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October 20, 2004
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A PRIMEDIA Property |
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FEATURED EVENT |
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Reborn Free
A
Web Blog for the Mobile Masses
Motorola hits Q3 goals, sees growth
in all sectors
Sprint piles on the wireless
subscribers
Sun grants Orange 'infinite use'
Alvarion, InterWave renegotiate
acquisition terms
FCC maintains
designated-entities rules for January auction
Nextel, Motorola focus on camera
phone
BellSouth wraps sale of Latin
American assets
Verizon Wireless, NextWave nearing $3
billion spectrum deal
SBC exploring Wi-Fi/cellular
convergence
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Editor's Perspective
Reborn Free
By Jason Ankeny
Oct 20 2004
With this week's announcement that it will slash the cost of unlimited
access to its FreedomLink Wi-Fi network to just $1.99 per month, SBC
effectively extinguished whatever hope remained that the technology
might someday emerge as a significant generator of carrier revenue. But
that's not necessarily as dire as it may seem.
It's been obvious for some time that few carriers ever figured out
quite
what to do with Wi-Fi. While I give T-Mobile credit for an ambitious
initiative that delivered Wi-Fi to premium partners like Starbucks,
Borders and FedEx/Kinko's, its $29.99 monthly rate was far too
exorbitant from the outset. Still, at least T-Mobile tried, as opposed
to both Sprint and AT&T Wireless, which essentially shrugged their
respective shoulders and slapped $50 monthly pricetags on Wi-Fi
services
they barely even marketed. (Continued after ad)
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Give or take a buck or two, it seems unreasonable to expect consumers
to
fork over more than $1.99 per month for a service many already view as
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freebie. Wi-Fi is now available gratis at so many restaurants, hotels
and conference centers across the U.S. that many users consider it a
bonus along the lines of a Happy Meal toy or in-room HBO. For the
fast-food joints and motor lodges of America, Wi-Fi is about generating
traffic, not revenue. It's simply an enhancement of their existing
business.
Which is precisely the attitude carriers should adopt as well. Wi-Fi is
never going to generate meaningful revenue--the spread of free access
long since guaranteed that ship already sailed. But as a bundling
element to give DSL an edge over cable, or as a platform that converges
with cellular networks to enable voice over IP--a plan
not-so-coincidentally announced by SBC just last week--Wi-Fi could
prove
more valuable for carriers than ever before.
You could argue carrier Wi-Fi is a bust. I would contend it's merely a
late bloomer.
E-mail me at jankeny@primediabusiness.com.
Squawk Box
A Web Blog
for the Mobile Masses
WirelessReview.com
A forum for Web blogging and opinionated discussion of
the news, events and trends shaping the wireless industry.
Wireless News
Motorola
hits Q3 goals, sees growth in all sectors
Kevin Fitchard
Oct 20 2004
TelephonyOnline.com
Motorola posted impressive Q3 numbers this week, but
the
good news wasn't enough to stop the shares from taking a hit in the
stock market as the vendor forecast more tepid growth in the fourth
quarter.
Sprint
piles on the wireless subscribers
Kevin Fitchard
Oct 19 2004
TelephonyOnline.com
Sprint racked up another 951,000 wireless subscribers
in
the third quarter, more than half of which came from affiliates and its
new wholesale MVNO partners. The carrier now has 22.3 million
subscribers, 2.8 million of which are from carrier customers.
Sun
grants Orange 'infinite use'
Dan O'Shea
Oct 19 2004
TelephonyOnline.com
European mobile carrier Orange has tapped Sun
Microsystems' enterprise Java system, an internal software
infrastructure that currently supports 22,000 employees in several
European countries.
Alvarion,
InterWave renegotiate acquisition terms
Kevin Fitchard
Oct 19 2004
TelephonyOnline.com
Alvarion and InterWave have settled their differences,
negotiating a settlement that will require InterWave to settle for a
lower purchase price. Under the new terms Alvarion will pay $4.18 a
share for the cellular base station vendor for a total of $40.5
billion,
28% less than the $56 million price tag the two companies negotiated in
July. In addition, Alvarion has agreed to interim financing for
InterWave while the companies take the new deal back to their
investors.
FCC
maintains designated-entities rules for January auction
Donny Jackson
Oct 18 2004
TelephonyOnline.com
The FCC on Friday denied requests by the Cellular
Telecommunications and Internet Association (CTIA) to alter
designated-entity (DE) rules for the January auction of 1.9 GHz
spectrum.
Nextel,
Motorola focus on camera phone
Jason Ankeny
Oct 18 2004
TelephonyOnline.com
Nextel Communications and Motorola have announced the
release of the Motorola i860, which the two companies are touting as
the
first camera-enabled push-to-talk handset.
BellSouth
wraps sale of Latin American assets
Jason Ankeny
Oct 15 2004
TelephonyOnline.com
BellSouth today announced the completion of its sale of
three Latin American wireless assets to Spanish carrier Telefónica
Móviles SA. BellSouth will record a $600 million gain from the
$1.2
billion deal, which the company will deploy to reduce debt and help
fund
the $41 billion acquisition of AT&T Wireless by Cingular Wireless,
which
BellSouth co-owns with SBC.
Verizon
Wireless, NextWave nearing $3 billion spectrum deal
Jason Ankeny
Oct 15 2004
TelephonyOnline.com
Verizon Wireless is in talks to acquire 20 wireless
spectrum licenses from bankrupt NextWave Telecommunications for $3
billion, a source close to the negotiations told Reuters.
SBC
exploring Wi-Fi/cellular convergence
Kevin Fitchard
Oct. 14 2004
TelephonyOnline.com
SBC officials said today the carrier is now
experimenting with Wi-Fi/cellular convergence, and in 2005 plans to
leverage its hot spot network and Cingular assets to offer a
multi-access mobile voice service that will eventually merge with a
commercial VoIP launch.
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