Fone Smart!

Welcome to the first edition of Fone Smart! published on Saturdays!  I thought it would make more sense publishing a weekly telecommunications e-Zine at the end of the week to get a good summation of the news and happenings in the industry than publishing in midweek as has been the tradition. 

It was a marriage made in heaven: AT&T and the Apple iPhone.  The exclusivity, the marketing, the image, etc., of the iPhone made AT&T a ton of money since its debut four years ago.  Despite the fact that there have been and are numerous handsets (like any Android phone) that does many of the same things, if not more, than the iPhone (with its litany of problems: like battery over heating, locking up, not being insurable, having to go to an Apple store to get it serviced, the ability to make calls, etc.), people just have to have it and are clamoring for the release of the next version. 

But if, and when, the next iPhone is released, will it be exclusive to AT&T?  There has been talk for a while that T-Mobile and Verizon are poised to get the iPhone once AT&T & Apple’s exclusivity agreement ends.  Is it possible that Apple CEO Steve Jobs will announced the divorce of AT&T and the iPhone, that they are no longer exclusive and now allowed to see other people on Monday?  We can only speculate and wait to see.  For the record, I think the iPhone is garbage, but that is just one person’s opinion.

Apple is set to announce the release of the iPhone OS4 (iPhone 4G) on June 7, 2010, and perhaps AT&T is preparing itself if/when it looses exclusive rights to the iPhone by getting ready to release the Blackberry 9800 Slider (running an OS 6.0) later this month and by capping data on its smartphones to 200MB & 2GB caps.  Here are the breakdowns of AT&T’s new data plans:

1. DataPlus: 200MB for $15/month w/ 200MB available for $15 if the customer exceeds this.
2. DataPro: 2GB for $25/month w/ 1GB available for $10 if customer exceeds this.
3. Tethering: (Finally!  After all these crazy years, AT&T is allowing tethering for the iPhone!) Customers with the DataPro plan will have the option to add tethering for an additional $20/month.

PC Mag has declared that AT&T has the fastest 3G network, but that looses points in consistency. 

Some good news coming from Sprint this week.  First, the company has decided not to mess with its data pricing.  Second, it has released the HTC Evo to great buzz (and bugs, unfortunately).  The EVO offers simultaneous voice & data capability in 4G or Wi-Fi coverage areas; thus allowing the use of the internet while talking (once a major selling point for AT&T), two cameras (an 8.0 megapixel auto-focus camera w/ HD capable video recording as well as a forward facing 1.3 megapixel camera), a custom web browser and much more.

In a very bold move, the company announced changes to its mobile broadband plans.  For $40/month, customers can now get 5GB (with no overage charges) and customers can now get 200MB for $25/month, regardless contract/no contract option. This pricing comes upon the heels of T-Mobile announcing that its HSPA+n network now covers 30 million potential subscribers and plans to cover 100 major metropolitan centers by the end of 2010.

Verizon Wireless spokesman John Johnson has stated that the company has “no plans to carry the iPhone in the immediate future.” This comment is like a politician stating that he/she has no intentions to run for a particular office, and then appearing as a candidate shortly afterward; if Verizon Wireless has the ability to jump on the iPhone bandwagon, you can rest assured that it would do so if the opportunity arose.  Additionally, the company expects to bring 4G to 25-30 US markets and make 4G handsets available by the end of the year.

In an April 8, 2010 press release from Apple, the company stated that the new OS 4 for the iPhone will include an updated Software Development Kit (SDK) and many new features; such as 3rd party multitasking aps, better mail and a unified inbox with faster inbox switching, ehnanced Enterprise support, iBooks, and more.

AT&T will be launching a new ad campaign that focuses on image, “accentuating the positive,” rather than merely their products and services (see NYT’s article).  Perhaps the company has decided to go this path after announcing that it will now allow unlimited streaming of Netflix on its iPad ap over their spectacularly awesome 3G network. 

Verizon CEO Ivan Seidenberg is not sold on the idea of merging Verizon with Vodafone, though he would like to “resolve the joint venture structure.” (see Dow Jones article)  Dismissing speculation about a merger, Mr. Seidenberg has not ruled out the possibility, stating that things could change.  It is widely believed that he would like to buy out Vodafone’s share of Verizon Wireless, and he has also expressed interest in bringing the iPhone to Verizon once AT&T’s exclusive contract with Apple ends.

Atlantic Tele-Network (ATN) has gotten approval from the Justice Department to purchase some former Alltel assets fromVerizon Wireless, a deal signed in June of 2009 for $200 million.  These former Alltel assets cover 800,000 subscribers in Illinois, Georgia, the Carolinas, Ohio and Idaho.

Palm Pre-Plus Verizon Wireless

Verizon Wireless recently dropped the price of the Palm Pre to $49.99 with a two year contract.  If you are in the market for a webOS device, now would be a good time to get the Palm Pre.

What will become of Verizon Wireless?  Verizon (majority owner) and Vodafone are continuing talks about the company’s future; with various options being looked at: combining the two phone companies, having one carrier sell its stake in Verizon Wireless to the other, or paying a dividend to investors. (See Bloomberg article)  The most likely scenario is Verizon & Vodafone merging.

Jose Guzman, project coordinator of the New Millenium Research Council has declared that the “The era of cell phone penny pinching is officially here.  Thanks to the recession, the U.S. cell phone marketplace continues to undergo fundamental changes that will just get bigger as the economic downturn deepens.   What is different from a year ago is the explosion in new ‘all-you-can-eat’ and unlimited prepaid deals as low as $30 and $45 that will remain attractive to consumers long after the current recession is over.”  In fact, 4Q09 marked the first time that pre-paid subscribers outnumbered those with contracts; new pre-paid subscribers account for 65% of the 4.2million cellular customers in the market…a growth of 17% from 46.2m to 54.4m in 4Q09. (Read Millenium Report)

Telecom giants, Verizon & AT&T in particular, need to wake up and realize that customers have grown tired of overpaying for service, being stuck in contracts just to get a discounted phone (often times, of which, you are required to get a data package for a high end device), and having to jump through hoops to get a customer service rep who wants to help, let alone knows what he/she is doing, when help is needed.  In today’s economy, paying over $60 for unlimited talk & text on a single line is outrageous when you can get a better deal and sometimes better service, going prepaid.

AT&T has announced that it will now extend its 24mbps/3mbps U-verse High Speed Internet Max Turbo service to all 120 of its markets.

HTC Droid Eris

Kyocera will be releasing their first Android (Zio M6000) in 2Q2010, while Motorola will be releasing its first push to talk Android (i1 for IDEN networks).  Speaking of Android phones, I am baffled by the seeming lack of press about the HTC Droid Eris (Verizon Wireless).  It is an awesome phone in its own right.

On Tuesday, March 23, 2010, Criket announced that it would begin offering the nation’s first $30 unlimited nationwide talk and text plan (see CNN Money article).   Unfortunately, I do not know much about Criket, but I do like MetroPCS (which has a $40 unlimited plan), which has a pretty good coverage area and reception in my opinion.  My only complaint with MetroPCS has been my Kyocera Neon phone, the battery life leaves a lot to be desired.  Hopefully soon Verizon and AT&T will follow the lead of Sprint, MetroPCS and Criket and offer a realistic unlimited talk, text and web plan.

 To help faciliate its purchase of purchase of Verizon assets, Frontier has decided to sell its junk bonds (see Bloomberg article). 

Verizon CEO Ivan Seidenberg saw his salary decrease in 2009: down to $17.5 mil from $20.3 mil.

Sprint has announced that it will be releasing an iPhone-esque Evo 4G phone made by HTC (see Yahoo! Finance article).

G'z One Brigade

Verizon Wireless recently released the Casio G’zOne Brigade, a tough phone that meets military specifications to survive electrical shock, water, dust, etc., that features a QWERTY keyboard, Push to Talk technology, a 3.2 megapixel camera w/ flash, and HTML browser and more.  For more information and specifications on the new Gz’One Brigade, click here.

 Xobni is offering Blackberry users a new app that creates a smarter address book.  “The app creates profiles for every person you’ve ever communicated with and ranks them in order of relevance rather than alphabetically. Contacts you’ve most recently communicated with–or most frequently communicate with–will be listed at the top for quick access.

The app also aggregates all of your contacts’ social network accounts, like Facebook, LinkedIn or Twitter, and lists them under one profile. The user interface is similar to the contact syncing applications we’ve seen on Palm’s webOS or some of the user interfaces for Android, like MotoBlur. You can access your contacts via the app or in the compose window of the BlackBerry Email application.” Credit: PC World 

 An administrative law judge in Illinois, Lisa M. Tapia, ruled on March 10, 2010 that Frontier’s acquisition of Verizon’s properties in the state would “diminish frontier’s ability to provide adequate, reliable, efficient, safe and least-cost public utility service.”  The Illinois Commerce Commission is expected to decide whether to amend or adopt Tapia’s assessment in April. 

CWA District 6 negotiators have left the bargaining table, stating that AT&T “has not made any significant movement on many of the major issues and continues to hold numerous items of the contract hostage to its demand to shift significant health care costs to bargaining unit members.”

Ed Colligan, Palm CEO for 16 years, announced on June 11, 2009 that he will be stepping down to take some time off and that Jon Rubestein will be taking his place.

RIM has announced that it will soon be releasing the Blackberry Tour for Sprint and Verizon Wireless. The smartphone will have a 3.2 megapixel camera, media player and will support BlackBerry App World. Sprint has announced that the Tour will available to its customers late summer for $199.99 with a 2year contract.

Sprint will be offering the HTC Snap smartphone, featuring a 2.4 inch screen, full QWERTY keyboard, powered by Windows Mobile 6.1 and preloaded with Pocket Office.  This phone is targeted towards the mobile professional.

Speaking with some people sensitive to the situation, Frontier will supposedly honor the recently renewed contract between IBEW Local 51 and Bloomington’s Plus! store…but I don’t see that happening. 

The battle between AT&T and CWA District 6 is heating up. In response to AT&T-Southwest’s “Last, Best and Final Offer,” the union, in a press release dated May 13, 2009, called the overall package “inadequate.”  In an article dated May 19, 2009, the Chattanooga Times Free Press reported that AT&T had spent from $523,000 to $623,000 from October 1, 2008 to March 31, 2009 as it tried to woo the Tennessee General Assembly in its push to deregulate basic telephone service.  Fans of the i-Phone rejoice! Apple announced on Monday (June 8, 2009) that the price of the 8gig i-Phone has been slashed by $100 to $99, and that the new i-Phone, the 3G S, will cost $199 (for 16gigs) or $299 (for 32gigs). The 3G S will go on sale on June 19, but Apple faces stiff competition from Research in Motion (RIM) and the new Palm Pre, which became available last Saturday and is selling for $200.

In other AT&T company news, on May 27, 2009, at the All Things Digital conference, AT&T CEO Randall Stephenson announced that the company will begin selling the Palm Pre once the exclusivity agreement with Sprint ends.

CNet News reported on June 8, 2009 that Sprint broke sales records with its release of the Palm Pre.

On May 22, 2009, T-Mobile finally went 3G. What does this mean for customers, sales and customer service people? By using 3G capable devices (such as the G1, Behold, etc.) there will be faster browsing and download responses with boosted speeds ranging from from 200-300 kbps (kilobits per second)The speed of the 3G network will depend on multiple factors, including network changes, traffic volume, service outages, technical limitations, signal strength, your equipment, terrain, structures, weather, and the overall performance of the Internet. 3G is not currently available in all areas. If 3G is unavailable in your service area, you will experience EDGE performance/speeds.

In other T-Mobile news, the HTC Magic smartphone will not be called G2 (due to possible copyright by Gatorade), rather, it will be called myTouch 3G. The upgrade of the G1 will come in three colors, one of which will be merlot; and T-Mobile expects the phone to be available by August 5, 2009.

It was announced on May 28, 2009 that Verizon Wireless will introduce the LG Env3, LG Env Touch and the LG Glance.  From the Verizon Wireless corporate site:

 Fone Smart!’s publishing date will be moved to Thursday’s starting with edition #6, to be published next week, June 18, 2009.

In a May 15, 2009 press release, AT&T has stated that “twice as many smartphone users have chosen AT&T over any other US carrier,” in and in another release, the company has stated that it plans on launching an advertising campaign that highlights its smartphone leadership.  The company also announced that its Blackberry Curve 8900 will be available on May 22, 2009 for $200 after a $100 mail in rebate with a new 2yr agreement.

Blackberry Curve 8900

Sprint will be offering the Palm Pre nationwide on June 6, 2009, and according to the company’s May 19, 2009 press release, the Palm Pre’s new webOS platform “introduces Palm Synergy™, a key feature that brings together your personal and professional calendar, contacts and e-mail into one centralized view, making transitions between work and personal life smooth and easy to manage.

With Palm Synergy, users get: Linked contacts – With Synergy, you have a single view that links your contacts from a variety of sources, so accessing them is easier than ever. For example, if you have the same contact listed in your Outlook(3), Google and Facebook accounts, Synergy recognizes that they’re the same person and links the information, presenting it to you as one listing. Layered calendars – Your calendars can be seen on their own or layered together in a single view, combining work, family, friends, sports teams, or other interests. You can toggle to look at one calendar at a time, or see them all at a glance. Combined messaging – Synergy lets you see all your conversations with the same person in a chat-style view, even if it started in IM and you want to reply with text messaging. You can also see who’s active in a buddy list right from contacts or e-mail, and start a new conversation with just one touch. Palm webOS lets you keep multiple activities open and move easily between them like flipping through a deck of cards. You can move back and forth between text messaging and e-mail, or search the web while you listen to music. You can rearrange items simply by dragging them, and when you are done with something, just throw it away by flicking it off the top of the screen.”

On May 13, 2009, T-Mobile agreed to settle a class-action lawsuit over early termination fees in regards to Civil Action No. 08-04149 (JLL) (ES) in the United States District Court of New Jersey in the case of Milliron v. T-Mobile USA, Inc.  The company will pay $11.5 million into a settlement fund for class members.  In other T-Mobile news, the company issued a statement on May 18, 2009 stating that it was still working on finalizing the Android 1.5. which will delay the OTA update for G1 users by one week.

Now for some good T-Mobile news.  The company announced a new program to help customers save money on their bills called Mobile Makeover, in which customers can visit a T-Mobile retail store or the company’s site for a link to Billshrink.com, a utility that estimates if and where customers can save the most money with what carrier and with what plan.

There will be no May 27, 2009 edition of Fone Smart!.  The next edition will be published on June 10, 2009.

Carrier News 

The company announced on May 8, 2009 that it has included an additional option for its GoPhone customers, an unlimited national calling plan with no roaming or long distance charges for $3 a day.  The company has also reached agreement with Verizon to purchase a number of former Alltel assets for $2.35 billion.  AT&T will acquire Verizon’s licenses, network assets as well as 1.5 million subscribers in Alabama, Arizona, California, and a number of other states. 

The Android 1.5 update for the G1 will be available next week.  

In some heartbreaking news, Verizon has decided to sell its LAN business in Illinois, Arizona, Idaho, Indiana, Michigan, Nevada, North Carolina, Ohio, Oregon, South Carolina, Washington, West Virginia, Wisconsin and California to Stamford, Conn., based Frontier Communications Corp. 

This means that the Verizon Plus! store in Bloomington, IL., where some of close friends still work, could very well be facing the proverbial ax, which is a shame.  I wish them the very best in this time of uncertainty for them.  Never have I worked with a more talented and professional group and customers will be at a loss.

Verizon CEO/Chairman Ivan Seidenberg stated that “this transaction is part of our multi-year effort to transform our growth profile and asset base to focus on wireless, broadband, and global IP…Frontier knows how to run wireline communications services well and has a top-notch management team to take these properties to the next level.”

While the writing has been on the wall for a long time, as far back as when I became a sales person with the company in May of 2007, it is heartbreaking and even maddening that Verizon axed the grunts while upper management and company officers were left untouched.  That being said, the LAN business is not very profitable anymore, especially with fiber optic coming increasingly in demand. It is sad to know that people in Terre Haute (IN), Richmond (IN) and Marion (OH) lost their jobs in this move, and that the Bloomington (IL) Verizon Plus! store may be on the shopping block sooner than later; as I got to know and had the privilege to work with some very good people during my time with Verizon Plus!. Of course, the Union will come to their aid if that should come to pass…right? (Crickets chirp in the distance) Seeing Verizon’s many battles with the Union in recent years, could that be one of the reasons for the shedding of its LAN business?

Industry News

The research firm Strategy Analytics has named the top 7 US wireless carriers by subscriber base in the 1st quarter of 2009. They are (source: Strategy Analytics):

1. Verizon Wireless (1.3 million net adds, 1.5% monthly churn)
2. AT&T (1.2 million net adds, 1.6% monthly churn)
3. Sprint-Nextel (-261,000 net adds, 2.7% monthly churn)
4. T-Mobile (415,000 net adds, 3.1% monthly churn)
5. US Cellular (47,000 net adds, 1.9% monthly churn)
6. Metro PCS (684,000 net adds, 5.0% monthly churn)
7. Leap Wireless (493,000 net adds, 3.3% monthly churn)