Sprint (NYSE: S) and Samsung Electronics Co,. Ltd. announced today that a new broadband wireless network offering the speed and mobility of WiMAX has met Sprint¡¯s rigorous commercial acceptance criteria including overall performance, handoff performance and handoff delay. This key technical milestone has been passed after extensive evaluation both in the XOHMTM lab environment and with the commercial service network being built in the Baltimore and Washington D.C. area. Sprint plans on launching commercial WiMAX service in those cities later this year.
Samsung has been working with Sprint in the United States to test and build Sprint¡¯s XOHM mobile broadband Internet service compliant to the mobile WiMAX standard. Since finalizing a supply agreement in 2007, the two companies have steadily made progress on the extensive project with previous key milestones including first data session in the lab (June 2007), first data session on the live network (October 2007) and successful interoperability testing with multiple other device vendors (April 2008).
¡°This is a major step towards launch readiness and Sprint is extremely pleased with the performance of the mobile WiMAX network and access devices from Samsung,¡± said Barry West, XOHM president. ¡°The collaboration with Samsung and our other partners has created a WiMAX ecosystem that has now proven that it can deliver this new technology to the marketplace well ahead of any feasible alternative.¡±
Last month, Samsung announced the introduction of several WiMAX-enabled devices. The Express Card (E100 PC Card) and WiMAX embedded UMPC (Q1 Ultra Premium Mobile PC) underscore Samsung¡¯s position as the leading provider of end-to-end mobile WiMAX network systems. With the technology proven to be ready, the Samsung mobile WiMAX systems being deployed for Sprint in Baltimore and Washington D.C. support the commercial introduction of XOHM service anticipated to begin later this year.
¡°The wireless subscribers in the United States are ready to step up to the next level of a truly broadband wireless network that surpasses the performance of existing wireless networks today,¡± said Dr. Hwan Chung, senior vice president of Samsung Telecommunications America. ¡°Sprint¡¯s acceptance of Samsung¡¯s WiMAX technology shows Samsung¡¯s strong commitment to meet our customers¡¯ needs for the most reliable, seamless, and fastest wireless network. Samsung¡¯s mobile WiMAX expertise will help Sprint answer the mobile broadband needs of U.S. wireless subscribers.¡± he added.
Samsung is the global leader in delivering mobile WiMAX technologies and offers an end-to-end solution including chipsets, infrastructure, mobile devices and consumer electronics, including devices capable of accessing both mobile WiMAX and other wireless technologies.
The XOHM business unit within Sprint specifically focuses on developing the WiMAX ecosystem and standards to bring the latest broadband wireless technology to the U.S. marketplace. Sprint is utilizing the significant spectrum holdings at 2.5 GHz that were combined in the Sprint Nextel merger to deploy mobile WiMAX technology from Samsung and other vendors.
Wireless Mobile Telecom Wireless News
- April 11th, 2008
- 12:54 pm
The WiMax Forum has certified the first Mobile WiMax products, announcing this week that four base stations and four data cards have received the Forum seal. Though the first “official” Mobile WiMax products in the market, they are targeted solely on the South Korean market where Korea Telecom has been operating a pre-WiMax network for two years.
The first wave of WiMax testing essentially certifies Samsung and its partners, who have pushed for its WiBro technology’s inclusion into the WiMax standard. Based on the same IEEE 802.16e as traditional mobile WiMax, WiBro uses unique frequencies (2.3 GHz) and odd channel sizes (9 MHz), and the equipment can only be sold in Korea. The gear is also probably the only WiMax line that will not include support for multiple input-multiple output (MIMO) smart antenna technologies.
That’s all fine by Korea Telecom, which immediately stated it would begin using the new certified products in its now-WiMax network. KT first launched commercial service in 2005 using Samsung gear and has signed up 100,000 subscribers and sold a variety of devices from laptop dongles to miniature computers.
While the certification of Wave 1 products for Korea is a mainly a milestone, the forum said it signals the ramping up of its interoperability and compliance testing throughout its global lab network. With the first wave under its belt, the forum will now move ahead much more quickly in its certification efforts for North American and global products, said Ron Resnick, WiMax Forum president.
“Stay tuned,” Resnick said in a statement. “We expect this momentum to continue throughout the year when the first products for the 2.5 GHz frequency achieve certification in the coming months.”
The 2.5 GHz licenses are owned by Sprint and Clearwire in the US, and Wave 2 certification is expected to produce the first base stations, home gateway and PC card products for their networks. While Resnick gave no exact date for those first products to appear, they will likely coincide with or shortly follow Sprint’s commercial launch of Xohm this quarter.
The forum also has a lot of other profiles on its plate. Global 3.5 GHz frequencies have also been identified as optimal for WiMax and have spawned numerous trials in Europe as well as small-scale commercial rollouts. The forum has also said it would certify gear at 700 MHz to support the networks of the recent auction winners.
The forum’s certification priorities, however, follow the interests of its large operator and vendor membership closely. KT was the first WiMax operator to launch, thus WiBro was the first profile certified. Sprint is next, and therefore its 2.5 GHz MIMO profile is the next to hit the labs. As more major operators make their 4G network decisions, the forum as well as its vendor membership will likely fall in lockstep.
BT has been contemplating expanding its WiFi wireless strategy to the wide area network using WiMax and is likely to participate in the upcoming 2.6 GHz auction in the UK. Japan has also become a hotspot for WiMax as the consortium UQ communications plans a nationwide rollout covering 90% of the population by 2012, using the same 2.5 GHz spectrum allocated in the US. However, UQ member KDDI is reportedly considering following in fellow CDMA operators Verizon’s footsteps in pursuing Long Term Evolution. India is another big market, having recently produced not one but two major operators pursuing large-scale broadband access plans using WiMax, one also at 2.5 GHz, the other at 3.3 GHz.
With all of the interest in 2.5 GHz, the next wave of certification will be a highly active one. The forum expects hundreds of products to be certified by the end of the year, the majority of them Wave 2, as opposed to the eight that came out of Wave 1. Most vendors opted to skip Wave 1 entirely since Samsung has a lock on the KT contract. All four vendors participating—Samsung, Posdata, Runcom and Sequans–had base stations certified. Sequans Communications won approval for a reference design built around its base-station chip, a clear indication it’s seeking OEM agreements with other manufacturers to get into the Korean WiMax business.
At the WiMax World Congress in Singapore this week, Motorola also unveiled a new compact base station, though it did not get it certified by the forum. The WAP 450 is a variant of its traditional Moto Wi4 Diversity base station, except it has a more powerful radio frequency module at the tower top. The RF module receives direct power, thus enhancing its capacity and coverage without directly boosting power consumption. Traditional ground base stations shed half of their power funneling their signals through cables to the antenna.
Motorola and UTStarcom also announced they have landed a joint contract with First International Telecom to build out a WiMax network in northern Taiwan. The deal is Motorola’s third in Taiwan in eight months.
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U.S. vendor aims to appease shareholders, including billionaire Icahn, with separation plan; announces search for new Devices CEO.
Motorola on Wednesday revealed plans to spin off its ailing handset unit into a separate entity and announced that the hunt for a new Mobile Devices chief executive has begun.
The move comes just days after activist investor Carl Icahn, who has been vocal in his support for a spin-off for some months, filed a lawsuit against Moto over his choice of board members, and reiterated his criticism of the way the Devices unit has been managed.
Motorola plans to create two independent, publicly-traded companies – Mobile Devices and Broadband & Mobility Solutions – subject to various conditions, in 2009. The decision follows an evaluation of the business announced by Motorola earlier this year.
“Our priorities have not changed,” said Motorola CEO Greg Brown, who currently has direct control of the handset business. Brown also insisted that Moto “remain[s] committed to improving the performance of [its] Mobile Devices business.”
But some claim a split will not necessarily be good news for the handset unit.
“We do not think this transaction makes any difference to outlook for recovery at Mobile Devices and may even damage the longer-term outlook,” said Nomura Securities analyst Richard Windsor.
He explained that the trend towards software and services on mobile phones requires more integration with back-end infrastructure, something that could be hindered by the split.
Furthermore, the lengthy timeframe on Moto’s announcement means “there is a significant possibility that no split occurs,” said Windsor.
Meanwhile, Gartner research vice-present Leif-Olof Wallin noted that the time lag – before the spin-off or a possible eventual divestiture – could place Motorola’s handset business “under considerable stress”.
Inward-looking activities will take “time and focus away from products, sales and marketing, which might further fuel a negative spiral,” said Wallin. Competitors, most notably Samsung, Nokia and LG will probably gain the most during this period.”
With a product portfolio – and as far as the market knows, product pipeline – that has been found to be sorely lacking in recent years, this is something that Motorola can ill afford.
Mobile Devices posted an operating loss of $1.2 billion last year, while sales fell 33% on-year to $19 billion. By the fourth quarter the vendor’s market share had fallen to 12.4%, from close to 25% 12 months earlier, with shipments for the quarter totalling 40.9 million units. As a result, the company ceded its number two market position to rival Samsung, which shipped 46.3 million units in Q4.
Mobile Devices sale still on horizon
Many believed that Motorola would seek to sell off the Devices business, but Wednesday’s announcement suggests that offers for the unit have not been forthcoming.
“This [separation] is by far the best [option] for shareholders,” said Windsor. “A sale would have required shareholders to accept a bargain basement price or even pay someone to take Mobile Devices away.”
However, a sale of the unit could still be on the cards.
“Gartner’s interpretation is that initial talks with possible candidates have not progressed as wished and separating out the mobile devices business into a separate entity is a logical next step - a step that would have needed to happen anyway once the decision to divest was made,” added Wallin.
“The next step will be to look for buyers outside the handset business, including private equity, to spin out the handset NEWCO or possibly IPO it,” he said.
When Moto revealed that it was evaluating its options for the handset unit, speculation immediately mounted over potential buyers, with many naming the Chinese handset makers as likely contenders. However, while a few companies – including Samsung - have denied plans to acquire the business, none have publicly expressed interest.
Billionaire investor Carl Icahn, who holds 6.3% of Motorola, has been pushing for the Devices business to be sold off, and has publicly criticised the vendor for its apparent indecisiveness on the issue. On Monday Icahn again called for action, adding that making the business independent would be the only way to attract a top management team and reverse its fortunes.
As it stands, Motorola chief executive Greg Brown is in direct control of Mobile Devices, having relieved Stu Reed of his post last month. Reed, who took the role in July, has since left the company.
“We have undertaken a global search for a new chief executive officer for the Mobile Devices business,” said Brown.
“We believe strongly in our brand, our people and our intellectual property, and expect that the Mobile Devices business will be well-positioned to regain market leadership as a focused, independent company,” he added.
While analysts remain sceptical over Motorola’s chances of turning around the handset business, investors reacted positively to Wednesday’s announcement, with the vendor’s share price rising slightly.
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Motorola on Wednesday said it plans to split its Mobile Devices Business and Broadband & Mobility Solutions Business into two separate publicly-traded companies in the wake of shareholder outcry over the poor management of its mobile phone business.
In a conference call the Schaumburg, Ill.-based communications technology company said the decision to split follows an evaluation of structural and strategic realignment of its businesses and is a move to create success for both independent arms.
“Our decision to separate our Mobile Devices and Broadband & Mobility businesses follows a review process undertaken by our management team and Board of Directors, together with independent advisors,” said Motorola president and CEO Greg Brown in a statement. “Creating two industry-leading companies will provide improved flexibility, more tailored capital structures, and increased management focus as well as a more targeted investment opportunity for our shareholders.”
Under the current plans, creating two stand-alone businesses is expected to take the form of a tax-free distribution to Motorola shareholders, subject to further financial, tax and legal analysis, resulting in shareholders holding shares of two independent, publicly-traded companies.
The Mobile Devices business will continue with multi-mode, multi-band communications products and technologies. The unit will continue to design, manufacture and sell mobile handsets and accessories globally with integrated software solutions.
The Broadband & Mobility Solutions business will include Motorola’s Enterprise Mobility, Government and Public Safety, and Home and Networks businesses. These businesses make, design, integrate and service voice and data communications solutions and wireless broadband networks for enterprises and government and public safety organizations. They also offer end-to-end IP video solutions, cellular and high speed broadband networks, cable set-top receivers and other customer premise equipment for commercial and residential wireless networks.
According to Brown, dividing the two divisions does not change Motorola’s priorities and Motorola will immediately begin searching for a CEO to head up the Mobile Devices business.
“We remain committed to improving the performance of our Mobile Devices business by delivering compelling products that meet the needs of customers and consumers around the world,” he said. “As part of that effort, we have undertaken a global search for a new chief executive officer for the Mobile Devices business. We believe strongly in our brand, our people and our intellectual property, and expect that the Mobile Devices business will be well-positioned to regain market leadership as a focused, independent company.”
During the conference call announcing the split, Brown said Motorola hopes to reinvigorate its Mobile Devices business, which has been struggling against the likes of Nokia, Samsung and BlackBerry for market share. In the final quarter of last year, Motorola told investors that net profit dropped 84 percent and sales of mobile phones fell 38 percent, while Motorola’s chief rivals continued growth.
“We also expect this action to enhance the pace of recovery in Mobile Devices, to pave the way for its return as a leader in its industry, to accelerate our efforts to attract a new leader and to create shareholder value,” Brown said.
The split came as no surprise to VARs, who said Motorola’s struggling Mobile Devices unit was in need of a tune-up. Rumors had been circulating for more than a month that the mobile phone division would be spun off.
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The Vietnamese government has given approval for Samsung Electronics Co. to build a mobile phone factory north of Hanoi, the Vietnam News Agency reported Wednesday.
The South Korean electronics company said last week that it decided to invest US$50 billion to construct a handset plant in Vietnam’s northern province of Bac Ninh.
The report said that Samsung Electronics Vietnam, the company’s local subsidiary, was given final approval on Monday to go ahead with its plan.
Construction of the plant, expected to have an annual production capacity of 30 million units initially and of up to 100 million units in the future, is scheduled to be completed in 2010. It will buy 40 percent of its materials from Vietnamese suppliers and provide jobs for over 20,000 local workers, the report said.
In addition to Samsung’s domestic plant in Gumi, 260 kilometers southeast of Seoul, Samsung also has facilities in China, India and Brazil.
Samsung outperformed its closest rival Motorola Inc. in 2007 to become the world’s No. 2 maker of mobile handsets after Nokia Corp. in terms of sales. The South Korean company sold US$22.1 billion worth of mobile handsets last year worldwide.
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Despite Microsoft’s aim to take on Adobe Flash with Silverlight, the company has decided to support Flash on Windows Mobile devices. Microsoft has also licensed the Adobe Reader LE software, so owners of Windows Mobile devices will be able to view PDFs. The two companies are working together on integration and OEM distribution, but Microsoft is still mum on when consumers will be able to use Flash or Silverlight on their Windows Mobile phones. The article points out that Nokia, Samsung, Motorola, Sony Ericsson, and LG already support Flash, but only Nokia has announced Silverlight support, and only on some models starting later this year. The other major handset maker — Apple — doesn’t support Flash on the iPhone and has no plans to do so in the near future.”
Wireless Mobile Telecom Wireless News
Worldwide sales of mobile phones surpassed 1.15 billion units in 2007, according to market research firm Gartner. The company also said that three new companies entered the top ten in sales for the first time including Apple with its iPhone.
Apple was joined in the top ten by ZTE and Research in Motion with its popular BlackBerry device.
Nokia is leading the way in mobile phone sales with a 37.8 percent market share, followed by Motorola (14.3 percent), Samsung (13.4 percent), Sony Ericsson (8.8 percent) and LG (6.8 percent). Total worldwide phone sales increased by 16 percent from 2006, according to Gartner.
While 2007 was a good year for mobile phone-makers, the same does not hold true for 2008’s outlook. “After another strong year, we expect the growth in sales of mobile devices to end users will decelerate in 2008 and fall to about 10 per cent growth as mature markets become more saturated,” said Carolina Milanesi, research director for mobile devices at Gartner.
Apple introduced the iPhone last June and has sold over 4 million units since, including 2.3 million units in the last quarter alone.
At the Goldman Sachs investor conference earlier this week, Apple’s Chief Operating Officer, Tim Cook, said the company is confident it will make its goal of selling 10 million phones by the end of 2008. Cook also said that Apple is not married to the single carrier model of selling iPhones, although that is the strategy the company has adopted to this point.
Apple is holding a special event in Cupertino, Calif. next week where it will unveil a new software development kit (SDK) for the iPhone, which will allow third-party developers to write applications for the device. This will take away one major complaint from consumers of not having the option to install applications on the iPhone.
Wireless Mobile Telecom Wireless News
- February 29th, 2008
- 12:15 pm
Apple, Research In Motion and ZTE took places among the world’s top 10 mobile phone makers in 2007, new research from Gartner Inc. claims.
Despite being available in only four markets — the U.S., U.K., Germany and France — the iPhone transformed Apple into the world’s 10th largest handset maker in the fourth quarter of 2007, the analysts said.
RIM took sixth place, while low-cost handset manufacturer ZTE, which specializes in delivering devices to emerging markets, took seventh place.
Apple holds 0.6% of the world market, while RIM has 1.2%. Motorola saw its share fall to 11.9% from 21.5%. Nokia, at 40.4%, and Samsung, at 13.4%, continue to dominate global handset sales.
Gartner analyst Carolina Milanesi observed, “The global mobile devices market will remain relatively immune to a recession in the U.S. and Western European economies, as the majority of growth in 2008 will come from emerging markets. The mature Western Europe and North America markets are driven by operator contract terms and replacement cycles and will account for just 30% of the global mobile devices market in 2008.”
Wireless Mobile Telecom Wireless News
- February 6th, 2008
- 1:24 pm
BT has started offering mobile services for business customers in Spain. The UK-based operator is offering converged voice and data services as well as unified fixed-mobile communications, with devices from Nokia, Samsung and HTC. Available for large business and SMEs, the services allow mobile staff to perform inventory checks, backups, establish anti-theft protection as well as download and install applications. In addition, the “virtual meeting room” offers a telephone-based meeting with up to 40 participants simultaneously. The service can be customised to access specific company applications such as fleet management, telemedicine or telecontrol.
Wireless Mobile Telecom Wireless News
- February 4th, 2008
- 1:20 pm
Six handset makers have been awarded post-trial period access licences to China’s 3G network, reports Xinhua. The licences will immediately give Lenovo, ZTE, Hisense, Samsung, LG and New Postcom opportunities to win procurement deals from China Mobile. The Chinese mobile operator plans to purchase 30,000 TD-SCDMA mobile phones and 10,000 data cards for 3G network trials. Three major Chinese phone operators China Mobile, China Telecom and China Netcom are conducting network trials of TD-SCDMA in ten cities.
Wireless Mobile Telecom Wireless News
Sprint and Samsung Declare Mobile WiMAX Technology Is Now Ready for Commercial Service
