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Andrew Davidson 
Susan Menke 
Susan Wolfe 
Lisa Hronek Telecoms
What Can I Do For You Today?
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.
Putting the Full Court Press on the AT&T Merger
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.
Increased Revenues? Or Low Prices?
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.
“Like” my phone? No, I “love” my phone
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.