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T-Mobile Up For Grabs Again
AT&T recently announced that its attempt to acquire fourth-place U.S. carrier, T-Mobile, is officially dead. Besides being a big loss of potential future earnings for AT&T, it also means the loss of $4 billion, which AT&T now owes to T-Mobile’s parent company Deutsche Telekom in the form of money and spectrum access. So who’s next in line to fight for T-Mobile? It appears that Sprint may be back at it again. Sprint had previously negotiated with T-Mobile, prior to AT&T’s deal, and it might try again in an effort to increase its 17% market share, and stay afloat in a market that is overpowered by AT&T and Verizon. However, there are some obstacles Sprint would need to overcome for a merger to even be possible. One is the severe cash shortage they are experiencing as a result of their recent acquisition of the iPhone. Another is network compatibility issues. At this point this is all just speculation, as there are potentially many buyers chopping at the bit to get a piece of the lucrative wireless market. Until anything is decided for certain, we can definitely expect to see that super tall girl in the hot pink dress a little while longer.
iPhone Network Comparisons
The iPhone is now offered on three different carriers: AT&T, Verizon, and Sprint. If you’ve been watching television lately, you might have noticed that the competitive ads are beginning to heat up; each one focusing on that network’s supposed strength. A recent study performed by Metrico Wireless, a mobile device performance analytics company, reported that AT&T wins for fasted data speed (plus AT&T is the only carrier that lets you talk and surf at the same time), Verizon has the most reliable phone service, and Sprint is getting lots of attention because of its unlimited data plan. The study by Metrico Wireless included 6,000 voice calls, 8,000 data doanload/upload tests, and more than 21,000 web pages. Among the three carriers, Verizon dropped the fewest number of calls (2.1 percent of the time), Sprint had the highest call quality on outbound calls, and AT&T had the highest call quality on inbound calls. When it comes to download speeds, Metrico concluded that AT&T was the clear winner with a maximum download speed of 6,047Kbps (Kilobits per second) – impressive compared to Verizon, which came in at 2,371Kbps, and Sprint with only 1,767Kbps.
However, what any iPhone customer will tell you is that when it comes to call quality and data speed, it’s all about location, location, location. It is unclear exactly where Metrico conducted its bandwidth test, so these results should be taken with a grain of salt. I have learned from personal experience that AT&T’s service can differ drastically from one area of Chicago to another, so state to state is sure to vary as well. Another interesting conclusion from Metrico was that the most recently released iPhone 4S performed perfectly across all three networks, 100% of the time. What I think this means, is that even though you might get a different experience on each network, it appears as though technological advances may be leveling the playing field.
Teens Rather Own a Smartphone than a Car
Getting your driver’s license and owning a car as a teenager was a rite of passage for many. It allowed teenagers the freedom to go wherever and whenever they pleased (within the constraints of their parents and curfew). However, a recent survey conducted by Ford and Gartner showed that 46 percent of people aged 18 to 24 would favor internet access over vehicular privileges. This compares with only 15 percent of baby boomers expressing the same desire. A possible correlation for this trend with teenagers might be in line with statistics from the Transportation Department that noted in 1978, 50% of 16 year olds had their first driver’s license , while in 2008, the same statistic for 16 year olds dropped to only 30%. Or as the fewer teenagers have driven over the years, the preference for smartphones among teenagers has increased. However, what causes teenagers to prefer a smartphone over a car?
In many respects, the smartphone allows some of the same benefits that owning a car allows. For example, a smartphone allows teenagers to connect and interact via friends through social networking and texting. Previously, interaction with friends had to occur in person or over a landline phone. Interaction is now digital, instantaneous, and over the web. Teenagers don’t have to spend time driving or money on gas to have the same interaction in person. (The cost of insurance, gasoline, repairs, and maintenance may also be another factor for the shift.) New smartphones also convey a certain lifestyle status with younger consumers (for example, the new iPhone 4S). This status with smartphones is likely similar to teenagers owning a new car in the previous years.
Sheryl Connelly, Ford Motor Company’s Manager of Global Consumer Trends and Futuring, also had an idea for the behavioral shift. Per Ms. Connelly, driving a car limits valuable time that teenagers can text-message with their friends or update their social networks. Even though public transportation, or waiting for a ride from mom or dad, is slower, the additional time allows teenagers more social time to engage with friends on their mobile phone.
This shift in preference should be a trend noticed and observed from marketers to teenagers. It is also definitely a sign of changing times when younger consumers care about the brands like Android and iOS more than BMW and Ford.
Time to get Personal with my Assistant
In the rare possibility that you didn’t realize it, Apple released the iPhone 4S recently, and after an unveiling that was met with mixed reviews, it still sold millions. Apple has long been great about making our lives easier with their innovative gadgets. It didn’t stop with this new version of the iPhone. I personally don’t have one, but figure if I am getting a new assistant I probably should be setting up an interview. This might be a little bit of what it sounds like:
DT: Thanks for coming in today Siri, I hope you didn’t have trouble finding the place.
Siri: No, not at all, I am able to access GPS as well as able to be very prompt with meeting reminders.
DT: Great I am very forgetful and often ignored the alarms on my last phone that I personally set, I am very much looking forward to dictating to you.
Siri: I can handle that. DT: I hope you can, because on my last iPhone when I used the Voice Control feature, I had no control. I would say “Call Home” and it would call anything but.
Siri: I can assure you that your calls will be made without any problems.
DT: Well, you are a phone, so that should be the most important thing, but more importantly can you write my texts for me via speech so that I don’t have to call the person?
Siri: Of course I can, this will also benefit you when you drive.
DT: Oh good point! See I knew you were smarter than me.
At this point, I am pretty much sold on Siri, even if it just helps me keep my eyes on the road while I drive, it would be very beneficial. Hopefully iPhone 5’s Siri can read me the ESPN article that I can’t wait to read until I get out of the car. I have always wanted a personal assistant to make myself feel as important as my ego thinks I am… in that case – I may need to take two assistants.
The real question I have regarding this is do we really need this? The Saved by the Bell Zach Morris phone of the 90’s was impressive because we didn’t need to be attached to a house to talk, texting revolutionized communication; Apple provided us with the iPhone that was the trendsetter for internet access and games on a phone; but do we need a touch screen phone that we can now operate without touching? I didn’t think I need any internet at my fingertips or flying birds attacking evil pigs, but now I can’t imagine my life without them. I guess if Apple tells me I need it, they know better than I do. They haven’t been wrong in the past. Let’s see where we are a year from now with this personal assistant. Just don’t forget to me remind me. Wait…Siri? Please read that last sentence and remind me to revisit this in a year.