“We’re now entering an era around the democratization of commerce,” Kleiner Perkins Caulfield and Byers partner Chi-Hua Chien argues. As you might expect, that means smaller firms now will have opportunities not possible before.
The past, he said, has been about “mass aggregation,” with companies such as Safeway and Wal-Mart rising to the top of the commerce space by simply being the best at aggregating a suite of products into one spaceTechCrunch reports.
Today, credibility can be established by smaller players using a variety of tools such as social media, while real estate and inventory can be outsourced much easier.
Even in the traditional "big box" retailing space, retailers such as Best Buy are rethinking the "big box" economics.
One reason there has been so much attention paid recently to "offers," "deals," mobile commerce, mobile wallet and mobile payments, as well as the use of smart phones and tablets as part of the shopping experience, that is why.
Wednesday, May 23, 2012
The Next Wave Of Tech Disruption Will Hit Commerce
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
Usage-Based Pricing is Not "Anti-Consumer"
An analysis of consumer benefits or costs from usage-based telecom service pricing suggests that regulatory oversight may not improve well-being even in the presence of clear anti-competitive conduct by broadband providers, the Phoenix Center for for Advanced Legal and Economic Public Policy
Studies argues.
Oversight is something regulators and politicians like to say they are conducting. But it won't help, in terms of consumer benefits, the Phoenix Center analysis suggests.
In fact, such practices as charging over-the-top video service providers a fee to reach consumers, though considered an outrage by some policy advocates, actually helps end users.
Studies argues.
Oversight is something regulators and politicians like to say they are conducting. But it won't help, in terms of consumer benefits, the Phoenix Center analysis suggests.
In fact, such practices as charging over-the-top video service providers a fee to reach consumers, though considered an outrage by some policy advocates, actually helps end users.
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
New Undersea Cables Drive Retail Capacity Prices Lower
A recent wave of new submarine cable builds and upgrades to existing cable systems has brought an influx of submarine cable capacity to many historically high cost markets, including Africa, the Middle East, Southern Asia, and Latin America, TeleGeography reports.
New cable builds in Asia have greatly increased both supply and competition in the region, driving down prices. Median lease prices for a 10 Gbps wavelength between Los Angeles and Tokyo fell 35 percent between Q1 2011 and Q1 2012, and at a compounded rate of 33 percent between Q1 2009 and Q1 2012.
Prices of 10 Gbps wavelengths between Hong Kong and Singapore fell 10 percent between Q1 2011 and Q1 2012, to $43,935 per month, and declined at a compounded 31 percent annually between Q1 2009 and Q1 2012.
10 Gbps Median Monthly Lease Prices, Q1 2012 
Source: TeleGeography
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
Mobile Online Commerce Grows 400% in a Year
About 64 percent of U.K. smart phone owners are now using their mobile devices to shop online, a number that has quadrupled since June 2010, eDigitalResearch and Portaltech Reply say.
The study also found that an impressive 84 percent of smartphone owners have used their devices to browse websites, with one third (33 percent) doing so on a daily basis, while three quarters (77 percent) are using their smartphones to research products.
Download the study here.
The study also found that an impressive 84 percent of smartphone owners have used their devices to browse websites, with one third (33 percent) doing so on a daily basis, while three quarters (77 percent) are using their smartphones to research products.
Download the study here.
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
Can't Keep Up with Mobile Marketing? There's a Reason
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
34% of Mobile Ops Plan to Launch LTE in 2012
A majority of mobile operators plan to launch Long Term Evolution services in 2012 or 2013, according to a recent survey by Informa Telecoms & Media. Almost 60 percent of operators say that they will launch 4G services n 2012 (33.7 percent) or next (24.9 percent), while the vast majority – 70.5 percent – believe there is a viable business case to launch 4G today, Informa Telecoms & Media says.
The survey shows that the main reasons operators are launching LTE is to create new revenue streams (34.7 percent); to increase capacity to offer mobile broadband services (23.3 percent); and to build brand value through technology leadership (31.3 percent).
The survey shows that the main reasons operators are launching LTE is to create new revenue streams (34.7 percent); to increase capacity to offer mobile broadband services (23.3 percent); and to build brand value through technology leadership (31.3 percent).
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
Tuesday, May 22, 2012
Verizon Goes Over the Top for Internet Video Aggregation
Verizon Wireless essentially is going to provide a search engine that aggregates video, rather than launching a branded video service, and is an example of content curation. The big problem with Internet video is finding something interesting to watch, and that is the problem Viewdini hopes to help solve.
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
Xfinity Voice Introduces Free Phone Calls Over WiFi
Comcast is introducing a Wi-Fi calling service that uses a subscriber's home phone number and "Voice 2go" feature of the Xfinity Connect Mobile app.
Customers can make free domestic phone calls and send text messages at Wi-Fi hotspots.
But the app also supports mobile calling using 4G or 3G mobile data plans as well.
Customers also can send and receive text messages domestically and internationally to more than 40 countries, including Canada, Brazil, China and, soon, Mexico, Comcast says.
Customers can make free domestic phone calls and send text messages at Wi-Fi hotspots.
But the app also supports mobile calling using 4G or 3G mobile data plans as well.
Customers also can send and receive text messages domestically and internationally to more than 40 countries, including Canada, Brazil, China and, soon, Mexico, Comcast says.
Xfinity Voice also now offers up to four "Personal Phone Numbers" that can be assigned to family members, and are separate from the primary account holder’s phone number.
One example is that a child can use an iPod touch to communicate, eliminating the need to subscribe to an additional monthly mobile service plan.
These features will be coming soon to new Xfinity Voice customers, so the business model is sales of Xfinity voice lines and retention of those customers, not ancillary revenue from use of the app.
The Xfinity Connect Mobile app can be downloaded for free on the iTunes Store or Android Market as well as online through Xfinity Connect.
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
Sprint Changing Personal Hotspot Plans
Beginning May 18, 2012, Sprint is launching two new mobile hotspot add-ons for smart phone and tablet customers. One plan costs $19.99 a month and comes with 2 GBytes of combined 3G/4G on-network data. The other plan costs $49.99 a month for 6 GBytes of combined 3G/4G on-network data.
Additional on-network data usage above the monthly allowance is charged at $0.05 per MByte, , Sprint says
Sprint will be ending its current 5 GByte for $29.99 a month plan. Customers who currently have this mobile hotspot add-on can continue on this plan until they cancel service.
At least in part, the move is expected to entice more users to add the mobile Wi-Fi hotspot feature, since the entry-level plan costs less than previously. The larger plan, at higher cost, might be a way of resetting Sprint pricing more in line with its competition, in terms of value and price.
Additional on-network data usage above the monthly allowance is charged at $0.05 per MByte, , Sprint says
Sprint will be ending its current 5 GByte for $29.99 a month plan. Customers who currently have this mobile hotspot add-on can continue on this plan until they cancel service.
At least in part, the move is expected to entice more users to add the mobile Wi-Fi hotspot feature, since the entry-level plan costs less than previously. The larger plan, at higher cost, might be a way of resetting Sprint pricing more in line with its competition, in terms of value and price.
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
Verizon to Hike FiOS Speeds in June 2012?
Verizon will be raising the speed of several of their FiOS broadband tiers very soon, according to DSL Reports. Reportedly, Verizon's symmetrical 25 Mbps tier will soon be changed to 50 Mbps downstream and 25 Mbps upstream. The company's current symmetrical 35 Mbps tier will be increased to 75 Mbps downstream and 35 Mbps upstream.
Verizon also reportedly has been considering offering a 300-Mbps service that would be aimed at business customers.
One wonders what will happen to pricing for the new tiers, though price hikes would not be unexpected.
Verizon also reportedly has been considering offering a 300-Mbps service that would be aimed at business customers.
One wonders what will happen to pricing for the new tiers, though price hikes would not be unexpected.
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
Monday, May 21, 2012
Uberconference Launches
Uberconference is a new audio conferencing service created by FireSpotter Labs. It offers what it hopes will be the easiest audio conferencing tool, dispensing with user PIN codes. Participants can just dial into the conference number and will be automatically authenticated based on their phone number. From any computer, anyone in the call can see the names, photos, and other information of the others in the call.
The display shows the current speaker, and the organizer has a number of helpful tools to keep the conference running smoothly, Uberconference says. Organizers can record calls, mute participants to get rid of background noise or put “earmuffs” on people they may not want to hear part of the conversation.
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
Will LTE Adoption Grow Faster Than Earlier Broadband Networks?
Generally speaking, the latest consumer electronics devices, applications and services get adopted faster than older analog products.
So it is not surprising that Strategy Analytics predicts fourth generation Long Term Evolution will be adopted faster than earlier CDMA, GSM and WCDMA and HSPA networks.
Skeptics might argue that "faster" is a relative term. It might take eight to 10 years for massive adoption to occur.
So it is not surprising that Strategy Analytics predicts fourth generation Long Term Evolution will be adopted faster than earlier CDMA, GSM and WCDMA and HSPA networks.
Skeptics might argue that "faster" is a relative term. It might take eight to 10 years for massive adoption to occur.
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
Changing Revenue Metrics Always Show Industry Evolution
Back in the middle 1990s, many U.S. service providers, especially competitive local exchange carriers, began reporting usage metrics in a different way. For most of its history, "phone lines" made sense as a key metric for telcos, just as "basic video" customers made sense for cable TV operators.
But as each of those businesses began to change, different metrics were needed. For CLECs, the perceived better metric was "voice grade equivalents," since much of the revenue came from private line revenue, typically to support delivery of Internet access and voice trunks.
You might argue that such changes also were a way of trying to refocus investor and analyst attention, but there still was a logic to the practice, as "voice lines" were starting to become less important, as broadband access revenue become more important.
In a similar way, once cable operators started selling voice and broadband access, "basic video subscribers" became less meaningful as a key metric. Instead, "revenue generating units" became more significant, although, as always, there is an effort to redirect analyst and investor attention.
Something like that is about to happen in the mobile business, as average revenue per user becomes less important for some providers, especially Verizon Wireless, which expects to see a big shift to "revenue per account," as it introduces family plans for mobile data, and as it moves into machine-to-machine applications, where average revenue per "user" (in this case telemetry devices) is modest.
In fact, given enough volume, M2M sensor connections, which might represent only a couple of dollars a month of revenue, will distort all the other older average revenue per user metrics that have assumed a "user" was a person with a mobile account.
During Verizon's first quarter 2012 conference call, CFO Fran Shammo said Verizon is not disclosing total connections because "M2M is more complicated." He said the main thing for investors to focus on is that the company's revenue is increasing and it is adding more customers.
Shared data plans likewise will require different metrics, according to a transcript of the event. As voice, messaging and mobile broadband shift, for many users, to a "shared account" basis, it will be harder to compare "device" revenue in a meaningful way.
On current family plans for voice and data, the first device might "cost" more than a hundred dollars a month, while each additional phone might cost only scores of dollars, while stand-alone mobile broadband dongles, or personal Wi-Fi hotspot services have different revenue metrics as well.
Those changes in "how to measure" and "what to measure" always are signs that a business is changing.
But as each of those businesses began to change, different metrics were needed. For CLECs, the perceived better metric was "voice grade equivalents," since much of the revenue came from private line revenue, typically to support delivery of Internet access and voice trunks.
You might argue that such changes also were a way of trying to refocus investor and analyst attention, but there still was a logic to the practice, as "voice lines" were starting to become less important, as broadband access revenue become more important.
In a similar way, once cable operators started selling voice and broadband access, "basic video subscribers" became less meaningful as a key metric. Instead, "revenue generating units" became more significant, although, as always, there is an effort to redirect analyst and investor attention.
Something like that is about to happen in the mobile business, as average revenue per user becomes less important for some providers, especially Verizon Wireless, which expects to see a big shift to "revenue per account," as it introduces family plans for mobile data, and as it moves into machine-to-machine applications, where average revenue per "user" (in this case telemetry devices) is modest.
In fact, given enough volume, M2M sensor connections, which might represent only a couple of dollars a month of revenue, will distort all the other older average revenue per user metrics that have assumed a "user" was a person with a mobile account.
During Verizon's first quarter 2012 conference call, CFO Fran Shammo said Verizon is not disclosing total connections because "M2M is more complicated." He said the main thing for investors to focus on is that the company's revenue is increasing and it is adding more customers.
Shared data plans likewise will require different metrics, according to a transcript of the event. As voice, messaging and mobile broadband shift, for many users, to a "shared account" basis, it will be harder to compare "device" revenue in a meaningful way.
On current family plans for voice and data, the first device might "cost" more than a hundred dollars a month, while each additional phone might cost only scores of dollars, while stand-alone mobile broadband dongles, or personal Wi-Fi hotspot services have different revenue metrics as well.
Those changes in "how to measure" and "what to measure" always are signs that a business is changing.
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
Wireless Churn: Most Mobile Companies Lose 100% of their Customers Every 3 Years
With just a few exceptions (AT&T, Verizon Wireless and US Cellular), most mobile service providers lose enough customers each month that they must replace the equivalent of 100 percent of their customer bases at least every three years.
That also explains why mobile service providers spend so much money on advertising. Two-year contracts and family plans partly explain why some of the service providers are doing better on the churn front. Device selection also helps.
That also explains why mobile service providers spend so much money on advertising. Two-year contracts and family plans partly explain why some of the service providers are doing better on the churn front. Device selection also helps.
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
AT&T, Verizon Wireless Earn 68% of all U.S. Mobile Data Revenue
The U.S. mobile data market grew six percent quarter over quarter and 21 percent year over year to reach $18.7 billion in the first quarter of 2012, Chetan Sharma reports.
Data now generates more than 40 percent of the U.S. mobile industry service revenue, and virtually all observers expect that percentage to keep growing.
In 2012, Sharma expects mobile data revenues in the U.S. market will reach $80 billion.
Verizon Wireless and AT&T between them have two thirds of all U.S. mobile subscribers and earn 68 percent of all mobile data services revenue.
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
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