Vodafone relies on Verizon as profit from Europe declines (USA, UK)
Telecom operator Vodafone Group Plc will have to rely on its U.S. wireless venture to meet profit estimates and cover up declining sales in the European markets, largely Spain and Italy, according to a report by BN.
Vodafone said that operating profit excluding some items may rise as much as 3.2 percent in the 12 months ending March 2013. Profit on that basis slipped 2.4 percent last year to $18 billion after the sale of a stake in its SFR French unit. Verizon Wireless, the largest U.S. mobile carrier, accounted for 42 percent of the total, an increase of 9.3 percent.
As per the report, Vodafone, which relies on western Europe for most of its revenue, is no longer the world’s biggest mobile-phone company as China Mobile Ltd. boosted sales last year to $81.7 billion. While profits and sales at Verizon Wireless are rising, Newbury, England-based Vodafone still needs to negotiate dividends every year with U.S. partner Verizon Communications Inc. (VZ), which controls 55 percent of the venture.
Verizon and AT&T ponder over shared-data pricing plans (USA)
Mobile data now accounts for a very significant aspect of a consumer’s life. While demand for wireless data services has been on the rise, users are also on the lookout for the most economical option, adding pressure on mobile operators.
In an attempt to meet consumer demand and reduce churn, mobile operators Verizon Wireless and AT&T are preparing to roll out shared-data pricing plans this year, according to a report by BN. As per the report, the revolutionary new service would enable customers to split one internet data plan between their phones, iPads and other wireless devices, providing an economical option for families, small businesses or people with a lot of Web-connected gadgets.
As per the report, while such a move could prove to be highly successful for operators, any would lower the amount of money that subscribers pay, while increasing network traffic and the cost of maintaining networks. Thus both operators are hesitant in being the first one to offer the service.
However, mobile operators Sprint and T-Mobile are yet to announce any plans for the same. They claim that such a move may make it tougher for families to keep a track of how the data is being used, and may lead to bill shock.
Wireless carriers request for more data capacity (USA)
Mobile operators in USA have spoken out at an industry conference regarding the limited data capacity and its long term effect on the industry. According to a report by Total telecom, executives from Verizon Wireless and T-Mobile USA said the future of data use, such as streaming video and photos, is at risk if more airwaves, or spectrum, aren’t put to use.
Verizon Wireless Chief Executive Dan Mead, speaking at the CTIA conference in New Orleans, said the largest carrier will be maxed out in some markets as early as next year and most others by 2015. The carrier is seeking regulatory authority to buy $3.9 billion worth of spectrum from a group of cable companies. He said that they will put this spectrum to use quickly.
T-Mobile’s CEO Philipp Humm said that they require more spectrum, more technologies to manage capacity. The carrier had hoped to be bought by AT&T Inc. last year as part of a $39 billion bid that was ultimately stopped by regulators. Humm said average monthly data use on T-Mobile’s network has risen more than five-fold over the past two years.
U.S regulator raises concerns over Verizon’s spectrum purchase (USA)
The U.S regulators have raised concerns over Verizon Wireless’s $3.6 billion plan to buy airwaves from cable providers claiming that the purchase may harm competition in the wireless market, according to a report by BN.
As per the report, Steven K. Berry, chief executive officer of the Rural Cellular Association, said that the U.S. Federal Communications Commission and Justice Department are examining whether the acquisition would make it harder for Verizon’s rivals to expand wireless networks.
Both the FCC and the Justice Department’s antitrust division must approve the airwaves agreement. Regulators say they are trying to make sure the market remains competitive to preserve consumer choice and prevent a monopoly that could lead to higher prices.
The report reveals that Verizon has said consumers will benefit from its purchase of spectrum because the company will be able to provide improved wireless service. Verizon expects the purchase to be approved by the FCC and Justice Department by mid-summer.
T-Mobile to receive breakup fee airwaves from AT&T (USA)
The Federal Communications Commission (FCC) cleared the way for T-Mobile USA to receive about $1 billion in wireless airwaves it is owed as part of the breakup fee for AT&T Inc.’s failed $39 billion takeover bid, according to a report by DJN.
As per the report, T-Mobile has slated the airwaves, or spectrum, for its build out over the next several years of a high-speed mobile broadband network to keep pace with its larger rivals. The spectrum will bolster T-Mobile’s network in 12 large U.S. markets.
AT&T promised the spectrum and about $3 billion in cash for walking away from the deal in December after meeting resistance from regulators, competitors and attorneys general concerned over the impact to competition. T-Mobile is playing catchup with AT&T and Verizon Wireless in building out the faster network, known as 4G LTE.
Nokia Windows phone receives support from carriers (USA)
With the increasing dominance of iPhones and Android powered smartphones in the handset arena, wireless carriers AT&T and Verizon Wireless have been looking at phones from Nokia and Microsoft as alternatives, according to a report by BN.
As per the report, both carriers praised Microsoft’s Windows Phone operating system, which powers the new Nokia Lumia phone, when they reported quarterly results this month. AT&T began offering the Lumia 900 for $99.99 on April 8, and Verizon is preparing to add a new Nokia model to its lineup soon.
The operators are hoping that these handsets act as an alternative for users as devices such as iPhone can be more costly to subsidize. The companies also face the risk that an Apple-Google duopoly will erode carriers’ ability to distinguish themselves and will further squeeze their profit margins.
AT&T Chief Financial Officer John Stephens told BN in an interview that they want the Lumia to succeed — they love to have competition in the handset market. It’s always better to have more choices for the customers.
Verizon to focus on Windows phones this holiday season (USA)
Verizon Wireless plans to put its marketing weight behind Microsoft Corp’s next mobile phone software to help develop a strong competitor to Apple Inc and Google Inc, according to the chief financial officer of Verizon Communications, as told to Reuters.
Verizon Wireless, a venture of Verizon and Vodafone Group Plc, already sells the Apple iPhone and many devices based on Google’s Android software.
But Verizon’s CFO Fran Shammo said the company wants a third strong software competitor in the mobile market where operators pay hefty subsidies for smartphones like the iPhone.
As per the interview, Shammo said that they are really looking at the Windows Phone 8.0 platform because that’s a differentiator. They are working with Microsoft on it.
Microsoft has not said anything publicly about the next update of its mobile software, but Windows Phone 8 — codenamed ‘Apollo’ — is expected on phones this holiday season.
As per the report, Shammo said that Verizon Wireless expects to have phones based on the next Microsoft software in time for the 2012 end of year holiday shopping season. The executive suggested that Verizon could play a similar role with Microsoft as it did with Google’s Android.
Verizon Wireless marketing played a big part in boosting the popularity of Android phones from manufacturers including Motorola Mobility, Samsung Electronics and HTC Corp. Verizon’s Droid brand even managed to give a struggling Motorola a new lease of life.
Nokia is Microsoft’s closest mobile partner as the Finnish company has bet its smartphone business on the U.S. company’s software. But Nokia’s fortunes have fallen sharply since it took up with Microsoft.
While Samsung and HTC both already sell phones based on Microsoft software, Motorola Mobility’s future plans are uncertain as it is in the process of being bought by Google.
Verizon Wireless launches new global data plan (USA)
American mobile operator Verizon Wireless is launching a new, easy-to-understand Global Data Plan. Starting April 23, the new Verizon Wireless Global Data Plan offers U.S.-based customers 100 MB of data for $25 a month. For one low cost, customers can access email, browse the Web and update social networks while traveling outside the United States in 120 countries and destinations, including all of Europe, South America, the Caribbean, Mexico and Canada.
With the new Verizon Wireless Global Data Plan, customers can purchase 100 MB of data for $25 a month. Prior to traveling outside the United States, customers should visit the website to determine their coverage needs. To purchase a Global Data plan, customers are required to have a domestic data package and international eligibility, which requires minimum payment history.
Customers who require more than 100 MB of data while traveling will receive a notification via text message when an additional 100 MB of data for $25 has been automatically made available to them once they exceed their initial allotment. Customers traveling to countries not covered under the Global Data Plan, but within Verizon Wireless global coverage areas, will be charged at Pay Per Use rates of $0.02 per KB.
Whether traveling to London for the big games this summer or Oktoberfest in Munich this fall, Verizon Wireless customers with global calling and data services can make and change hotel reservations on the fly, call for and download directions to local attractions and restaurants, and stay in touch with family and friends back home by sharing pictures via email and social networks.
Verizon Wireless customers planning international getaways can take advantage of first-class tools and resources to help manage their wireless travel needs, putting their minds and budgets at ease before they go and once they arrive, such as, Verizon Wireless Trip Planner provides customers information they can use to plan their travels before they leave home, including details about global calling, country-specific coverage and device functionality.
To help travelers get their wireless bearings, Verizon Wireless greets travelers to most overseas destinations with a free welcome text message featuring helpful information for the country they are visiting, including dialing instructions for calling within and to phones outside the country; voice, text and data rates; as well as the ability to reach Verizon Wireless Global Technical Support.
Free Global Data Roaming Usage Alerts help travelers keep an eye on their wireless usage. Verizon Wireless customers automatically receive free alerts via text message or email when Global Data Roaming charges exceed certain thresholds.
Verizon Wireless operates a dedicated, toll-free global support number that will put customers in touch with one of the company’s U.S.-based support centers 24 hours a day, seven days a week. Customers outside the United States can reach the Global Technical Support Team by dialing the appropriate exit code for the country they are in and then 908-559-4899 – a free call from their device. Customers may also reach Global Technical Support free of charge by using the Verizon Wireless Global Calling Card, provided with their global-ready device, if their device is not usable.
Verizon to charge $30 additional fee for upgrades (USA)
America’s leading telecom operator Verizon Wireless will start charging customers a $30 fee for cellphone upgrades, on top of the price they pay for the new device, as the company looks to supplement its income to cover costs, according to a report by Reuters.
Carriers pay high subsidies to manufacturers like Apple as devices like the iPhone help attract a significant amount of consumer base as well as increase revenue.
However, as per the report, upgrades can be less attractive to operators because despite paying a subsidy for the new device, mobile companies often get no extra revenue from existing customers who switch phones.
Verizon Wireless said the fee, which comes into effect starting April 22, would help it provide customers with the level of service and support they have come to expect. For example, it cited wireless workshops, online tools, and expert advice on devices.
Wireless carriers begin trials for RIM’s PlayBook (Canada)
Wireless carriers in US and around the world have begun testing the PlayBook 3G and 4G with OS 2.0.1 according to a report by Berry Review. The report reveals that the launch has been scheduled for May around the same time that RIM (Research In Motion) would be hosting BlackBerry world 2012.
As per the report carriers AT&T, T-Mobile and Verizon Wireless have begun testing the PlayBook in the Unites States; while Rogers, Bell Mobility and Telus have begun trials in Canada. Further, Orange UK and StarHub Singapore are also rumoured to be involved in the trials.
