Wednesday, May 20, 2009

Nokia takes Internet phones to emerging markets

Nokia today launched three new handsets designed to bring Internet services to emerging markets. Included in the offering is the Nokia 2730 classic , priced at EUR80, which the world's largest handset vendor claims is its "most affordable 3G phone." It is expected to start shipping in the third quarter of 2009. The Nokia 2720 fold is a fold-phone boasting email and Internet connectivity, and will be offered with Nokia Life Tools in select markets. The 2720 is expected to begin shipping in the third quarter for an estimated retail price of EUR55 before subsidies and taxes. Meanwhile, Nokia's 7020 is marketed as "a fashionable fold phone that uses light, colour and metal finishes to convey personal style." Incorporating a 2 megapixel camera, the device will ship in the fourth-quarter this year for an estimated retail price of EUR90 before subsidies and taxes.

Nokia's announcement today is its latest effort to ramp up its emerging markets strategy. In November the company unveiled two emerging market services - Ovi Mail and Nokia Life Tools - that are supported by the three new handsets. Ovi Mail provides the ability to create an email account without the need to use a personal computer, whilst Nokia Life Tools is aimed at providing agriculture information and education services for rural and small town communities in emerging markets.

Nokia claims to have carried out research declaring that nearly half of emerging market customers would rather connect to the Internet using a mobile phone than a PC.



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Some specs: http://experts.thelink.co.uk/2009/05/19/nokia-2730-classic-%E2%80%93-the-world%E2%80%99s-cheapest-3g-phone/
http://www.phonesreview.co.uk/2009/05/19/nokia-announces-2720-2730-and-7020-low-end-handsets/

Monday, May 18, 2009

New French 3G license tender to stretch into 2010

The French government has confirmed that it will launch the tender for the country's long-awaited fourth 3G license this summer, but warned that the process would not be completed by year-end. According to a Dow Jones Newswires report, government spokesman and industry minister Luc Chatel said in a TV interview that the government has asked an official body to evaluate the right price for the license. The body is expected to report opinion within the next couple of weeks. "We want to be certain [that the state will not lose out]" said Chatel, adding that a fourth mobile operator "won't be designated before the end of the year" due to the delays linked to the tender process. The government had earlier valued the license at around EUR206 million, the report says.
A leading contender for the license is thought to be French broadband provider Iliad, which has previously said it will invest EUR1 billion to build a network covering 90 percent of the country's population if it wins the license. Dow Jones Newswires reports today that privately-held cable operator Numericableis is also mulling a bid for the frequencies. The French government is keen to issue further 3G licenses in order to boost competition in its domestic 3G market, which remains dominated by just three operators: France Telecom's Orange, SFR and Bouygues. An attempt in 2007 to auction the fourth license was abandoned after it generated just one bid - from Iliad subsidiary Free Mobile - that was deemed too low.

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Virgin Mobile USA reports 301% rise in Q1 profit

Virgin Mobile USA, the country's largest MVNO, has reported better-than-expected first-quarter profit as the firm's prepaid and hybrid tariffs appeared to resonate with increasingly cost-conscious consumers. Net income rose 301 percent to US$19.1 million (US$0.19 a share) compared to US$4.7 million (US$0.07 a share) in 1Q08, a period before Virgin Mobile's acquisition of rival MVNO Helio in August 2008. Operating revenue rose 2 percent to US$337.3 million. According to Reuters, analysts on average had expected earnings of US$0.10 a share, excluding items, on revenue of US$359.4 million. The MVNO added over 600,000 new customers in the quarter (gross) for a total customer base of 5.2 million. Churn was reduced from 5.1 percent in the year earlier period to 4.8 percent, but ARPU fell slightly from US$20.14 to US$20.08.
In a statement, CEO Dan Schulman talked up the success of Virgin Mobile's hybrid plans, which accounted for 55 percent of gross customer additions in the quarter. The hybrid plans offer customers a fixed number of minutes per month without a contract. "We also brought to the market differentiated text messaging bundles and our 'Pink Slip Protection' programme [a payment protection plan for contract customers that lose their jobs] to help our customers weather the current economic storm," said Schulman. The company also launched a US$49.99 unlimited plan last month in order to target US consumers that are scaling down their spending due to the credit crunch. The firm increased its guidance for adjusted EBITDA and free cash flow for 2009. Reuters reports that its share price rose 29 percent in response to the results.

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DiGi launches mobile broadband in Sabah and Penang

According to The Edge Daily, Malaysian cellco DiGi Telecommunications will set aside up to MYR150 million (USD42.4 million) of its total capital expenditure over the next three years for investment in its HSPA network and services in the Sabah and Penang regions. The plans were unveiled following the official launch of the operator’s 3G broadband services in the two regions. DiGi noted that at launch it had coverage of 44% and 31% of the population in the Kota Kinabalu region and the island of Penang respectively.

However, the cellco currently only offers HSPA-based internet services via a datacard option, with Johan Dennelind, CEO of DiGi, noting: ‘While our broadband service is only available on PC and laptops for now, we look forward to start offering 3G voice and data services on mobile phones as soon as we have expanded our 3G coverage in our bid to capture our fair share of the broadband market in Malaysia’.

According to TeleGeography’s GlobalComms database, DiGi has forecast CAPEX for 2009 to exceed MYR1.1 billion and had earmarked around 30% of that for 3G infrastructure development. Mr Dennelind indicated that the expansion to Sabah and Penang comes following the high level of demand in the Klang Valley, where the operator launched UMTS services two month ago. DiGi aims to offer its mobile broadband services in more than 1,000 zones by the end of 2009, and the cellco will initially focus on deployment in urban areas.

Verizon Wireless sharpens LTE roadmap

Verizon Wireless this week provided further details on timescale for deployment of its LTE network. In a conference call Wednesday, chief executive Lowell McAdam said the network will launch commercially in 20-30 markets in the second half of 2010, with nationwide buildout complete in late 2013 to early 2014. Meanwhile, PC Mag reports that a small group of Verizon testers will get access to LTE this year, with the operator turning on one "pre-commercial" network on the east coast and one on the west coast during 2009.

Verizon also said it expects average speeds on the network to be between 8Mb/s and 12Mb/s downstream, faster than Sprint's WiMAX network but much lower than the 'theoretical peak' speeds previously touted for the network. Earlier this week Verizon Wireless said it will use Gemalto's over-the-air platform and microprocessor smart card to manage customer information exchanges on the LTE network, and also selected Giesecke & Devrient to provide Java-based SIM cards for devices. Verizon could become the first commercial LTE operator in the world. US rivals AT&T and MetroPCS are planning to launch LTE networks, in 2011 and 2010, respectively.

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Friday, May 15, 2009

UK plans deal on mobile broadband spectrum

The UK has unveiled plans to potentially settle a long-running dispute between its mobile operators regarding the re-farming of 900MHz 2G spectrum for mobile broadband use. Reuters reports today that the UK's Independent Spectrum Broker has proposed that operators be given a spectrum cap, meaning that they could hold onto the spectrum they own but would need to sell it before buying any more. The development is effectively a compromise that would allow the UK government to pursue its 'Digital Britain' broadband initiative without forcing some operators to hand over spectrum to competitors. The dispute stretches back to a proposal by UK regulator Ofcom in 2007 that ordered O2 UK and Vodafone UK to transfer some of their 900MHz spectrum to rivals, a plan reportedly strongly opposed by the two operators. Ofcom proposed at the time that the 900MHz spectrum could be auctioned off to their competitors, Orange UK, T-Mobile UK and 3 UK, for mobile broadband use.
The dispute escalated following the introduction of the 'Digital Britain' initiative earlier this year, which is aiming for every UK household to have access to broadband by 2012 and proposes the use of mobile broadband to connect rural areas. The 900MHz spectrum is deemed more suitable for mobile broadband than 1800MHz spectrum - the other frequency band used for 2G services - as the lower frequencies travel further and need fewer base stations and masts. However, while this week's development means that O2 UK and Vodafone UK could hold onto their existing 900MHz spectrum, they would need to sell some in order to buy new spectrum freed-up by the switchover from analogue to digital TV. According to Reuters, the UK plans to auction new spectrum - in the 800MHz and 2.6GHz frequency bands - next year.

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