The bad news just keeps coming for Sprint/Nextel. The last quarter of the year is the most important in the cellular business, and Sprint's was bad. Their financial wrap-up of the quarter showed a loss of customers, which continues a trend from earlier in the year. Unfortunately, this leads to "Streamlining Operations" which means 4,000 of our friends in the company will be laid off, and 125 of their stores will be closed.
The Sprint/Nextel execs saw this coming, but we can't see what they tried to do to stop customers from leaving. It looked like more of the same. Of course, nothing would attract more attention than good ol' price cuts, but I guess they'd rather set themselves on fire than cut. Now they need to slash.
We tried to help with several suggestions in previous articles, but they just didn't listen. If logic prevailed, we would be excited to see what they might do next, but it looks like they hope "streamlining" will solve their problems. Come on guys, T-Mobile had a "weaker" network, but keeps growing because they found a way to excite customers...it's call low prices. It's the same reason Wal-Mart had a good 4th quarter, and other stores didn't.
As we reported last month, most of their problem is with their image. Now it's time to offer their great network at a great price. We can dream can't we?
Monday, January 21, 2008
Friday, January 18, 2008
Clues from the CES
Visiting the Consumer Electronics Show in Las Vegas is inspiring yet frustrating. Some things are very cool, but with others you ask, 'why would anyone buy this?' With wireless phones, the trend is toward more iPhone- and PDA-like devices. But I don't see us rushing out and replacing our "ordinary" cell phones anytime soon.
However, in other countries of the world, people are accessing the Internet more with wireless devices than desktop or laptop computers. Even in Japan, a computer in the home is not common, but an Internet capable phone is.
My young son has been using the family computer castoffs, but now pines for more speed and capabilities. It just could be his generation won't be tied to something with a 14-inch or larger screen, but something much smaller and portable. My kid's first "computer" may be one of these devices with the eensy-weensy QWERTY keyboards that most of us wouldn't (or couldn't) touch.
Those guys at the CES may be on to something. However, I am still not interested in watching TV on a 2-inch screen. I'm over at the 150-inch plasmas. Even bad TV looks good there.
However, in other countries of the world, people are accessing the Internet more with wireless devices than desktop or laptop computers. Even in Japan, a computer in the home is not common, but an Internet capable phone is.
My young son has been using the family computer castoffs, but now pines for more speed and capabilities. It just could be his generation won't be tied to something with a 14-inch or larger screen, but something much smaller and portable. My kid's first "computer" may be one of these devices with the eensy-weensy QWERTY keyboards that most of us wouldn't (or couldn't) touch.
Those guys at the CES may be on to something. However, I am still not interested in watching TV on a 2-inch screen. I'm over at the 150-inch plasmas. Even bad TV looks good there.
Wednesday, January 16, 2008
The Best of 2007
Like all the other wireless media, we feel compelled to choose the most important story of last year. I hope our choice is unique. We chose the software-based cellular base station technology chosen by Mid-Tex Cellular who can now switch from GSM to CDMA almost with the click of a mouse.
In a story we reported in November, Vanu Inc, run by a member of the Bose family, has developed several innovations for the cellular industry that includes software-based technology that allows carriers to change their service without changing their cell site equipment, and "femtocells" which provides both GSM and CDMA cell service on several cellular bands (700, 850 and 1900 MHz) in a unit that can serve a small building such as a customer's house.
As usual, we take the position that anything that helps expand coverage is a good thing.
In a story we reported in November, Vanu Inc, run by a member of the Bose family, has developed several innovations for the cellular industry that includes software-based technology that allows carriers to change their service without changing their cell site equipment, and "femtocells" which provides both GSM and CDMA cell service on several cellular bands (700, 850 and 1900 MHz) in a unit that can serve a small building such as a customer's house.
As usual, we take the position that anything that helps expand coverage is a good thing.
Monday, January 14, 2008
Countdown to the Analog Sunset
There are three developments to report as we approach the cellular analog sunset, scheduled for 2/18/2008. First, there is word that a preliminary Alltel PRL has appeared (in Utah) with some analog roaming entries missing. This means you might want to download the latest PRL from your CDMA carrier in the event that a new PRL download in the near future may exclude analog roaming partners that still may be useful to you.
Also, Alltel has announced their analog and TDMA turndown in three phases based on market with March, June and September deadlines. This is changed from their "wait and see" attitude announced earlier.
Third is the realization that when analog channels are indeed discontinued, an analog-only phone will not only not make normal calls, it won't be able to access 911, either. This is different from other phones that are deactivated but can still call 911. When the analog channels are gone, there's nothing for that phone to connect to. Yes, that phone will be deader than a door-nail, a big paperweight, or a battery-pollution problem headed for a landfill near you.
Also, Alltel has announced their analog and TDMA turndown in three phases based on market with March, June and September deadlines. This is changed from their "wait and see" attitude announced earlier.
Third is the realization that when analog channels are indeed discontinued, an analog-only phone will not only not make normal calls, it won't be able to access 911, either. This is different from other phones that are deactivated but can still call 911. When the analog channels are gone, there's nothing for that phone to connect to. Yes, that phone will be deader than a door-nail, a big paperweight, or a battery-pollution problem headed for a landfill near you.
Wireless Email Update
It was one year ago we reported on our first entry into the data use of our phones, (Mountain Wireless News, January 5, 2007) seeing how cheaply we could retrieve email from our regular cellular phones. We were seeking the best way to occasionally access our email accounts with the hopes of not being forced to a Blackberry or PDA-like device.
The results were surprising with services available for a little as $2 per month (Remomail) and usage rates limited just to time used, charged by the minute. In that year we found our $2 service was not only a bit primitive, it was also pervasive enough to crash 3 phones.
Last summer I changed to a nicer service for a still-nice price of $2.50 per month (SodaPop mail). Unknown to us, that service was discontinued by the carrier, a fact not to be discovered until we were traveling far from home, right where you'd want to use it most.
So now we're paying the big money, $5 per month, for infrequent use of (POP3) email access (Genesis Vemail). At that price level, you get a really nice email service with slick features like voice response returned by email attachment. But at that $5 level, some carriers offer you real Internet access where you can not only get your (web-accessible) email, but you'd also get wireless access to web sites, sometimes handy for an address or phone number.
For now, we prefer deluxe email features over web access as $5 a month is a big expense in our world. But the big news is that email is still usable with your plain vanilla cellular phone, no PDA phone required. In light of that, the $5 fee seems cheap since a little over a year ago we thought a much more expensive wireless device and its associated air time was required to attach that email ball and chain to our leg.
The results were surprising with services available for a little as $2 per month (Remomail) and usage rates limited just to time used, charged by the minute. In that year we found our $2 service was not only a bit primitive, it was also pervasive enough to crash 3 phones.
Last summer I changed to a nicer service for a still-nice price of $2.50 per month (SodaPop mail). Unknown to us, that service was discontinued by the carrier, a fact not to be discovered until we were traveling far from home, right where you'd want to use it most.
So now we're paying the big money, $5 per month, for infrequent use of (POP3) email access (Genesis Vemail). At that price level, you get a really nice email service with slick features like voice response returned by email attachment. But at that $5 level, some carriers offer you real Internet access where you can not only get your (web-accessible) email, but you'd also get wireless access to web sites, sometimes handy for an address or phone number.
For now, we prefer deluxe email features over web access as $5 a month is a big expense in our world. But the big news is that email is still usable with your plain vanilla cellular phone, no PDA phone required. In light of that, the $5 fee seems cheap since a little over a year ago we thought a much more expensive wireless device and its associated air time was required to attach that email ball and chain to our leg.
Tuesday, January 8, 2008
Yikes! 20 Cents per Message!
What we had hoped would not become an industry trend has indeed gone that way. Following Sprint/Nextel's increase in Text Messaging fees to 20 cents each, Verizon Wireless has decided to follow suit.
After getting kudos for introducing features that were a little more consumer-friendly, this one takes them back into the realm of "we gotta make a profit". Let's face it, this is a price increase with no corresponding increase in costs. It's a small bite, but for those of us who have no desire to wear out our thumbs sending text messaging to our buds, it's a step backward.
The majority of a la carte Text users use this form of messaging for conveniences like tracking a UPS package, flight departures or maybe stock quotes. This rate increase gives us the incentive to not explore the additional benefit of text messaging. Of course the carriers are hoping we'll now more seriously consider their text "packages", generally starting at $10 per month. No, I'm not yet getting anywhere near the 50 messages a month to make that worthwhile, and, since they raised the rates from 10 cents a minute, I don't even get weather warnings any longer.
Sadly, many customers will not notice this rate increase and continue to use Text with little care, potentially encouraging additional price increases. We can only hope that the carriers who don't raise their text rates will receive some competitive advantage, and exploit it.
After getting kudos for introducing features that were a little more consumer-friendly, this one takes them back into the realm of "we gotta make a profit". Let's face it, this is a price increase with no corresponding increase in costs. It's a small bite, but for those of us who have no desire to wear out our thumbs sending text messaging to our buds, it's a step backward.
The majority of a la carte Text users use this form of messaging for conveniences like tracking a UPS package, flight departures or maybe stock quotes. This rate increase gives us the incentive to not explore the additional benefit of text messaging. Of course the carriers are hoping we'll now more seriously consider their text "packages", generally starting at $10 per month. No, I'm not yet getting anywhere near the 50 messages a month to make that worthwhile, and, since they raised the rates from 10 cents a minute, I don't even get weather warnings any longer.
Sadly, many customers will not notice this rate increase and continue to use Text with little care, potentially encouraging additional price increases. We can only hope that the carriers who don't raise their text rates will receive some competitive advantage, and exploit it.
Monday, January 7, 2008
US Cellular Expands!
One of the questions that crosses our screen after every announced cellular merger is, "who's next?" It looks like it won't be US Cellular. According to our neighbors over at RCR News, US Cellular has purchased some PCS spectrum from an "unnamed wireless carrier" in 8 markets in 4 states for $13.1 Million.
While this new spectrum could just be used for additional capacity in current markets, it's still great to see them expand, and be bold enough to actually build this new coverage, not just take over existing sites. US Cellular did buy a chunk of spectrum in the 2006 AWS auction, 17 licenses for $180 Million, so this latest purchase reinforces that move as well. They are high on our list of favorable carriers with good coverage and good customer service.
I actually roamed on US Cellular this past week. It gave me a warm fuzzy feeling knowing they were there and at the top of my wireless provider's Preferred Roaming List.
While this new spectrum could just be used for additional capacity in current markets, it's still great to see them expand, and be bold enough to actually build this new coverage, not just take over existing sites. US Cellular did buy a chunk of spectrum in the 2006 AWS auction, 17 licenses for $180 Million, so this latest purchase reinforces that move as well. They are high on our list of favorable carriers with good coverage and good customer service.
I actually roamed on US Cellular this past week. It gave me a warm fuzzy feeling knowing they were there and at the top of my wireless provider's Preferred Roaming List.
Sunday, January 6, 2008
The Holiday Deals Aren't Over Yet!
As usual, we, as consumers, are fairly predictable. Each year after Christmas, there is a surge in buying toys for ourselves that weren't under the Christmas tree. The wireless stores know this and over the last few years have extended their holiday promotions to take advantage of this selfish phase of our gift-buying frenzy.
This is your heads-up to grab one of these deals while you can. They soon will go away. The date is uncertain, possibly as soon as the start of the "normal" work week, like Monday, January 7th. Historically, these specials don't last too far into January, and just the mention of a promotion's end date gets many buyers off the fence to make that purchase.
How many times have you wished you took advantage of a deal that you thought would last a lot longer? Well, now's the time. The reason we won't see too many promotions over the next few months is because cellular purchases drop to very low levels no matter what. So that is the time the cellular retailers establish their "regular" prices, so that later in the year their special prices will look that much better.
There will be exceptions. Products that are late in their life-cycle (after maybe a year on the market) get reduced, and there are stores who want to clear out the really slow sellers, especially stores who are going out of business like CompUSA. Also, if business drops more than expected, say, with inflation fears, maybe deals will re-appear.
But if you've been thinking of grabbing a deal over the next few months, nope, now is the time. Oh, and this might be a good time to make the pitch for our own online discounts. If there's a better deal available by buying online, you'll find it there.
This is your heads-up to grab one of these deals while you can. They soon will go away. The date is uncertain, possibly as soon as the start of the "normal" work week, like Monday, January 7th. Historically, these specials don't last too far into January, and just the mention of a promotion's end date gets many buyers off the fence to make that purchase.
How many times have you wished you took advantage of a deal that you thought would last a lot longer? Well, now's the time. The reason we won't see too many promotions over the next few months is because cellular purchases drop to very low levels no matter what. So that is the time the cellular retailers establish their "regular" prices, so that later in the year their special prices will look that much better.
There will be exceptions. Products that are late in their life-cycle (after maybe a year on the market) get reduced, and there are stores who want to clear out the really slow sellers, especially stores who are going out of business like CompUSA. Also, if business drops more than expected, say, with inflation fears, maybe deals will re-appear.
But if you've been thinking of grabbing a deal over the next few months, nope, now is the time. Oh, and this might be a good time to make the pitch for our own online discounts. If there's a better deal available by buying online, you'll find it there.
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