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.

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.

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)

Some pretty nice feedback from former customers, former co-workers/managers as well as other people who emailed me their thoughts, criticisms and suggestions.  I am taking the gems contained in the feedback into consideration and plan on making this site better as time passes.  I do not plan on allowing comments to be left on posts, pages, etc., as I do not have the time nor the desire to play babysitter, but I do welcome feedback.

Carrier News

The company will be releasing the Blackberry Curve 8900.  Some of the specs/goodies on this smartphone are: voice guided GPS, Wi-Fi support, a 3.2 megapixel camera, Blackberry Push Technology Email & Mobile E-mail, a web browser, 2.0 Bluetooth technology, intermal memory of 256 MB, a QWERTY keyboard and more.

The company has also introduced a new iPhone app that allows users to pay their bills, view usage, browse and change plan features, etc.; users can also manage other lines on their family share plans as well.

According to a Wall Street Journal Report on May 1, 2009, Verizon Communications Inc., may soon be offering free Wi-Fi access at hotspots to their home broadband customers. Like AT&T, Verizon may offer this service for free to their subscribers, but only time will tell.

 Business seems to be slowing down for US Cellular as its growth in the 1st Quarter was 47,000 subscribers; however, its 1Q earnings were $84.6 million, up from $70.6 million from 1Q ‘08.

Industry News

What are the top five wireless brands?  According to the annual BrandZ Top 100 List put out by the research firm Millard Brown, they are as follows:

1. Google with a brand value of $100 million
2. Microsoft with a brand value of $million
3. Nokia with a brand value of $35.1 million
4. Blackberry with a brand value of $27.8 million
5. AT&T with a brand value of $20.05 million

In a May 4, 2009 Press Release, RIM (Research in Motion) has anonounced that its Blackberry Enterprise Server has become the first mobile platform to achieve Common Criteria EAL4+ Certification. In related news, the Blackberry Curve was the best selling smartphone in the 1st Quarter of 2009, due in large part to Verizon’s aggressive “buy one get one free” promotion.

Welcome to the first edition of Fone Smart!, a telecommunications e-Zine produced and published by Bleidd Publishing.  Currently, plans are to have new weekly editions featuring news and information pertaining to the telecommunications industry in general, and the wireless/cellular side in particular, published every Wednesday after this inaugural edition. 

Fone Smart! will cover the four major US cellular providers: AT&T, Sprint-Nextel, T-Mobile, and Verizon Wireless.  This is not intended as a slight to any other carrier, it is merely a personal and professional decision to cover these five.

Carrier News

Apple’s iPhone, accounting for 66.1% of all mobile web traffic in a study released by NetApplications, has also powered the company to the #1 position in smartphone customer satisfaction, according to JD Power & Associates.

When I was worked at the Verizon Plus! store in Bloomington, IL., I often thought of Sprint as the Ottoman Empire of the telecommunications industry.  Though once a power house, like the Ottoman Empire, the company is the “sick man of telecommunications” just as the latter was the “sick man of Europe” in the lead up to World War I.  Starting with the merger between Sprint & Nextel, to the company’s decision to drop 10,000 customers because they contacted customer service too much, the company is still facing woes as its affiliate, iPCS, has won another victory in its lawsuit claiming that Sprint’s partnership with WiMax violates agreements the company has with affiliates, such as iPCS.  An Illinois judge has permitted the lawsuit to move forward.

Industry News

President Obama has nominated South Carolina Public Service Commission member Mignon Clyburn, a Democrat to be a commissioner at the Federal Communications Commission (FCC)