Verizon and AT&T: No, Thank You, to Stimulus Funds

Verizon Communications Inc. and AT&T might very well pass on applying for any of the "broadband stimulus" programs, at least in part because of "strings" attached to the money.

Neither company is well placed to apply for the Rural Utilities Service portion of the funds targeted at rural areas, and access provisions might be unpalatable for the National Telecommunications & Information Administration grants. 

http://www.bloomberg.com/apps/news?pid=20601109&sid=aXx.QVEa9vpM&refer=home

More Wireless Broadband Substitution Coming?

It is no idle speculation to consider that more users will look at wireless broadband substitution as downlink speeds rise into the 50 to 60 Mbps range in the near future. And Verizon might be thinking along those lines itself, though mobile providers without wired assets to cannibalize have been more aggressive, so far.

There is speculation Verizon will introduce such a router at CTIA this week.

http://www.phonearena.com/htmls/Verizons-MiFi-2200-is-your-own-personal-Hotspot-article-a_4570.html

Zer01 Plays the "Interconnecting Carrier" Angle

Some observers might wonder how the new mobile service created by Zer01 is different from existing applications that provide VoIP calling over a mobile handset. Recently, Skype for Apple iPhones has gotten lots of attention, for example.

“I do not really see any comparison to the Zer01 value add here,” says Mark Richards, Pervasip CIO. Pervasip provides the underlying network, billing and customer care for the Zer01 effort.

The Skype calling feature uses a Wi-Fi connection, not the AT&T data network, and can require per-minute calling charges, where Zer01 uses an IP wide area network and a GSM wireless network for access.

And Richards argues there is a difference between an downloaded application running on top of a mobile operating system, and a native application. “To run VoIP over GSM is stodgy,” Richards says. “It is not simple.”

One problem is that the downloaded app is always contending for processor resources. To run a VoIP path on top of the OS, rather than natively on the phone, compression and decompression is required, and that uses processor resources.

Calling gateways is more complex, so there is some kind of inconvenience, he argues. “I have not yet seen a seamless desktop process that really changes habits,” says Richards.

United Technologies Group has developed a mobile application that seamlessly sits on the cell phone and takes over a phone’s dial pad by replacing it with its own, Richards notes.

The other great confusion is over the business model. To date, many firms that do not own their own mobile networks have operated as mobile virtual network operators, leasing wireless capacity and services on a wholesale basis, and then selling at retail.

Those of you familiar with the “unbundled network element-provisioned” (UNE-P) model will see the similarity. An MVNO or UNE-P reseller essentially is engaging in price arbitrage.

The difference here is that Pervasip is a licensed carrier. It has the legal right of interconnection with other carriers. So Zer01 essentially and simply interconnects with GSM mobile providers around the world. It is not a reseller of their services.

Private Interests, Public Purposes

For every public purpose, there is a corresponding private interest.

http://arstechnica.com/telecom/news/2009/03/microsoft-broadband-stimulus-should-help-hospital-schools.ars

VoIP Revenue Will Grow 20% in 2009, IBISWorld Says

Telecommunications and internet related services are now so ingrained in the daily lives of businesses and consumers that they will hold up relatively well compared to other areas of the economy, say analysts at IBISWorld.

"One shining light will be VoIP, which competes on price against more established service providers," the firm says. "Consumer substitution from wired telecommunications to VoIP will accelerate but a weaker economy and lack of available finance will result in many smaller VoIP providers exiting the industry."

VOIP revenue is expected to grow 20.1 percent in 2009.

http://www.ibisworld.com/recession2009/default.aspx

Wireless Providers to Collaborate on Marketing "Best Practices"

The Mobile Marketing Association says the four largest U.S. wireless service providers--Verizon Wireless, AT&T, Sprint, and T-Mobile USA-- have agreed to coordinate their mobile marketing guidelines with the MMA’s "best practices" guidelines. This industry-first agreement is intened to produce a dramatic reduction in the costs of launching mobile marketing campaigns, faster time to market for campaigns and improved consumer satisfaction by improving the consistency and efficiency of mobile marketing campaigns across the four major U.S. wireless service providers.

In addition to the four largest U.S. wireless service providers, major aggregators, brands and content owners includingVeriSign, Neustar, Limbo, and Thumbplay are supporting the process.

The agreement is expected to enhance efficiencies in running short code programs, accelerate the time to market for mobile campaigns, ensure monitoring programs and audit results are more consistent and reduce operational costs across the mobile marketing ecosystem.

http://www.mmaglobal.com/news/mobile-marketing-association-brokers-industry’s-first-cross-carrier-best-practices-verizon-wire

Cox Communications Plans CDMA, LTE Networks

Cox Cummunications is moving ahead with its plans to build an in-region moble broadband network using CDMA, the same platform used by Verizon Wireless and Sprint Nextel. Cox is said to be thinking more along the lines of Long Term Evolution for its fourth-generation network.

Huawei Technologies Co. says it has been selected to provide its end-to-end CDMA solutions and services to Cox Communications. Cox, the third-largest cable provider in the United States, will launch its new 3G wireless network utilizing Huawei’s LTE-ready SingleRAN solution and industry-leading 3900 Series base stations, Huawei says.

Cox might rely on its partnership with Clearwire or Sprint for out-of-region roaming. As Sprint's national network uses CDMA, it makes sense to rely on the Sprint network rather than WiMAX for out of region coverage.

http://www.lightreading.com/document.asp?doc_id=174434&site=cdn