LTE Window Might Exist for Over-the-Top VoIP Providers

There's no telling how big a window might exist for over-the-top voice providers on some fourth-generation networks, but there is a window of some sort, as some operators have launched, or will launch, 4G networks in "data-only" mode at first, adding native 4G voice capability later.

Operators are not in a hurry to deliver voice services over LTE networks, says Robert Poe, Heavy Reading analyst, at least in part because they can use existing 3G or 2G networks to deliver voice services. Many, perhaps most customers, won't care. But some will, and that means Skype, fring, Nimbuzz and others have a shot at snagging some customers before the mobile operator can offer all-IP communications.

Of course, at least some early 4G networks launched fully in data-only mode, aiming at the mobile PC user rather than the mobile handset user.

Light Reading Mobile - 4G/LTE - LTE Voice Lag Leaves Operators Vulnerable

Internet Ad Revenues Break Records

Internet advertising revenues in the United States were at $12.1 billion in that period, setting a new half-year record that represents an 11.3 percent increase over the first half of 2009, the Interactive Advertising Bureau and PwC.

This is also the highest second-quarter revenue on record, up 13.9 percent over the same period of 2009.

Display-related advertising—which includes banner ads, rich media, digital video and sponsorships—totaled more than $4.4 billion in the first six months of 2010, showing a significant increase of close to 16 percent over the same period in 2009.

Digital video continues to experience record growth, this year achieving the highest half-year performance ever and up 31 percent over first half 2009.

Search advertising remains the largest percentage of overall interactive spend at 47 percent, representing more than $5.7 billion for the first six months of 2010, up 11.6 percent from the same period in 2009.

Internet Ad Revenues Break Records, Climb to More Than $12 Billion for First Half of ’10

Android Leads Smart Phone Sales in 2Q

Makers of Android handsets were among the fastest-growing firms among the top-10 smart phone brands in the second quarter, according to the mobile and wireless research firm iSuppli Corp.

Droid phone specialist HTC Corp. achieved industry-leading growth, with its smart phone shipments rising by a stunning 63.1 percent in the second quarter compared to the first.

On the strength of its Android-based Galaxy line of smart phones, Samsung Electronics posted the second strongest performance, with a 55.6 percent sequential growth.

New Android licensee Sony Ericsson came in fourth in terms of growth, with shipments rising by 15.4 percent. Also, Droid-focused Motorola Inc. ranked fifth, with an increase of 12.5 percent.

Android Becomes Smart Phone Market’s Secret Sauce for Success in Q2

So What are Businesses Doing with Their Ad Budgets?

There's a question we ought to be asking about what businesses might be doing with their ad budgets. Though overall advertising in the U.S. market appears to be up about four percent, business-to-business advertising is down about 19 percent. One suspects portions of those budgets have shifted to social media, websites, online and other channels.

Securities Analyst Evaluation of Windows Phone 7

Financial analyst reaction to Microsoft Windows Phone 7 operating system, as reported by the Wall Street Journal:

Bank of America Merrill Lynch: With WP7, [Microsoft] intends to gain customer mindshare which it hopes to translate to higher unit sales and smartphone OS market share. The momentum it can garner in the mobile space remains to be seen but MSFT appears to have a good start.

Morgan Stanley: While there is risk that MSFT is too late to the market, with positive reviews and ~$400M in marketing spend, MSFT may be able to curb or reverse share losses next year, which would be positive for the stock given extremely low expectations.

Wells Fargo Securities: While it has become fairly fashionable to kick MSFT, we think it is fair to say that the new phone looks pretty good. In our view, this isn’t going to move the market share needle in the short term and the absence of Sprint and Verizon at the launch is notable (2011 launches). We are the first to admit that Microsoft is fighting for 3rd place not 1st or even 2nd at this point, but we believe this is a key step toward rebuilding confidence in their ability to innovate in mobile and eventually restoring their earnings multiple.

Cross Research: We think the advantage that the company has is its ability to integrate deeply into its own popular apps like Word, Excel and Powerpoint, but also with Outlook email and calendar content.

Barclays Capital: While a credible offering, we believe Microsoft faces uphill climb in quest for market share given its late entrance to an already crowded field, an already weak reputation in the smartphone market and a lack of developer and application support which may limit consumer acceptance, at least initially.

Windows Mobile 7 Tries to Make Phone Use Easier

In a bit of a twist, it is Microsoft that now wants to offer consumers an "easy to use" smartphone, much as Apple once promised an "easy to use" PC.

Universal, Blockbuster Express to Test Earlier Movie Release Window

Universal Studios Home Entertainment movies will be available at Blockbuster Express kiosks 28 days after initial release in theaters, on the same days those new movies are made available for retail purchase, NCR Corp. and Universal Studios say.

The market test will attempt to assess whether the ability to rent a movie recently in theaters, about 30 days earlier than has been possible in the past, is valuable enough to entice consumers to pay extra.

The new premium release window will be tested at some Blockbuster DVD rental kiosks, and will test a higher price point, possibly about $3 for a one-day rental, compared to the $1 price point for movies available for rental using the standard DVD rental release window.

As part of the arrangement, Universal will directly supply NCR with new release DVD and Blu-ray titles effective immediately, beginning with "Robin Hood" and "Get Him to the Greek."

"By implementing a 28-day window agreement with NCR, we are able to provide consumers with what they want –additional access and options in movie rentals for some of Universal’s newest and most popular titles," said Craig Kornblau, president, Universal Studios Home Entertainment. "Our agreement to test premium day-and-date offers and new DVD sales will help us identify new outlets for our movies while giving our customers the flexibility and choice they want in their entertainment purchases."

Many content owners have, as you might guess, been unhappy with the $1 price point of Redbox rentals, arguing it devalues the product. The earlier release window offers a chance to move price points higher.