Archive for category News

With Much-Improved Network, AT&T Looking to Meld Perception With Reality

Posted by PhoneFreak on Friday, 3 February, 2012

Several years ago, AT&T was widely derided for the performance of its wireless network. Consumer complained about dropped calls, spotty reception, and data download speeds that were often aggravatingly slow. At the time, these criticisms were valid ones: according to industry research, AT&T boasted one of the most over-burdened networks in the country, a fact that contributed to reception and data vexations for millions of its customers. The Apple iPhone, then carried exclusively by AT&T, was largely to blame for the tremendous rise in data use and the subsequent overload on the company’s network.

The negative perception of AT&T’s network has continued until today. According to John Stankey, the company’s CEO, customers have a “neutral” perception of AT&T’s network performance. But this assessment, if anything, may have been an inaccurate and optimistic one considering that Consumer Reports ranked AT&T last among United States providers when it came to customer satisfaction.  It is believed that network perception plays a central role in this.

But a funny thing happened last year: AT&T spent about $20 billion dollars improving its network offerings and its capacity. The company built two 4G networks, improved drop-call frequencies by a 25% margin, and made enhancements to almost 50,000 networks nationwide. AT&T now offers one of the strongest networks out there. Consumer perception of that network, however, remains low and stagnant.

To change this perception, the company is making a concerted push towards better informing customers of the improvements that have been made. Mobile customers now receive text messages when a network upgrade is made in their area. Furthermore, AT&T is turning its advertising efforts to upcoming network improvements in the areas of LTE and 4G HSPA+. While Verizon Wireless, its main competitor, has an advantage when it comes to LTE coverage, AT&T has far greater 3G and 4G upgrade capacities. Expect that these advantages will be strongly stressed in marketing campaigns this year.

AT&T has chosen to focus on consumer perception at an opportune time, just after the company received bad press for its T-Mobile takeover bid and just as data demands from the iPhone 4S have started to place an extra burden on nationwide capacities. As data use becomes more and more prevalent, we can only expect that network capabilities – both real and perceived – will become an increasingly vital component of mobile provider strength. Consequently, it is more important than ever that AT&T meld its poor perception with its much-improved reality.

 


AT&T Running Out Of T-Mobile Options

Posted by PhoneFreak on Saturday, 24 December, 2011

AT&T, once just steps away from acquiring T-Mobile and becoming the world’s largest and strongest mobile provider, probably now wishes that it had never proposed the deal in the first place. Last month, the initial merger plans were not received favorably by the Department of Justice, which announced its intentions to oppose the deal and fight AT&T’s efforts in court. This action stood to kill the proposed $39 billion merger; to win the court case, the DOJ would merely have to prove that a combined company of AT&T and T-Mobile would hurt the public interest by limiting competition in the mobile industry. Experts predicted that this would be easy to establish, insuring that the deal would not proceed any further in its current form.

Regardless, AT&T planned to fight the DOJ by continuing litigation and by selling off T-Mobile assets – up to 40% of the company, some predicted – in order to insure that the merger mobile provider would not be large enough for the DOJ to prove, during the court battle, that the merger would decrease competition. It was expected that AT&T would look to sell T-Mobile assets in pieces and to small providers, thereby insuring that it was increasing overall competition just as it simultaneously sought to decrease it.

That plan, however, now appears to have fallen through. In recent weeks, AT&T was in talks with Leap Wireless International, Dish Network Corp., MetroPCS Communications, and several international buyers, all of which were interested in carving up sections of T-Mobile. But talks with Leap Wireless have reportedly now fallen through. According to reports, Leap Wireless believes that AT&T will never win DOJ approval for the merger, even if it sells off 30 to 40% of T-Mobile assets. Consequently, the company does not want to make financial commitments to a deal that stands to fall through. In light of Leap Wireless’ withdrawal, other suitors have ceased negotiations as well, effectively giving AT&T no place to dump those excess T-Mobile assets.

When AT&T goes to court in the coming months, then, it will likely present the DOJ with a merger proposal that has not been modified much from the original – a proposal that is almost certain to fail. At this point, the company may be best suited to drop the case, try to renegotiate the settlement it owes to T-Mobile, and try to move past this whole debacle. AT&T needs to look to the future, after all, and it appears increasingly clear that the future does not include T-Mobile.

 


NTSB Call to Ban Cells from Cars Highlights Hypocrisy

Posted by PhoneFreak on Friday, 23 December, 2011

Last Tuesday, the National Transportation Safety Board made a landmark recommendation to United States lawmakers, calling for a complete ban on the use of cell phones by drivers of moving vehicles. The ban is certainly based on a reasonable level of evidence: distracted driving deaths on American roads would actually be dropping if it weren’t for the added factor of increase cell phone use. Over 3000 people were killed last year due to cell phone related distractions, while investigators contend that the number could be much higher by virtue of the fact that dead drivers are unable to confirm whether or not they were distracted by a cell phone. It’s a modern habit that seems to be doing more harm than good. Read the rest of this entry »


What AT&T’s Merger Struggles Means for Mobile Consumers

Posted by PhoneFreak on Thursday, 8 December, 2011

As you may have heard, AT&T’s proposed $39 billion acquisition of T-Mobile USA has hit a roadblock – a roadblock that may not be penetrable. After weeks of speculation regarding the antitrust issues posed by the deal, the Department of Justice announced its opposition and its intention to battle the merger in court. Legal experts predict that the DOJ will emerge victorious, effectively killing the deal. After all, they say, the DOJ only needs to prove that the merger would significantly reduce competition and, consequently, be detrimental to the public interest. The size, consumer base, and marketplace power commanded by a marriage of AT&T and T-Mobile would likely make this easy to prove.

Even with this writing on the wall, AT&T has announced its intention of fighting the case in court. This means that there are a range of possible outcomes: AT&T could win outright, it could win by selling off T-Mobile assets and appeasing regulators, it could lose and revert to the status quo, or it could lose and enter into a joint venture with T-Mobile. These are the main possibilities, although there certainly are more out there.

So what does this mean for the consumer? How will the market change if each one of these outcomes came to pass? On that note, here is a quick breakdown:

AT&T Wins The Case Outright

This is an unlikely outcome, as aforementioned, but if it came to pass it would probably have the impact that regulators fear. With the inclusion of T-Mobile, AT&T would quickly become the dominant player in the mobile industry. It would control most 4G phone plans, not to mention smartphones overall, and it would be well ahead in terms of market share from its main competitor, Verizon. Whether this would result in increased rates is impossible to say with certainty, but competition and consumer choice would surely decrease.

AT&T Wins After Selling Off Assets

AT&T has reportedly explored selling off T-Mobile assets – up to 40% — in order to gain DOJ approval. These assets would be sold to small mobile providers, thus insuring greater competition in the marketplace. For the consumer, however, AT&T would still catapult to dominance in the industry. There may be more options for people who are flexible with their phone choice, but those who want the hottest new smartphones will increasingly find themselves turning to AT&T.

AT&T Loses, Reverts to Status Quo

It would be incorrect to assume that the status quo means that nothing will change for the consumer. If AT&T loses the case, it owes $4 billion in break-up fees to T-Mobile. Analysts predict that T-Mobile would use this cash to shore up its network, improve its marketability, and gear up for another sale. This time, the sale would probably take the form of a merger with Sprint. For the consumer, this would mean three major players in the industry: AT&T, Verizon Wireless, and Sprint/T-Mobile. The three way battle for dominance would heighten competition and possibly drive down prices.

AT&T Loses, Enters Into a Joint Venture

If AT&T cannot succeed in buying T-Mobile, it still may choose to enter into a joint venture between the two companies. While this certainly has its pros and cons for the mobile providers involved, the impact on the consumer is likely to remain small. For all intents and purposes, AT&T and T-Mobile would continue to have a good deal of independence. There is a chance, though, that some stores may be closed.

The actual outcome of the case remains to be seen, not to mention the effect it has on the mobile phone consumer. It’s quite clear, though, that the proposed merger stands to considerably shake-up the industry, for better or for worse. For that reason, we’ll be closely watching.

 


Windows Phone Gaining in Apps, Legitimacy

Posted by PhoneFreak on Thursday, 24 November, 2011

In the smartphone world there are a myriad number of indicators that tell us which mobile provider or manufacturer is superior. We can look at the data for phones shipped, devices sold, market share, earnings, and profits. We can compare size, revenues, and cultural power in our bid to find the most successful company in the industry.

Recently, a new indicator of success has emerged: applications. All smartphone, regardless of the manufacturer and operating system, come with access to a unique library of apps. These apps can not only demonstrate the strength of a product, but they can also forecast future changes and growth by telling us where the money is being sent. If large companies are having apps developed more for one operating system over another, or if most enterprising software engineers are focusing their efforts likewise, then this says some about relative product strengths.

Recently, the app battle has been playing out between the two dominant players in the market: Google’s Android and Apple’s iPhone. The numbers suggest that, even though the Android has surpassed the iPhone when it comes to market share, Apple’s product still reigns supreme, at least as far as the app indicator goes. Since the launch of Apple’s App store, the iPhone has had app sales and download numbers that far surpass Android. Even though Apple is more discerning when accepting apps to its store, it wins by tremendous margins in every key category – average price, total number of apps downloaded, and total revenue from apps sold.

Coming in at third in the application battle is the Windows Phone, which has seen its sale, creation, and downloads of apps skyrocket in recent months. Microsoft estimates that the Windows Phone Marketplace will surpass 50,000 apps by January after hitting 40,000 only this month.

The growth stands as a testament to the current successes – and future potential – of the Windows Phone operating system. It has surpassed RIM’s BlackBerry OS, it has entered into a partnership with Nokia after the latter abandoned its Symbian operating system, and it recently unveiled the “Mango” update that has been well-received by critics.

But, despite all these successes, the growth in its app marketplace truly reflects the Windows Phone’s arrival as a major and lasting player in the industry. The growing number of apps means, after all, that developers are increasingly being drawn to the system – and that they believe it has a long term future. Furthermore, of course, the marketplace wouldn’t be gaining apps this quickly if the device wasn’t enjoying strong sales.

Evaluating mobile companies based on the number of apps they offer can surely overlook many other important indicators. Regardless, when it comes to the Windows Phone, it’s hard to interpret the growth in apps as anything besides a positive and noteworthy trend.


Samsung Passes Apple as Top Smartphone Seller

Posted by PhoneFreak on Tuesday, 1 November, 2011

Samsung Passes Apple as Top Smartphone Seller

Quarterly figures released this week have revealed some interesting – although not altogether surprising – news: according to Samsung and to market analysts, the phone company shipped more smartphones than Apple this past quarter. Samsung shipped 27.8 million smartphones during this time, which equates with 23.8 percent of the market, compared to Apple’s 17.1 million shipments for 14.6 percent of the market.

There are several factors that can explain Samsung’s tremendous current success. First of all, the company has been noted for its quality by consumers and technology experts. With sleek, appealing designs, the most advanced Android features, and a line of brands that appeal to all demographics – whether wealthy, low budget, high tech, or utilitarian – Samsung’s wide appeal and consequent success directly relates back to the quality of its phones.

But Apple’s phones are of no less quality, which brings us to the most probable cause for Samsung’s recent rise: its global penetration. The global smartphone market has grown 44 percent in just one year, meaning that there are 117 units in use worldwide. The biggest growth occurred in regions where Apple’s omnipotence is less guaranteed and in demographics that can’t necessarily afford the most expensive phones on the market. By appealing to these areas and these people, Samsung has positioned itself to take advantage of the current smartphone boom.

The battle between Samsung and Apple for shipment figures is fitting, considering that the two companies have already spent most of the year fighting in court. Most recently, Apple filed a lawsuit claiming that Samsung copied the iPhone and iPad in developing its Galaxy device. Samsung, in turn, has filed counter-lawsuits against Apple, and this legal feud appears to have no end in sight.

That legal feud may be the more substantial one in the first place. After all, alongside the news of Samsung’s quarterly supremacy are warnings from many commentators that this development should be taken with a grain of salt. The most recent quarter did not include Apple’s release of the iPhone 4S, meaning that shipments dropped off because many consumers were waiting for its arrival and that sales should easily pick up in Apple’s next quarterly report. Furthermore, even though Samsung ships more phones, Apple enjoys better margins and better profits.

Ultimately, it appears as though the jury is still out – in both the court and the marketplace. At this point, all we know with certainty is that the competition between Apple and Samsung will likely benefit consumers with some excellent new smartphone options in the year to come.


The Lost iPhone 5 Fiasco and Apple’s Response Shows Steve’s Authority Remains in Spirit

Posted by PhoneFreak on Wednesday, 7 September, 2011

(credit: Incase)

1984 was the year Apple released the Macintosh and changed personal computing forever. They capitalized on the device’s inaugural year by creating a Hollywood-grade television advertisement inspired by George Orwell’s masterpiece “1984”, in which a woman wearing an Apple logo being chased by the novel’s Thought Police hurls an Olympian hammer into the projection of the propaganda-spouting Big Brother. The commercial’s message was obvious: the personal computer experience was no longer going to be based on the priorities of bottom line-minded manufacturer moguls. Apple was going to offer the public a computer designed to their wants and needs.

 

Apple Computer has come quite a long way since 1984. Steve Jobs launched it, was fired from it, returned to it, and most recently left again for good. During that time he led the efforts to create such revolutionary products as the iMac G3, iPod, iPhone, and iPad. The company as a collective is responsible for where personal computing technology is today, and nothing reflects that more than the fact that it’s the second most valued company in the world.

That success, per the Jobs playbook, had been at the cost of individual designer freedom and most important of all, absolute secrecy. Seriously, when it came to the next big steps and the next big decisions, Steve Jobs was adamant about Apple’s motives remaining as unknowable as those of a chess grandmaster. It kept them one step ahead of the enemy in every way imaginable. Jobs, the ruthless genius that he was, always knew how important that secrecy was. At the end of the day, the freedom of expression the Apple experience offered to the public was at the expense of the freedom of expression of Apple employees. Nothing they said or did could ever compromise the secrecy of their projects.

So now there’s this lost iPhone 5 prototype left at a Frisco bar. As you know this same exact event happened last year and is being dealt in a similar way: Apple is the primary investigator of the theft. This was highlighted by the San Francisco Police Department’s admission that they never received a report about an iPhone gone missing at that bad. As it turns out the department’s press team wasn’t alerted that the police were “assisting” Apple with the investigation into who took the iPhone prototype.

So Apple, by-way of police assistance, is currently conducting searches in residences they suspect the iPhone 5 may be being held. The evidence linking these locations was both incriminating and Apple’s to have first before the police: in-phone GPS tracking. The phone was not recovered at the location search, however the inhabitant told investigators he was at the bar the iPhone was last seen the night it went missing.

It’s a testament to how much the Steve Jobs way of doing things remains the core of Apple Computer. Essentially, they aren’t messing around with the confidentiality of the latest iPhone release, which may or may not hit shelves next month. It’s classic Jobs in spirit, as he personally called the possessor of last year’s stolen iPhone 4 prototype asking for it to be brought back to Apple headquarters. In the two weeks since he left his post as CEO, Jobs still holds a presence over the company’s actions even if he isn’t there to execute them himself.

Apple continues to represent personal computing freedom. They accomplish this by preserving secrecy through private police action.

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No More Unlimited Data

Posted by PhoneFreak on Tuesday, 12 July, 2011

As more and more people start using smartphones the costs have gone down quite a bit but not with everything. There is no longer, under any provider, a data plan that allows users unlimited access. AT&T and T-Mobile, which are the second and fourth largest U.S. carriers, already put the axe to their unlimited data plans a while ago. T-Mobile USA now charges people based on their monthly data usage. As far as AT&T is concerned, they have a tiered system where users can pick which one would best meet their needs. It seems that the industry was loosing out on a lot of money by giving customers the option to buy into limitless connectivity. Now, as Verizon has stated, there are no longer phone providers or carriers that offer unlimited data.

This is all happening due to unsurpassed success, not failure. The smartphones are too popular. The death of unlimited wireless data is happening because providers have been seeing a mass proliferation in the use of data and it’s, predominantly, due to the smartphone market. Apparently about 77 million people in the U.S alone had them in the first few months of the year, which is up over 10 percent from the same time the year before that. The figures are climbing and the big carriers didn’t see it coming that quickly. Smartphone users have climbed and their data usage has almost doubled. These statistics are what pushed the industry to make a big change to their current business model.

The announcement came as another blow to the limitless data model. It’s not going to affect everyone, just new customers or anyone looking to upgrade their old phone to a smart phone. Now, it seems, that many carriers are going to start charging people per-megabyte usage. With Verizon, you can get 75 megabytes of data usage per month for about ten dollars. But it hasn’t always been completely open. Even when T-Mobile did offer total data access, the company would slow down the data speeds for unlimited plan customers who use up their monthly allotment. This wasn’t always known by the customer. It was legal because they still, technically, had unlimited data but it wasn’t at the same strength. It’s likely that it’s going to stay this way. We’ll probably see data wars between the providers long before we see a return to any unlimited plans.

To put in plainly, there’s far more money to be made with limited or capped data plans. Growth and maximum profits aren’t possible with a fixed-price model. This is especially the case if people continue to use and get smartphones in the kinds of numbers the industry has seen in the last couple years. Though everyone that has the old unlimited data plan will still have it. It’s not like its going to be taken away, but providers are going to have to find another gimmick to keep people streaming in.

Incoming search terms:

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