Can T-Mobile Climb to 3rd Spot on Strength of Prepaid?

The logic behind theT-Mobile USA  MetroPCS deal is that the combined firm will be able to climb the market share rankings on the strength of demand for prepaid services, sold without contract, on a "value" platform, with a skew towards younger users.

Historically, one might have viewed that strategy skeptically, given the lower average revenue per user prepaid accounts represent. That is one reason the market leaders have tried to avoid encouraging users to buy prepaid services, in place of postpaid. 

At the same time, T-Mobile USA has said it will emphasize the wholesale segment more heavily, something that is the mainstay for Clearwire and a significant business for Sprint. 

Of course, on one hand, you can argue the potential for prepaid in the United States is quite high, given prevailing adoption in many other countries, where prepaid is dominant. Some also argue that tough economic conditions will drive more people away from postpaid, and towards prepaid. 

UC Now is Mobile

It likely won't come as news to you, but unified communications increasingly, or perhaps even "mostly" now is about mobile computers, not phones, and wireless access, not fixed access, you might argue.

“Our unified communications survey reveals a really important shift taking place as enterprises increasingly use mobile devices to access UC applications,” notes Diane Myers, principal analyst for VoIP, UC, and IMS at Infonetics Research  .

“Survey respondents indicate that smart phones and tablets will be the two most widely used devices for UC in 2013, passing traditional computers and desk phones.” 

$377 Billion VoIP, UC Services Spending, Over 5 Years ($75 Billion a Year, Average)

A cumulative $377 billion will be spent by consumers and businesses on VoIP services and unified communications over the five years from 2012 to 2016, driven primarily by SIP trunking and hosted VoIP and UC services.

If sales volume were equal in all years (and they are not), then you might say about $75 billion a year is the global revenue for all consumer and  business VoIP and UC-related services. 

The global telecommunications industry represents about $2.1 trillion in annual revenue, according to The Insight Research Corporation. 

Insight Research expects global revenue will grow from $2.1 trillion in 2012 to $2.7 trillion in 2017 at a combined average growth rate of 5.3 percent. 

NTT,  leader of residential VoIP market, topped 14 million subscribers in the second quarter of 2012, according to Infonetics Research.

Roughly 15 percent to 20 percent of all new IP PBX lines sold are part of a managed service or outsourced contract, making managed IP PBX the largest segment of business VoIP services.

SIP trunking revenue grew 23 percent in the first half of 2012 compared to the second half of 2011, led by strong activity in North America, Infonetics Research estimates. 

Consumer Reports Says Apple iPhone 5 is "Best Yet"

The Apple iPhone 5 is among the best smart phones in the market by Consumer Reports. Consumer Reports also says the device is the "best" iPhone yet.

State of the Open Source Cloud Computing Business

Open source cloud computing services are seen by most members of the Zenoss community as immature, but they expect those issues to be resolved. You can get a copy of the full report here.

Dish Scraps Blockbuster Plans

Dish Network once hoped to turn Blockbuster and some new re-purposed satellite spectrum into a mobile video service. The plan, in April 2011, was to retain some of the Blockbuster retail locations to sell mobile devices supporting the new proposed service.

Those plans floundered when the Federal Communications Commission didn’t quickly approve a waiver allowing Dish to use its satellite spectrum for terrestrial data and voice transmission.

Dish indicates it has other plans for the Blockbuster assets, says Bloomberg.

Perhaps the mobile streaming plan was a high stakes gambit, but it was a gamble with small to negligible downside, with big potential upside.

When Dish acquired Blockbuster last year, the company had about $100 million in cash on the balance sheet. Shuttering and selling all 1,700 Blockbuster stores that Dish purchased would make Ergen’s company about $300 million, turning Dish a profit without using the brand for anything, Charlie Ergen, Dish CEO,  said.
The abandoned plan shows the growing importance of spectrum issues in creating, shaping or changing a number of communications and entertainment markets. LightSquared, for example, has so far been unable to launch its new wholesale Long Term Evolution network.
AT&T wanted to buy T-Mobile USA in large part for its spectrum assets. Sprint's board considered, then rejected, an early 2012 bid to buy MetroPCS. 
T-Mobile USA now wants to buy MetroPCS in part for its spectrum assets. 
Verizon has gotten approval to buy mobile frequencies from Comcast, Time Warner Cable, Cox Communications and Bright House Networks. 
AT&T is waiting for clearance of its purchase of more spectrum from NextWave.
The FCC now is trying to entice U.S. broadcasters to part with abandoned TV broadcast spectrum so it can be auctioned off to support U.S. Long Term Evolution networks.
And a new business based on use of "white spaces" spectrum might start in 2013 as commercial radios become available as well.

T-Mobile USA Has Lost $13 Billion Since Failed AT&T Merger

T-Mobile USA's equity value has dropped by $13 billion since the failed sale to AT&T in 2011.
T-Mobile USA is worth about $26 billion including debt, based on MetroPCS’s share price and analyst estimates, according to Bloomberg.

Deutsche Telekom had intended to sell T-Mobile USA for $39 billion.