Carl Ford
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A Kinder Way to Interpret the Sprint's Numbers
July 29, 2009
The Wall Street Journal was pretty hard on Sprint as was the Kahuna on CNBC.
However the reality is the losses to the iPhone are proportionately less than Verizon has suffered. It may be for a few reasons. First of all Sprint may have a good understanding that its customers base is price sensitive.
The long tail of the iPhone is only a long tail for a specific segment of the market.
The prepaid services of Boost and Virgin Mobile are probably a case of eating your own young, but it seems to be keeping them in the same tent. However this migration impacts the profit margin harder.
The acquistion of Virgin Mobile also represents an impact on the botton line, since being the supplier was more profitable than being the service.
Richard Branson like so many other entrepreneurs has found telecom to be as bad a market as the airline industry, which may be why his efforts for green technology are not particularly network oriented.
On the other side of the equation the eating of their young via Clearwire and the outsourcing to Ericsson indicate a desire to get to the right price points to compete in the market. I think there are opportunities for continued consolidation and Sprint may find new growth in wholesale services and machine to machine markets. Remember its Sprints WhisperNet that supports the Amazon Kindle.
Additionally, Sprint's relationship with Ericsson may provide a more logical migration strategy to LTE from CDMA.
So this may be downside of the U for Sprint may be near.
However the reality is the losses to the iPhone are proportionately less than Verizon has suffered. It may be for a few reasons. First of all Sprint may have a good understanding that its customers base is price sensitive.
The long tail of the iPhone is only a long tail for a specific segment of the market.
The prepaid services of Boost and Virgin Mobile are probably a case of eating your own young, but it seems to be keeping them in the same tent. However this migration impacts the profit margin harder.
The acquistion of Virgin Mobile also represents an impact on the botton line, since being the supplier was more profitable than being the service.
Richard Branson like so many other entrepreneurs has found telecom to be as bad a market as the airline industry, which may be why his efforts for green technology are not particularly network oriented.
On the other side of the equation the eating of their young via Clearwire and the outsourcing to Ericsson indicate a desire to get to the right price points to compete in the market. I think there are opportunities for continued consolidation and Sprint may find new growth in wholesale services and machine to machine markets. Remember its Sprints WhisperNet that supports the Amazon Kindle.
Additionally, Sprint's relationship with Ericsson may provide a more logical migration strategy to LTE from CDMA.
So this may be downside of the U for Sprint may be near.
If ATT has Apple, and Sprint has PalmPre, VZ & RIM
July 28, 2009
The Key to the Future is the Internet.
Verizon WIreless says the Future is Open
July 28, 2009
"This an enormous shift for Verizon" - Jim Basilie RIM
Straight Shooters
July 28, 2009
The U.S. Army has used technology as its weapon for decades. Today technology plays a vital part in military success--from gathering top-secret information to manufacturing efficient arms.
Many military technological applications need broadband service to operate, such as radio communication, video surveillance, and security. The military must ensure that its communications infrastructure can operate in a large coverage area--such as a battlefield--and is efficiently communicative among its soldiers. However, finding the right technology was a challenge.
The Army attempted to deal with this issue by developing the Joint Tactical Radio System (JTRS), a program that evolved from a loosely associated group of radio replacement programs to an integrated effort to network multiple weapon system platforms and forward combat units at the last tactical mile. It aimed to create software-programmable tactical radios that would provide soldiers with voice, data and video communications as well as interoperability across the battle space. The JTRS needed to use a network of wide bandwidth that would also be compatible with the existing waveforms in use by the Department of Defense. The Army began testing the $6.8 billion JTRS program in June 2003, but the project was set back by several financial obstacles and failed to carry through. The JTRS was restructured in 2005 to offer other types of warfighter applications using the Global Information Grid (GIG).
Then in December 2006, Motorola began producing the MicroTCA. The MicroTCA provides a scalable, low-cost network-centric paradigm for effective connectivity between soldiers. In addition, the MicroTCA is ruggedized in order to cope with the harsh climate of the battlefield. In October 2006, Motorola, Intel, and Hybricon developed a ruggedized MicroTCA-based WiMAX demonstration platform at MILCOM, an international conference for military communications. Combined, the MicroTCA and WiMAX network offered open standards-based subsystems on many different mobile platforms integrated into a high-performance network, physically fit for a military environment.
Many military technological applications need broadband service to operate, such as radio communication, video surveillance, and security. The military must ensure that its communications infrastructure can operate in a large coverage area--such as a battlefield--and is efficiently communicative among its soldiers. However, finding the right technology was a challenge.
The Army attempted to deal with this issue by developing the Joint Tactical Radio System (JTRS), a program that evolved from a loosely associated group of radio replacement programs to an integrated effort to network multiple weapon system platforms and forward combat units at the last tactical mile. It aimed to create software-programmable tactical radios that would provide soldiers with voice, data and video communications as well as interoperability across the battle space. The JTRS needed to use a network of wide bandwidth that would also be compatible with the existing waveforms in use by the Department of Defense. The Army began testing the $6.8 billion JTRS program in June 2003, but the project was set back by several financial obstacles and failed to carry through. The JTRS was restructured in 2005 to offer other types of warfighter applications using the Global Information Grid (GIG).
Then in December 2006, Motorola began producing the MicroTCA. The MicroTCA provides a scalable, low-cost network-centric paradigm for effective connectivity between soldiers. In addition, the MicroTCA is ruggedized in order to cope with the harsh climate of the battlefield. In October 2006, Motorola, Intel, and Hybricon developed a ruggedized MicroTCA-based WiMAX demonstration platform at MILCOM, an international conference for military communications. Combined, the MicroTCA and WiMAX network offered open standards-based subsystems on many different mobile platforms integrated into a high-performance network, physically fit for a military environment.
Verizon Developer Community Conference
July 28, 2009
I am in San Jose for the Verizon Developer Community Conference, It should be an interesting an event, they have brought their execs here to speak to folks in California. One thing I expect to here is the need for LTE for future applications.
I am going to be listening for the way that people react to the ideas Verizon has for their network app store that is independent of a device, and their vision for a network API that is not independent of the carrier.
My friend Andy Abramson recently highlighted the Gizmo5 to Google Voice which can also support Skype connection. For the end user, this is great stuff the more you can make a free call the better.
From the view of a network operator, the question is why are these types of applications compelling? Is the price the only thing that matters? Or is the value connectivity something that should be enabled on their network.
I will be very interested to hear the conversations at the event.
I am going to be listening for the way that people react to the ideas Verizon has for their network app store that is independent of a device, and their vision for a network API that is not independent of the carrier.
My friend Andy Abramson recently highlighted the Gizmo5 to Google Voice which can also support Skype connection. For the end user, this is great stuff the more you can make a free call the better.
From the view of a network operator, the question is why are these types of applications compelling? Is the price the only thing that matters? Or is the value connectivity something that should be enabled on their network.
I will be very interested to hear the conversations at the event.
Ericsson Powers US Up During the Low Down
July 27, 2009
The Wall Street Journal has it right in pointing out that Ericsson has positioned itself well in the US Market. The acquistion of the Nortel assets, its selection by Verizon as an LTE supplier and its deal with managing Sprint's network has evolved into a dominating force. And it comes at a time when transitions are going to be lengthened.
My personal perspective on the acquisitions and mergers is that they never go through a comprehensive integration without a year of positioning. Leaders become lurkers, Lurkers become darlings and systems that looked synergistic die on the product management life cycle.
However, this is a good time to be assimilating the products of Nortel since the purchasers are moving at a steady pace toward something in the long term. Verizon had a 21% decline in profit and is betting on LTE like it bet on FIOS. It may be that the best hope for Verizon is in the soon to be released Apple Netbook.
However, the bleeding
Assessments and Evaluations are going to be a big part of the rest of the year as the network operators look to manage capex costs to match the slow market.
Craig Moffet correctly pointed out that Verizon is good at playing the share gain and their acquistion of Alltel was the best part of wireless growth.
My personal perspective on the acquisitions and mergers is that they never go through a comprehensive integration without a year of positioning. Leaders become lurkers, Lurkers become darlings and systems that looked synergistic die on the product management life cycle.
However, this is a good time to be assimilating the products of Nortel since the purchasers are moving at a steady pace toward something in the long term. Verizon had a 21% decline in profit and is betting on LTE like it bet on FIOS. It may be that the best hope for Verizon is in the soon to be released Apple Netbook.
However, the bleeding
Assessments and Evaluations are going to be a big part of the rest of the year as the network operators look to manage capex costs to match the slow market.
Craig Moffet correctly pointed out that Verizon is good at playing the share gain and their acquistion of Alltel was the best part of wireless growth.
New marketing message comes through loud and 'Clear' in Vegas
July 23, 2009
Our quick impression from a full day and a half spent inside the Clearwire bubble, at the company's "official" market-launching event in Las Vegas on July 21: The nascent national WiMAX-providing company seems well past its sometimes-confusing stumbles of 2008 and into full execution mode, showing it can put on a confident, coherent local event even as its overall marketing, pricing and demographic messages remain somewhat a work in progress.
The ability to stage a fairly seamless, fun and informative day on the small stage of Las Vegas still doesn't answer how Clearwire will fare when it takes on the bigger challenges of market launches in places like Chicago, Dallas and Philadelphia, which still lie ahead on the company's ambitious 2009 rollout schedule. But embedded within the Vegas-flavored parts of Tuesday's proceedings were some new, strong marketing messages, which, if coupled with continued execution on the networking side of things, should bring cheer to Clearwire investors, partners and customers as the WiMAX express rolls onward.
While we'll dive deeper into some of the proceedings and interviews we conducted during the event in later posts and reports, Clearwire followers should remember the line "more for less," which we heard quite often Tuesday and will likely hear again and again at subsequent launches. Until now, a big problem with Clearwire's WiMAX offering has been that the company itself didn't know how to best position it -- how exactly do you best pitch a service that delivers wireline-like broadband with the mobility of a cell phone? Before the Vegas event, you could and often would get different answers depending on which Clearwire executive you spoke to.
Tuesday, several different executives all seemed to be "on message" with the cost-saving idea, making it pretty obvious to anyone listening that Clearwire's promise was mainly about giving you more of what you need -- mainly Internet access -- for less.
The ability to stage a fairly seamless, fun and informative day on the small stage of Las Vegas still doesn't answer how Clearwire will fare when it takes on the bigger challenges of market launches in places like Chicago, Dallas and Philadelphia, which still lie ahead on the company's ambitious 2009 rollout schedule. But embedded within the Vegas-flavored parts of Tuesday's proceedings were some new, strong marketing messages, which, if coupled with continued execution on the networking side of things, should bring cheer to Clearwire investors, partners and customers as the WiMAX express rolls onward.
While we'll dive deeper into some of the proceedings and interviews we conducted during the event in later posts and reports, Clearwire followers should remember the line "more for less," which we heard quite often Tuesday and will likely hear again and again at subsequent launches. Until now, a big problem with Clearwire's WiMAX offering has been that the company itself didn't know how to best position it -- how exactly do you best pitch a service that delivers wireline-like broadband with the mobility of a cell phone? Before the Vegas event, you could and often would get different answers depending on which Clearwire executive you spoke to.
Tuesday, several different executives all seemed to be "on message" with the cost-saving idea, making it pretty obvious to anyone listening that Clearwire's promise was mainly about giving you more of what you need -- mainly Internet access -- for less.
Review of the Clearwire Guerrila Marketing Campaign
July 23, 2009
It's not a phone, it's the Internet.
I went to Las Vegas to attend the market launch by Clearwire.
The launch is reaching out to a population of 1.7 Million in a 638 mile area. The launch today continues the road show by Clearwire as they open up new areas around the country. The obvious goal is to keep the bandwagon going. The momentum is certainly heading that way, the stock (NASDAQ: CLWR) has doubled since last year and the company is expanding their rollout strategy. However, the goal is not upgrading existing customers, but to get new customers. It's an uphill battle that requires putting Gorilla Marketing to work.
On Local TV: Clearwire embraced the town of Las Vegas by having the mayor cut the cat 5 cord and donating 20 WiMAX netbooks to the Virtual High School. Taking a shot at Verizon, Clearwire's commercial features cupcakes with sprinkles, like the sprinkles of the Verizon add, except here the sprinkles shower down from the sky beyond the Skittle showers of commercials gone by. The event ended with 500 balloons containing gifts of service and other gifts being dropped on to the local audience.
Street Warfare: The truck is green, with glass panels surrounding two rooms. A living room area and complete with laptop and HD Screen, the second room resembles an office which includes a chair, a desk and of course a laptop. As the truck is driven around Las Vegas, Clearwire employees work in the living room and the office. On the body of the truck is the statement declaring this is not a truck it's a mobile office.
I went to Las Vegas to attend the market launch by Clearwire.
The launch is reaching out to a population of 1.7 Million in a 638 mile area. The launch today continues the road show by Clearwire as they open up new areas around the country. The obvious goal is to keep the bandwagon going. The momentum is certainly heading that way, the stock (NASDAQ: CLWR) has doubled since last year and the company is expanding their rollout strategy. However, the goal is not upgrading existing customers, but to get new customers. It's an uphill battle that requires putting Gorilla Marketing to work.
On Local TV: Clearwire embraced the town of Las Vegas by having the mayor cut the cat 5 cord and donating 20 WiMAX netbooks to the Virtual High School. Taking a shot at Verizon, Clearwire's commercial features cupcakes with sprinkles, like the sprinkles of the Verizon add, except here the sprinkles shower down from the sky beyond the Skittle showers of commercials gone by. The event ended with 500 balloons containing gifts of service and other gifts being dropped on to the local audience.
Street Warfare: The truck is green, with glass panels surrounding two rooms. A living room area and complete with laptop and HD Screen, the second room resembles an office which includes a chair, a desk and of course a laptop. As the truck is driven around Las Vegas, Clearwire employees work in the living room and the office. On the body of the truck is the statement declaring this is not a truck it's a mobile office.
The Internet as a Bundle
July 22, 2009
I have posted in the Newsletter about the Clearwire launch yesterday, but I was struck by the conversations with the company employees. They were using the Internet service with their own preferences,
One of them always had a device open with them in the car to listen to their choice in music via Internet Radio.
The other was using an iTouch to watch his slingbox and commenting on the fact that the video was smooth and unblocked.
Another was a Hulu user who was talking about getting a great stream of video to his home TV.
And of course they all used Skype.
Bottom line it was not a triple play. There service is access to the Interet and the bundle is what you choose to do on it.
Pretty straight forward and suggests a very focused business plan.
If you are not trying to run a three services to the same place, can you build the one service cheaper?
I think operationally the answer is yes.
One of them always had a device open with them in the car to listen to their choice in music via Internet Radio.
The other was using an iTouch to watch his slingbox and commenting on the fact that the video was smooth and unblocked.
Another was a Hulu user who was talking about getting a great stream of video to his home TV.
And of course they all used Skype.
Bottom line it was not a triple play. There service is access to the Interet and the bundle is what you choose to do on it.
Pretty straight forward and suggests a very focused business plan.
If you are not trying to run a three services to the same place, can you build the one service cheaper?
I think operationally the answer is yes.
Samsung Selling Mondi MID for Clear WiMAX, $449 Unlocked
July 22, 2009
When we told you this morning that the Samsung Mondi MID was going to be available soon, we didn't know that soon means now! After chatting with Samsung's Kim Titus, he told us the device is available now in an unlocked format directly from Samsung for $449 ($454.94 with shipping). And on Aug. 1, Titus said the Mondi will also be available in Clear stores and Best Buy locations in all live Clearwire markets (Baltimore, Portland, Ore., Atlanta and Las Vegas), at the $449 unlocked price as well as a $349 option with a two-year Clear contract.
We played around with the device a bit at the Clearwire Las Vegas launch event, and were impressed how well the touch-screen and software keyboard works. There is a hard keyboard too.
We played around with the device a bit at the Clearwire Las Vegas launch event, and were impressed how well the touch-screen and software keyboard works. There is a hard keyboard too.
