Deutsche Telekom Gives a Thumbs Down on the Verizon-Cable Deal
A May 7 article in The Hill discussed a telephone conversation between FCC Chairman Julius Genachowski and Rene Obermann, the German CEO of Deutsche Telekom, the parent company to T-Mobile USA. In the course of the conversation, which took place the week of May 1, Obermann pulled no punches, telling Genachowski that the Verizon-cable spectrum deal should be blocked.
The deal between Verizon and SpectrumCo LLC – a joint venture of Comcast Corp., Time Warner Cable and Bright House Networks – and a similar arrangement between Verizon and Cox Communications, would allow Verizon to purchase large blocks of wireless spectrum from the cable companies. The arrangements also call for marketing and cross selling each other’s products and services. Read more
Verizon Offers HomeFusion Broadband Service Nationwide
On May 3, Verizon launched HomeFusion Broadband service nationwide, whereby subscribers can use an LTE router in their homes to connect up to four wired and 20 wireless devices to the web through Verizon’s LTE network.
The service is priced at $60 a month for 10GB of data, $90 per month for 20GB of data and $120 a month for 30GB of data. The company will charge customers an additional $10 per each GB over their monthly allowance. Verizon also is charging a one-time equipment fee of $199.99 per installation. In comparison, other national home broadband providers offer more data at lower prices. Read more
Sen. Grassley Lifts Hold on FCC Nominees
Sen. Charles Grassley (R-Iowa) on April 27 released a hold he placed on two nominees for vacant commissioner seats at the FCC. Releasing the hold will allow the senate to proceed with its review and potential confirmation of the two applicants.
Sen. Grassley placed the holds on Ajit Pai (R) and Jessica Rosenworcel (De) four months ago after his request for information from the commission was rebuffed primarily due to Sen. Grassley not holding a leadership position on a committee with jurisdiction over the commission.
In a statement released by his office, Sen. Grassley said that he intends to pursue his inquiry into LightSquared. “The documents I’ve seen so far raise more questions than I had before,” he said. Read more
Mobile Data Boosting Profits?
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
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
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



