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Verizon Anti Iphone-3g: Leaked Document Shows Verizon's Psyops Anti-iPhone Propaganda
Competitors take aim at iPhone 3G holes
More Proof that the Internet Will Save Wireless Carriers
A report out from Chetan Sharma Consulting proves that data is the big story when it comes to wireless operators in the United States. Driven by flat-rate plans, increasing 3G coverage and the iPhone, data spending reached $8.2 billion for the second quarter of 2008, or about 21 percent of the total wireless services revenue. The boost in wireless services increased average revenue per user by 5 percent to 50 cents, offsetting a 5-cent decline in voice ARPU.
Verizon, which leads U.S. wireless operators with its 60 percent 3G subscriber penetration, saw the most growth in 3G usage and the most data revenue — $2.6 billion for the quarter. However, AT&T, the exclusive provider to the Internet-friendly iPhone, had only 25 percent 3G subscriber penetration but also saw its data sales come close to Verizon’s at $2.5 billion, proving that the Internet on the phone is a powerful driver of data revenue.
In the big picture of wireless revenue, carriers grew sales by 8.6 percent for the second quarter compared to the same period in 2007. In the second quarter of 2008 data revenue saw 40 percent growth. The numbers show we’re moving toward ubiquitous broadband in the United States but that we still have a ways to go. The average 30 percent 3G subscriber penetration rate could be improved, but perhaps cheaper 3G plans and Internet-friendly phones will pump up both subscribers and data revenue.
image from Chetan Sharma Consulting
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Consumer Complaints - Biggest List
Stay calm, even if you are angry. Be assertive without being aggressive. Be clear about what you want while remaining polite. Back up your claim in writing wherever possible. Keep records: this includes copies of all receipts, letters, emails and notes from phone conversations. Never send original documents – send photocopies.
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Will iPhone spark wireless wars?
Roy, a doorman for my apartment building, stopped me this morning to chit chat. Knowing my affection for all new mobile phones, I wasn’t surprised that he asked to play around with my Nokia N95. “Are you going to buy the iPhone?” he asked, seeking a second opinion since he has already made up his mind and is going to buy an iPhone.
Though he doesn’t have an iPod right now, he thinks an iPhone would give him two devices in one, despite the high price tag. He is seemingly undeterred by the questionable battery life. (One of the reasons why I have a more wait-and-see attitude towards this Apple device.) He isn’t the only one - as the interest in iPhone seems to be on an upswing.
Even if you disregard the rumors and fan sites - the population at large seems to have a considerable interest in the iPhone, indicated by the total search volume for keyword “iPhone.” According to Hitwise, a research group that tracks Internet traffic trends, iPhone related searches represent over 0.002% of total Internet searches per week for past three weeks, with iPhone release date and price being the specific information folks are looking for. (In comparison, MySpace was the #1 query and had 1.16% of the total search volume.) Just as an unscientific indicator the search volume is a good indicator of increasing commercial appeal of the device.
The big question, however, is how does iPhone impact the wireless market at large — and whether it will result in a market share shift, putting AT&T at an advantage.
AT&T is betting big on this device and is hoping to pull ahead of its rivals by riding the iPhone express. AT&T and Apple are going to be launching a big media blitz to promote the iPhone, and according to UBS Research, it will be a major reason why AT&T will be able to add approximately 2.8 million gross postpaid subscribers in the third and fourth quarters of 2007.
If Apple’s guidance of 10 million units in 18 months hits the target, UBS estimates that 2 million iPhones will be sold in the U.S. in the first six months of the launch. That works out to about 18% of AT&T’s post-paid additions and upgrades, UBS estimates. But these 2 million will have to come from somewhere - probably switchers from other wireless services.
At the end of Q1 2007, there were about 170 million postpaid wireless subscribers in the U.S., with Verizon the largest carrier (56 million) with AT&T at #2 with about 51 million, followed by Sprint (41 million) and T-Mobile bringing up the rear at 22 million. (These numbers don’t reflect wholesale and prepaid customers.)
So 2 million units don’t mean much in market share — a little 1.1% market share gain for AT&T in the first six months, but it is the residual impact that might cause the big upheaval in the wireless market.
There are some who believe that since iPhone isn’t going to get as much subsidy as other devices, AT&T can pass those subsidies to even further subsidize non-Apple phones, and making its service more attractive. That would be one way to capture the increased foot traffic to AT&T stores.
Will Verizon and Sprint take this lying down? Of course not, and will launch their own price subsidies, discount plans or whatever it takes to hang on to their subscribers. And whatever happens, consumers will come out ahead — nothing wrong with that. And even if Roy doesn’t end up buying the iPhone, he still might get a good deal somewhere else.
Photos by Niall Kennedy via Flickr.
Top 5 Trends to Expect at CTIA
CTIA 2007 PREVIEW: While you’re checking out this 5 points user guide to the CTIA convention – the Super Bowl of mobile conferences – I’m likely trying to find a comfortable position on a redeye headed for hot Orlando. Hopefully it’s not too bumpy.
Like Helio’s ads “Don’t call us a phone company,” the rest of the mobile industry will try to rally the market around mobile data — mobile TV, cell phone entertainment, mobile social networking, and mobile ads - at CTIA which opens in a few hours from now.
Too bad, as analysts at Informa Telecoms & Media point out: “the vast majority of revenue growth – both for the operator and vendor communities - is coming out of developing markets where mobile is fulfilling a basic need for voice and text-based communications.” Yeah, but that’s not as much fun to show off in a demo booth. Anyway, on to the top 5 trends:
1) Mobile TV – Qualcomm’s broadcast mobile TV network is finally live in the U.S. and mobile TV vendors and video content companies now have a working platform to tout their efforts. Chip companies will showcase mobile TV chips, while media companies will announce new video content.
Verizon Wireless is the first US carrier to sell the service, and Cingular will follow soon. Hopefully AT&T COO Randall Stephenson will give us an update on the status of the rollout. Monday morning we’re picking up one of the handsets used for Verizon Wireless’ VCAST Mobile TV service. Yay.
2) Mobile Ads – Declining future voice revenues are forcing the mobile business to look at mobile ads as a way to give the bottom line a quick boost. Informa predicts mobile advertising will be around $11.3 billion by 2011. Which means, an announcement overload.
AdMob, a San Mateo, Calif.-based company will announce that it has raised $15 million in fresh funding in a round led by Accel Partners. Other startups like Xipto are showing new mobile ad-driven services like their endorsement-driven mobile advertising platform, and Millenial Media announced some new technology for rich media mobile ad campaigns.
3) iPhone and mobile UI:– We’ll see if the iPhone makes an actual appearance (or an update from AT&T’s COO), but its presence will no doubt be felt on the UI front. We should expect more companies to showcase the fluid user interface and prototypes of touch screen phones. It looks like the much awaited iPhone and the LG Prada phone will have some new competiton.
4) Lack of compelling new handsets: Moto CEO decided to cancel his keynote, a sign that Moto’s having an uh-oh moment! But is also is indicative of how quickly winds change in the handset business. Cell phone makers can’t rest on the laurels of big hits like the RAZR for too long and are trying create the new hits of 2007.
We’ll search for innovation, but we’re not too optimistic. For some reason Chinese handset maker TCL thinks Alcatel-branded handsets are a good idea and Sprint’s getting a new music phone from Samsung, the m620 or UpStage. Though Helio’s Ocean does look like a pretty nice messaging device.
5) Mobile User Generated Content – There is going to be a lot of buzz around mobile services that help subscribers create and share mobile content. StreamVerse is talking about Mojo, a service for creating mobile content that it hopes will help wireless carriers make money. Mobidia is announcing its mobile application called CUBuddy that lets users create video calls between cell phones. This is actually one part of the mobile ecosystem which could turn casual data users into 3G customers, and help goose up the carrier ARPU.
