Sprint Details LTE Plans As Clearwire’s Decline Accelerates | mocoNews

To say there is a bit of instability in much of the U.S. mobile backhaul market would be an understatement. After announcing it would buy about $20 billion worth of Apple iPhones, whether it can sell them or not, Sprint announced that it would expedite the building of its new Long Term Evolution network this summer, with completion by the end of 2013, a breath-taking time table. $20 billion worth of iPhones


Sprint also said it would no longer sell WiMAX devices after 2012, a clear indication Sprint intends to wean its customers off the Clearwire network. Clearwire and Sprint equities both tanked on the news. 

Sprint executives say LTE devices would be available for its network in the summer of 2012. Sprint LTE plans


Clearwire insisted it wasn’t dead, and remains essential to Sprint's 4G plans. Investors clearly aren't so sure. But with LightSquared still facing serious objections to its own LTE launch plans, that means three national networks now face a bit of uncertainty about how much capacity they will be needing, and perhaps none of the three companies can provide complete assurance of financial success in the future, as independent entities. 


Nor, for that matter, can any of the three completely shake concerns about bankruptcy. Three national networks that might not exist in the future is quite a lot of potential backhaul business that could evaporate. 


Of course, Dish Network also says it wants to build a national LTE network, so add a fourth element to the dynamic situation. 

What is gigabit broadband good for?

“If you put a gigabit in people’s homes they will be inspired to find new ways to use it," says Kevin Lo, Head of Google’s fiber access program. "We have no idea why you need a gigabit today, but when we all had dial up you could not possibly imagine watching video over them."

"It’s not about doing email faster, it’s about doing those new things that you don’t do today," he says. Video is the obvious practical application that could use bandwidth of that sort. Some of us might question whether new ways to watch TV is really such a huge innovation, though.

Unicast entertainment video, especially the same sorts of content you can watch on a subscription TV service, is a pretty dumb way to use bandwidth, some of us would argue. As any engineer will tell you, there always are multiple ways to solve any computing problem. You can process locally, or process remotely, substitute local processing for bandwidth, or bandwidth for local processing power.

If what a user wants to do is watch professional video on demand, then local storage such as provided by Tivo is a reasonable solution. Unicast is better suited to relatively low-volume types of content, or interactive content.

What also remains to be seen, as Google builds out its fiber to the home test markets, is whether Google really will try to build symmetrical 1-Gbps networks, as it has said, or will, for cost reasons, do something a bit less grandiose. The other angle is whether Google really will try to offer such bandwidth at prices roughly comparable to what telcos and cable companies might charge for 10 Mbps to 20 Mbps services.

It always has seemed unreasonable to think that Google has any magic answer to the costs of building such infrastructure. Sure, it will always make sense to choose test beds where aerial plant can be built, because that is cheaper than underground construction, unless there is universal duct space available, allowing any new provider to simply pull a new set of cables into the existing conduit.

So if construction cost is not amenable to significant cost reductions, one would have to look to revenue to make the business case. But here again, it has seemed unlikely that a sustainable business case can be built solely on "broadband access," in competitive markets, where the other contenders might have multiple services to sell.

Sure, Google is running science experiments, not trying to create a self-sustaining business. But you also have to wonder how much actual application innovation can happen if such isolated test cases.

What is gigabit broadband good for?

Wireless Broadband Incremental or a Substitute?

A recent analysis suggests more people are getting their broadband from wireless providers in the Twin Cities and fewer are using traditional services like cable and DSL, according to a new study by St. Paul-based ID Insight, which found that wireless broadband (both from mobile companies and the Minneapolis Wi-Fi network operated by US Internet rose 7.5 percent in the 12 months ending in March. Wireless broadband taking bigger slice of local market

To be careful, it actually isn't so clear whether what the data shows is simply that more people are buying mobile broadband plans, which is largely additive to the universe of broadband connections, or that people are starting to substitute wireless for fixed connections (which some of us do). 


To see what was going on with wireless Internet access, compared to fixed-line access, ID Insight used "Broadband Scout" to look at access trends over the last couple of quarters. "What we found was that internet transactions through a wireless device increased by a factor of over 200 percent, whereas Cable and DSL diminished by a few percentage points." Wireless access grows fast

In and of itself, that simply means people are using their smart phones to do things on the Internet more than they used to do. The reported decrease in fixed network access would be expected to dropk as a percentage of total, if wireless usage is growing so fast. 

The study shows transactions on Comcast's network was 37.6 percent of total and CenturyLink represented 27.8 percent of total. Both of those providers saw their share decline slightly, but again, it might be expected if wireless has grown so fast. 


Wireless broadband, which includes the cellular providers and the Minneapolis Wi-Fi network, ranked third (16.6 percent, or about 152,000 households). The number for wireless customers does not include Wi-Fi networks inside homes.

Among Twin Cities wireless customers, about 131,000 appear to be smartphone, laptop or tablet computers users with data plans. The other 21,000 wireless customers belong to the Minneapolis Wi-Fi network, said Joe Caldwell, the CEO of USI Wireless of Minnetonka, which runs the network. Wireless grows

"Over the past few months and quarters the notion of where my broadband connection resides has shifted, at least for me," says ID Insight's Adam Elliott, company president. "A few short months ago, I would have told you that my broadband provider was Comcast, as that was who provided internet access to my home."

"A few short months later, I am not so sure," says Elliott. "A few months ago, I bought one of those funky new Android smart phones on Sprint's 4G network. I am now seeing download speeds of 3 Mbps to 6 Mbps that exceeded my basic Comcast cable connection that was coming in around 3 Mbps." http://factactsolutions.blogspot.com/

Still, it is not possible to say with certainty that users are dropping fixed connections and relying solely on wireless broadband. 


Other studies likewise have shown growing use of mobile broadband, but that does not, in and of itself, suggest anything definite about whether the usage is complementary to fixed line access, or a substitute. 

Early data from YouGov’s new “DongleTrack” study shows that 10 percent of respondents have used a dongle (USB modem) or a datacard to access the Internet outside the home or work. A mobile phone has been used as an Internet access device by more than one fifth of the online population (21 percent). 

As often is the case, marketers will be looking at younger users for an indication that end user preferences could be changing. In that regard, younger users seem more willing to use wireless broadband services. U.K. trends


The study suggests that 69 percent of respondents under 25 have used wireless broadband access, about 67 percent of those 25 to 34, and 65 percent of those who live in London. 


For almost one in seven users of mobile broadband (14 percent), the use of a dongle or datacard is their only Internet access method. This figure rises to 21 percent of males, 31 percent of 18 to 24 year olds and over one third of Londoners (34 percent).

The study suggests that although much wireless broadband is complementary and supplemental to fixed broadband access, there is a significant adoption of wireless broadband as a substitute for fixed services. 

Why T-Mobile is Going Over the Top for Voice

It might be seen as a harbinger of things to come, but T-Mobile USA, lagging behind the leaders in the U.S. mobile market, wants to make its Bobsled voice application something users can engage with on any device or carrier, something that would have been a "problem" in earlier days.

Bobsled, originally supporting VoIP conversations between Facebook users, now also supports VoIP calling to telephone numbers.

If you wonder why T-Mobile USA is taking an action that will cannibalize its voice revenues, the answer probably is that T-Mobile USA sees that as an inevitability.

Informa Telecom & Media predicts that North American consumer use of services such as Skype and Google Talk already accounts for 20 percent of all voice activity in 2011.

By 2014, that figure is expected to rise to 40 percent. Messaging also is moving to over the top mechanisms. Some three trillion messages will be sent using over the top apps in 2011, growing to nine trillion messages in three years. By 2015, IP messaging will surpass traditional cellular messaging, Informa predicts.

T-Mobile USA likely assumes that it has less to lose from cannibalizing its voice minutes of use, than it has to gain by becoming an application provider relevant on iPhones and other smart phone devices.

Why T-Mobile is expanding Bobsled

In-Store Mobile Marketing Works, Mall Owner Says

General Growth Properties operates 166 shopping malls in 43 states and has found conversion rates from location-based email at its sites to range from 30 percent to 60 percent, says Jeff Cloud, director of customer relationships and mobile marketing at General Growth.

He cited the example of a program that sends text promotions, with a shopper’s permission, to customers when they’re at a General Growth mall; the shopper texts back a code to receive a discount at a mall store or restaurant. E-mail marketing using location

A survey in the first quarter showed 50 percent of General Growth mall shoppers owned smart phones, compared to 41 percent of U.S. consumers. The survey also revealed that six in 10 moms that shop General Growth malls check e-mail on a mobile device, 53 percent search for coupons and offers via mobile and one in four purchases on mobile phones or tablet computers.

Cloud also reported that 17 percent of the e-mail General Growth sends its customers is opened on mobile devices, with about two-thirds being opened on Apple iPhones. He says General Growth uses a tool called Litmus to track customer response to marketing programs and finds that 46 percent of consumers who open an e-mail on an iPhone read it, 17 percent skim it and 37 percent just glance at it or delete it; comparable figures for Android phones are 57 percent reading, 13 percent skimming and 30 percent glancing or deleting.

He says General Growth has narrowed the size of its e-mail messages to 600 pixels from 750 or more pixels so that they will fit on the small screen of mobile phones. The company also has concluded mobile e-mails are most effective when they are 60 percent text and only 40 percent images.

What’s the future of mobile banking in Europe? - McKinsey Quarterly - Financial Services - Banking

Bankers across Europe believe that mobile devices will transform the retail-banking landscape in the next three to five years, but also believe they are not investing sufficiently to take advantage of the opportunities. They also think mobile service providers and other nonbanks are leading the way. That might come as a surprise to some, but banking applications and services are among the few new businesses tier-one telcos can get into that offer enough incremental revenue to justify the effort.

The study by McKinsey and the European Financial Management and Marketing Association also suggests that mobile devices’ overall economic impact on the banking industry may be neutral at best.

Individual banks should be able to increase their revenues and cut costs if they successfully exploit the convenience of mobile, its potential to drive digital commerce, and the opportunity it represents to target the unbanked in emerging markets, researchers at McKinsey say.

Some banks, however, may find that mobile adds to costs and erodes prices unless they offer a truly differentiated product or service. Mobile banking in Europe

Some 87 percent of banks aim to have a mobile site, and 84 percent are planning to launch some sort of mobile-banking “app” within the next 12 months, compared with 59 percent and 47 percent, respectively, that have them now. The mobile features these institutions currently offer are traditional banking services, such as the ability to check account balances and recent transactions and to conduct simple transactions. But 70 percent of banks said they plan to add more advanced functionality within the next 12 months.

Worldwide Social Media Revenue $14.9 Billion in 2012

Worldwide social media revenue is on track to reach $10.3 billion in 2011, a 41.4 percent increase from 2010 revenue of $7.3 billion, according to Gartner, Inc. Worldwide social media revenue is forecast for consistent growth with 2012 revenue totaling $14.9 billion, and the market is projected to reach $29.1 billion in 2015.

Advertising revenue is, and will remain, the largest contributor to overall social media revenue. Social media advertising revenue is forecast to total $5.5 billion in 2011, and grow to $8.2 billion in 2012. Advertising revenue includes display advertising and digital video commercials on any device including PCs, mobile and media tablets.

Social Media Revenue $14.9 Billion in 2012