U.S. wireless operators Metro PCS and Leap Wireless have missed analysts’ estimates in terms of the number of subscribers added in the fourth quarter. According to a report by BN, MetroPCS added 197,000 new users during the period against an estimated 223,000 new users. Further, Leap Wireless has reported a monthly churn of 3.9 percent against the estimated 3.6 percent.

According to reports, a major reason for this decline is the affordable tariff plans introduced by some of the bigger players such as AT&T and Verizon. Sources claim that the combined offer of smartphones and iPhones with a contract by the leading telecom operators have also resulted in many subscribers switching to their services.

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Mobile operator Verizon is reportedly planning to introduce new price plans in the coming year enabling its customers to run multiple devices off one account. According to reports, Lowell McAdam, CEO, Verizon Communications has said that the carrier has been studying introducing the plans, which would allow a customer to use a pool of data or voice minutes spread across several handsets or tablets, for several years.

Further, he also said that Verizon could see usage of smartphones among its customers at 70 percent within a few years as compared with 40 percent today. McAdam said that having account-based pricing is the way to go as few consumers have four or five devices, with different plans for each. As per sources, rival operators Sprint and AT&T are also working towards introducing similar price plans.

 

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With the increasing demand for mobile payment services, mobile operators along with big companies such as Google, Visa and PayPal are reportedly working towards establishing themselves in this market. According to reports, mobile operators in the US, AT&T, Verizon Wireless and T-Mobile are spending large amounts of money in an attempt to strengthen their foothold in the mobile money market.

Further, sources claim that while Google launched its mobile wallet service in the US this year, enabling consumers to use a NFC (Near Field Communications) enabled handset to make payments; Visa and PayPal are expected to offer their services by the next year.

As reported by Wireless Federation earlier, Spanish mobile giant Telefonica announced the trial of its mobile wallet service, in collaboration with BlackBerry maker Research In Motion (RIM). Further, industry analysts believe that in the next five years, mobile payments are going to become the norm and may replace a large part of the traditional payment methods.

 

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America based mobile network operator, Sprint, has reportedly launched new 3G and 4G mobile broadband plans, delivering an increased amount of data at lower rates than its rival carriers. According to reports, customers can choose from 6GB of combined on-network 3G/4G data usage for $49.99 per month or 12GB of 3G/4G data usage for $79.99 per month. The new plans reportedly deliver 20 percent more data for the same price as similar plans from Verizon and AT&T.

As per sources, Will Souder, Vice President (Pricing), Sprint has said that the company is committed to delivering exceptional value to its customers, and their new 3G/4G Mobile Broadband plans are the latest example of that. He added that Sprint gives customers more data at lower prices than competitors, so they can do more with their mobile broadband devices on Sprint’s 3G and 4G networks.

Company reports reveal that the $49.99/6GB and $79.99/12GB plans are compatible with all Mobile Broadband devices sold by Sprint, including tablets, dedicated mobile hotspot devices, USB modems, netbooks and notebooks. Further, Sprint is also launching a new plan available for tablets and dedicated mobile hotspot devices priced at $34.99 per month for 3GB of 3G/4G data usage, along with a new plan for tablets priced at $19.99 per month for 1GB of 3G/4G data usage.

 

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Research reports reveal that over 50 percent of American based mobile operator, Sprint’s, net new subscriber additions utilize ‘Lifeline’, a government subsidy program, offering Americans with low-income free wireless minutes every month.  According to reports, the service, termed as ‘Assurance Wireless’ by Sprint, enables the operator to earn revenue as and when these users cross their monthly minutes, apart from the government subsidies.

As per sources, Verizon Wireless and AT&T are also offering users similar offers. John Carney, Sr. Vice President (consumer marketing), Sprint has reportedly said the operators would not have targeted such low-income customers, had they not been offered the subsidies. Sources speculate that the number of Assurance Wireless users for Sprint may be nearing 2 million.

Industry analysts say that many users prefer the Lifeline option as the amount paid is much lesser than a fixed-line bill, even if the users crosses the number of minutes for the month. Further, as per reports, Sprint’s Assurance Wireless brand has earned between $50 million and $75 million as yet this year.

 

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Verizon Wireless, a leading mobile phone operator in America, is reportedly planning to double the size of its smartphones in an attempt to compete for customers as well as save on its capital expenditure for older wireless technology. According to reports, Verizon has increased the data amount offered with its smartphones, from 2GB to 4GB for $30 a month.

As per sources, Fran Shammo, CFO, Verizon Communications Inc., has said that the offer is more beneficial from a financial point of view as it help draw customers to the company’s latest LTE network, thereby reducing capital investments in the previous 3G technology.

Company reports suggest that Verizon’s double data plan is effectively a price cut, and the first the company has attempted since it dropped its unlimited data offer earlier this year. Further, the operator has reportedly said that the new data offers are a limited time promotion and the new users will keep the higher data allotments for the life of their contracts.

 

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Verizon Communications, America’s second largest network carrier, has reported double profits in their third-quarter results due to the increase in the number of users using smartphones. As per company reports, the net income rose from $659 million (23 cents a share) in 2010 to $1.38 billion (49 cents a share) in the quarter ended September. Industry sources believe that Verizon’s new services offered on the company’s higher speed long-term evolution (LTE) network has helped Verizon increase its subscriber base, offering it a competitive edge over other carriers.

As per sources, Verizon Wireless added over 850,000 postpaid subscribers this quarter while rival carrier AT&T, which will be starting LTE services this year, added over 300,000 postpaid subscribers in the last quarter. Reports suggest that Verizon sold 5.6 million smartphones this quarter of which 1.4 million were LTE devices. Further, Verizon reportedly sold 2 million iPhones as compared to the 2.7 million iPhones sold by AT&T during the same period.

 

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C Spire, earlier known as Cellular South, will become the fourth operator in the United States to offer the Apple iPhone. The regional operator with a subscriber base of approximately one million customers across four states has reportedly said that the iPhone will be offered largely to postpaid subscribers as compared to prepaid customers.

Till last year, the iPhone was only available on AT&T and Verizon networks in the United States, giving the two operators a major competitive edge over the other carriers, as many users shifted changed networks when they bought an iPhone. This year, Apple added Sprint, the third largest carrier in the U.S., to the list of operators offering the iPhone. As per reports, T-Mobile, a unit of Deutshe Telekom, had spoken to Apple in September, expressing interest in selling the iPhone.

 

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Mobile operators Verizon Wireless in the United States and Telefonica in Europe are reportedly working with software provider VMware, on a dual-number phone software which will enable users to maintain separate profiles for their personal and professional lives. According to reports, the VMware Horizon Mobile business solution will enable users to have two different phone numbers on their mobile handsets, for personal and business use. Further, Horizon Mobile users will be able to choose their own voice and data plans which will be completely separate from their corporate plan, managed by the user’s company.

As per sources, VMware claims that the solution helps to securely provision, manage and de-provision a corporate mobile workspace (email, applications, data, etc.) of a customer that uses an Android device. Handset makers LG and Samsung will reportedly be building the mobile phones containing this solution.

According to reports, Janet Schijns, vice president, Business Solutions Group, Verizon Wireless has said that Verizon Wireless and VMware are delivering a compelling new mobile security and management experience leveraging their most reliable 3G and 4G LTE network along with the proven virtualization and cloud computing platform leadership of VMware to address this enterprise trend.

 

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Apple Inc. has recorded sales of more than 4 million units of the iPhone 4S in the first three days of the launch, breaking all previous sale records, and maintaining its stand as the top-selling smartphone in the market. As per sources, the company sold more than 20 million units in its third quarter, and expects the iPhone 4S to be available in 70 countries by the end of 2011. Further, Apple also said that 25 million customers switched to its latest operating system – the iOS 5, within five days of its launch.

Sprint customers were offered the iPhone for the first time, and Sprint Product Chief Fared Adib said that the demand for the device surpassed the company’s expectations. He attributed most of the success to the operator’s unlimited data plan, which is not offered by any of the other carriers. Further, AT&T reported that it is looking to double last time’s record for the number of iPhone activations in a day while Verizon Wireless reported steady sales.

 

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