GigaOM » LTE

Prepaid boosted T-Mobile customers last quarter, but 500K iPhones sold speaks to the future

Kevin C. Tofel — Wed, 08 May 2013 14:07:31 +0000

T-Mobile added 202,000 prepaid customers last quarter, helping to offset the 199,000 subscribers it lost. Sales of 500,000 Apple iPhones, however, speaks volumes towards the carrier’s future, which is looking a little brighter after its recent marriage to MetroPCS. The company announced subscriber numbers on Wednesday, in conjunction with its quarterly earnings. For the quarter, total revenues topped $4.67 billion, down 7.1 percent from the year ago quarter.

Although the branded net customer additions numbered only 3,000, it was the first time that figure was positive since the first quarter of 2009. Customers on the network only tell half of the story though: Measuring monetization of customers through ARPU, or average revenue per user, is just as important.

ARPU fell by 6.3 percent year-over-year to $54.07 for postpaid subscribers as the company says 36 percent of the customer base has switched to either a Value or Simple Choice plan. Once again, however, prepaid customers came to T-Mobile’s rescue: ARPU for this group rose 11.3 percent to $28.25.

T-Mobile sold approximately 500,000 iPhones in just under a month; Sprint, Verizon and AT&T monthly numbers were found by dividing Q1 iPhone sales by three.

In March, T-Mobile introduced the Simple Choice offerings when it decoupled service plans from the price of hardware. As the company gains new customers — or has existing ones switch to newer phones — it will have an even greater number of people on the Simple Choice plans, which range from $50 to $70 per month.

The company highlighted its $1.1 billion capital expenditures for the quarter, investing large sums in network modernization. T-Mobile began to move some services to different frequencies last year on its network in order to pave the way for LTE services. This also allows T-Mobile to carry a standard GSM iPhone, which will likely bring new customers. By the end of 2013, T-Mobile expects to cover up to 200 million people with its new LTE network.

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Apple devices coming to regional carrier U.S. Cellular this year

Erica Ogg — Fri, 03 May 2013 15:09:00 +0000

Apple’s mobile footprint in the U.S. is about to expand again. On Friday, regional carrier U.S. Cellular announced it will begin offering “Apple products” before the end of 2013. The carrier made the announcement with the publication of its first quarter earnings results. “Apple products” will obviously include the iPhone, but it could mean U.S. Cellular will offer LTE service for iPads as well.

From the earnings release:

“We have a number of strategies in progress to increase loyalty and attract more customers, including our announcement today that we will begin offering Apple products later this year. By further strengthening our device portfolio, we’ll give consumers another great reason to switch to U.S. Cellular, and enable our existing customers to choose from an even wider variety of iconic smartphones, and enjoy the outstanding U.S. Cellular customer experiences they deserve.”

This is not a case of Apple finally bestowing the iPhone on the carrier. It’s the opposite: Apple has made a smartphone that U.S. Cellular wanted to sell. You may remember the CEO of the carrier’s parent company, TDS, saying in late 2011 that he’d offer the iPhone when Apple made a more “cutting edge” phone — in other words, he was waiting for LTE.

LTE is a big priority for the carrier: U.S. Cellular said Friday it will bring LTE to 87 percent of its existing customers this year. But smartphones in general are where it can improve. Currently, less than half — about 43 percent — of its subscribers have a smartphone. That means there’s plenty of built-in demand for customers looking to upgrade to one for the first time.

U.S. Cellular customers may certainly go for the iPhone 5, which is Apple’s LTE phone, but the cheaper iPhone 4 and iPhone 4S have been proving especially attractive to late smartphone adopters.

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That Chromebook Pixel with LTE might work with other mobile networks after all

Kevin C. Tofel — Thu, 02 May 2013 19:29:04 +0000

When deciding on which Chromebook Pixel model to buy, I opted for the higher priced version with integrated LTE. I got double the flash storage over the Wi-Fi only model as well, but I would have paid the $150 premium just for the LTE feature. Generally, I have an abundant supply of Wi-Fi so the LTE radio — and free 100 MB of monthly data — is mainly for backup connectivity and for travel.

But there’s a big downside to the Pixel with regards to the LTE radio. Unlike most LTE devices, the Pixel can’t fall back to a slower network when an LTE signal can’t be found.

Basically, if you’re not in an LTE coverage area — on Verizon’s network, specifically — you’d better find a hotspot, use your phone’s internet connection or be prepared to work offline. Even though the last option is improving with improved support for Packaged Apps that work offline, it’s a shame the Pixel is so dependent on one carrier’s singular network option. Or is it?

Fellow Chromebook Pixel owner John Freml, from the Pocketables enthusiast site, noted a Google+ post from Ian Ray with interesting information. It turns out the mobile broadband radio used in the Pixel isn’t using its full capabilities; likely by design for now. Freml notes that the wireless card is a Novetel Expdite E362, which works with other broadband networks in some cases:

Powered by Qualcomm® MDM9600 chipset, the Expedite E362 offers high performance to the user on LTE 700 MHz with global fallback to CDMA and HSPA+/UMTS … the small Expedite E362 module leverages the LTE, CDMA, and HSPA+/UMTS networks. Switching between networks enables your customers to work, play, and stay connected anytime, anywhere worldwide.

The Qualcomm baseband chip Freml points out is similar to one used in the iPad with LTE, and that certainly supports fall-back to other 3G networks, so there’s hope.

Of course, without seeing the internals of a Pixel, it’s difficult to confirm. And the right antenna and amplifier support would be needed. But if all of the puzzle pieces are there, it’s possible that a software update could enable fall-back features or even add support for your choice of carrier on a Chromebook Pixel with LTE.

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Vodafone investors want more money in still-speculative Verizon takeover deal

Stacey Higginbotham — Mon, 29 Apr 2013 14:09:01 +0000

Verizon hasn’t put an offer on the table, but that hasn’t stopped some of Vodafone’s biggest investors from saying a $100 billion takeover price is too small. They want $120 billion, gosh darn it!

According to a Reuters story this weekend, six institutional investors have protested the $100 billion price tag that Reuters floated last Wednesday. Both of these numbers followed a wack-a-doo rumor from early April that AT&T and Verizon would jointly team up to buy out Vodafone’s 45 percent stake in Verzion in a deal valued at $245 billion. That rumor was reported by the Financial Times’ Alphaville blog. And Verizon denied it.

For those watching at home, it’s possible that you think the media has lost its ever-loving mind, or that somewhere a bored investment banker is sitting back in his ergonomic chair, fingering his Ferragamo tie and cackling with glee. But in general, when these sorts of rumors start hitting the press, it’s part of an aggressive campaign of leaks, where a company (or bank) can float some rumors in hopes of sparking a deal.

Reuters reporters aren’t getting phone calls from Verizon’s board members (although it has happened!); I think they are getting calls from bankers who want to make a deal happen. And it’s a crazy deal with crazy regulatory and possibly tax burdens, but it’s also the right sort of crazy. Verizon and Vodafone’s shared stake in Verizon Wireless has irked both companies for years.

Vodafone needs cash for investments in growing markets and Verizon has been stingy with its dividends. But, as the latest Verizon dividend payment shows, if investors can get Verizon to part with the dollars, Vodafone rewards its shareholders with cash. Meanwhile, Verizon would love to own its network outright if Vodafone would just sell back that stake. But so far Vodafone won’t. Thus, the leaks.

Of course, the two companies have broached the subject of a merger, much like unhappy spouses broach the topic of divorce. But the logistics of the deal — Verizon probably doesn’t want to pay what Vodafone thinks the stake is worth, and each side has shareholders who are, like children, unhappy with a split — have made it too much to think about.

Hence the posturing via blogs and wire services. This is a way of testing the shareholders and perhaps regulators to get a feel for what the deal might entail. This may not come from the companies as a serious play, but rather from bankers who see the fees associated with the deal and understand the lay of the land at both companies. If they can warm up the companies via the media, then they might get a chance at a pretty lucrative deal. That is what bankers get paid to do.

So grab your popcorn, and sit back to enjoy the negotiations between Verizon, Vodafone and whatever financial institution or institutions are selling this sideshow. I suppose it beats wondering how carriers will compensate for the lost of messaging revenue.

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Full speed ahead, as EE reveals 4G boost for the summer

David Meyer — Tue, 09 Apr 2013 09:49:04 +0000

The carrier EE has a head-start on 4G in the UK, but a recently concluded spectrum auction will allow its rivals to join the party this summer. So, ahead of that, EE has announced that it will be doubling its LTE speeds in a few months’ time, reaching a “headline” speed of 80Mbps (i.e. the speed you will get if you’re dangling from a mobile mast with one hand) and a real-world average of over 20Mbps.

EE gets to do this because it is using 1800MHz spectrum – formerly dedicated to 2G services – for its 4G. As it is the result of a merger of France Telecom and Deutsche Telekom’s UK operators, Orange and T-Mobile, it has an unusually large amount of this spectrum to play with (even after giving some to rival Three), and it will double the speeds by simply doubling the amount of 1800MHz spectrum it dedicates to LTE, from 10MHz to 20MHz.

As well as warding off the threat of rival LTE carriers, the speed boost may also convince some consumers who see LTE as not that much faster than HSPA+, and therefore not worth the switch.

Here’s what EE chief Olaf Swantee said in a statement:

“We are ensuring that the UK remains at the forefront of the digital revolution. Having already pioneered 4G here, we’re now advancing the country’s infrastructure again with an even faster, even higher-capacity network, and at no extra cost to our customers.

“Since we launched 4G, we’ve seen a huge shift in the way people are using mobile. Video already accounts for 24 percent of all traffic on our 4G network – that’s significantly more than on 3G. Maps, mobile commerce, sat-nav tools and cloud services are all seeing a similar rise. Mobile users in the UK have a huge appetite for data-rich applications, and this will only grow as people become more familiar with and reliant upon next generation technologies and services.”

On the subject of take-up, EE said it hoped to have a million 4G customers by the end of the year:

“Among 4G network rollouts around the world, converting 10 percent of pay monthly base after 24 months is considered to indicate a successful deployment. More than one million 4GEE customers would represent around 8 percent of the EE pay monthly user base, upgraded or acquired from rival networks within just 14 months.”

The carrier added that it intended to trial carrier aggregation this year, combining spectrum from the different bands it has at its disposal – in addition to the 1800MHz spectrum, EE picked up 800MHz and 2.6MHz spectrum at the auction. Carrier aggregation is key to LTE-Advanced, the next generation of LTE and, technically speaking, the first mobile broadband technology that should be able to bear the moniker “4G”. EE also noted that it was working on supplying its customers with voice-over-Wi-Fi services — a move that might lessen the load on its LTE network — and voice-over-LTE.

Right now, EE’s LTE network covers 50 towns and cities in the UK. The doubling of the speeds will affect customers in 10 of those cities initially, namely Birmingham, Bristol, Cardiff, Edinburgh, Glasgow, Leeds, Liverpool, London, Manchester and Sheffield.

Here’s hoping EE also boosts the amount of data it offers for its 4G customers — the entry-level package there comes with just 500MB, which already doesn’t go far with 10Mbps usage speeds.

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GigaOM Reads: A look back at the week in tech

Om Malik — Fri, 29 Mar 2013 23:30:18 +0000

In Summly, Yahoo’s woes summarized?: How much is attention worth? If you are Yahoo, then about $30 million. The company paid that much to acquire (and shutter) mobile news app Summly, making 17-year-old “Internet Boy Wonder” Nick D’Aloisio the big man on campus in his school. Even taxi drivers are talking about the deal, though technology insiders are shaking at their heads at Yahoo and wondering if it can even dream of returning to relevance.

Some aren’t so sure. Vibhu Norby thinks Yahoo shareholders need an explanation because the math doesn’t make sense — $30 million for two engineers, a founder and dubious control of intellectual property. But hey, this is the same company that hired a guy as its CEO who had made up his resume. Emin Guen Sirer doesn’t pull any punches in his dismissal of the deal. Can D’Aloisio inject some minty-fresh thinking into the company?

Math Madness: As algorithms become the driving force behind the latest and greatest mobile apps, NPR asks the question: Is math the next tech bubble?

Flipping the magazine world: Flipboard packed a few potentially disruptive features inside its latest update. The company announced the Flip It! button this week, which will allow users to collect articles, images, videos, and songs from Flipboard content, RSS feeds, and social streams and curate them in their own digital “magazines” right inside Flipboard, with the best ones being featured by the company.

The atomization of content continues, and we are seeing further disintegration of the magazine brands and the content they create. When I see this move, I see a Netflix-like effort to build a packaged service on top of existing content creators. Not only that, but Flipboard has also said that it will adopt a layer of e-commerce in the near future, making Flipboard a one-stop shop for consumption, bookmarking and social sharing. (Please sign up for the Om Says magazine, while you are at it.)

T-Mobile says contracts are stupid: And since we’re on the subject of disruption, T-Mobile is hoping to step out of the shadows and “rattle the cage” of the wireless industry. CEO John Legere introduced the company’s new “un-carrier” moniker, which means T-Mobile will do away with phone subsidies, and will offer plans and phones untethered — including the iPhone 5 — starting April 12. While that may incite a guttural “hallelujah!” from the depths of your 24-month-contract-abhorring soul, you should make sure the switch is worth it, both in cost and coverage.

By the way, if you are switching from AT&T, then your iPhone 5 is going to work with T-Mobile’s LTE (but not 3G) network.

You can choose to buy your device outright and enjoy contract-free usage till the cows come home, or plop down a smaller chunk of change and pay off your phone over the course of 20 months, rendering the balance if you choose to leave T-Mobile before then. Not exactly a contract in way we’re accustomed to, but still a pretty short leash. T-Mobile also lags behind the competition in fast wireless speeds, but the company is finally dropping its LTE service on seven cities across the nation, with more being rolled out in the coming year. Still, there are many questions left to be answered: Are T-Mobile’s offerings enticing enough to get you to switch? Was John’s new cool-guy wardrobe a hit? What will T-Mobile girl Carley Foulkes do now that she’s been handed her pink slip?

Two Kinds of Cyber Warfare: We all wish that time would slow down a bit, but the Internet? Not so much. The biggest cyberattack in history took place this week, causing slowness for users around the globe. It’s suspected that a group called Cyberbunker targeted their 300 billion-bits-per-second DDoS attack at The Spamhaus, a spam-fighting group with which it’s had a long running feud.

If that’s not enough, a trio of divers was busted for allegedly trying to cut through undersea Internet cables just off Alexandria, Egypt. If those cuts had been carried out, it would have made things even worse by crippling the web access for entire continents. Though both attacks were thwarted, it makes you wonder if hand tools with sharp edges are still a bigger threat than zombie PC’s.

And here are some stories you might have missed this week:

Someday, advertisers might be able to skip all that pesky market research and simply use their brainwaves to deliver targeted ads in real time. Sounds fun, right?
More advertising is coming, and there is nothing you can do about it. “The question for brands will change from “How many fans or followers do you have?” to “Whom do you want to reach?” writes AdAge.
The San Francisco Bay Bridge will be lit up with over 20,000 LEDs for the next two years. Here’s a look behind the project.
Will Google Glass follow the path of most innovations and totally tank the first time around?
The rise of the noUI. Simply a brilliant and must read article.
We are happy to report that coffee is, in fact, nectar of the Gods.

Read this and other in-depth articles on GigaOM’s Flipboard channel

AT&T sets Samsung Galaxy S 4 pre-order price at $249.99 with contract

Kevin C. Tofel — Thu, 28 Mar 2013 14:23:21 +0000

AT&T customers pining for the new Samsung Galaxy S 4 can begin the pre-order process on April 16. The carrier announced the news on Thursday, saying the price would be $249.99 with two-year contract. No official availability date was provided, but the statement made by AT&T implies it could be the first in the U.S. to have the Galaxy S 4:

“Continuing our legacy as the first carrier to launch Samsung’s Galaxy series, we are excited to announce AT&T customers will be able to begin pre-ordering the Galaxy S4 beginning April 16 for $249.99 with a two-year commitment. We are proud to offer this iconic device and continue to offer our customers the best smartphone line-up, with a variety of devices for every lifestyle and budget. For more information and to pre-order, please visit http://www.att.com/galaxys4.”

Interestingly, T-Mobile loosely shared details for the Galaxy S 4 on its network earlier this week. T-Mobile CEO John Legere noted that the Galaxy S 4 would arrive around May 1 for the up-front price of $99 and 24 monthly, interest-free payments. Customers can also pay full price for the phone and then just pay $50 to $70 for monthly service through one of the Simple Choice plans.

It’s likely that T-Mobile’s Galaxy S 4 will cost less than what AT&T is charging: Assuming the phone payments are $20 per month — the same as the iPhone 5 — the Galaxy S 4 would cost $579 on T-Mobile. Will consumers see that price difference and take advantage of it? That’s the big question that remains unanswered as T-Mobile transitions completely away from phone contracts with subsidized phone prices.

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Call in podcast: T-Mobile iPhone and the best Android keyboard

Kevin C. Tofel — Wed, 27 Mar 2013 11:46:16 +0000

It’s another edition of the weekly call-in show where we answer your tech questions. We start off the show with the big news that T-Mobile finally has its own iPhone and LTE network. Then we get right into your questions about another CDMA Nexus phone, Chromebook tips, and what’s the best keyboard for Android?

To be a part of the show, just call in and leave a voicemail at 262-KCTOFEL. If you do, we’ll play back the question on the show and answer it. Or you can tweet me at @kevinctofel on Twitter. Each week, I’ll answer as many questions as I can while keeping the podcast to a manageable amount of time: 20 to 30 minutes at most.

Show notes:
Hosts: Kevin Fitchard and Kevin C. Tofel

What are the chances of Verizon getting another Nexus phone?
Can any Chromebook or Chromebox run the crouton scripts for Linux?
Why would anyone wait for the phone to ‘arrive’ at T-mobile when there’s already an unlocked GSM model?
What’s the best keyboard for Android?

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Podcast: Facebook’s feedin’; Lean In’s meanin’; and everyone’s Hadoop-in

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Internet of things Podcast – Almond+’s nutty idea: Making sensor connectivity a snap

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T-Mobile’s big day: iPhone 5, LTE and a new type of service plan (roundup)

Tom Krazit — Tue, 26 Mar 2013 21:08:54 +0000

We’re not sure if T-Mobile is now an “uncarrier,” as it declared at Tuesday’s event in New York City at which it finally introduced an iPhone 5 for its network, unveiled new pricing plans that could change the way people think about buying smartphones, and shed a little more light on how its LTE networks will operate. However, the carrier certainly came out swinging as it tries to embrace its underdog status and set itself apart from larger rivals.

Here are the stories that emerged from the event:

T-Mobile image courtesy of Flickr user swruler9284

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Samsung Galaxy S 4 hits T-Mobile around May 1 for $99 plus monthly payments

Kevin C. Tofel — Tue, 26 Mar 2013 19:59:40 +0000

Although Apple’s iPhone 5 was a spotlight hero at T-Mobile’s “UnCarrier” press event on Tuesday, a rival phone was also announced. On May 1, T-Mobile will begin selling the Samsung Galaxy S 4, which will support the carrier’s brand new LTE network, falling back to HSPA+ 42 speeds when required. With other carriers widely expected to debut their Galaxy S 4 for at least $199 with contract, might T-Mobile’s contract-free approach along with a $99 up-front payment be more appealing?

Indeed, T-Mobile is using a similar pricing model for the iPhone 5: Customers pay $99 for the handset and tack on $20 per month to their bill to pay off the handset over 24 months. Even if the T-Mobile consumers opt for the most expensive Simple Choice plan — $70 for unlimited talk, text and mobile web — the interest-free hardware payment plan keeps the bill to a manageable $90 or so per month.

I suspect customers in the first seven official T-Mobile LTE service areas will initially be more apt to choose the T-Mobile version of the Galaxy S 4 or iPhone 5 going forward. But the company plans to have 200 million covered by LTE by year-end, so an aggressive LTE rollout schedule could increase potential customers for either of these phones.

And depending on the amount of the monthly payment — I anticipate it to be $20, just like for the iPhone 5 — T-Mobile’s Galaxy S 4 could cost less than the same phone model from its peers, pending their official pricing, of course. In the case of the iPhone 5, that price is $579, which is $70 cheaper than buying a full-priced iPhone 5 from another carrier.

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