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.

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.

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.

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.

Have you heard the buzz about the latest edition of the iPhone yet? I got an earful from a friend this past weekend; he just couldn’t stop showing me all of the amazing new features. The most popular change from the iPhone 4 to the iPhone 4S seems to be Siri, a voice-operated, personal phone butler. After countless demonstrations by my friend, I was convinced of Siri’s amazing abilities to understand everything he said and perform an unbelievable number of different tasks. Siri will read a text out loud, and then you can dictate a response back. Siri can search the internet with your exact search criteria. And Siri even has some hilarious responses to the most unconventional requests. If you ask Siri “tell me a joke,” she will respond with “I can’t. I always forget the punch line.”

Another interesting distinction of the iPhone 4S is the addition of a new type of Bluetooth chip. According to an article in USA Today, the latest iPhone can now communicate with a new class of wireless devices such as watches and heart-rate monitors. This is the first phone to contain this Bluetooth chip that uses very little power, but can connect to other enabled devices. Connecting to a watch could be useful to let the user know about an incoming call or text even if the phone is in another room. Another use would be to connect to a heart rate monitor that relays important information back to the phone, or perhaps for diabetics who could use it to check their glucose levels without having to prick a finger. According to the article, Motorola’s Razr, which hasn’t been released yet, is also expected to contain this Bluetooth chip. This new technology seems to open the doors to a wide range of uses, from entertaining to life-saving. I don’t have the iPhone 4S (yet), but from what I have seen and heard, it’s just the beginning of some incredible technological advances in cell phone technology.

September has not been a good month for AT&T. First the Justice Department sued them to block their $39 billion takeover of T-Mobile, and then Sprint joins in and files an antitrust lawsuit against them. We’re not even half way through the month! What’s next? The bigger question is whether AT&T can find a way past the full court press or is this the beginning of the end for their chances at wireless domination?

Sprint’s lawsuit just adds fuel to the fire by showing how much the merger would affect them and other smaller carriers if AT&T and Verizon have exclusive control of networks and 80% of wireless customers. But the biggest problem will come down to the Justice Department’s lawsuit. AT&T will need to prove that not only will this merger be beneficial to customers through things like better service and coverage, but show that customers will still have several options to choose from when it comes to wireless carriers in their area. Concerns about loss of jobs will also need to be resolved. With the right amount of lobbying, any suit (even one this big) can be settled. One positive is that these lawsuits have come earlier rather than later. Given that AT&T has until next September 2012 to gain approval, it should be ample time to do what they need to do to state their case. If AT&T gets through these two opponents (Justice Department and Sprint), it still leaves them in the final matchup with the FCC, which they have to win to gain the final clearance. The pressure will continue to be intense; we’ll see if AT&T can break through and hold the wireless crown in the end.

With the recent volatility in the stock market, I thought it would be interesting to look at the market from two perspectives.  One perspective is that as a stock owner, I want companies to increase revenues and drive up market share.  However, as a consumer, I want low, low prices with lots of free stuff.  This polarity is a difficult line for companies to walk with consumers/shareholders and a line that we have seen recently in the news from telecom companies.

AT&T recently scrapped its $10 per month charge for 1,000 text messaging plan in favor of a $20 per month unlimited text messaging plan or their family plan of $30 per month for unlimited texting across five phone lines.  As a consumer, I do not think I have utilized 200 text messages, let alone 1,000 text messages in a month.  However, I am likely in the minority.  CTIA (Cellular Telecommunications Industry Association) showed that text messages sent in the US increased from 1 trillion in 2008 to over 2 trillion in 2010.  The new AT&T plan is interesting to me in that they have eliminated the lower cost option, as well as increased the price for consumers.  Technically, existing consumers are still grandfathered into their old texting plans, but this revenue play appears to me as a new way for AT&T to gain additional revenue.  More revenue is always good for stockholders, but not necessarily good for consumers.  My take is that text message pricing might be difficult to increase since people can send free messages from competitor smartphone texting apps, such as GroupMe and Beluga, as well other communication vehicles, such as Skype. 

Verizon is also changing the telecom revenue landscape by introducing its new service of Verizon Video.  This on-demand application for 4G and select 3G Android smartphones allows streaming of over 250 current TV shows, sporting events, newscasts, and on-demand video.  The service will cost subscribers $10 per month, or $3 for a 24-hour pass.  A Verizon data plan is required because the service does not allow video to be accessed via free Wi-Fi.  The interesting decision by Verizon forces the Verizon Video subscribers to utilize data from their data plans and thus it will likely force consumers to run over their monthly data caps.  Again, does anyone know how much data usage occurs on their smartphone?  I know I never keep track.  This new service from Verizon will likely increase revenues and fees from the consumer, which is good for stockholders, but not necessarily ideal for consumers.  Likewise, the Verizon Video is currently priced higher than its competitors of Hulu and Netflix, both of which are priced at $7.99 per month and can be accessed via free Wi-Fi. 

 Will the revenues continue to increase for telecom providers from these new initiatives?  It is too soon to tell.  However, I know companies will continue to try to increase their fees and grow their revenues through new initiatives now and in the future.  Regardless, competitive pricing and healthy competition is good for both consumers and companies in the stock market.

Forgive me, readers, if I start blathering on like a teenage girl in the throes of puppy love for the first time. But I’ve finally found The One – The One I’ve been waiting for, The One that meets all my needs. It’s my mobile phone, and readers, I am definitely in love.

Let me take you back about 12 years to when I received my first cell phone. I think I was more in love with simply having a phone than really caring about the service. I considered my cell phone as one thing I had always wanted as a chatty teenager; my own private phone line. From that day, my mobile phone became my primary mode of communication. The first year or two, maybe even three years, I was content to have a basic phone and a basic plan. It didn’t matter – I could make and receive phone calls wherever I wanted.

As mobile service evolved, I upgraded my phone whenever possible, but I never really fell in love with an actual phone. I pretty much hated my last one. I picked the wrong phone for me. I can honestly say when it came to that particular model, “it’s not you, it’s me.” My needs are pretty simple: ease of use, good call quality, unlimited texting, email access, and the occasional Facebook update. My last phone had all of that except for ease of use. It was simply not intuitive, or I just couldn’t figure it out. Either way, we had a contentious relationship, my phone and I. That relationship came to a screeching halt two weeks ago when my phone gave up on me. I really don’t blame it. I treated it poorly and called it some not-so-nice names. After writing down all my contact information in a spreadsheet (I don’t trust my phone to transfer my contacts), I hightailed it to my nearest authorized retailer to look for a replacement.

Upon arrival at the retailer’s location, I was intrigued and anxious about learning how to properly use a new phone. Would I find something to meet my needs? Would I be capable of learning how to use it? Could I ever find a small bit of happiness with a piece of technology I’ve come to rely on? Readers, the answer to all three questions is a resounding “Yes.” I was overwhelmed by the number of choices I had, but kept drifting back to a particular model. I started playing around with it and found that it was set up almost as if it had been designed for me. It was clear, easy, simple, and perhaps best of all – cute. Yes, I partly based my decision for a communication device based on how aesthetically pleasing the exterior is. I ended up purchasing the HTC Status. It has the cool factor with a touch screen (which I like) but it also has a full QWERTY keyboard (which I need – touch screen texting does not work well with me).

So far, the honeymoon period is still in full swing. It’s been a lovely two weeks of talking, texting, Facebooking, and playing Angry Birds. I finally found a phone that gets me and I think we’ll be very happy together, until my next upgrade opportunity – but for now I’m in love with the one I’m with.

Could this be the end of paying for text messages? According to CTIA, monthly text messaging among Americans has soared from just over 14 million to nearly 188 billion over the last ten years. For much of that time, text messaging was a big money-maker for wireless companies, especially when those thumb-wielding teens surpassed their monthly limits with OMGs and LOLs. But lately, text messaging isn’t quite the lucrative add-on it once was. The evolution of the smartphone has brought with it numerous apps that offer free text messaging services such as GroupMe, Google Voice and WhatsApp, which utilize the existing data plan to send messages back and forth between users. There is also a new wave of proprietary messaging services. BBM (BlackBerry Messenger), which has been around for a few years now, allows subscribers to message other in-network subscribers for free. Apple now has plans to introduce a service that will compete with BBM called iMessage, which is an app scheduled to launch this fall for the iPhone. Facebook has also jumped on that bandwagon with its own free messaging app.

With so many options for free messaging, it seems that charging for text messages or text message plans may be a thing of the past. This could equate to a $9 billion loss for the U.S. wireless industry, according to a UBS report and data from CTIA. If wireless providers start losing money on texting, where will they try to win it back? What’s the wireless equivalent of checked bag fees?

On July 7th, Verizon joined other major carriers who no longer offer unlimited data for one flat monthly fee and now will have a tiered data plan.  Verizon followed AT&T, who did away with unlimited data plans last year.  T-Mobile does offer unlimited service, but it slows down data transfers for heavy users, thus effectively capping their usage in a practice known as ‘throttling.’  Sprint has even recently promoted its benefit of not throttling, or slowing down, users’ data after a certain point. 

So why is this change occurring and what effect might this have for competitors of Verizon, in particular Sprint?  It now leaves Sprint as the only major competitor to offer plans with unlimited data usage. 

With the continued growth and popularity of smartphones, such as Apple’s iPhone, cellphone carriers are trying to discourage heavy data usage due to limited network capacity to handle all of the wireless bandwidth.  Nielsen reported in June 2011 that the average amount of smartphone data usage had increased over 89% from 230 MB in Q1 2010 to 435 MB in Q1 2011.  (Maybe perhaps due to that Netflix app?  But I digress…)  However, Verizon spokesperson Melanie Ortel told Ideas@Innovations that 95% of Verizon customers use less than 2 gigabytes per month and Verizon will provide tools to monitor consumer’s data usage, including text alerts as they reach differing thresholds in their data usage. 

All this made me ask:  How much do I utilize in a month?  I have absolutely no idea.  So how am I supposed to choose a data plan that does not exceed my limit and therefore avoid costly overage fees?  Many consumers, like me, likely grapple with this question when carriers force them to choose a data plan.  It’s also interesting to note that Verizon’s new lowest pricing will be $30 a month for 2 GB of data, which was the same price it previously charged for unlimited data. 

Shing Yin, an analyst with Citadel Securities, believes that unlimited data offering from Sprint will be attractive, at least to folks at Apple (who currently do not work with Sprint).  He believes Sprint will want to offer its own version of the iPhone before Christmas and he “see(s) little reason for Apple to hold back.”  Sprint, which bills itself as a low-cost provider, and its potential new iPhone “could offer an attractive proposition for more price-conscious users,” and “could be a relatively stronger seller than the Verizon iPhone,” writes Yin.

I don’t believe current customers will depart from Verizon, since their current customers are grandfathered in with their data rate plans.  However, this may result in Sprint being the de facto haven for high data smartphone users.  Likewise, isn’t it interesting that Verizon is moving to this new-tiered data plan after offering the iPhone?  I think AT&T did the same thing of eliminating free data usage after offering its iPhone.  Then again, I wonder if Sprint will change its tune of free data usage, if and when, it offers its own version of the iPhone.  Time will tell…