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Watch out, wireless carriers: MVNOs are gaining momentum

Whitey Bluestein, Bluestein & Associates, LLC — Sat, 22 Dec 2012 18:30:59 +0000

More than a decade ago, the first wave of MVNOs – TracFone, Virgin and Boost – brought consumers the option of prepaid service. No-contract cellular was disruptive then; today, it accounts for more than one out of five mobile users. The original three MVNOs still account for about half of the U.S. prepaid market (Virgin and Boost are now units of Sprint), and hold a 10 percent share of total wireless subscribers.

While matching the impact of the first wave may be difficult, a new wave of MVNOs is reaching the market now with equally disruptive business models, such as dramatically reduced acquisition and service costs, low-cost voice and data services, and exciting new capabilities. Here’s how they’re doing it:

Low-cost model

Handset subsidies can be a large part of the acquisition cost for traditional carriers (in the case of the iPhone, for instance, several hundred dollars per unit). In contrast, many new MVNOs are adopting Bring Your Own Device (BYOD) strategies, with SIM-only MVNOs like Simple Mobile, Red Pocket and Ultra on the GSM side, and a new BYO Sprint Device solution for MVNOs like Kajeet, Ting and others on the CDMA network. Sprint’s BYOSD program has the added benefit that no SIM kit or installation is required; the handset is activated simply via its serial number.

With BYOSD, for example, Kajeet offers network-based parental controls, web filtering and location services on recycled handsets. BYOD solves two problems for the MVNO – eliminating handset subsidies and reducing logistics cost (kitting, shipping, warranty repairs and returns). Even where customized handsets are used, MVNOs sell them above cost, eliminating costly subsidies.

Not sold in stores

Many new MVNOs bypass the retailer and dealer channel altogether and save a bundle by embracing online distribution, web marketing, social media, viral and multi-level marketing. In lieu of paying retailers high commissions and sales incentives while still fighting for shelf space, these MVNOs rely on newer, lower-cost targeting. SEO and SEM are just the beginning. MVNOs like Ting sponsor selected podcasts and weekly Facebook caption contests to reach their target audience. Solavei uses multi-level marketing, Facebook, and tried-and-true referral incentives. And Kajeet uses a “Mom Sales Team” referral program (that interestingly relies on old-fashioned word-of-mouth among parents).

Service – airtime and data – costs can also be reduced. With increasing data usage, many MVNOs utilize dual-mode phones (cellular and Wi-Fi) to offload voice and data traffic to Wi-Fi networks, which is increasingly available in homes, offices and businesses. And an added benefit for providers: offloading to Wi-Fi turns off the carrier’s meter.

MVNOs to watch

Ting appeals to early adopters and Internet-savvy folks with a completely different take on pricing. Self-described as “Geek-powered,” Ting lets customers design their own rate plan, buying only as many minutes, messages and megabytes as needed, with plan sharing for just $6/device. Alternatively, customers can simply pay for actual usage at the end of the month. Is it prepaid or postpaid? Ting’s answer: “We call it fair, and trust you.” Customers manage usage from an online dashboard, and customer care is friendly, unscripted and helpful. Bring your Sprint device to Ting, or select from a range of Android handsets.

When Republic Wireless introduced its $19/month unlimited plan as a beta trial, everyone asked how they planned to do it. Republic relies heavily on Wi-Fi networks at home and work, using “hybrid calling” or cellular offload where traffic only rolls to Sprint’s cellular network when Wi-Fi is unavailable. Republic is now shipping a Motorola Android smartphone, running proprietary Republic software (for $259), which completes the no-contract package. And apparently the beta trial worked just fine: the same $19 plan is now available to all.

FreedomPop guarantees 500MB of free 4G mobile broadband data every month, with no data caps or throttling, and attractive plans ($17.99/month for 2GB of data, a cent per MB additional). Customers can earn additional data for each friend referred or unlimited data by engaging in partner promotions. The Freedom Hub Burst, a 4G Wi-Fi router that offloads cellular to wireline and supports up to 10 devices, is free with security deposit. They also offer the Freedom Sleeve Rocket, an iPod Touch case that turns it into an iPhone. Plans include trading bandwidth with other FreedomPop users, and creating bandwidth-sharing communities. Launched on Clearwire, FreedomPop will add Sprint’s LTE network next year.

Voyager Mobile , a Tennessee-based company with just nine employees, nonetheless thinks big. With unlimited talk at $17 to unlimited everything for $39, Voyager’s shrinking service plan program drops monthly rates by $1 for every six months of on-time payments. Last month, Voyager announced Project Global Voyager for calling “across the world, without any roaming charges.” Using dual CDMA-GSM handsets, on Sprint here and GSM everywhere else, Voyager promises international voice, messaging and data worldwide “without a penny of roaming charges” in first-half 2013. Voyager says demand is strong. Two other MVNOs are also addressing international roaming costs – Karma in the U.S. and GlobalGig in London.

And everybody is watching Solavei, a T-Mobile MVNO that, under an elaborate compensation plan, pays bounties to members for signing up new customers. Members are encouraged to share with family and friends, and post on social networks in a marketing scheme described as “more like Amway or Tupperware.” Last month, Solavei announced it reached 65,000 members just six weeks after launch and had paid more than $1 million in commissions. This would be a roaring start, but not losing steam is often the challenge for multi-level marketing.

These and other new MVNOs are introducing attractive pricing with innovative technology and business models. As always though, execution and deep pockets will determine winners and losers.

Whitey Bluestein, a 25-year telecom veteran, is a strategic advisor and corporate development specialist focused on prepaid, mobile applications, payments and roaming services. Visit whiteybluestein.com.

Photo courtesy of Michaelstockfoto/Shutterstock.com.

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Defcon’s NinjaTel cell network could solve real-world problems

Stacey Higginbotham — Sat, 28 Jul 2012 20:34:48 +0000

At the Defcon hacker convention going on now in Las Vegas, roughly 650 attendees received a custom phone that allows them onto a secret local cell network called NinjaTel. Both Ars Technica and The Verge have stories offering screen shots and details, but I’m curious about the real world implications of this experiement.

Ars Technica says the network uses both a GSM network (not sure what frequency it’s operating in, or if it is indeed a real “pirate” network as The Verge asserts) and secured portions of the conference Wi-Fi :

For redundancy and reliability, Ninja Networks engineers took advantage of a feature added to the Ice Cream Sandwich release of Android that makes it easy to route calls over GSM or, using the SIP, or Session Initialization Protocol, over a private portion of the Defcon WiFi. As each subscriber was added to the network, a syncing app added the user to the list of contacts contain on all other phones, giving each person a way to text or call the other. An app contained on the custom phone made it easy for other users to write apps for the device.

Those with phones can only use voice or SMS, and are all visible as contacts on the network at any one time. There are peer-to-peer modes where folks can converse without going over the wider network as well as apps that let users interact with each other or other Ninja-approved devices. But outside creating some fun for hackers at a security conference, this type of network might be useful for places like Syria or Egypt where governments can control and shut down cellular networks as a means to cut off unrest.

I’ve written about a variety of projects–from Serval to OpenGSM — that could be used to create peer-to-peer or actual cell phone networks for groups of users to rely on when their own communications are spotty or compromised by hostile governments. Such networks could be a boon for democracy and freedom worldwide, but could also easily become a headache for law enforcement when in the wrong hands.

But the implementation of such networks by technologists, much like the development of the Internet, could provide a platform that helps democratize the flow of information. And trying that out, and possibly making versions of it that are ever easier to use on handsets could create yet another avenue for information sharing.

And for those who think that such technology isn’t needed in the U.S. or developed countries, just recall when the Bay Area Rapid Transit authorities shut down cell phone access on platforms because it was concerned about protests or when India wanted the ability to snoop on BlackBerry devices. So NinjaTel may be a cool one-off experiment today, but with time and work it may become the next-generation’s Internet. A massively democratic and redundant way to share information — even when governments would rather shut such information sharing down.

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It’s official: The SIM card is shrinking!

Kevin C. Tofel — Fri, 01 Jun 2012 16:10:38 +0000

ETSI, the European Telecommunications Standards Institute, approved on Friday specifications for a SIM card even smaller than the micro SIM that Apple’s iPhone 4 first introduced in 2010. The new standard, called a nano-SIM, is the fourth form factor for the small smart cards used in GSM phones and is 40 percent smaller than the prior model. The approval was not without strife, however, as various phone makers were debating for months over the design and size.

The SIM, known as a Subscriber Identity Module, is used by carriers to activate cellular phones and enable services. Consumers can also use the SIM cards to store a limited amount of information, such as contact data. That allows people to switch from one GSM phone to another by swapping the SIM card without losing service or contact data. With the new specification and smaller size, hardware manufacturers can gain a small amount of additional room for handsets and tablets with integrated mobile broadband service, which could lead to larger batteries or additional components.

Of particular note is that the approved SIM design appears most similar to Apple’s original submission. Why is that important? Apple was the first handset maker to start reducing network operator control from its smartphone and tablet products. The company has also hinted at completely owning the cellular customer relationship; through either a SIM card or an embeddable SIM. Our thoughts from earlier this year:

“But there’s more in it for Apple. If it’s able to control the SIM card in phones, it holds more sway over the subscriber. My colleague Stacey Higginbotham has covered this extensively, and was first with evidence that Apple is aiming to cut out the carriers eventually with even tinier embeddable SIM cards made by Gemalto. If they succeed in embedding these cards, iPhone or iPad buyers could buy the device direct from Apple and simultaneously choose the carrier they want to use, and Apple could activate service right at the point of purchase. It also means easier roaming on other networks.”

Granted, with the new standard, all hardware makers have access to the new SIM design. But Apple may be the one to gain the most in the end thanks to its patent for choosing and switching cellular providers directly on a smartphone.

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Straight Talk: It could let you dump AT&T or T-Mobile

Kevin C. Tofel — Wed, 23 May 2012 19:39:46 +0000

Earlier this month, I took a look at Straight Talk, a TracFone-owned mobile virtual operator that resells service on both AT&T and T-Mobile in the U.S. I personally bought a T-Mobile compatible Straight Talk SIM card for my Galaxy Nexus because the deal for unlimited everything at $45 per month and no contract sounded too good to be true. For the most part, Straight Talk delivers on its promise with two small exceptions that I’ll point out shortly. The company calls its product a “BYOP” or Bring Your Own Phone prepaid service.

Since trying the service, I’ve received a number of questions about it and the company noticed. So in order to help me answer them intelligently, Straight Talk sent me a loaner unlocked iPhone 4, two AT&T SIMs (regular sized and micro SIM) and some pre-paid monthly service cards.

Unlimited isn’t quite unlimited, except for voice and messages

So here are some follow up experiences I’ve had with both my phone and the loaner iPhone 4, which hopefully helps you decide if Straight Talk’s $45 month to month service is an option for you. First, let me point out the two key exceptions that I’ve found.

Apple’s Visual Voicemail isn’t supported by Straight Talk, so if you go this route, you’ll be calling in to hear your messages. I don’t think that’s a huge issue, at least not for me personally as I use Google Voice for all communications. However, some folks may not be happy with the feature loss.
For $45, Straight Talk advertises unlimited voice minutes, messages and HSPA+ data (There’s no LTE support, even if your phone is capable of using AT&T’s LTE service). Based on user-reported experiences, Straight Talk won’t cut you off provided you keep your monthly usage to 2 GB or about 100 MB per day. Hit either of these and you might get a message about excessive use, along with the threat of service termination. History shows that I use about 1 to 1.5 GB of mobile broadband a month on my phones (I use Wi-Fi a ton), so this works well for me. If you want truly unlimited data or use more than 2 GB per month on your phone, this isn’t the plan for you. Don’t even try it, would be my recommendation.

Note: I asked Straight Talk about the limit and was told that company is trying to “focus on trust and communication with customers.” It’s likely that TracFone has no way to throttle after any limits, since it doesn’t operate the networks. As a result, the company will warn folks for excessive use and potentially disrupt service if you don’t limit your usage.

Good value or no?

If you can live with those two caveats, I think the service is a great value. I was using a $30 data-only T-Mobile SIM in my Galaxy Nexus paired with low-cost VoIP calling but due to coverage issues with dropped or missed calls, I’m much happier with the Straight Talk SIM. My first month of service ends next week and I’ve already added 3 months to my account for $130 thanks to a $5 bundle savings. And because my kids have T-Mobile Sidekick 4G handset and share 1,000 minutes, I ordered a pair of Straight Talk SIMs for them as well. They use very little data but tons of minutes and messages. Now I’ll save on their service and not worry about voice minute overages.

Some questions people have asked me along with answers:

How hard is it to set up a Straight Talk SIM on an iPhone? Great question since you can’t directly access the network or APN settings on an iPhone without jailbreaking it. It’s quite easy to set up the new SIM. Just pop it in your iPhone and hit this site in mobile Safari over Wi-Fi: http://unlockit.co.nz/ Here you’ll get a small file to download after choosing Straight Talk as your provider. This file will set up the phone to work with the new SIM and the process takes all of two minutes.
Is it difficult to set up the service on an Android or other phone? Nope, this is super easy as you can access the APN settings directly on most smartphones. You simply enter the settings provided with your SIM card. It takes a minute or two at most to type the data in.
What about MMS on the iPhone? The above setup solution doesn’t enable MMS, so there are several manual methods to enable both data and MMS. First, back up your iPhone in iTunes with its current SIM. Then swap SIM cards and restore your iPhone backup with the Straight Talk SIM in the handset. Again, this isn’t an issue for me personally as I use Google Voice for messages. There’s plenty of information on Straight Talk setup in this wiki page if you need it. If you have a cut-down T-Mobile SIM, you can follow these simple instructions as well. Or you could jailbreak your phone to get access to the settings.
Are the network speeds the same? According to my testing: Yes. I’ve used my Galaxy Nexus with both a T-Mobile SIM and Straight Talk SIM for T-Mobile’s network and found the speeds to be equal. On T-Mobile’s HSPA+ network where I live, I routinely see between 6 and 8 Mbps down, 2 Mbps up and ping times around 120 milliseconds. The same test on my iPhone 4S with a SIM from AT&T and then from Straight Talk showed no difference either.
How’s the coverage? Since Straight Talk is paying AT&T and T-Mobile for their networks, the coverage is the same as if you were paying those operators directly. I haven’t seen any coverage differences at all. If you get good coverage now from one of the two carriers, you should get the same with a Straight Talk SIM.
If I can save money with this SIM, why wouldn’t I do it? First, if you’re a heavy data user, I wouldn’t recommend this option, as stated above. Second, you’re bringing your own phone. That means you either pay full price for your phone — which can be anything from $400 to $700, if not more — or you keep your current phone and close out your contract with an early termination fee. You’ll have to check with your carrier to see how much that will cost. I’ll be closing my T-Mobile contract on the two Sidekicks, for example, so my break-even point is a few months out. Lastly, if you use a CDMA phone (such one from Sprint or Verizon) or you want LTE service, this plan won’t work for you.
What about tethering or using the phone as a mobile hotspot? That’s expressly forbidden in the terms of service. You might get away with it for a short bit here and there, but once you bump up against some heavy usage in a single day, you’re raising the red flag to Straight Talk’s systems.
Can I port a number to Straight Talk? Yup, not a problem. You do this when you activate your SIM card online. I didn’t do this for my account. Although I now have another new phone number, nobody knows it because of Google Voice. I will, however, port my kids’ phone numbers next week.

No, this service isn’t for everyone. Heavy-duty data users, folks that want LTE, use a CDMA phone or don’t want to pay full price for their handset are unlikely candidates. But for someone like myself that buys unsubsidized hardware, doesn’t want a long term contract and can supplement mobile broadband with Wi-Fi usage, the BYOP plan at Straight Talk offers solid savings and the same level of service found from national carriers.

Disclosure: The free 30-day service provided by Straight Talk was for testing purposes, not for my personal use, and the iPhone will be returned, per our editorial policy. I pay for my own phone service and provided my own Galaxy Nexus and iPhone 4S smartphones, which I bought out of pocket last year.

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T-Mobile and MetroPCS working a deal? No way.

Kevin Fitchard — Wed, 09 May 2012 19:52:51 +0000

Bloomberg is reporting yet another merger rumor about T-Mobile, this one involving MetroPCS. According to the report, T-Mobile USA parent Deutsche Telekom would either take control of or outright buy the regional CDMA and LTE operator. Maybe someone from Metro is talking with someone from DT in some backroom somewhere in the world, but they can’t seriously be considering the deal.

Merging a regional CDMA operator with a national GSM carrier would be a disaster on the highest order and T-Mobile would gain little from the transaction – certainly not enough to offset the enormous hell it would have to endure to try to integrate the two operators completely incompatible network technologies. You thought Sprint Nextel was a mistake? T-Mobile-MetroPCS would make that deal look like the royal wedding.

Mergers are supposed to be about ‘synergies’ and economies of scale. T-Mobile would have to sell separate handset portfolios. It would have to maintain two separate sets of networks. The only thing T-Mobile has in common with Metro is an LTE network in the same spectrum band. That might seem like a big advantage until you actually look at the spectrum. MetroPCS is running a mishmash of CDMA and LTE carriers over its Advanced Wireless Services (AWS) airwaves, spectrum that also happens to be limited to the 14 cities Metro currently offers service.

Fourteen cities’ worth of prime 4G airwaves may be better than no spectrum, but it’s really a paltry amount if you consider the enormous lengths T-Mobile would have to go and the enormous sums of money DT would pay to get it. This deal ain’t going to happen. Ever month we see the same T-Mobile story, just with a different acquirer or acquiree inserted into the headline. Not to pick on Bloomberg, but I really wish the financial media would wise up – or at least bother to question the merit of these so-called deals.

Image courtesy of Flickr user, bods

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Why a $399 Galaxy Nexus from Google is a big deal

Kevin C. Tofel — Tue, 24 Apr 2012 15:00:22 +0000

Google’s flagship Android 4.0 phone, the Samsung Galaxy Nexus, is now available for direct purchase online in the Google Play store. The company added a new Devices section on the Google Play website, although for now there’s just one device. Google is selling the unlocked, no-contract GSM version of the Galaxy Nexus for $399. The phone accepts a SIM card and works for voice and HSPA+ data on either T-Mobile or AT&T in the U.S.; at this price, it’s a great deal.

The handset, which debuted to show off the Ice Cream Sandwich version of Android in October, will only be sold in the U.S., but that may change in the future based on this excerpt from a Google blog post:

“First available in the U.S., Galaxy Nexus costs $399 and arrives at your door unlocked, without a carrier commitment or contract. You can use it on the GSM network of your choice, including T-Mobile and AT&T. It also comes pre-installed with the Google Wallet app which lets you easily make purchases and redeem offers with a tap of your phone. Best of all, we’ll give you a $10 credit to get you started with your new mobile wallet.”

This isn’t the first time Google has directly sold a Nexus device to the public. In January of 2010, Google offered the Nexus One, another GSM handset, through the web for $529, with many hoping it would start a new era taking carrier control away from handset sales. That result wasn’t achieved, although there was still benefit to those, like myself, that purchased a phone direct from Google.

The Nexus One received software updates directly from Google, often far faster than other Android handsets, which get new software from the carrier, if at all. The Nexus One also helped spur many custom ROM efforts, allowing owners to run Android builds with the features and functions they wanted.

Earlier this week, I spoke with Google’s Director of Digital Content, Jamie Rosenberg about this development, asking if this was another attempt to wrest control from the carriers, but Rosenberg said the reason was otherwise. “We want to showcase the phone and Google Play,” he told me. “Yes, it’s another way for a consumer to buy a phone, but we see the Galaxy Nexus as a great endpoint for Google services.” And with 300 million cumulative Android devices now activated world-wide, that’s a lot of endpoints.

I noted that the new online store in Google Play is Devices — as in plural — and asked if other devices would be offered there. Google is rumored to be planning a low-cost Nexus tablet, possibly for its Google I/O developer event next month, but Rosenberg wouldn’t take the bait, saying there were “no other announcements at this time.”

Still, I can’t help but wonder if Google is really planning to give direct sales a full-on second attempt for two reasons: Google only controls the Android experience on devices that it sells direct and it has a hardware arm in Motorola once its purchase of that company takes place. Earlier this month, I suggested that Google could give a boost to both Android and ChromeOS through Motorola’s LapDock hardware. Selling that directly gives Google a chance to mold the customer experience.

While most consumers in the U.S. don’t buy their handsets outright, at $399 without contract the GSM Galaxy Nexus direct from Google is a steal. I paid $575 for this same phone in November, ordering it and having it shipped from the UK. I’ve already installed several custom ROMs and routinely swap SIM cards between T-Mobile and AT&T on it as needed, based on my coverage. And I also use it with a $30 monthly data-only SIM card with a VoIP client for free voice calls.

The 5 megapixel camera may be lacking compared to newer phones, but other than that, it’s as capable as any other Android device available today. Google Wallet works great with the NFC chip (see the experience here) and the pure Android 4.0 experience is vastly improved over the old software. Between the pure Google experience, 21 Mbps HSPA+ radio, a 4.65-inch, 1280 x 720 Super AMOLED display, dual-core processor and ability to work on two different U.S. networks — as well as those overseas — this may turn out to be the best Android deal of the year.

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T-Mobile pounds the first nail in 2G’s coffin

Kevin Fitchard — Thu, 23 Feb 2012 17:48:54 +0000

T-Mobile CTO Neville Ray

T-Mobile isn’t just launching a sizable LTE network in 2013, it’s becoming the Grim Reaper for 2G technology as we know it. In an analyst conference call on Thursday, T-Mobile unveiled a plan to radically reshape its networks, shutting down the majority of its 2G GSM capacity so it can focus almost entirely on 4G. As a result T-Mobile will get a bigger, badder mobile broadband network and, to boot, will almost certainly land the iPhone.

With this new network configuration, T-Mobile is pulling a technological coup. Though it is spectrum-poorest operator of the Big 4, it will wind up with a higher-capacity LTE network than Sprint and one with comparable capacity to AT&T, while still being able to milk a massive HSPA+ network for years to come. In the process, T-Mobile is calling into question the so-called spectrum crisis. While other operators are desperately searching for new airwaves, T-Mobile found its future growth spectrum sitting right under its nose. Consumer groups and regulators are almost certainly going to ask why AT&T and Verizon Wireless don’t do the same.

The network numbers T-Mobile CTO Neville Ray revealed at the call were surprising: 90 percent of the carrier’s data traffic and 50 percent of its voice traffic are running over T-Mobile’s HSPA+ networks. That means its GSM networks are languishing even though they occupy half of T-Mobile’s average 54 MHz of spectrum per market. T-Mobile’s answer is to shut them down, clearing the way for LTE and more HSPA+.

T-Mobile plans to sunset between two-thirds and three-quarters of its GSM channels in the PCS bands leaving, only a modicum of 2G bandwidth left for older phones that don’t sport 3G or 4G radios and to support basic data services for its machine-to-machine communications business. All of that capacity would then be turned over to HSPA+, creating a mobile broadband network on PCS almost as large as the one it currently runs on its advanced wireless service (AWS) frequencies. Moving HSPA+ to PCS opens up many doors for T-Mobile, most notably the ability to support any iPhone Apple makes for the U.S. market.

But T-Mobile won’t shut down HSPA+ at AWS completely. It will turn off some of that capacity and combine the remnant airwaves with the AWS licenses it took from AT&T as a consolation prize for their merger’s failure. It would then use that capacity to build a 10MHz-by-10MHz LTE network over 50 percent of its mobile broadband footprint. That would give it the same capacity as Verizon’s LTE network today and double that of the LTE network Sprint plans to launch this summer. In the remaining half of its network T-Mobile can only support a 5MHz-by-5MHz carrier, which would make its capacity configuration similar to AT&T’s. But keep in mind, T-Mobile has a fraction of the customers of Ma Bell and Verizon – it can make 5×5 go a long way.

Ray and CEO Phillip Humm said T-Mobile USA is still on the hunt for more spectrum, and ideally it would like to lock down more AWS airwaves to create a massive 20MHz-by-20MHz LTE network. That seems unlikely considering that its competitors are quickly scooping up what unused airwaves remain in the market, but T-Mobile is also challenging those deals.

Though Humm and Ray didn’t discuss it in the call, there’s always the possibility of repeating its network cannibalization feat at a later date to capture even more mobile broadband capacity. As more voice traffic moves to HSPA+, and more data traffic moves to LTE, T-Mobile could shut down its GSM network almost entirely and continue the HSPA’s shift down to PCS, which would in turn clear more AWS airwaves for LTE.

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As CDMA dies in Latin America, 3G drives a data boom

Kevin Fitchard — Fri, 03 Feb 2012 18:40:15 +0000

Mobile data is picking up momentum in Latin America as the number of 3G connections in the region doubled in 2011, according to a new report from Wireless Intelligence. Operators in Latin and South America are shutting down their CDMA networks, replacing them with the UMTS systems used by the GSM world, and even making their first moves to LTE. That could produce a huge surge in mobile data use over the next few years similar to what the U.S. and Canada experienced after the launch of HSPA and the first 3G iPhone.

At the end of 2011, the total number of 3G subscribers hit 100 million, accounting for 15 percent of all mobile connections, according to the report. That huge uptick in data connections makes Latin America the second-fastest growing global region, just behind the Middle East/Africa market. The region also passed 100 percent penetration in 2011, which means many customers are now sporting multiple devices.

Wireless Intelligence predicts mobile data adoption will only accelerate. The monthly run rate of 3 million 3G additions in 2011 is increasing to 4 million this year. By 2016, 3G and 4G connections will account for just under 50 percent of total subscriptions. Two operators, Columbia’s UNE and Uruguay’s Ancel, launched commercial LTE networks in 2011, while AT&T extended its LTE network to Puerto Rico. The research firm also counted 12 new HSPA+ networks going up in the region since June.

Total CDMA connections saw a huge drop, falling from 6 percent of total connections two years ago to just 2 percent as of the new year. In December, Telefonica shut down its CDMA networks in Ecuador completely, but the global operator will deal its biggest blow to CDMA in June when it packs up Brazilian operator Vivo’s 2G network, the region’s largest.

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CES 2012: a recap and analysis

Thu, 02 Feb 2012 23:40:31 +0000

This year’s CES was the biggest in the show’s 44-year history, boasting 15 miles of exhibit hall aisles, 3,100 booths and 153,000 attendees. The Kerton Group sent three delegates to CES to scout out new products, listen to keynotes, watch announcements and get tips from insiders. This report, which bundles those findings together, serves as an outline of the major launches and overarching trends at CES (think smartphones for $0, Androidification and connectivity) as well as an analysis of what those developments mean for the larger consumer electronics picture. Companies mentioned in this report include Apple, Tesla and T-Mobile. For a full list of companies, and to read the full report, sign up for a free trial.

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Updated: Forecast: global mobile subscribers, 2010-2015

Wed, 11 Jan 2012 21:58:06 +0000

The number of mobile subscribers is growing steadily across the globe, but each continent tells a different story about 3G and 4G penetration, market saturation and the rate of future growth. This report looks at the global mobile landscape over the next five years, forecasting the number of subscribers and the penetration of 3G and 4G services by both continent and country. In particular we look at new markets such as China and India, possibilities in developing countries in Africa and the Middle East, and saturation in the first world. Companies mentioned in this report include HTC, Motorola and Samsung. For a full list of companies, and to read the full report, sign up for a free trial.

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