Editor’s Note: RCR Wireless News goes all in for “Throwback Thursdays,” tapping into our archives to resuscitate the top headlines from the past. Fire up the time machine, put on the sepia-tinted shades, set the date for #TBT and enjoy the memories!
Verizon buys NextWave for $3B
Following weeks of speculation, Verizon Wireless inked an agreement late last week to acquire bankrupt NextWave Telecom Inc. and its remaining spectrum licenses for $3 billion. The deal, which is subject to government approval as well as approval from NextWave’s bankruptcy court, will add considerable spectrum in a number of top markets to Verizon Wireless’ portfolio and is expected to better position the carrier as it battles Cingular Wireless L.L.C., which overtook Verizon Wireless as the nation’s largest carrier following its recent $41 billion acquisition of AT&T Wireless Services Inc. Once the deal closes, which is scheduled for the middle of next year, Verizon Wireless will gain 1.9 GHz spectrum licenses covering 73 million potential customers in 23 markets. The licenses include 20 megahertz of spectrum in New York, Boston, Baltimore and Washington, D.C., as well as 10 megahertz of spectrum in 19 markets, including Denver, Detroit, Los Angeles, Philadelphia and Portland, Ore. … Read More
Changes likely ahead at FCC
Despite the Republican sweep in last week’s elections, wholesale changes could be in store at the Federal Communications Commission at a time when the drumbeat is growing louder for an overhaul of the 1996 telecom act. Until the likely changes shake out, the impact on the wireless industry will remain unclear. At a minimum, a telecom reform bill would provide industry with a powerful vehicle for mobile-phone carriers to seek relief from the rising tide of regulations and taxes at the state level. But Republicans who owe their retention of the White House, Senate and House to a strong and vocal conservative base may be reluctant to expand federal powers-in the form of pre-emption-at the expense of states’ rights. … Read More
Verizon Wireless zeroes in on AWS customers in Northeast
After months of suggesting wireless customers switch from their current operators to Verizon Wireless, the nation’s second-largest carrier has launched a new advertising campaign in the Northeast specifically targeting AT&T Wireless Services Inc. The campaign, which began this week in The New York Times and is set to expand to additional newspapers in the region, states: “Attention AT&T Wireless Customers: As long as your wireless carrier is changing, why not change to the best?” in reference to AWS’ recently approved acquisition by Cingular Wireless L.L.C. … Read More
Analyst firm predicts quick fall for Sierra Wireless
Although wireless device vendor Sierra Wireless Inc. continues to ride a wave of positivity on Wall Street, at least one firm believes the company is in for a quick fall in the not-too-distant future. “We recommend investors sell SWIR (Sierra Wireless) shares because this maker of components for wireless communications is facing intensified competition for its primary 3G data card product, is losing a major module customer, and is likely to report disappointing sales of its new Voq smart phone,” said IRG Research in a note to investors. The firm said it does not make a market in Sierra securities. “We believe that deteriorating fundamentals could become evident as early as [the fourth quarter of this year].” … Read More
Despite strong financial performance, investors cautious on RIM
Although investors seem somewhat wary of the clouds surrounding Research In Motion Ltd., the company continues to offer a blindingly sunny outlook, and at least some investment firms believe the best of RIM is still yet to come. “The bottom line is that RIM’s business remains strong and demand continues to accelerate,” wrote ThinkEquity Partners in a recent investor note. ThinkEquity makes a market in RIM securities. “We are raising our estimates for the November quarter and beyond.” … Read More
Vodafone launches UMTS service in 13 countries
Vodafone Group plc launched its UMTS-based Vodafone Live service across its operations in 13 countries, including Austria, France, Germany, Greece, Ireland, Italy, Japan, the Netherlands, Portugal, Spain, Sweden, Switzerland and the United Kingdom. In connection with the “global” launch, Vodafone also announced the availability of 10 handsets, including seven models exclusive to the carrier and Europe’s first two-megapixel camera phone, the Sharp 902. Vodafone said the service includes an enhanced portal design and supports video calling, full track music downloads and three-dimensional gaming. In addition, customers will have access to a made-for-mobile drama series based on the television series 24; exclusive videos, pictures, animated greetings and wallpaper; access to movie trailers and clips; as well as sports scores and exclusive content from Manchester United and Ferrari mobile video. … Read More
Leap expands Calif. service, refinances debt
Leap Wireless International Inc., which recently emerged from bankruptcy protection that allowed the carrier to cut more than $2 billion in debt, said it expects to spend between $28 million and $33 million expanding its Cricket service to the Fresno, Calif., market by the end of next year. The network launch, which will also include expansion of the carrier’s Visalia and Modesto/Merced, Calif., networks, will double its current coverage from around 1 million potential customers to approximately 2 million pops in California’s Central Valley. The launch will include between $20 million and $25 million in capital expenditures and less than $8 million in additional cash requirements. The market expansion will take advantage of Leap’s previously announced $27.1 million acquisition of 30 megahertz of spectrum from Alpine-Fresno C L.L.C., which was announced in August. … Read More
U.S. operators keep some adult content at arm’s length
Terrified by the stigma of pornography and despite its revenue-enhancing potential, U.S. carriers continue to keep mobile adult content at arm’s length, refusing to offer it through their portals. But that’s not stopping wireless users from getting it. There’s no question of the worldwide demand for mobile adult content. A recent report by analyst firm The Yankee Group predicts the market will be valued at $1 billion globally in four years, with U.S. users spending $90 million annually on such content. In fact, The Yankee Group said traffic on an unidentified major U.S. carrier to PhoneErotica.com, a leading adult WAP site, outpaces wireless traffic to MSN.com. Consumers are bypassing their carriers to get to the site and going outside the “walled garden” by using their phones’ Web browsers because U.S. carriers won’t directly offer access to the adult offerings through their portals. … Read More
What’s next for NextWave?
NextWave Telecom Inc.’s announcement to sell its remaining 1.9 GHz licenses to Verizon Wireless for $3 billion may not mean the end of one of the industry’s most controversial players. In association with the sale, NextWave filed papers with its bankruptcy court noting a name change and plans to continue its attempt to launch a wireless broadband network. “The acquisition is not the end of the story for NextWave, but a new beginning,” the company ominously touts in the court filings. NextWave, which has sold a significant portion of its once-formidable spectrum portfolio to numerous carriers during the past year for more than $5.5 billion and given the remaining portion back to the Federal Communications Commission in exchange for the right to sell its spectrum, said that pending approval of the sale to Verizon Wireless, NextWave would change its name to NextWave Opco as part of its reorganization process. … Read More
Qualcomm plugs into mobile TV
Mobile TV took a big step forward last week as Qualcomm Inc. announced plans to deploy an $800 million nationwide network delivering multi-media messaging service broadcasts to mobile handsets. Use of the network, which is expected to come online in 2006, will be offered to CDMA and W-CDMA operators in the United States through MediaFlo USA, a new Qualcomm subsidiary. MediaFlo will aggregate and distribute streaming audio and video over as many as 100 channels, including 15 live video channels. The one-way, high-speed network will use Qualcomm’s 700 MHz spectrum, the majority of which the mobile chipmaker bought in an FCC auction last year. The company picked up the rest of the spectrum last month from an unidentified original licensee. … Read More
Check out RCR Wireless News’ Archives for more stories from the past.
