks have happened is that the U.S. mobile market arguably has too many contestants for a stable market structure. Indeed, there are two schools of thought on a potential merger between Sprint Nextel and T-Mobile USA.

On the one hand, notes Bernstein Research analyst Craig Moffett, the U.S. wireless market is “crying out for consolidation.” In most local markets, there are as many as seven different price actors, Moffett said. Most observers say that amount of competition in a capital-intensive business such as mobility is not stable over the long term. A merger would create three major facilities-based providers, allowing the new entity to compete more evenly with AT&T and Verizon Wireless.

But among the big issues are the chores of integrating incompatible networking technologies, since over the long term it will be difficult to obtain operating economies without reducing the number of supported protocols. read more.

The rumored talks might not lead to an actual deal. Citigroup analyst Michael Rollins reportedly estimates the odds of a deal as being under 30 percent. He also cites the significant integration risk; and he says there is only a 50 percent to 60 percent chance that regulators would approve such a combination. Some might well note that, historically, mergers between weaker partners often fail, over the long term, to close a gap with a market leader. Sometimes, the result is simply a larger, but still weaker contestant unable to close the gap with a market leader.

Still, the current market structure likely will remain unstable for both Sprint and T-Mobile USA so long as both remain independent entities. The market share gap between either of the firms and AT&T and Verizon Wireless is substantial and consequential. There is a reason neither Sprint nor T-Mobile USA have rights to sell the Apple iPhone or iPad. So long as AT&T and Verizon have something on the order of 30 percent to 33 percent share, the other two contestants, with shares in the 11 percent to nine percent range, will face hurdles.

PayPal Explains How to Use Payments in Android Apps

PayPal explains how to embed PayPal mobile payments features into Android apps. If you are interested in the process, this 30-minute video will explain how it gets done.

Low Banking Usage in Sub-Saharan Africa Creates Mobile Opportunity

Sub-Saharan Africa has the lowest deposit institution penetration in the world standing at an average of 16.6 percent compared to 63.5 percent in other developing countries, the African Development Bank says. “It is this gap in the financial services market that is creating a unique niche for mobile phone banking to develop on the continent, enabling a growing number of people to access financial services for the first time,” ADB says.

Even Africans with bank accounts often face high charges for moving their cash around, due to high transaction costs. It is this gap in the financial services market that is creating a unique niche for mobile phone banking to develop on the continent.

Monday, March 7, 2011

35% of U.S. Mobile Subs Downloaded Apps in January 2011

In January 2011, 68 percent of U.S. mobile subscribers used text messaging on their mobile device, while browsers were used by 37 percent of subscribers (up 0.8 percentage points). Some 35 percent of subscribers downloaded applications, an increase of 1.6 percentage points. Accessing of social networking sites or blogs increased 1.1 percentage points, representing 25.3 percent of mobile subscribers. Playing games represented 23.7 percent of the mobile audience, while listening to music represented 16.5 percent (up 1.1 percentage points).

"Go To Meeting" for Skype

Skype has announced a strategic partnership with Citrix, adding Citrix's "GoToMeeting" capabilities to the Skype Enterprise desktop experience.

Is Best Buy Planning To Give iPads To All Its Sales Associates? - Elizabeth Woyke - Mobilized - Forbes

Best Buy reportedly is considering arming all its on-floor sales associates with iPads, at least in part to level the playing field with respect to smartphone and tablet-armed shoppers. The devices would allow sales personnel to provide information and possibly to help speed actual checkout operations.

1% of Social Media Users Create All the Content

The overwhlelming majority of social media users--90 percent--are "lurkers." They visit, they read and watch, but they don't post or comment. "Contributors" or "commenters" represent nine percent of social media visitors. "Creators" are the one percent of social media users who actually create content.

180 Million Tablets to be Sold in 2014?

There are just over 20 million tablets in use in early 2011, but sales are ramping so fast that some predict as many as 180 million will be sold in 2014.

Youth a Segment, or Lead Indicator?

Marketers often recommend segmentation of potential customer bases, for logical reasons. There nearly always are distinct preferences among generations, age and other "groups."

Beyond that, one might argue that technology behaviors now color traditional segmentation in new ways that make "youth" something more than an age segment.

"Young people have a pattern of discovering new methods, after which older generations later catch on and outnumber them," says Graham Brown, cofounder and partner of research firm Mobile Youth.

In that sense, "youth" segments simply are the "lead adopters" of new behaviors enabled by technology, that nevertheless become "typical" behaviors for people in every age demographic. Seen in that light, one might argue it is important to know technology-enabled behavior in the "youth" segment because it will spread, often quickly, to all the other age segments rather quickly.

Sunday, March 6, 2011

Will 99% of New TV Channels Be Hosted on YouTube?

"I think 995 of the next 1,000 TV channels will be created on YouTube," said Hunter Walk, YouTube's director of product management.

"The Web enables you to build the kinds of channels that wouldn't have made sense for cable, in the same way cable enabled you to build content that wouldn't have made sense for broadcast," said YouTube CEO Salar Kamangar. "We want to enable the next-generation MTV, the next-generation CNNs."

At Alphabet, AI Correlates with Higher Revenue

Though many of the revenue-lifting impacts of artificial intelligence arguably are indirect, as AI fuels the performance of products using ...