Stronger FiOS Growth than DSL at Verizon

Verizon digital subscriber line growth in the first quarter was up sequentially about six percent, a fact that leads some to conclude that DSL adds are slowing. There's some truth to that, caused primarily by growing saturation of the broadband access market.

FiOS account additions were up to 23 percent, sequentially, though. Some customers logically are upgrading from DSL to FiOS, though.

Some observers might argue that Verizon's churn rate is up. That's obviously caused by current DSL customers upgrading to FiOS. Excluding the internal upgrades, the churn rate for DSL services hasn't budged, Verizon executives say.

In the most-recent quarter FiOS net subscriber counts were up by one million, year over year, while net DSL subs were up about 170,000.

Unlimited Mobile Plans Are Revenue Accretive

Despite fears of a new and devastating price war caused by unlimited calling plans, the opposite seems to be occurring.

Quite to the contrary, the new plans seem to be encouraging users to trade up, and add more-capacious data plans as well, at least at Verizon Wireless.

"In the first quarter our unlimited plan accounted for 13 percent of our single line retail post-paid adds, says Denny Strigl, Verizon Communications COO. "That compares to about four percent choosing the $99 or above tiers before the plan was launched." Lots more users seem to be trading up to the more-expensive plans, in other words.

"We’re seeing good growth in high tier voice plans," says Strighl. There are churn benefits, which was the impetus for the plan. What might have been unforeseen is the increase in usage of data services and aggregate growth of customers moving up to the $90 plan from lower-revenue plans.

"Additionally, a high percentage of the new customers who choose an unlimited plan also choose our select or premium data packages," says Strigl.

"In March, which was the first full month after the launch, our average daily disconnects declined six percent from previous months and that is at the voice access tier $79 and above," says Strigl.

It appears that there are more users willing to trade up than there are heavy users finding they can save money by trading down, in other words.

$6.6 Billion U.S. Mobile Media Revenues by 2012

U.S. mobile media and entertainment revenue will grow to $6.6 billion in 2012 from $3.1 billion in 2007, according to Analysys Research.

Analysys said that most of the growth will not happen until after 2010, when the technical and market environment for mobile media and entertainment is expected to improve.

Up to this point, mobile TV, music and other content has been patchy in coverage, limited in content and expensive.

That is less true globally, Analysys says. Total spending on mobile media services by consumers and advertisers worldwide will grow to more than $102 billion in 2012 from about $47 billion in 2007.

"Relative growth in consumer spending on mobile media applications will be surpassed by advertisers, as they look to exploit the maturing cellular content channel as a means to deliver their marketing and advertising messages to key target segments," said David Kerr, vice president at Strategy Analytics.

The New Conventional IT Wisdom

It is perhaps a commentary on how much things have changed that the U.K.-based research group Butler Group can put out a new research report that confirms what the consensus is.

Butler Group says organizations are moving from traditional hierarchies based on command and control to looser structures featuring collaboration and team work, with a fundamental shift from one-to-one to many-to-many communication.

Communications service providers typically worry more about access line shrinkage, margins on minutes of use and adoption of new services, than about changes in user communication modes. But Butler Group's point about many-to-many communication is key.

It implies a growing shift to "broadcast" modes of communication such as blogs, Twitter-style streaming and social networking mechanisms.

Organizations also are beginning to expand past their traditional boundaries found in the past, which is driving the need for IP infrastructure.

There is a requirement for greater location independence, with remote working becoming more popular and many employees no longer remaining in one place for any great length of time, the research group says.

"It is becoming apparent that the existing separate silo-ed infrastructures are no longer the answer," Butler Group says.

"A services-based approach is best suited to this environment," Butler Group says.

That means Web services, says Mark Blowers, Butler Group director.

"Moving away from proprietary solutions for voice and data to a horizontal communications architecture will enable the communications environment to be broken down into separate layers, making use of industry standards to integrate the hardware, common services, and administration elements," he says.

All of that shows what the new consensus is. Web services, software as a service, open networks, remote and cross-boundary communications. Most significant of all, from a service provider perspective, is the move to "many-to-many" communications. That could be as significant as the shift from wired to wireless communications.

3G BlackBerry 9000 Delay

Research In Motion's 9000 series BlackBerry may be delayed by two months due to battery life, voice quality and other issues, RBC Capital Markets says.

The new device was expected to be announced in May with a June launch for AT&T in the U.S. and Vodafone in Europe, but might now be delayed to July and August, RBC analyst Mike Abramsky says.

Some suggest the "Meteor" will use the new BlackBerry 4.5 operating system, a 624MHz processor, 480x320 screen, GPS, Wi-Fi and HSDPA, a 3G mobile communications protocol that is reportedly the source of the battery problems.

The new BlackBerry may also have rounded edges, giving it a sleeker look. Reports suggest that it will not have a touch screen like Apple's iPhone.

The BlackBerry and iPhone are in what some observers call a "two horse smart phone race," and 3G connections are the top new feature iPhone users want, according to ChangeWave.

AT&T Begins Starbucks Wi-Fi Rollout

AT&T has begun its rollout of Wi-Fi service at company-operated Starbucks stores, kicking off a nationwide effort that will continue through 2008.

As of May 1, qualifying AT&T high speed Internet and Wi-Fi customers will have complimentary Wi-Fi access at more than 7,000 Starbucks locations nationwide.

Free AT&T Wi-Fi service is currently offered with AT&T's three higher-speed residential broadband packages, all small business broadband packages and with all AT&T U-verse offerings with high speed Internet service.

For other customers, AT&T Wi-Fi service will reach company-operated Starbucks locations on a market-by-market basis throughout the year. The experience will include a mix of free and paid connection options for both frequent and occasional Wi-Fi users and qualifying Starbucks customers.

Mobile Skype in Beta

Skype has released a beta version of Skype for mobile phones. The “thin“ client works on about 50 of the most popular Java-enabled mobile phones from Motorola, Nokia, Samsung and Sony Ericsson, Skype says.

The beta version is available worldwide with a feature set that includes chat, group chat, presence, and inbound calls from Skype users using SkypeIn.

Additional features, which include Skype-to-Skype and SkypeOut calls from the mobile handsets, are initially supported in seven markets: Brazil (Rio de Janeiro), Denmark, Estonia, Finland, Poland, Sweden, and the United Kingdom.