Wednesday, June 29, 2005

T-Mobile Inks Deal with Google

T-Mobile announced it will use Google as the entry point for customers to access the Internet via wireless devices. T-Mobile plans to provide subscribers full access to the Internet from its wireless phones, dismissing the "walled garden" concept where carriers pick and choose which Websites subscribers can view. The company will also offer devices with larger displays to better view Web pages.

Source: Reuters

Tuesday, June 28, 2005

Verizon Wireless Expands Broadband Service

Verizon Wireless announced it will deliver broadband Internet service to 15 more markets, for a total of more than 50, extending its lead over Cingular Wireless and Sprint. The network expansion includes Seattle, St. Louis, Cleveland and the Long Island suburbs of New York City.

Source: Associated Press

Free Wi-Fi Initiates Two Bills

For nearly a year, governments and businesses have argued whether Internet access is a paid privilege similar to telephone and cable services or if municipalities can provide the service for free. Municipalities see free Wi-Fi as necessary to attract new residents, tourists and businesses. Internet service providers see it as a threat to their billion-dollar high-speed access businesses. Two bills have been introduced on the issue, which highlight the divide. Senate bill 1294 says no state can prohibit a municipality from offering broadband to its citizens. House bill 2726 says state and local governments can't offer Internet service if a private provider already does.


Source: Washington Post

Cingular Considers iTunes Phone

According to reports, Cingular Wireless is considering selling a Motorola wireless phone that plays Apple Computer's iTunes music service. The iTunes phone is another example of how wireless carriers and music companies are betting on wireless phones with digital music players to be a key source of growth in the next few years.

Source: Reuters

Paramount Confiscates Wireless Phones

At Paramount Studio's premiere of "War of the Worlds," all guests, including celebrities, were required to hand over their handbags and wireless phones to security guards. According to a New York Times report, Paramount confiscated wireless devices in case people attempted to record scenes using their cameraphones.

Source: New York Times

Ringtones Continue to Generate Revenue

Ringtones are providing music labels and wireless carriers a chance to build a vibrant, piracy-proof market for songs, video clips and other wireless entertainment. At a time when illegal "peer-to-peer" sharing of songs hurts the music industry, many companies are seeing success in wireless ringtone sales. According to research firm Consect, ringtone sales topped $4 billion worldwide and $300 million in the U.S., in 2005.

Source: Reuters

Thursday, June 23, 2005

Wireline Companies Lobby to End Wi-Fi Plans

As cities look to provide high-speed wireless Internet access, many are receiving push-back from wireline and cable companies. Around the country, governments are contracting with providers other than local telephone or cable companies to build or run networks using Wi-Fi technology. Many traditional telecom providers view these projects as a threat and are pushing for laws to curtail them.

Source: Wall Street Journal

Vodafone Expects Clientele to Triple

Portuguese wireless carrier Vodafone Portugal expects its 3G subscriber base to triple by March 2006. The expected growth of its subscribers is based on attractive rates, better handsets and wider 3G coverage. Vodafone is currently the second largest of three wireless phone carriers in Portugal.

Source: Reuters

China Wireless Phones Show Poor Performance in 3G Test

According to reports, a Chinese standard for 3G wireless phones failed to perform well in a government test, raising doubts about when licenses might be granted. Phones equipped with the TD-SCDMA standard could only be used to place calls and send text messages but failed to support other services, such as downloading video clips.

Source: Associated Press

Federal Rules Prohibit Telemarketing to Wireless

According to a CNet News report, the more that 190 million U.S. wireless subscribers could be targets for telemarketers. Since there are more wireless subscribers than wireline subscribers across the globe. However, Federal rules prohibit using automated dialing machines to reach wireless subscribers' phones. Under the rules, telemarketers are allowed to dial each number by hand, which would be labor and cost intensive, according to the Federal Communications Commission. CTIA-The Wireless AssociationTM ensures that wireless carriers are doing everything they can to keep wireless phone numbers out of the hands of telemarketers.

Source: CNet News

Friday, June 17, 2005

Mobile Marketing and M-Commerce:Global Spending and Trends
2005 is projected to be a breakout year for mobile marketing, with spending spiking from "virtually nothing to millions in pilot investments." Though that sounds suspiciously like the online advertising hype of the 1990s, remember, the Internet is now key to the marketing and sales strategies for most companies. Wireless represents the next frontier.



Source: eMarketer.com
She Got Game?

Traditionally, males are more likely than females to be game players, and though neither gender is downloading mobile games in massive numbers, recent data suggests that men are about twice as likely to be downloaders.

A new report released by the Yankee Group indicated that 8% of men surveyed in Western Europe downloaded games to their mobile phones on a monthly basis, compared to 5% of women. However, about 16% of both genders have downloaded a game on a less frequent basis. More than three-quarters of mobile phone subscribers, male and female, have never downloaded a game.



A May 2005 report from M:Metrics found that 4.4% of US men had downloaded a game, compared to 2.3% of US women, though women played games just as much as men. But a recent study from Telephia found that females accounted for three-fifths of the 3.5% of mobile phone users who had purchased a game for their handset between February and May 2005.



In any case, there is a marked difference between mobile gaming and console or computer gaming, where males dominate in playing time and purchasing.

One factor is the limited technology of phones, which encourages simpler puzzle, quiz or basic arcade games, which tend to be more appealing to women. Action, fighting, first-person shooter or sports games, which tend to be men's preference, dominate the larger console market. In mobile applications these games require more sophisticated handsets.

Yankee Group points out that although the many of the most popular games are ones like Tetris or "Who Wants To Be A Millionaire?" the focus in gaming has been on console spin-offs like Tomb Raider or Tom Clancy's Splinter Cell.

For an in-depth look at the mobile market, read eMarketer's Mobile Marketing and M-Commerce report.
Big Picture for the Smallest Screen

Despite the anticipated growth in multimedia capable handsets, mobile phone will continue to be niche advertising medium, according to a new report.
Although digital PDAs and mobile phones are ubiquitous — popping up from handbags, jacket pockets and belt clips everywhere — they seem to be the one new media place advertising dollars are not going.

The small "fourth screen" may be looked at more often every day by consumers than movie, television and even computer screens, but a new report from Strategy Analytics, "Advertising on the Fourth Screen: Opt-In To Dominate Mobile Marketing Spend," expects mobile marketing to remain only a niche revenue opportunity, representing just 2% of the projected $47 billion online advertising spend in 2010.

Strategy Analytics said that mobile advertising will be constrained by "low consumer acceptance of advertising on their handsets, device fragmentation and negative sentiment from carriers towards marketing supported content models."

Marketers want to be close at hand, however. A recent report from Forrester Research showed that over half the US marketers surveyed were interested in advertising on mobile devices.




"Advertising over wireless is more complex than TV, radio, and the Internet, because of the fragmentation caused by handset diversity and the uncertainty of take-up rates of different mobile technologies like video and Java," said David Kerr, Vice President of Strategy Analytics. "We expect sponsored video and audio services to grow strongly over the next five years capturing 17% of total spend by 2010, while browser based advertising will claim the greatest share with 44%."



The situation will change, in time. Too many marketers see the value of being on the fourth screen — right in front of their targets' noses. As the report concludes, "Momentum is building, but many barriers remain before the muscle of mobile advertising and marketing can be fully flexed."
"Mobile marketing is ripe with promise and to some extent still surrounded by hype as well," said eMarketer Senior Analyst Noah Elkin. "But those looking to the wireless channel would do well to remember that it is still in an incipient phase. On the one hand, the staggering demographics of the global wireless market should not be discounted. On the other hand, the ways in which most people use their handsets continue to evolve, with voice still by far the most dominant application."

For more information on this subject, read eMarketer's Mobile Marketing and M-Commerce report.
Technology Beyond 3G

Some of the world's wireless companies are pushing high-speed downlink packet access (HSDPA), an even more sophisticated technology than 3G. At the CommunicAsia trade show, wireless phone manufacturers, such as Samsung and Ericsson, discussed a range of technologies that go beyond 3G. The companies say HSDPA will provide faster download speeds than current 3G systems, allowing users to surf the Web and watch videos of much higher quality on their wireless phones.

Source: Wall Street Journal
Florida Residents Pay Parking Meter Via Wireless Phones

Drivers lacking quarters in Coral Gables, Florida can now use their wireless phones to feed parking meters. The automated system allows drives to simply dial in from their wireless phones, enter the number assigned to their parking spot, and the required costs will be bill to their credit card. Subscribers call back and end the billing cycle when they leave.

Source: Associated Press

Bluetooth May Be Open to Cracking

According to research firm IDC, Bluetooth technology was installed in 92 million wireless handsets, wireless phones, portable computers and other devices in 2004. The number of Bluetooth-enabled products is expected to more than double to 186 million in 2005. Two experts introduced research showing security systems used in many Bluetooth devices are susceptible to security lapses. No Bluetooth breaches have been reported. However, the new findings have some researchers concerned.

Source: Wall Street Journal

UWB Could Cut All the Cords

Despite the popularity of wireless technology, many electronic products remain attached by cords. However, in 2006 a short-range wireless technology called ultrawideband (UWB) will boost speed and data capacity for consumers. Initial products will be adapters that plug into existing electronic devices to connect them wirelessly. For example, music lovers will be able to download songs directly to their MP3 players. Analysts expect the technology to be gradually embedded in electronic products starting in 2006 and predict them to become widespread. According to a Dow Jones Newswire report, products could hit retail stores as early as Christmas.

Source: Dow Jones Newswire
EarthLink’s Government Intervention

According to a Dow Jones Newswire report, EarthLink has the potential to expand its markets through municipal governments, which are now eager to advance Wi-Fi access across their cities. EarthLink has struggled with losing consumers since moving away from dial-up access to faster broadband services, creating a decline in the company's dial-up business. In a search for growth, EarthLink is now focused on new technologies, including high-end services for wireless devices and Internet telephony. It has also studied alternative Internet-access technologies like service over wireless networks and power lines that could help free it from phone and cable companies. Through city governments EarthLink now has a chance to offer Internet services over large-scale alternative networks. EarthLink recently allotted 12 bids to the city of Philadelphia for a $10 million contract to build, run and maintain a city wide Wi-Fi network for residents, visitors, businesses and mobile government workers.

Source: Dow Jones Newswire

Napster Teams up with Ericsson

Napster has teamed up with Ericsson to develop a wireless version of Napster's online music service that can deliver full-length songs directly to wireless phones. The two companies hope wireless providers around the world will begin to offer the product to their subscribers before the end of 2005. Napster's push into wireless services highlights how the music industry is moving to tap wireless phone networks as a distribution channel.

Source: Wall Street Journal, CNet News

International Airlines Launch Onboard Wi-Fi Access

A year after German airline Lufthansa premiered onboard wireless Internet access on some flights, at least 8 other international airlines are following its lead. Japan Airlines, Scandinavian Airlines, All Nippon Airways and Singapore Airlines have launched Wi-Fi service. Korean Air plans to launch onboard Wi-Fi access this summer. El Al, China and Asiana airlines will follow later this year. Business travelers are ideal customers since they like to stay productive, don't mind paying for convenience and usually travel with laptops.

Source: USA Today

Yahoo Expands Wireless Services

In an effort to boost its business, Yahoo plans to expand its role in wireless services. The company already has voice deals with wireline and wireless service providers SBC Communications, Verizon Communications and Sprint. Additionally, Yahoo is expanding the reach of its email service, allowing Sprint customers to manager their email accounts via wireless phones. The company plans to strike deals with other wireless carriers in the future. (Source: Reuters)

Monday, June 6, 2005

Japanese Carriers See Decreased Revenues Despite Growth of 3G

If the Japanese market is any indication, 3G services do not necessarily translate into increased revenues, according to a New York Times report. Japanese carriers spent billions of dollars introducing 3G networks and services with the hope that these services would generate new revenues. Unfortunately, price wars resulting in all-you-can-use plans, and therefore lowered total customer spending, have not made this a reality. The report suggests U.S. carriers learn from their Japanese counterparts - avoid price wars, ensure advanced wireless networks are extensive and reliable, make handsets plentiful and affordable, and services practical and easy to use.

Source: New York Times

Wireless Gaming Expected to Reach $430 Million in 2009

Tetris remains one of the most popular computerized games, except now it is played on wireless phones. Although still a relatively small industry, wireless gaming is expected to grow from just $72 million in 2004 to $430 million in 2009, according to Jupiter Research. The potential for the industry has attracted a number of traditional video game publishers to the field, including THQ Inc., Electronic Arts Inc., Konami Digital Entertainment, Square Enix Co., Sega Corp. and Bandai Games. Due in large part to wireless handsets with larger color screens, faster chips and longer-lasting batteries, gaming publishers offer a wider menu of games, from simple "Frogger" to complex three-dimensional, action-adventure games, such as "Tom Clancy's Splinter Cell: Pandora Tomorrow."

Source: Baltimore Sun

Report Details Sprint's Plans for Wireless

A Washington Post report examines how Sprint Corp. plans to "cut the cord" and focus on its wireless business. The company will relocate its corporate headquarters to Reston, VA upon merging with Nextel, forming the largest independent wireless carrier with no corporate ties to wireline companies. Sprint plans to partner with cable companies to offer alternate technologies replacing traditional wireline phone service and marketing bundles of entertainment and communications services, such as Internet-based phone service, high speed Internet connections and television and music via wireless phones. A new advertising campaign will encourage customers to "cut the cord" on wireline service and use only wireless. The company will also spend nearly $3 billion on its network to improve wireless coverage in buildings. Finally, the company is developing a wireless phone hybrid complete with built-in Wi-Fi technology, allowing users to make calls over an Internet-phone at home and over the wireless network when away from home.

Source: Washington Post

Wednesday, June 1, 2005

Two Way TV Australia Bets on Wireless Gambling

Two Way TV Australia, known for its expertise in interactive television, is aiming to capture the Asian market for gambling via wireless phones, which some forecasters expected to be a multibillion dollar industry by 2009. The company signed agreements with content developer Zone4Play, giving it Australian, New Zealand and Asian rights for technology to provide gambling over 3G wireless devices.

Source: Dow Jones Newswire
Report Examines Wireless Phone Use in Flight

According to a CNet News report, comments filed with the Federal Communications Commission suggest there may be an agreement to relax the rules banning wireless phone use on commercial flights. The report examines questions and answers focusing on when the rules will be relaxed, the technology that will allow it and why there currently is a ban.

Source: CNet News