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CES 2013: T-Mobile Swings for the Fences with 4G Deal

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January 9, 2013

T-Mobile USA, Inc. has entered into a deal to become the “Official Wireless Sponsor” of Major League Baseball (MLB). The multi-year, multimillion-dollar partnership will see T-Mobile working with MLB and its digital subsidiary MLB Advanced Media L.P. (MLBAM) to create value-added capabilities that will enhance presentation of the games and appeal to MLB fans. Continue reading CES 2013: T-Mobile Swings for the Fences with 4G Deal

Justice Department Memo Tells Which Telecoms Store Data the Longest

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September 30, 2011
  • “People who are upset that Facebook is storing all their information should be really concerned that their cell phone is tracking them everywhere they’ve been… The government has this information because it wants to engage in surveillance,” an ACLU staff attorney said.
  • A newly released Justice Department internal memo reveals the retention policies of Verizon, T-Mobile, AT&T, and Sprint.
  • Verizon seems the most privacy-friendly, but is the only company that retains text message content. Messages are stored for 5 days; other companies don’t retain message content at all.
  • The retention of “cell-site data” (information of a phone’s movement history based on phone tower usage) varied the most among the four providers.
  • “Verizon keeps that data on a one-year rolling basis; T-Mobile for ‘a year or more;’ Sprint up to two years, and AT&T indefinitely, from July 2008,” reports Gizmodo.
  • Senator Patrick Leahy proposed to alter the Electronic Privacy Communications Act to “protect Americans from warrantless intrusions.”
  • To see your provider’s retention policy, check out the graphic featured in the Gizmodo post.

Justice Department Files Suit to Block T-Mobile Takeover

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September 1, 2011
  • The Justice Department is blocking the proposed $39 billion takeover of T-Mobile by AT&T, citing the move would result in less competition and higher prices. AT&T said it was “surprised and disappointed” by the suit.
  • The FCC is also reviewing the deal and has “serious concerns” about its impact on competition. The antitrust challenge comes five months after the deal between the second- and fourth-largest cellphone companies in the U.S. was announced.
  • “The lawsuit is the Obama administration’s boldest antitrust challenge to date and the latest evidence of its intention to reinvigorate enforcement after what it says was a lull during the previous administration,” reports The Wall Street Journal.
  • However, the Justice Department left open the possibility of concessions which could lead to a settlement.

Caps on Mobile Data Plans: No More All-You-Can-Eat Buffets

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August 16, 2011
  • As smartphones gain greater market penetration, and data-intensive applications become more popular, cellular carriers are creating limits on how much data customers can consume, and raising the price of that data.
  • T-Mobile, AT&T and Verizon have all phased out their unlimited plans, and introduced tiered plans that charge customers based on how much data they consume. Only Sprint still offers an unlimited data plan.
  • Some developers worry that the caps will stifle innovation of data-intensive applications, and that customers may blame the applications if they go over their limits. This problem is compounded by the fact that consumers have no intuitive sense of how much data a given application may be using.
  • Industry analysts predict that the availability of data will become an increasingly important profit stream for cellular carriers, and a key point of competition between them.

Unlocked iPhone Could Impact the Subsidized Carrier Model

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August 3, 2011
  • While Apple has been working on the design elegance and overall quality of its iPhone, the existing business model with carrier partners has allowed the company to hide the true cost of the device in two-year contracts. Apple’s upcoming iPhone 5 launch may change this model.
  • The company is rumored to be considering a $350 price point for an entry level unlocked iPhone.
  • T-GAAP reports: “The main purpose for such a device is to penetrate China and other regions which are not fond of subsidized programs. If Apple can deliver an unlocked iPhone starting at $350, the impact in China will be stunning, and send U.S. and European carriers scrambling.”
  • If this is the case, consumers would be able to purchase an iPhone from the Apple Store and select any prepaid plan of their choosing (such as an “all-you-can-eat $50 month-to-month T-Mobile or Cricket or Boost plan”).
  • Carriers would most likely push other phones, but it may be too late for that based on consumer demand. Their next move could be lower entry prices for the iPhone.
  • “Plan on AT&T, Verizon and Sprint offering two-year contract plans for the iPhone 5 starting at $149,” suggests T-GAAP. “Carriers wil be scrambling to protect a model that has done them so well for the past 15 years. However, Apple is about to pull it all apart with a single product launch.”

Verizon Wireless Dumps Unlimited Data Service Plan

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July 8, 2011
  • After weeks of speculation, Verizon Wireless has announced it will no longer offer customers unlimited data service plans, but will instead introduce service tiers at varied price points.
  • Verizon joins AT&T and T-Mobile in offering tiered service models. Sprint Nextel remains as the only major carrier to offer an unlimited data plan.
  • Verizon’s current unlimited data model is $30 on most plans. Moving forward, customers will get a maximum of 2GB/month for that price. Customers who use up to 10GB will pay $80/month.
  • Customers with an existing unlimited plan will be grandfathered in and will not have to change to a tiered plan, but any change in service will terminate the unlimited data plan.
  • ETCentric contributor Phil Lelyveld comments: “It will be interesting to see if this becomes a competitive differentiator among services, and whether consumers hit the limits and start caring about limits on their wireless data plans.”

AT&T Expansion: LTE 4G Network and T-Mobile Acquisition

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May 22, 2011

Last week, reporters toured the AT&T Foundry facility in Plano, Texas and conducted a group interview with Jon Summers, SVP of application and service infrastructure. During the tour, GigaOM was treated to a “real-world situation” demo of AT&T’s Long Term Evolution (LTE) network and was impressed with the results.

According to the GigaOM post: “The speeds provided on the download side were about 28.87 Mbps and were about 10.4 Mbps on the upload side. This compared to speeds of 3.77 on the download side and 1.21 Mbps on the upload for an iPhone that was capable of maxing out on AT&T’s 7.2 Mbps HSPA network. So it’s fast, but sharing those speeds with others on a cell tower will bring them down. For comparison, Verizon has promised customers speeds of 5-12 Mbps on the download side and speeds of up 5 Mbps on the upload side.”

Additionally, AT&T’s spectrum may increase as early as next year. In March, the company announced its plans to acquire T-Mobile for $39 billion ($25 billion in cash and the rest in stock). The deal is presently undergoing a regulatory-approval process. If approved, by next year AT&T could solidify its position as the largest carrier in the U.S. with about 130 million subscribers.

The merger would also help bolster AT&T’s ongoing growth. According to GigaOM, “In the last four quarters, it has reported $125 billion in revenue, and billions of dollars in capital investments in its network.”

Related New York Times article: “AT&T’s LTE 4G Speeds Could Blow Away Verizon” (5/20/11)

Related MobileBeat article: “AT&T to acquire T-Mobile for $39B” (3/20/11)

Related CNET article: “AT&T, T-Mobile customer satisfaction on the decline” (5/17/11)

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