FiOS Now 54% of Verizon Fixed-Line Revenue

Though wireless lead Verizon's quarterly highlights, as typically is the case, the company also reported continued progress with its FiOS business. In fact, FiOS revenues now are 54 percent of total fixed-line revenues. Some observers might well note that it has proven harder than anticipated to convince customers of the value of fiber to the home service.

Verizon recorded 6.3 percent year-over-year increase in wireless service revenues in the first quarter of 2011, with data revenues up 22.3 percent. Service revenues in the quarter totaled $14.3 billion. Data revenues were $5.5 billion, up $1 billion year over year, and represent 38.1 percent of all wireless service revenues. Total revenues were $16.9 billion, up 10 percent year over year.

Retail postpaid ARPU grew 2.2 percent over first-quarter 2010, to $53.52. Retail postpaid data ARPU increased to $20.51, up 17.3 percent year over year. Retail service ARPU also grew 2.2 percent, to $51.88.

Verizon added 1.8 million net new accounts, including 906,000 retail postpaid net customer addition. Retail postpaid churn was one percent.

Verizon also added 207,000 net FiOS Internet and 192,000 net FiOS TV additions, for a total of 4.3 million total FiOS Internet connections and 3.7 million total FiOS TV connections.

FiOS consumer retail revenues now represent approximately 54 percent of total Verizon consumer revenues. The company also saw a 12.8 percent increase in "strategic" enterprise revenues, which now represent approximately 46 percent of total global enterprise revenues.

FiOS Internet penetration (subscribers as a percentage of potential subscribers) was 33.1 percent by the end of the first quarter, with the product available for sale to 13 million premises. This compares with 29 percent penetration at the end of first-quarter 2010.

FiOS TV penetration was 29 percent by the end of first-quarter 2011, with the product available for sale to 12.6 million premises. This compares with 25.4 percent and 11.5 million, respectively, at the end of first-quarter 2010.

Broadband connections totaled 8.5 million at the end of first-quarter 2011, a three percent year-over-year increase. FiOS Internet connections more than offset a decrease in DSL-based broadband connections, leading to a net increase of 98,000 broadband connections from fourth-quarter 2010.

These are the most broadband net additions since the second quarter of 2009. Total voice connections, which measures FiOS Digital Voice connections in addition to traditional switched access lines, declined 8.2 percent to 25.5 million -- the smallest year-over-year decline since first-quarter 2008, the company said.

read more here

iPhones Lead, iPods Decline, iPads Ramp

Apple sold 18.65 million iPhones in its latest quarter, representing 113 percent unit growth over the year-ago quarter. Apple also sold 9.02 million iPods during the quarter, representing a 17 percent unit decline from the year-ago quarter. The Company also sold 4.69 million iPads during the quarter.

Of note: half the company's revenue now comes from sales of iPhones.

Apple Reports Second Quarter Results

VoIP Infrastructure Market "Stabilizing," Dell'Oro Says

RIAA Switches Stance on FM Tuner Requirement for Phones

The Recording Industry Association of America seems to have switched its position on a proposed requirement to mandate FM radio tuners on mobile devices, a move that would have added manufacturing cost to every mobile device.

RIAA now is supporting Representative Darrell Issa's (R-CA) resolution asking Congress to 'oppose any mandate for the inclusion of terrestrial broadcast radio tuners in the manufacture or sale of mobile devices, which would stifle innovation, competition, and consumer choice.'

The resolution is co-sponsored by Anna Eshoo (D-CA) and would lessen chances the requirement would take effect.

Some observers might have noted that although the rule wouldn't have added much end user value, given the relatively light use of FM radio listening that typically occurs when a radio is convenient, in any case.

The average person spends between about two and a half to three hours or more each day with broadcast radio, some will note. See http://www.radioflag.com/social. The issue, from a handset supplier's perspective, is whether over-the-air FM tuner decisions should be mandated or voluntary.

Big Content now opposes FM tuner requirement for smart phones

Fixed-Mobile Convergence: 33% Growth in 2010

When is 33 percent annual growth a disappointment? When you thought it would be higher. Frost & Sullivan estimates that in 2010, the overall worldwide enterprise fixed-mobile convergence market reached 3.33 million FMC units shipped, growth of 32.7 percent year-over-year.

While this growth is significant, it’s lower than what Frost & Sullivan had anticipated, the company says Analysts suspect that emerging enterprise mobility solutions such as collaborative applications, team spaces, social tools and enterprise tablets with built-in mobility software clients are competing for the attention of both IT and technology vendors. Frost analysts suspect that diverted attention from FMC.

Frost defines a basic FMC solution as one that delivers first-level PBX-to-mobile extension, including such capabilities as single-number reach, simultaneous ring, single voicemail, and call-control features. An advanced FMC solution requires a mobile client to deliver call control and PBX features to the mobile device, as well as more advanced capabilities such as mobile and corporate IM/presence, unified messaging, conferencing, and dual-mode voice call handoff (manual or automatic) between networks.

In some ways, the slower than anticipated growth is not new. Most forms of enterprise IP telephony have been adopted more slowly than many of us had predicted.

FMC: Strong Growth, Despite Unmet Potential

Will Cloud Computing Change Volume Discounts?

A U.K. cloud computing service provider has become the first supplier to deal with the entire U.K. government as a single customer. Huddle said it has developed common terms and conditions and a pricing model for all of its business with government.

That implies a level of volume discounts and standardization of delivery that would have been difficult for suppliers in the past, given the greater labor intensity of legacy implementation methods. Volume discounts are standard in just about any business. What is new, in the software business, is the potential scale of the buyer base that might be aggregated for purposes of pricing discounts.

Government agrees terms with cloud supplier

Apple Earns Half its Revenue from iPhones

Apple now earns half its revenue from selling iPhones. Half. listen to the quarterly earnings call here.

That's why "Apple" isn't "Apple Computer" anymore.

Why is LTE Delayed in Europe?

Whereas LTE and LTE Advanced will surely be on the network upgrade paths for most operators, there are impediments to rapid and widespread switching in Europe.

Unavailability of new spectrum is the major temporary barrier, though there are other impediments as well. Spectrum caps will fragment bands and could prevent the full spectral-efficiency benefits that can be derived from large LTE channel widths of 20MHz or more.

HSPA-based technologies are continuously being improved to include many of the same capabilities that are in LTE and spectrum refaming in the 900 MHz band will be mainly with HSPA.

Whereas the U.S. auctioned off its 700MHz digital dividend spectrum- which became available with the switch from analogue to digital TV- in early 2008, Europeans have mostly yet to decide how to allocate their 800MHz digital dividend spectrum.

Mallinson: Why is LTE still delayed in most of Europe?

Foursquare Wants to Move from Check-Ins To Recommendations

Foursquare co-founder Dennis Crowley says the future of Foursquare, the location based service is "what its users are going to do, not what they are doing."

Right now Foursquare essentially tracks the realtime movements of its more than eight million users.

In the future, Foursquare wants to make use of the loads of data it’s collected on these realtime movements (600 million check-ins) to help users plan what they should do next.

From Check-Ins To Recommendations: A Glimpse Into The Future of Foursquare

Mobile Video Revenue: Close to $25 Billion by 2014

Analysts at the Yankee Group estimate mobile video revenues will approach $25 billion globally by about 2014.

That forecast assumes significant mobile user take rates for various types of for-fee video, both subscription and single purchase.

AT&T Mobile Revenue Grows: It Has To

AT&T wireless data revenues, driven by messaging, Internet access, access to applications and related services, increased nearly $1 billion, or 23.9 percent, in the first quarter of 2011.

AT&T had its "best-ever first-quarter increase in total wireless subscribers," up two million to reach 97.5 million subscribers in service, with gains in every category, AT&T says.

AT&T also reported best-ever first-quarter smartphone sales of more than 5.5 million.

Those sorts of results ultimately will be important for many global mobile operators, given the gradual decline of voice revenues, and the importance of the voice revenue stream to total revenues, as this Yankee Group graphic indicates.

read more here

Mobile Money Could Be 5% of Africa Mobile Operator Revenue in 2015

As of September 2010, at least 19 countries in sub-Saharan Africa and North Africa had "mobile money" service available, according to Pyramid Research, which forecasts that by the year 2015, revenue generated from mobile money services could represent around five percent of total operator revenue on the continent. 

read more here

FCC Will Slam U.S. Broadband Again

The Federal Communications Commission is expected to report soon that broadband providers are not deploying services in a reasonable and timely way to all Americans. That wouldn't be surprising: the FCC said so in 2010, and it is hard to see what could have changed in just a year.

That predictably will be irritating to most service providers, who have been steadily upgrading broadband facilities almost across the board, using 4G wireless, DOCSIS upgrades and more fiber deployments at a steady clip over the last year.

Comcast, the largest provider of cable internet in the country, just announced that is provides 40 million residential homes the ability to buy 105 Mbps service. See http://www.comcast.com/About/PressRelease/PressReleaseDetail.ashx?PRID=1067.

Verizon and lots of other cable companies also have been selling 50 Mbps service for a couple of years, at least. The issue is not "availability" in a growing number of cases, but "purchasing." Some observers might argue that the prices charged for either 50 Mbps or 100 Mbps service are "too high." But that is a different matter than claiming such access is not available.

Lots of people make rational choices to buy fixed-line service at lower speeds, say 10 Mbps to 20 Mbps, as a better value-price proposition.

Also, U.S. subscribers have access to multiple national and regional wireless services running at fourth-generation speeds. Some observers likewise will object that these wireless offerings also are "too slow." But some observers are going to see a growing disconnect between what the FCC claims is the case, and what generally-available offers suggest.

FCC poised to give broadband deployment a failing grade

Loopt introduces location-based Q&A

Loopt, a provider of location-based services, today announced "Qs," a new feature that allows users to answer questions and see other user’s responses in any physical business location. People might want to answer questions such as "where is the best happy hour special right now?"

Most people, perhaps as few as one percent, actually create the content displayed by location-based services such as Loopt. The company hopes simple "question and answer" formats will encourage more people to contribute.

The company plans on releasing the new feature first in San Francisco and then roll out from city to city.

Loopt introduces location-based Q&A feature

2% of U.S. Employess Work From Home, 20 Million to 30 Million Telecommute Some of the Time

With gas prices breaking $4 a gallon in some markets, $5 in a few, it is inevitable there will be a new wave of thinking about the benefits of telecommuting or telework. About two percent  of the U.S. employee workforce (2.8 million people, not including the self employed or unpaid volunteers) work from home, according to the American Community Survey.

The Telework Research Network also estimates that 20 to 30 million employees currently work from home at least one day a week. About 15 to 20 million employees must travel at least part of the time for work. See this.

There also are 10 to 15 million home-based businesses and some three million full time home-based businesses.

Europe Still Thinks Market Can Handle "Net Neutraltiy" Issues

Oddly enough, some would note, the European Community continues to believe that market forces and competition will protect user experience better than new regulations, a stance at odds with the Federal Communications Commission.

Of course, it always is difficult to compare regulatory environments across national boundaries, as the concrete circumstances in each country can vary quite a lot. The EC generally features strong wholesale requirements compared to the U.S. market, for example, while the U.S. unusually features robust competition to dominant telcos from cable operators.

Generally speaking, robust wholesale arguably is the better approach, under circumstances where alternative facilities-based networks are not likely to develop.

RIM PlayBook: More Play Than Work

Research in Motion long has had a dominant role as an enterprise device supplier. But its new PlayBook tablet might not. You might wonder whether the PlayBook is an "enterprise-focused" tablet, or more a tablet that could be used in the enterprise.

Some early reviews are mixed on that score. Some say it is a bit inconvenient to get back to enterprise data, sometimes requiring a separate BlackBerry. That does offer a higher degree of data protection, but arguably isn’t convenient. Most tablet users today want their work email on it too, and more likely they won’t have a BlackBerry to connect.

Unlike other RIM devices, the PlayBook offers lower battery life than the competition, and less stability.

RIM PlayBook: More Play Than Work

eBay Gets Into "Deal of the Day" Business'

eBay has purchased Where.com, which creates apps for listing merchants, restaurants, and bars while serving deals for such establishments based on user location. The deal gives eBay four million active users looking for deals from about 120,000 retailers.

Incorporating eBay's popular digital payment product, PayPal, could help the eBay-Where.com union compete against an emerging list of location-based daily deals players.

eBay Purchase Shows 'Where' Deals Niche Is Heading

Online Now 8% of Home Video Spending

Consumers are still using DVDs and Blu-ray Disc to watch movies more than all other digital-video options combined, says the NPD Group. . Over the past three months, 77 percent of consumers reported watching a movie on a DVD or BD, unchanged from 2010. Those who viewed movies from physical discs reported watching an average of four hours per week, which is also unchanged from the prior year, as well.

By comparison 68 percent watched a movie on a TV or cable network channel, 49 percent at a theatre, and 21 percent used paid video on demand through their TVs, says NPD.

Consumers reported that 78 percent of their home video budgets went to the purchase and rental of DVD and BD, including online and in-store retail purchases and rentals, while 15 percent was spent on video subscription services like Netflix that offer a mix of physical and streaming rentals.

Digital video downloads, paid streaming, paid transactional video on demand (VOD), and pay per view (PPV) comprised the remaining eight percent. Overall per-capita spending on home video fell by two percent, though.

DVD and Blu-ray Disc (Still) Dominates Home Video Movie Viewing and Spending

60% of Consumers Have Cut Back on Driving

As the national average for a gallon of gas edges closer to $4-a-gallon, consumers have cut back on their driving, reports The NPD Group. That should come as no surprise. That's what consumers always do when fuel prices climb.

The number of gallons purchased are down 1.2 percent from a year ago, NPD says. In addition, a consumer survey conducted by NPD in January 2011 to gauge what price level would be required to cause consumers to drive less suggests that at today's gas prices (national average is $3.79-a-gallon) approximately 60 percent of consumers are cutting back on driving already.

That should have implications for retailers of all sorts. Higher gas prices mean less discretionary income left for other purchases. What remains unclear is whether online retailers could benefit, if shoppers drive less to physical retail outlets.

Sixty Percent of Consumers Have Cut Back on Driving Due to Higher Gas Prices, NPD Reports