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!
FCC fines Sprint Nextel, Alltel, U.S. Cellular over E911
The Federal Communications Commission said it plans to fine Sprint Nextel Corp., Alltel Corp. and U.S. Cellular Corp. nearly $3 million collectively for failing to meet enhanced 911 rules. Sprint Nextel faces a $1.3 million penalty, while Alltel and U.S. Cellular are on the hook for $1 million and $500,000 fines, respectively. The FCC said all three mobile phone carriers missed the Dec. 31, 2005, deadline for ensuring 95% of their customer base could use enhanced 911 services. The benchmark applies to mobile phone carriers employing a GPS, handset-based E-911 solution. … Read More
MetroPCS proposes $5.1B merger with Leap
MetroPCS Communications Inc. has proposed a merger with its flat-rate rival Leap Wireless International Inc. Metro said it sent Leap a letter detailing its offer, which involves a “stock-for-stock, tax-free merger that will create a fifth national wireless carrier.” Each outstanding share of Leap’s stock would be exchanged for 2.75 shares of MetroPCS’ common stock, which Metro said implies a value of $77.89 per share for Leap-and an estimated value of about $5.1 billion for the deal. Metro would also take on about $2 billion of Leap’s debt. The merged company would be 65.4% owned by MetroPCS shareholders, and 34.6% owned by Leap shareholders. … Read More
Helio cuts 5% of workforce, updates plan offerings
Mobile virtual network operator Helio L.L.C. cut about 5% of its workforce, mostly in its field sales team, the company confirmed following media reports of the move. The cuts amount to around 100 positions, and Helio spokesman Rick Heineman described them as being part of the company’s effort to “grow the business responsibly” as Helio transitions from a young start-up to a more mature company. Helio parent Earthlink Inc. announced earlier this week it would cut essentially half its workforce, or about 900 positions. Heineman emphasized that the two companies are separate with no overlapping operations, and that the cuts at Earthlink are unrelated to those at the MVNO. … Read More
700 MHz rerun: Some want to put open access at 2155-2175 MHz
The Federal Communications Commission appeared poised to reject M2Z Networks Inc.’s plan to offer free nationwide broadband service on the 2155-2175 MHz band, a move likely to prompt a court challenge and refocus the campaign to integrate open-access wholesale requirements in the wireless space. Once the anticipated dismissal of M2Z’s application happens, the FCC is expected to launch a rulemaking to determine what to do with the 2155-2175 MHz band. The two Democrats on the Republican-controlled FCC were expected to concur in the M2Z ruling. In exchange for gaining access to valuable airwaves via a 15-year license, M2Z-co-founded by former FCC wireless chief John Muleta and backed by blue-chip Silicon Valley investors-promised to return to the U.S. Treasury 5% of gross revenues from a separate subscription service tier. Earlier this month M2Z threatened to sue the FCC to force action on a plan that’s been pending before the agency for more than a year. M2Z now plans to make good on that threat. … Read More
Nokia unveils portal to the world
Nokia Corp. is hoping to build a doorway directly to mobile consumers. Again.
But whether carriers will tolerate the move is far from clear. The manufacturer-cum-mobile-media company last week outlined a surprisingly broad cross-platform play, introducing Ovi-which means “door” in the Finnish company’s native tongue-at its Nokia Go Play event in London. The portal will serve as a gateway to Nokia services as well as a storefront for full-track music downloads, online communities, games and maps from the resuscitated N-Gage platform. “The industry is converging towards Internet-driven experiences, and Ovi represents Nokia’s vision in combining the Internet and mobility,” said Nokia CEO Olli-Pekka Kallasvuo. “Looking into the future, we will deliver great devices, combined with compelling experiences and services, to make it easy for people to unlock the potential of the Internet.” … Read More
Muni Wi-Fi future up in the air
Municipal Wi-Fi took some major hits last week. Once considered by many cities and towns to be the roadmap to offer high-speed Internet access for all, widespread use of the unlicensed technology is now less certain. In a week that saw Google Inc. boasting about 15,000 unique users each month on a municipal Wi-Fi network that covers 12 square miles in its home base of Mountain View, Calif., one of the frontrunners in the market dramatically downsized its future projects in the space. EarthLink Inc., which was planning to team up with Google for a muni Wi-Fi network in San Francisco, fired 900 employees last Tuesday, including Don Berryman, the executive who led the company’s municipal Wi-Fi division. It closed offices in Orlando, Fla.; Knoxville, Tenn.; Harrisburg, Pa.; and
San Francisco, and also said it will substantially reduce its presence in Pasadena, Calif., and Atlanta. … Read More
iUproar: Going after ‘unlockers’ raises issues, possible backlash
By now you’ve probably read about the “teen whiz” who unlocked his Apple Inc. iPhone using software commands and a soldering iron. (George Hotz, unlocker from New Jersey, got a free car, three iPhones and a consulting contract from an admiring Terry Daidone, co-founder of CertiCell, an after-market mobile phone supplier. You gotta encourage today’s young people, right?) Possibly you’ve read about the unlocking service in Belfast, Ireland-unlockiphone.com, an offshoot of UniquePhones.com-whose John McLaughlin claimed to have received a late night call from O’Melveny & Myers L.L.P., a Silicon Valley law firm claiming to represent AT&T Inc. that offered “friendly advice”-the phone contained copyrights owned by Apple-presumably in a tone reminiscent of Tony Soprano. … Read More
Sony Ericsson revamps to try to overtake Samsung, maybe even Motorola: North America job cut signals new global PR strategy
After years of demurring on its marketshare ambitions, Sony Ericsson Mobile Communications L.P. has shifted from declarations of “profits first” to emphasize its “credible aspiration” of overtaking one if not two of its three larger rivals. The asterisked caveat: no timeframe provided. A wise distinction, analysts said.
Gaining a spot among the top three global vendors has been a stated goal since October, according to a Sony Ericsson spokesperson. As recently as March at CTIA Wireless 2007, however, President Miles Flint repeated the profit mantra and demurred on questions of his company’s market-share goals. “Without profit, you’re nothing,” Flint said at the trade show. “It’s baked into our DNA: profit before growth.” … Read More
Behind iTunes, there’s a place for mobile music
Like a first-year student struggling with the violin, carriers have hit a lot of wrong notes with their music offerings. But that may finally be changing. Verizon Wireless last week garnered headlines by teaming with MTV Networks and RealNetworks on a new, cross-platform mobile music service. The offering will integrate components of MTV’s Urge service-which drew raves from critics but was largely ignored by consumers-with Real’s subscription-based service, and will continue to bear Real’s Rhapsody brand. The move may be a bit of a gamble for the nation’s second-largest carrier, which must sacrifice its singularly-branded Vcast Music service in favor of a more cooperative offering. But the astute strategy of partnering with high-profile companies outside wireless could help move mobile music from a niche market into the mainstream. … Read More
Subprime woes hit Leap, MetroPCS stock prices
Flat-rate wireless carriers serving the subprime sector have seen their stocks plunge in recent weeks, reflecting fears about sub-prime customers who could affect the carriers’ financial results. The financial markets have been rattled by fears about the extent to which the floundering sub-prime mortgage market and a corporate credit crunch will affect the rest of the economy. Amidst the turbulence on Wall Street, the Federal Reserve opted to cut the interest rate that it charges to banks in order to stave off a credit crisis, and the market rebounded. News late last week that troubled mortgage company Countrywide was receiving a $2 billion credit infusion from Bank of America also helped to calm fears. However, companies in other industries have cited the subprime mortgage situation as trickling into their business, to some extent. Several mortgage companies also announced massive layoffs; Reuters reported that the mortgage-related job losses as of late last week stood at 12,600. … Read More
Check out RCR Wireless News’ Archives for more stories from the past.
