Mobile Data Boosting Profits?
Posted by Steve Fravel on Monday, April 23, 2012 · 
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An April 19 New York Times article discussed the declining growth rate in new wireless customers, highlighting Verizon Wireless. In the first quarter of 2012, the company noted a 16% drop in new subscriber growth compared with one year ago. Most of the reason for the drop may be because those who want cell service already have service, limiting the number of new subscribers.
Verizon Wireless did report a $1.7 billion profit for the first quarter primarily on smartphone and tablet data fees generated by those who watch video, browse the Web and listen to music. According to Verizon’s report, the company recorded $6.6 billion in mobile data revenue for the quarter, a 21.1% increase over the previous year.
According to the New York Times, experts indicate that mobile data usage more than doubled in size in 2011, and they predict that it will increase by a factor of 18 by 2016. As growth in subscribers begins to slow down, analysts say that Verizon and other wireless carriers will begin looking for other ways to sustain growth in mobile data use, including more shared family plans for mobile data.
Relying on information provided by independent industry analyst Chetan Sharma, the Times went on to note that Verizon has now built out its Long Term Evolution (LTE) network covering 230 markets. Only 47% of Verizon Wireless customers currently own a smartphone. Converting cellphone users to smartphones represents large potential profits. In addition, LTE networks move more data quicker, which may prompt customers to go through their allotment of data faster, tempting them to buy more.
Dish Chairman Offers Insight into Wireless Business Strategy
Posted by Steve Fravel on Sunday, April 22, 2012 · ·
At an April 17 speaking engagement, a candid presentation at the Silicon Flatirons Center for Law, Technology and Entrepreneurship at the University of Colorado Law School, Dish Network Corp. Chairman Charles Ergen discussed his company’s plans to launch a nationwide Long Term Evolution (LTE) network.
Dish’s plans are subject to a recent FCC notice of proposed rulemaking. The outcome could make way for Dish to deploy wireless services in the newly coined Advanced Wireless System (AWS) 4 band. Ergen acknowledged that there is “no guarantee” that the commission will adopt the ruling. He added, “We’re kind of a one-trick pony as a company. We do fixed video very well, do it economically. It’s a great product.” He went on to describe the addition of an advanced wireless product as being essential to Dish remaining a competitive and an innovative company. Read more
Cox Files Countersuit Against Sprint
Posted by Steve Fravel on Sunday, April 22, 2012 · ·
Bloomberg reports in an April 17 article that Cox Communications Inc. has filed suit in federal court in Delaware against its former business partner Sprint Nextel over patent infringement. The complaint is a counter suit that claims Sprint has violated two patents held by Cox. It goes on to ask that the court dismiss a suit filed by Sprint in December claiming that Cox, Time Warner Cable and Comcast had infringed upon 12 Sprint patents.
The business relationship between Sprint and Cox involved the use of Sprint’s wireless services for Cox cable customers. The relationship reportedly went south shortly after Cox stopped using Sprint’s wireless services and agreed to sell advanced wireless services (AWS) spectrum to Verizon Wireless, joining Time Warner Cable, Comcast and Bright House Networks in a similar but separate transaction. Read more
Big Changes and Expansion for Verizon Wireless
Posted by Steve Fravel on Sunday, April 22, 2012 · ·
In a press release issued on April 18, Verizon Wireless announced plans to make all of its 700 MHz A and B spectrum licenses available in an open sale. The licenses were acquired in Auction 73 conducted by the FCC in 2008. The licenses cover many major cities across the country, in addition to small towns and rural markets.
The planned sale of A and B spectrum licenses is pending the acquisition of advanced wireless services (AWS) licenses Verizon Wireless has arranged to purchase from SpectrumCo., a group of cable multisystem operators including Comcast, Time Warner Cable and Bright House Networks. Verizon also has arranged to acquire additional AWS spectrum from Cox Communications and Leap Wireless. These purchases are currently under FCC and U.S. Department of Justice review for approval of the transactions. Read more
Grassley Stands Firm on Nominee Hold
Posted by Steve Fravel on Friday, April 13, 2012 · ·
April 10 articles in TR Daily and Broadcasting & Cable cover Sen. Charles Grassley’s (R–Iowa) position on documents concerning LightSquared and its stalled attempt to launch a nationwide 4G long term evolution (LTE) network. According to Sen. Grassley, the documents shared with him on April 6 by the House Energy and Commerce Committee appear to be incomplete.
The Iowa senator has requested that additional information from the FCC be made available to the House Energy and Commerce Committee. The senator is maintaining his hold on two nominees for commissioner’s seats at the FCC. A spokesperson for Grassley said in a statement, “According to the FCC, the documents all have been previously released through the Freedom of Information Act.” This point was made in the cover letter accompanying the documents. Read more
Verizon Wireless and Cable Companies Begin Joint Marketing
Posted by Steve Fravel on Thursday, April 12, 2012 · ·
According to April 12 articles in the Kansas City Star and Dayton Business Journal, Comcast, Time Warner Cable and Verizon Wireless have initiated joint promotions in several shared markets. Offering a $200 debit card as part of the promotion, the marketing effort has begun in Kansas City, Mo. and Kansas City, Kansas; Columbus, Ohio; Toledo, Ohio; Cincinnati, Ohio; and Raleigh, N.C.
The joint promotion is similar to the Comcast-Verizon effort launched earlier this year in Seattle and San Francisco. The two companies are offering debit cards to new subscribers who order cable and wireless phone products and services. The promotions are the result of joint marketing agreements that the country’s largest cable MSO signed with Verizon last year as part of the sale of Comcast wireless spectrum.
The FCC and U.S. Department of Justice are reviewing the sales agreements between Verizon Wireless and Comcast, as well as similar agreements between Verizon Wireless and Time Warner Cable, Bright House Networks and Cox Communications. In each of the deals, the cable companies had agreed to sell advanced wireless spectrum (AWS) to Verizon Wireless and entered into joint marketing agreements to sell each other’s services. The deals also have drawn criticism and scrutiny from consumer groups and other communications organizations.
AWS Services Seminar
Posted by Steve Fravel on Thursday, April 12, 2012 · ·
Speaking at a legal seminar, Jeff Blum, senior vice president and deputy general counsel for Dish Network, indicated that he thinks the FCC will act by August on a proposed rulemaking that will clear the way for Dish to roll out its planned advanced wireless services (AWS) network. Blum was addressing a wireless communications seminar sponsored by Catholic University and the Federal Communications Bar Association.
Dish’s 4G network requires use of licensed S-band satellite frequencies to fuel a terrestrial wireless network under an ancillary terrestrial component waiver granted by the commission. The FCC issued the request for proposed rulemaking back in March in response to a Dish petition requesting waivers for the new service. The Dish plan is to use the 40 megahertz in the 2 gigahertz band it recently acquired from DBSD North America and TerreStar Networks. Read more