Sprint Cell Phones
Sprint and all the rumors
May 7th
First Sprint was rumored to be taken over in a not so pleasant way by a bunch of Germans aka T-Mobile and now it appears they are trying to stave off any takeover attempts by finally cementing that WiMax deal with Clearwire with cable operator Bright House Networks injecting $3.2 billion to back the venture. Even though wall street didn’t seem to approve, this will go a long way in building a nationwide Wireless HighSpeed network that wont have a cell phone contract attached. While still a risky venture this should help Sprint get the positive press that it needs so desperately.
Sprint’s epic collapse
Mar 3rd
Sprint has announced their numbers for the Q4 of 2007, and the industry was prepared for some pretty abhorent numbers but no one was prepared for the results. In 2007, Sprint lost $29.5 billion, now consider that Sprint is valued at $23 billion and you can start to see how ugly the numbers really are. And how do lose $30 billion in a year? A billion at a time I guess but this doesn’t seem possible. I wonder where they park all those gold plated Gulfstream 5’s the engineers bought to test their proposed mobile wifi system, Hawaii and Bermuda are my guess.
Shares fell 98 cents, or 12.1 percent, to $7.11, after falling as low as $7.08. This is the stock’s lowest level since 2002. The losses were on top of Thursday’s 9.6 percent decline.
Buying Nextel was an excellent idea. Perhaps Google should will buy them for about 12 million and forget about the wireless auction.
The price of owning a Blackberry
Feb 21st
In the past few months Research in Motion has seemingly been pushed to the background by all the recent exciting product launches in the wireless industry. They appear to be loosing track to Apple’s iPhone, Nokia’s N series, and even HTC’s touch. Not to mention the new SonyEricsson Xperia X1 that is poised to be the next big thing in the SmartPhone world. It has been a long time since you heard something truly positive and exciting about the Waterloo company, that is of course unless you like network failures and lawsuits.
The main detractor remains that they are cost prohibitive and the Blackberry service has yet to come down in price like stand alone data plans have. One has to wonder if this is because customers have become so reliant on the service that the wireless companies feel they don’t have to make their plans very competitive.
Lets take a look at the prices by the major wireless companies:
AT&T
BlackBerry Personal Add on Unl Msgs $50.00/month
BlackBerry Personal Add on 200 Msgs $35.00/month
BlackBerry Personal Add w/no Msgs $30.00/month
Verizon
Blackberry Solutionâ„¢ Unlimited Data Usage $44.99/month
Email and Web for BlackBerry $29.99/month
T-Mobile
BlackBerry Unlimited w/Enterprise Email $29.98/month
BlackBerry Unlimited E-mail Add-on $9.99/month
BlackBerry Unlimited Add-on $19.99/month
Sprint
Sprint Power VisionSM BlackBerry Pack $30.00/month
Unlimited web browsing/email/text messages
10MB BlackBerry Email and Web $39.99
Unlimited BlackBerry Email and Web $39.99
Worldwide BlackBerry Data Plan $69.99
As you can see Sprint and T-Mobile have a somewhat reasonable price of $30.00/month. AT&T effectively prices themselves out of competition at $50/month and Verizon isn’t much better at $44.99/month. So at the bare minimum you can expect to have a $85 bill but more likely it will be in the $100 range and thats pretty painful. It is long overdue that the prices of the BlackBerry service get lowered, for no other reason than its longevity alone, as its been around as long as text messaging. Of course all this will take is one company like Sprint/Nextel to announce a $9.99 BlackBerry service and soon thereafter the other companies will follow. Les hope this will happen sometime this year and a lot more people can afford to tryout the service for the first time.
Its not all bad for the SmartPhone maker, the soon to be announced BlackBerry 9000 is creating some buzz but with conflicting ‘leaked’ images and mixed messages from the company itself on the new operating system they seem to be undermining themselves. They could learn a thing or two from Nokia and Sony about leaking info, however the info that has come out has gotten some excited. These include:
A super fast Intel 624 Mhz processor, 1 GB internal memory, WiFi, GPS, UMA, high end optics and multi Band HSDPA.
Some of the rumors on the design are that it could have a full screen interface without a tactile keyboard, scroll wheel or joystick. If thats the case it would be a huge departure from anything seen the company before and could signal a huge shift in their approach. Take a look at the two photos reported to be the new 9000 and decide for yourself.
The all in one unlimted plan from Sprint
Feb 7th
In what is a long time coming, a major wireless provider has announced a pilot program that gives an all in one unlimited plan that includes the major features of a power user: Unlimited voice calling, SMS (text messaging), Web, Email, and even MMS (picture messaging). There are some indications that BlackBerry isn’t included but is available as an add on.
This is just what SprintNextel needed to offer due to all its executive turnover, horrific activation numbers, and CHURN percentage. Will this right the sinking ship is the big question but I can imagine this being a hugely popular plan for many a Fortune 500 company as the bottom line is all that counts in these uncertain economic times.
The BGR boys got word that the launch cities are San Francisco, Philadelphia, Tampa, and the Minneapolis-St. Paul regions. Let’s hope that wireless peeps in these areas jump all over this offering so that it launches nationwide.
Info via Sprint’s Internet Tubes
Hopefully SprintNextel will also take this as a hint that they should lower the prices on their phones, a look at their website lists 8 different phones at $199.99 and more. They also are selling the HTC Touch which is hot phone in the wireless biz but their price point of $250 makes it far less appealing. Sometimes a company shakeup is what is needed to give a company a new prospective, the launch of the Unlimited Access Plan is a great start but should be only the beginning in what should be a complete retooling of the mobile phone giant.
2007 4Q Financial Reports
Jan 25th
In a stunning announcement AT&T Mobile added a U.S. Wireless Company record of 2.7 million new activations in the 4th quarter of 2007, this contributed to them eclipsing the 70 million subscriber mark. Profits soared to $3.14 billion, a 62% increase from 2006, ARPU went over $50, and data revenues increased over 50%. Of course the iPhone was the main reason for these results but still these numbers have to be putting the fear into the other wireless companies as all will be feeling the effects of the economic downturn in the upcoming quarter.
In related news Sprint Nextel lost a staggering 683,000 subscribers while losing over 200,000 prepaid as well. As can be expected with this type of devastating financial news the company has announced the firing of CFO Paul Saleh, CMO Tim Kelly and president of sales and distribution Mark Angelino,. This seemed inevitable after last weeks stock sell off that saw them lose some 25% of their company’s value. A shakeup was in order but I cant imagine how this will help a company that was already in turmoil.
In handset news Nokia increased its market share to 40% while increasing its profit by over 44%, while Motorola took a tumble in market share back to 2001 levels with 12.3% market share in the fourth quarter which is down from 22.4% in the fourth quarter of 2006. This has to be alarming for a company that had worked so hard to cut into Nokia’s dominance. I guess the plethora of RAZR’s and ROKR’s weren’t the innovations customers were looking for in 2007. This news of course was applauded by Samsung who took advantage of the situation by jumping into the #2 position.
The state of the wireless industry
Jan 24th
A glaring stat in the 3Q ‘07 financial numbers of the top U.S. wireless companies shows that one of the top five companies had so few new activations and so many customers leaving, that they had a activation total of -60,000. The company happens to be Sprint and their acquisition of Nextel is looking like a complete disaster. Having worked for a wireless company that purchased a few other regional wireless companies it is easy to see why this can happen. First off, large companies end up having many many billing systems and this contributes to billing issues and a very confused customer service department.
However I am surprised by their decline simply for the fact that they have great traction with business customers who love the reliability of the walkie talkie (push to talk) technology. Add this to their high end data network and you have to start wondering if a new approach should be taken in their marketing, which is about as exciting as a visit to the proctologist.
Or is this the first indication that the U.S. mobile saturation rate is becoming a problem for wireless companies. In 2001, around 40% of America had a mobile phone, now that number is 75% which is a staggering increase in six years. This is a large part of the reason that US Mobile companies are doing so well financially, they have had a large amount of growth projected as some European countries have a 95% saturation rate which doesn’t leave much for new activations. If this trend continues look for Wall Street to get a little bearish.
The American Dream…in Europe
Aug 9th
Many recent developments in the mobile phone industry have had one thing in common and that is Europe, a place we left some 300 years ago and have largely forgot about except when they need help stopping Germany from from taking over and making everyone wear really tight leather pants.
Case in point the BlackBerry 8830 World Edition SmartPhone that has recently been gracing our televisions sets in Verizon adverts featuring the ‘can you hear me now guy’ speaking French and handing off the phone to some actor at a fake airport. The odd thing about the ad is that it is essentially advertising the companies massive flaw and that is their phones only work in the U.S. Why is this the case? Well gather around the campfire kids and let me spin ya a story about telecommunications in the good old USA.
You see in the late 80’s when U.S. cellular companies were starting to build out their networks they realized that analog networks (AMPS) had the potential to provide greater coverage area with less towers due to the basic technology involved. But as with everything in the US no one could agree on a single technology and each individual company developed their own version of the cellular network. The thinking behind this was that the individual companies thought they would dominate the market and then the other companies would have to eventually abandon their own technology and pay them for the use of theirs.
Of course this never happened as all these companies were too stubborn to consider what was best for the consumer and that is why we ended up with CDMA (Verizon) TDMA (Sprint) AMPS (McCaw Cellular). At this same time the European Union was having the same problem so they decided that they needed one standard and mandated that efforts would be put into a system that would be universal in all countries. This led to the GSM technology being implemented along side the old analog system and the two worked seamlessly together. They could travel virtually anywhere and their phones would work as well as when they switched carriers.
This certainly wasnt the case for any Americans traveling overseas when their only options was to rent a phone at their destination. This continued into the late 90’s until Voicestream Wireless used Hawaii as a test market for the first US GSM service and after that success, launched in a few western states promoting features and prices that were unheard of elsewhere in the country. The technology used data stored in a SIM card that could be moved from phone to phone and with it allowed a virtual phone book of personal numbers to be moved as well. The company grew rapidly and now for the first time Americans could take a phone from stateside and use it in Europe and Asia.
The others companies grew nervous of this development and it even caused AT&T to convert, at considerable cost, to the GSM technology. This caused a ripple effect and soon all these companies were gobbling up smaller ones, merging with larger ones, and even terminating roaming contracts that made it easier for customers to piggyback onto other networks. It seemed the battle had just escalated and with Nextel’s success another technology was thrown into the mix. All the while Europe was developing high speed data networks that would be years away in the U.S. all because they had focused on one technology and advancements benefited all the companies, not just one.
This is why technology developed in North America is now launching in Europe, simply for the reason that the U.S. market is just too slow to develop a high speed GSM data network that actually is available in more than a handful of cities. Case in point is T-Mobile whom was ahead of the curve on WAP, BlackBerry Server implementation, and data tethering. But for reasons that defied logic simply stopped developing anything after their GPRS network was launched and as a result fell behind in virtually every aspect of the industry. They are now paying for their mistake with a massive outlay of cash to build a UMTS network that if ever launched will be so late in the coming that it will nearly obsolete when it does.
And all this is why we see the perfect Blackberry 8820 being launched in the U.K. and the 8310 showing up in those oh so tight leather pants in Germany. So while we might have the iPhone before the rest of the world, we still have to settle for dial up speeds unless we want a phone that will only work if you never leave the cozy confines of a large metropolitan area and if you ever decide to leave that company for another you will have a very expensive paperweight mocking you for not having been born in London, Barcelona or even Tokyo.
Nokia must be butter cause they are on a roll
Aug 3rd
Nokia is leading the way in the mobile phone industry with innovation and massive profitability and its paying off huge for their stock holders. Lets break the recently announced numbers down and yes there is math involved so get out that number 2 pencil folks…just kidding.
Net Sales of 12.6 Billion (That’s Billion with a B people) which is an increase of 2.7 Billion over Q2 ‘o6 earnings. A Gross profit of 3.9 Billion (Thats nearly 4 Billion in 3 months) which amounts to an increase of 700 million over Q2 ‘06 earnings. Nokia now has an estimated 38% market share which dominates the mobile industry.
This news caused Motorola to fall to its knees and start weeping uncontrollably like the dude that Jessica Alba just kicked to the curb. They pondered aloud that they have really really thin phones and that it is all customers want so what was the problem? I sent them a text message advising that direct sales and unlocked mobile phones are really what people want but they didn’t respond, which is really bad texting etiquette. Perhaps they were just really engrossed in TRL due to all of its cutting edge interviewing and just forgot to respond or maybe they were just using the T-Mobile network and it was one of the 25% of the messages that never reach their intended destination.
Whatever the reasons lets hope that not only they but the rest of the mobile phone manufacturers start to adopt the ways of Nokia. However with Apple and AT&T taking such steps to make sure that no one can unlock the iPhone its doubtful that a change in the industry will be coming anytime soon. One can understand the reason why AT&T would take the steps it did to ensure only its network would work with the Jesus Phone but Apple really shouldn’t care as sales is what they want and need. One can imagine what kind of sales that T-Mobile and every other GSM provider in the world rack up if they were able to sell the iPhone.
Why Sony Ericsson, HTC, Motorola, Palm, Samsung or even Research in Motion would allow other companies to unlock their products and sell them at a markup is beyond me. Nokia has proven the market exists for direct sales and as proof they shipped 9 million Nokia N-Series Phones and almost 2 million Nokia E-Series devices during the second quarter of 2007 alone. The focus on high end devices, like the Nokia N-95, allowed the company to gain an additional 4% of the handset market share. This has completely caught analysts off guard and they continue to be amazed at Nokia’s huge profits and sales.
This all points to the fact that Nokia’s dominance will continue as they take the chances that keep them ahead of the curve, CTO Tero Ojanper predicts when the features of the N95 are common place around the world in 2-3 years the mobile entertainment business will explode and Nokia will be there ahead of the pack once again. Few could argue with this assessment as focusing on the European and Asian markets have helped them stay on the cutting edge and that is exactly where the competition wishes they were.
[Source]
Google and Sprint marriage
Jul 29th
Google is set to provide fee web search, interactive communications and social networking tools to Sprint’s next generation WiMax wireless data network. This is yet in another agreement from Google trying to firmly implant their presence into the mobile industry. This along with their interest to take part in the FCC wireless spectrum auction with a minimum required bid of $4.6bn they are determined to be part developer and provider, something that has made them what they are today.
With Sprint spending $3bn to build a nationwide 4G network that will dwarf anything its competition has planned they seem set on dominating the high speed wireless data business before T-Mobile or AT&T even have 3G. No matter the network or company Google has set its sight on on having the best of both worlds but one wonders after they become direct competitors if companies with be so eager to make deals for content.
HP iPAQ 510 Voice Messenger
Jul 23rd
This week at Content Quake we will be looking at alternatives to the standard of getting new cell phones directly through your cellphone provider.
Ultimately it costs about $1000 for a wireless company to get you to sign the initial contract on the dated line, so these companies have a lot of leeway in how much they will give you to stay as their customer. If you are not on a contract you are in the perfect position to get yourself a free or highly discounted phone, of course you will have to sign yet another contract to get anything like this. Sometimes its in your best interest to keep your options open and purchase a phone outside the system of contracts (see iPhone).
First up is a virtual do all phone from Hewlett Packard, the HP Ipaq 510 Voice Messenger Quad band GSM, WiFi (allowing Skype) and Windows Mobile 6.0 which allows for a huge amount of programs and flexibility. But most important this phone can be had for $319.99 right now, no contracts and hassle with warranties and who actually owns your phone.
- • TI OMAP 850 processor (200MHz)
- • Windows Mobile 6.0
- • 64MB SDRAM, 128MB Flash ROM
- • Integrated WiFi (802.11b/g) with WPA2 security, Bluetooth wireless technology
- • Integrated Quad band GSM/GPRS/EDGE wireless radio with automatic band transition
- • 2″ micro-reflective TFT screen with LED backlight
- • Micro SD slot
- • 1100 mAh battery
- • One-year limited warranty














