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Mobile Marketing Forum 08

MacWorld: There’s something in the air

Naturally, we have nothing to go on but rumour, but the banners going up at San Francisco’s Moscone Centre, which will host the annual MacWorld conference in San Francisco on Tuesday, read: “There’s something in the air”. This at least is heavily suggestive of new wireless products to be launched by his Jobsness.

So far the rumour mill has cranked out a 3G version of the iPhone, an Apple notebook with WiMAX, some kind of ultra mobile device like a mini notebook/handset, or a number of products featuring Ultra-wideband (UWB) or wireless USB.

It’s also likely that Apple will reveal a number of new iPhone partners at MacWorld - the company has been in discussions with a number of incumbent carriers worldwide, although China Mobile and Apple are understood to have called off discussions over a potential launch of the device.

The pair are known to have been in discussions over a potential launch of the device since November, although no reason was given for the termination of the talks.

Some believe that China Mobile, the world’s largest carrier in terms of subscribers, could not agree with Apple on the controversial revenue share that has been revealed as part of the standard iPhone partner contract.

It has also been suggested that the iPhone is simply too expensive for China, coming in at twice the average monthly salary for the device alone, without factoring in the monthly tariff.

New Year’s Resolutions

People always say ‘happy new year’ when they see you first thing in January, and the Informer was about to confer the same blessing upon his readers. But then the following thought occurred to him: Just how happy is it?

How many of you have given up smoking (again) dear readers? How many are staying off the sauce for a few weeks? How many are on a diet, in a bid to shed the pounds gained over the festive season? How many of you have joined the waddling throng of red-faced January joggers, clogging their city’s arteries and wrecking their knees in the name of the Healthy Lifestyle?

How many of you, in short, are pig miserable?

Oh well, here’s A Week in Wireless, to lift your spirits. It’s going to be a great year, 2008, full of amazing developments in technology and spellbinding strategic master-plays from the industry’s leading organisations… Have you spotted that the Informer’s new year’s resolution is to be more positive?

Like most new year’s resolutions, of course, it’s a complete waste of time. So let’s dispense with that immediately. The New You, the Informer is here to tell you, is just the same as the Old You, except a few stony-cold steps closer to the grave. Bah!

Speaking of pointless exercises, Sony this week unveiled a proprietary close proximity wireless connectivity technology which it will pitch against Bluetooth and Wireless USB. TransferJet, as it’s called, offers up to 560Mbps, according to Sony, within a 3cm range. So you can touch your (Sony) TV with your (Sony) digital camera and your snaps will hop across. Same with your (Sony) PC and your (Sony) MP3 player.

Anyone clock the problem here? Sony TV, Apple iPod, Canon Camera. It’s unlikely that other vendors are going to want to adopt Sony’s tech when there are non-competitor alternatives out there. So TransferJet will likely remain the reserve of obsessive Sony cultists.

Perhaps it will make it onto Sony Ericsson handsets as well. Although, the JV terminal vendor this week announced a Bluetooth headset with a press release that looked designed to set gender politics back by several decades.

Billed as a ‘must have handbag accessory’, the HBH-PV712 Style Edition (for her) is, apparently, the Bluetooth headset “with the female touch”. Since we’re mired in 70s TV cliche here, that presumably means it wants to know why you’ve been out so late and looks like it’s had one too many home made gins and tonic. So you give a heartless laugh, tell it “You’re a bloody mess, love”, and fix yourself a stiff scotch.

It gets better: “Throughout the design process, women have been thought about, from the considerable amount of talk-time available and the user-friendly technology, to the comfortable swirl ear hook which makes the headset easy to apply.”

So there you go, Sony Ericsson has based this product on the premises that women chatter like monkeys, have trouble operating basic consumer electronics and need Bluetooth headsets that don’t challenge their limited motor skills. Bless ‘em.

SE also launched a few new phones this week at the CES show in Las Vegas. (For a round up of announcements from CES get yourself over to telecoms.com.) There’s not an awful lot to say about the Sony Ericsson handsets, but one of them can be silenced with a wave of the hand when it’s ringing or acting as an alarm clock. And one of them is a new Walkman phone.

That latter piece of information is most useful as a link to the fact that crystal ball gazer Juniper Research this week predicted that mobile music revenues will hit almost $18bn by 2012, largely led by consumer demand for subscription services. The market for these ‘rental’ services alone will hit $3.3bn in that timeframe, says Juniper, as they “surge in popularity”. Alongside this surge, full track downloads will enjoy greatly improved uptake as 3G services are deployed in emerging markets. Juniper expects downloads on the Indian subcontinent to grow from two million in 2007 to 480 million in 2012.

In preparation for this revenue boom, O2 Telefonica’s UK operation has appointed itself a new head of music. Matt Ward will be breaking it down at O2, having left Mobix Interactive for the new role. Prior to Mobix, Ward was at Kickin Music, which is a record label.

In other O2 news, the firm this week announced that it is to fork out £15m to staff after the company hit targets set by its ‘Thanks a million’ customer service campaign. At the end of last year, an independent survey commissioned by O2 UK placed it above its competitors in the customer service stakes, and so the staff are to get their reward.

“Through Thanks a Million we’re thanking our employees with a cash reward and thanking our customers with our continued dedication to satisfying them,” said O2 UK head man Ronan Dunne, with a line so saccharine it would have been cut from the Hanks/Ryan vehicle Sleepless in Seattle for over-egging the cake.

O2 competitor T-Mobile was thanking its customers in more material a fashion this week, by dishing out free wifi access to existing Web ‘n’ Walk customers. These subscribers pay £12.50/month for unlimited 3G access and are now cleared to use the carrier’s network of 1,000 UK hotspots, located in various coffee shops, travel terminuses and service stations. For customers not on the Web ‘n’ Walk plan, an hour’s T-Mo wifi costs a fiver and a month £10. It’s £20/month for customers of other carriers.

In other UK wifi news, BT has bought a network of wifi hotpsots that services the nation’s marinas, coastal and inland. Kind of a niche market, really but at least all those sailor types will be able to buy pastel T-shirts whenever the mood takes them.

In the world of WiMAX, there have been a few developments, too. Chinese vendor Huawei announced this week that it is to deploy a commercial 802.16e mobile WiMAX network for Bulgarian operator TransTelecom which will cover business districts in the country’s largest cities. The contract includes provision of terminals for the network, which will operate at 3.5GHz, and the companies are confident that the network will be live sometime this year. TransTelecom took delivery of an 802.16d WiMAX network from Huawei in 2006.

Huawei of course, enjoys a light-hearted rivalry with compatriot vendor ZTE, which - not to be outdone - timed its own WiMAX news to coincide with Huawei’s this week. ZTE has struck a deal with Libya Teleom & Technology that it says will result in Africa’s “first commercial deployment of a WiMAX network.” Eight major Libyan cities will be covered by the 802.16e network which is scheduled to be ready for switch-on by the third quarter of this year.

Buoyed, no doubt, by these displays of WiMAX bombast, Sprint this week pledged to have its US nationwide mobile WiMAX service Xohm commercially available by the end of April this year. Sprint’s path to WiMAX deployment has not been altogether free of obstacles, as readers will be aware.

One of the common barriers to WiMAX cited by industry types whose feet are not firmly in its camp is that it is designed to work in TDD spectrum, while the majority of today’s cellular carriers will be looking for a technology to deploy in FDD spectrum. This week the Informer spoke to Paul Senior, CTO of Airspan and founding member of the WiMAX Forum, who had this to say on the matter:

“The WiMAX forum will have an FDD profile for Mobile WiMAX inside six months. We’ve been working on it for the last 12 months. We’ve been a bit quiet about it because we wanted to get the IMT 2000 decision. And if we had gone to IMT with an FDD profile, we probably couldn’t have got it through. We decided to go for something that was a little less threatening, which was a TDD profile. We didn’t talk too much about the FDD work which we’ve been doing for the last 18 months. There will be an FDD profile, it will sit at 2.5GHz FDD allocations just as well as any other technology.”

We’ll get back to you on that come mid-July.

Right, what else. There were couple of mobile TV dabblings this week, with Ericsson announcing a contract to supply Israeli carrier Cellcom with an end to end MTV solution, while Nokia Siemens Networks announced that its gear is being used by Vodafone and T-Mobile’s Hungarian operations and local broadcaster Antenna Hungaria in some DVB-H tests.

In the Middle East, NSN also struck a deal with Kuwaiti carrier Zain that will see the vendor supplying a GSM/3G network for a cool $1bn that will enable Zain to launch services in Saudi Arabia, where it recently blew $6bn on a licence to operate.

Back in the UK, the new head of Orange, Tom Alexander, has lured three of his old chums from Virgin Mobile to keep him company in his new office. Andrew Ralston, Gerry McQuade and Steven Day have all joined Alexander for a ‘Gentlemen, we meet again’ moment at France Telecom’s UK mobile outpost.

That’s about the size of it this week, apart from the traditional New Year SMS figures. According to Acision, global SMS traffic was up 30 per cent year on year as lots of drunk people texted their friends, family and people in their phone address book who they haven’t spoken to for years to wish them all the best for 2008. Some 43 billion text messages were sent as the new year came in around the world. That’s quite a number.

All the best for 2008

Tough on the Frontline

The collapse of Frontline Wireless has added an element of uncertainty to the 700MHz spectrum auction, which kicks off in the US at the end of this month. Now that the only sure fire bidder for the swathe of spectrum reserved for public safety networks is out of the running, there is some doubt as to whether anyone will bid on the so called D-block.

Ironically, it was Frontline’s lobbying for a public-private partnership and support for open standards that helped shape the rules for Auction 73. But some believe that the FCC’s decision not to accept Frontline’s proposal that adopting wholesale, open access use for a portion of this spectrum, effectively weakened the attraction of the company’s business case and Frontline lost its financing.

This leaves the potential for a nationwide public safety network in the US hanging in the balance, especially as Frontline’s own estimations for such a buildout run close to $10bn and this particular swathe of spectrum has the most stringent licence requirements. But it also says a lot about the auction process itself. Frontline was backed by some big hitters, including former FCC chairman Reed Hundt, so if a company of this calibre can’t even make to the auction kick off, what hope have other start ups got?

The only prospective new entrant with a decent war chest is Google, so it seems likely that a good portion of the spectrum might go to existing players. Are the odds stacked against more competition in the US wireless market?

CES Las Vegas roundup

The mammoth Consumer Electronics Show (CES), which took place in Las Vegas this week, was the usual hotbed of gadget activity. There were plenty of new toys out from the mobile handset vendors as well as more evidence of the web giants’ continuing incursion into the wireless space.

Microsoft’s Bill Gates also gave his final and eleventh opening keynote at the annual event, accompanied by ex-Guns N’ Roses guitarist Slash for a Guitar Hero III-based rendition of “Welcome to the Jungle”. Quality.

Check out the news:

Intel looks to ultra mobile future

Sony wheels out own wireless transfer tech.

Moto buys Soundbuzz music shop

OpenMoko unveils FreeRunner Linux phone

BT brings Vision to Xbox

Yahoo makes mobile move

Sony adds Skype to PSP

New Year; new handsets

The Reg has a video of “Welcome to the Jungle” on YouTube:

And the excellent, Bill Gates’ last day at the office:

Is Yahoo ready to Go mobile?

It looks like 2008 will be the year when the battle going on between the giants of the world wide web, like Google and Yahoo, spills over into the mobile space properly. This week, Yahoo followed Google’s lead, to some degree, with the launch of a platform which promises to help developers get their applications onto mobile devices.

Ovum analyst Tony Cripps reckons that while such initiatives are considerable, their importance will only be compounded once the real internet Big Beast, Google, joins the fray. But he says that for end users, the attraction of having well-established web services and applications accessible in a mobile optimised form in one place on their phones - the Yahoo! Go client itself - shouldn’t be underestimated, either in terms of ease of use or stickiness.

This raises a number of headaches for operators. As Cripps notes, how much do carriers want to own the ‘own’ the web experience? Given that Yahoo could potentially become the home portal. The answer to this question has a knock on effect as to whether operators need to re-invent what Yahoo is already building. “With budgets for launching new services under increasing scrutiny, should operators instead embrace Yahoo! Go and its descendents instead of creating their own versions?,” said Cripps.

But not everyone is sold on the idea. Carsten Brinkschulte, CEO of mobile device management firm Synchronica, reckons “Yahoo’s lack of support for open standards and homogenised user interface will throttle mass market device support.

“Once again we see a big vendor heralding an “open” mobile platform, which is in fact proprietary technology that does not support common industry standards such as push IMAP and SyncML,” he said.

Yahoo’s move raises some of the same questions that operators will have to ask when Google’s Android platform makes it onto commercial devices later this year. In fact, these are questions that the operators are probably asking already, and will have to do so with more frequency as web companies continue to converge on the mobile space.

New Year; new handsets; more iPhone stuff

It’s a good thing the gargantuan industry shindig that is the Consumer Electronics Show (CES) takes place in the first week of January. While much of the mobile industry is still rousing itself from its festive slumber, we can always rely on a torrent of gadget launches to keep us going.

And this year, Motorola and Sony Ericsson were first off the starting blocks. Moto introduced a handful of new devices, primarily focusing on the ‘phone as a music player’ market, with a nod towards the movie fans in the shape of the Z10.

The Moto Z10, with its now familiar kick slide design and a slightly underweight 3.2 megapixel camera, proposes “filmmaking on the fly”, by allowing consumers to create, edit, share and consume multimedia on the go.

Covering the music bases meanwhile, are the ROKR E8, which has the ability to change its keypad layout depending on whether it is in ‘music’ or ‘phone’ mode; and two low cost music phones – the W230 and W270.

Sony Ericsson opted for the fashionable route, with the Z555i clamshell phone and two new Walkman devices – the W350i and W760i, which also packs GPS.

Parent company Sony also made headlines by confirming Skype capabilities for its PSP handheld console, to be made available this month.

Yahoo also tried to rock the boat, with a mobile strategy that didn’t go anywhere near as far as its big web rival Google.

Meanwhile, Intel shook up Nicholas Negroponte’s One Laptop Per Child (OLPC) initiative by withdrawing support and funding for the project after a major fall out between the two companies. The OLPC alleges that Intel had been using its position on the OLPC board to undermine the distribution of the XO device to kids, in favour of selling its own Classmate low cost laptop.

Intel was due to show off an Intel-based design of the XO, but the plug has been pulled on this announcement too.

Rocking the mobile advertising boat with a controversial concept, Pudding Media has announced that it’s been given $8m in funding for its “voice monetization” platform. The Pudding platform analyses voice calls in real time and then serves ads it deems to be relevant to the caller by voice, text and display.

And it may be 2008, but Apple iPhone news is coming out like its still 2007. Now a Chinese company has released a SIM card adapter, which allows a user to put their own SIM card from any network into the gadget, which then slots into the iPhone SIM slot and manages to bypass the check the iPhone makes to see whether a valid SIM is being used.

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