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!
MVNO market well on its way to bust
THE GROUND CONTINUED TO SHIFT in the tumultuous mobile virtual network operator space this month as one player announced plans to call it quits, another explores a potential merger and a third prepares to morph into a reseller of wireless services. Embarq Holding Co. L.L.C. CFO Gene Betts confirmed the company’s plans to wind down its wireless offering, which runs on former parent Sprint Nextel Corp.’s network. Betts cited decreasing sales as he told a Morgan Stanley investor conference crowd that the service would likely be discontinued within the next year. That news came on the heels of Virgin Mobile USA Inc.’s confirmation that it is in “preliminary discussions” with SK Telecom to explore strategic opportunities – opportunities that are widely believed to include a potential merger of Helio L.L.C. and Virgin Mobile USA’s MVNO services. The move would not only marry two struggling service providers, it would combine one of the largest U.S. MVNOs (Virgin Mobile USA claims 5 million customers) with one of the smallest (Helio counts 200,000 customers). … Read more
2008 handset features, post-iPhone: QWERTY keyboards, large displays
Forces swirling throughout the wireless industry are clearly shaping handset offerings expected to reach U.S. consumers in the second half of this year. While that pattern has been typical in the industry in recent years, the pace of competition has quickened and the types of innovations reaching the market reflect new market realities. “The release of [Apple Inc.’s] iPhone last year and the imminent release of an update set a lot of reactions in motion from carriers and their handset vendor partners,” said Ross Rubin, analyst at NPD Group. Thus, touch navigation, haptics, QWERTY keypads and large displays – iPhone features and features absent from the original iPhone – are expected in products later this year. These innovations are, of course, beginning to show up on shelves and likely will accelerate in the second half, Rubin said, as will the ramp up in 3G-capable handsets … Read more
Wireless retail trends in 2008: Cameras, bigger screens and data, data, data
The wireless retail space has been in a state of flux over the past several years with carriers trying to find the perfect combination between company-owned stores, online sales, partnerships with big-box retailers and support for the thousands of independent retailers. One giant in the independent space is Celluphone, which was founded in 1983 and is the master agent for more than 2,000 retailers across the country. Mike Mohr, president of Celluphone, touched on trends the master agent is seeing through its retail customers. RCR: What trends do you see in device popularity? Mohr: The base line has changed. Some features that two years ago were cool and new, are now expected – like cameras. So that conversation has shifted from “Does you phone have a camera” to “How many megapixels is the camera in your phone?” … Read more
RIM responds to iPhone’s meteoric rise (Spoiler alert: touchscreen BlackBerry!)
News on the high-end smartphone front continues to come in hot and heavy, with Apple Inc. expanding its iPhone market, Research In Motion Ltd. reportedly gearing up to release its own touchscreen device, and Palm Inc. struggling to catch up. First up is Apple, which will add Austria, Belgium, the Dominican Republic, Egypt, Jordan, Poland, Portugal, Romania, Slovakia and Switzerland to its list of international markets through an expanded distribution deal with European carrier Orange. The deal is set to kick in “later this year.” The news serves as another boost to Apple, which is hard at work expanding its markets ahead of what many expect to be an early June launch of its rumored 3G iPhone. And in an effort to counter Apple’s international moves – as well as the company’s stated intent to entice business customers through a newly opened operating system – it appears RIM is gearing up for its own response to the highly hyped device. … Read more
Boost Mobile goes brick-and-mortar
Boost Mobile is hoping to boost sales with a line of new retail stores. The Sprint Nextel Corp. division opened outlets in Hialeah, Fla., Huntington, Calif., and Houston, offering customers and would-be customers an opportunity to explore Boost’s offerings “in a hands-on, contemporary environment.” The move follows similar efforts by mobile virtual network operators Helio and Virgin Mobile U.K. to launch high-profile – if costly – brick-and-mortar storefronts to lure users and raise brand awareness. … Read more
Economic slowdown hits the cellular device market
Cellphone sales in the United States declined abruptly in the first quarter of the year, the first time since The NPD Group began tracking handsets, the firm wrote in a new report. The quarter saw a 22% decline in sales year-over-year, reaching just shy of 31 million units and sales of $2.7 billion, down from $2.9 billion a year ago. The 7% drop in sales revenues came soon after the traditional holiday season rush, wrote Ross Rubin, director of industry analysis at the firm. “Cellular phone service has become a practical necessity in modern life; however, with looming economic concerns on the horizon, many consumers may be holding back on new handset purchases, especially those tied to new prepaid plans,” he wrote. … Read more
Life after Amp’d
Peter Adderton, the man behind Boost Mobile and Amp’d Mobile Inc., has unveiled his next business venture. And like those before it, the plan doesn’t lack one bit in the department of grandiose. This time, William Morris Agency’s got his back. WMA represents authors, actors and entertainers. For WMA, Adderton’s Agency 3.0 marks a new foray into the digital media space that brings together a group of veterans in entertainment, telecommunications, marketing and business development. The agency will consult, develop and build digital media businesses out of existing companies, Adderton told RCR Wireless News. Adderton and his team are thinking big. “I’m about game changing,” he said. “To be honest, I’d like to take something on like Sprint,” Adderton added. “Because that’s a challenge.” Later on, he mentioned Motorola Inc. Both Motorola and Sprint Nextel Corp. are suffering serious financial difficulties. In his latest venture, Adderton teamed with longtime business partner Steve Stanford, the founder and CEO of Voce, an MVNO that imploded even more quickly, and in the same spectacular fashion, as Adderton’s Amp’d Mobile. … Read more
AT&T ties Wi-Fi into its mobile offering
AT&T Mobility is providing Web-hungry users with free Internet. The catch? They must already be an AT&T customer. Qualifying AT&T Mobility LaptopConnect customers who subscribe to the carrier’s $60-per-month DataConnect plan can now access more than 17,000 Wi-Fi hot spots powered by parent company AT&T Inc. for no additional charge. … Read more
Check out the RCR Wireless News Archives for more stories from the past.
