Fourth place US wireless carrier T Mobile was conspicuously absent when the FCC auctioned off spectrum for new wireless broadband services. Left without the bandwidth necessary to provide true broadband to its entire customer base, the company has needed a survival strategy as traditional cellular begins to decline.

There have been abundant rumors about T Mobile’s parent acquiring Sprint, who is the majority owner in Clearwire. That move does make sense, but there may be a better way. If DT were to invest a little less money in Clearwire, it could solve its bandwidth problem and give Clearwire badly needed cash for faster expansion.

Bloomberg News is now reporting that Deutsche Telekom might decide to pay Sprint, Clearwire and/or MetroPCS for access to the their U.S. wireless spectrum. Such a deal would infuse Clearwire with $2 billion in much-needed cash for network upgrades, while giving Deutsche Telekom-owned T-Mobile access to wireless spectrum that would help with T-Mobile’s 4G plans. (DSL Reports)

We had alluded to the fact that third party VoIP modules on smart phones won’t last long, here. Well it looks like it is just about there. The folks at Google and Microsoft have blinked. Don’t discount the Telcos they have the best legal talent that phone call money can buy. –

surrender_itsgregIf you think Google, Microsoft and Apple are bad-ass, cutthroat, take-no-prisoner companies, you should meet the nation’s wireless carriers, who have collectively convinced those intensively competitive software giants to cripple their products.

Need any more proof that the nation’s four largest wireless carriers - AT&T, Verizon, Sprint and T-Mobile - have too much control over the airwaves, what phones you can use and what applications you can run on them?

Look no further than Microsoft’s release this week of its 12 commandments for developers (.pdf) working on apps for the upcoming Windows Mobile 6.5 OS and for its Windows Mobile Marketplace — it’s upcoming iPhone app store competitor. Number 4 rule? Don’t make apps that let users make phone calls using the mobile phone carrier’s data connection.

That restriction joins Microsoft to Google and Apple, all of which now all block true VOIP apps in their online marketplaces where users can quickly buy trusted apps from third-party developers. That means no Skype, or at least only Skype when your iPhone has a WiFi connection, or only Skype-Lite which uses your phone’s minute plans.

This was to be expected from the commercial side of the IT industry. I hope at this point Google fully understands exactly WHY they needed that 700mhz spectrum now. You can rest assured that the smaller smartphone development houses won’t take up this cause. They don’t have the financial-legal wherewithal to go into protracted court combat.

Nope the challenge will come, if at all, from overseas. Some Indian dude will whip up an app for Android that will use the data channel for voice traffic. It will leak out and take hold for a certain segment of the population. The problem will only be resolved if such a piece of software were to come on like gangbusters. Like it started on 500 smartphones today, its on 5,000,000 by the end of a month.

So much for open competition.

Linky.

Look I am a live and let live kind of guy. But there is a point where actions of certain people have to be questioned even if they aren’t breaking any laws. Case in point –

At the office, in the car, even walking down the street, Nick Andes and Doug Klinger are constantly texting. They both have unlimited plans.

“Basically because of us being bored at work and just texting back and forth a bunch of times and we would try to bother each other,” said Andes.

Because they were already sending so many messages they decided to see what the standing record was for sent and received texts. They looked it up online.

“I think initially neither of us thought that the record was beatable; 182,000 texts is a lot of texts,” said Andes.

All told they sent 217,000 texts and ran up a $26,000 text bill. T-Mobile is supposed to have a unlimited that both these guys subscribed to. but the programming in the system was capped at 100k under the assumption that no one would go beyond that. If I were T-Mobile I would stick them with the bill.

Oh and guys I have a suggestion for your boss. They ought to fire you both. That should certainly liven up your life.

Linky.

Do you have the occasional need for wireless data? Actually most potential wireless users don’t have a big enough need to justify a monthly plan. Then there’s the multi-year contracts.  When available, daily plans have been prohibitively expensive for most. T-Mobile in the UK may have seen the light. Pay per use could be a huge untapped market if priced correctly.

According to Warmsley, T-Mobile will shift into pay-per-day/week/month options for new customers. “This will give the mass market a chance to try mobile broadband. They can purchase their dongle and pay for usage as and when they need it. If we bundle things together then the bill is clear.”

He said that T-Mobile wanted to focus on customers’ “real needs and how they want to use mobile broadband”–and so will be sticking with cost per day or month based tariffs rather than costing by the amount of data customers use. Warmsley pointed towards the example of choosing mobile broadband and a high-end phone such as a G1-Internet phone. “The consumer would get an appropriate package to include ‘internet on the phone’ minutes,” he said. (Fierce Wireless)

This is two days old but worth noting. T-Mobile, has launched a $50 deal for selected legacy customers. Its an all you can drink voice plan. The new floor is no longer $99. –

T-Mobile USA Inc. is offering a $50-per-month unlimited voice plan to its veteran customers nationwide. In combination with the recent price cut on its unlimited data and unlimited text monthly add-on price to $35 per month, according to a customer service representative, T-Mobile USA has an industry-low $85 per month unlimited voice, text and data offering.

Peter Dobrow, spokesman for T-Mobile USA, said there are offers out there, but would not provide specific details or confirm the reduced unlimited data and text price.

Downside? Well none in general, its a good rate regardless of how you option it up. But the thing the carriers need to realize is the pot of gold is in the data plans. Somebody come up with a $60 all you can drink data MTM with VoIP options, they will gain share.

Linky.

To the extent that I believe in the JD Powers surveys, it is interesting that Verzion Wireless has been dethroned. T-Mobile has scored the highest in customer satisfaction of any of the carriers. –

This time, T-Mobile USA’s trick was being able to quickly and seamlessly transfer calling customers over to a real customer service representative after they passed through the carrier’s initial automated response system.

“Much of T-Mobile’s success can be attributed to its ability to reach the customer very quickly,” said Kirk Parsons, senior director of wireless services at J.D. Power and Associates. “More than one-third of T-Mobile subscribers report waiting less than two minutes on hold to speak with a representative. T-Mobile has proved successful when it comes to being prompt, courteous and efficient at identifying and resolving problems in the eyes of its customers.”

“This time, T-Mobile USA’s trick was being able to quickly and seamlessly transfer calling customers over to a real customer service representative after they passed through the carrier’s initial automated response system.” Excuse me but that is not a ‘trick’. That is getting the customers problem resolved as quickly as possible without falling into IVR Hell. Kudos to T-Mobile on that score.

Linky.

Found on YouTube. If it is and the price points are favorable Apple better sharpen the pencils some.

Coolest Gadgets is reporting a background story that T-Mobile/HTC have a Android based G2 due out by no later than April of next year. This model will ditch the chicklet keyboard for a touch screen interface ala iPhone. The roller ball will be retained however.

I wish some innovative company would develop a simple voice command nav system. It does not have to be sophisticated. Fact for mobile devices it can be very simple –

• ‘Mail’, ‘Phone’, ‘Web’, ‘Time’ as the main command structure.
• ‘Next’, ‘Last’, ‘Return’, ‘Dive’, ‘Read’. Where ‘Next’ and ‘Last’ went up or down a menu list like in email. ‘Return’ to take you back to the previous menu. ‘Dive’ would take you down a menu level. ‘Read’ would trigger a Text to Speech rendering.

Those 9 commands would eliminate most of the need for a keyboard in a handheld device. Odd that Microsoft has developed voice recognition for their in-car nav system but has not caught on in portable devices yet.

Posting is here.

Rather than a whole string of individual posts on what’s happening in the Telcom marketplace here’s the Mother of All Bad News. The numbers in the various firms are having rather negative effects across the board I am afraid. –

Motorola

Standard & Poor’s lowered its long-term corporate credit rating on Motorola Inc. on Friday to “junk (bond) territory,” according to the Wall Street Journal.

S&P’s rating change was to “BB+” from “BBB.”

Moody’s Investor Services warned last week that it, too, may cut its credit rating on Motorola.

Sprint

After speaking with Sprint Nextel CFO Bob Brust, Pali Research predicts that the carrier will sacrifice employees in order to save a drowning company. The report’s author, Walter Piecyk, said he expects Sprint Nextel to announce a slew of layoffs in January.

And even though it may adversely affect Sprint Nextel’s first-quarter results, Pali Research expects ultimately the move will better position the company to overcome dismal financial estimates for 2009 and 2010.

[Editor note: No surprise. Volunteers in November, draftees in January. We already predicted it.]

AT&T

AT&T Inc. (NYSE:T) today announced a planned reduction of approximately 12,000 jobs, or about 4 percent of the company’s total workforce, citing economic pressures, a changing business mix and a more streamlined organizational structure.

In response to these business and economic factors, AT&T plans to reduce its 2009 capital expenditures from 2008 levels. Capital plans for 2009 are being finalized now and specific guidance will be provided when the company releases its fourth quarter results in late January.

Associated with these job reductions which will occur in December and throughout 2009, AT&T will take a charge of approximately $600 million in the fourth quarter of 2008 to pay severance to affected employees.

Verizon

Verizon’s total operating revenues grew 4.1 percent to $24.8 billion in the third quarter 2008, from $23.8 billion in the third quarter 2007. This is an increase of 5.4 percent when adjusted for the spinoff of non-strategic local exchange and related Wireline business assets earlier this year (non-GAAP). Total operating
expenses increased 5.2 percent to $20.6 billion, or 5.4 percent on an adjusted basis, comparing third-quarter 2008 with third-quarter 2007.

[Editors Note] What’s not said in these 3Q results is that for all intents an purposes earnings are flat. We have had a 4.8-5.2% inflation rate this year.

T-Mobile

• Contract customer churn was 2.4% in the third quarter of 2008, up from 1.9% in the second quarter of 2008 and 2.0% in the third quarter of 2007.
o The sequential increase in contract churn was primarily due to the continued impact of customers coming to the anniversary of their two-year contract that was first introduced in April 2006. The second quarter of 2008 was the first quarter these two-year contracts could have expired. Competitive pressure also contributed to the sequential increase in contract churn.
• Blended churn, including both contract and prepaid customers, was 3.0% in the third quarter of 2008, up from 2.7% in the second quarter of 2008 and 2.9% in the third quarter of 2007.

Clear indications that even for Telecom the economy is softening. Personally the bottom end of the market needs to be opened up. Let the market in small rural areas go unregulated for 5 years or so. Let capitalism work its magic of expansion and employment at the bottom end of the scale.

Sources various.

First it was Verizon and Sprint, then AT&T and T Mobile. Now Cricket has joined the 3G party. It’s a pretty decent fight right now, with 5 competing for relatively slow, but very mobile 3G data business. Look for an all out brawl when Clearwire brings in Wimax. Lucky Houstonians!

On Oct. 21, Cricket Communications Inc. unveiled its unlimited wireless broadband, or 3G (also known as third-generation), offerings. The launch took place just two months after Bellevue, Wash.-based T-Mobile USA Inc. launched its 3G service in the Bayou City.

The pair join existing providers Verizon Communications Inc., which rolled out its BroadbandAccess service in mid-2004; AT&T Inc., which began offering its LapTop Connect service in 2005; and Sprint Nextel Corp., which launched its Mobile Broadband service locally in August 2005 and upgraded it in April 2007. (Houston Business Journal)