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In February of 2007 I asked candidly if the fact that Verizon chose not to carry the iPhone will be remembered as a telecom blunder and more importantly I predicted in a year's time that we would look back at Verizon and say they really screwed up.

I still believe I was right about my prediction, just early. You see Verizon Wireless is still performing well from a financial perspective and thanks goes to the company's foresight in building a great network which consumers want to leave but just can't because it is that good. Another reason the company has done well to date is it has been able to steal share from Sprint.

But it is clear that the iPhone has exceeded the expectation of most every analyst and Verizon is finally scared. The first retaliatory shot fired by Verizon was carrying and marketing the Blackberry Storm and now Storm 2 - both touchscreen devices which are extremely iPhone like in their functionality and form. It is evident that this move was not enough and so the company has teamed with Google to bring out Android based phones.

But this is still not enough. Apple has a cult-like following and every application written for the iPhone makes it that much more difficult to compete with. Verizon realizes this and even has its own app store competition in the works.

But what has to drive Verizon execs crazy is the billboards and TV ads for iPhones and iPods. Apple is one of the best marketing companies around and certainly they are great at developing a handful of products consumers lust after.

In order to combat the marketing part of the equation, Verizon is coming out with an ad campaign taking aim squarely at the iPhone's weak points. And it should be mentioned there are lots of them.

Verizon's new ads target iPhone shortcomings

Some of these include no multitasking, no physical keyboard, a measly 3-megapixel camera, lack of customization (well without jailbreaking anyway), no widgets, no open development, no infrared camera and no battery changing.

A full two years after the iPhone was released, there may be finally a capable competitor in Motorola's new Droid phone. It has a 5 megapixel camera, 854x480 resolution, a 3.7" touchscreen, microSD slot, a decent sized keyboard which pulls out and a whole lot more.

But let us not get too hung up in feature envy as they can lead you astray. All too often the media (myself included) has focused on features when the user interface and subtle issues like being able to browse the web quickly are more important to users. Having said that, the inability to run any application you want and lack of multitasking are major iPhone drawbacks. The term jailbreak is appropriate because it allows you to break free from the closed application prison Apple puts its customers in.

The success of the iPhone should have taught mobile device makers everywhere that users want a polished product which has a very slick UI and they want to be able to surf as fast as an iPhone 3Gs and they want the phone to have a slick ad campaign which reinforces their decision to not buy an Apple.

Finally they want consistency. They don't want Verizon to abandon this ad campaign after they buy their phone. The phone is now like the car, people want it to be cool and hip and they want positive reinforcement. Porsche owners love to see Porsche ads and the same goes for the cell phone purchases consumers make. Droid is a very cool and hip name. It resonates. But if I have to state an early concern it is the squareness of this design. If we have learned anything from Apple it is that design matters. In other words, two years after the iPhone was released, Motorola has come out with a phone which looks worse. To me this is a signal that the company doesn't get design -still. And this should scare Motorola investors as Apple came up with the iPhone idea after their mobile phone joint-venture with Motorola failed and Cupertino realized that the mobile device company can't design a decent product.

What we know is Apple could use some real competition and RIM is certainly proving it is a contender. But let's look at the rest of the field. Microsoft's mobile initiatives are dying on the vine. Palm's Pre is a decent phone but it needed to come out before the iPhone because at this point I am not sure they can take share. Sony Ericsson and Nokia are choking. It is up to Google and in this case Motorola to provide resistance but one has to wonder (and excuse the Star Trek reference - but when discussing Droid - does one have a choice?) will resistance be futile?

The next time you are in a restaurant listening to some captivating tune and see other people in the restaurant signaling for others to be quiet as they hold their phone up to the ceiling, you may be witnessing someone using Shazam (dare I say Shazaming?) to try to discover the song which is playing. I have used the service quite often and I think it is amazing. It doesn't always work but when it does I am thrilled as without it, I am not sure how I would figure out what I was listening to.
 

The company just announced it got funding and moreover they have 50 million users worldwide with 15 million added since February of this year. Kleiner Perkins Caufield & Byers (KPCB) gave the company an undisclosed sum from its iFund which contains a cool $100 million which is being doled out to an iPhone developer near you.

Currently you can use the service for an unlimited amount of song discovery but going forward you will get five free songs per month and have to pay $4.99 for unlimited usage and other features. The company also plans to sell tickets to concerts and other media like video.

The ability to decipher the entertainment a person is enjoying could be a big step towards personalizing content delivery based on personal taste. In other words, if Shazam was to run on a mobile phone all day while it deciphers what you listen to on the radio and watch on TV, it could collect all the pertinent information needed to construct a personalized playlist of television programs and songs you may like.

Of course, this functionality may not be on the company's roadmap but if you start to integrate technology from Pandora and Slacker you could come up with some really interesting applications which could increase the relevancy of programming and advertising.

Of course KPCB is a top firm having funded very successful companies such as Google and Amazon. They must know Shazam has significant potential. It will be great to see how they navigate the mobile landscape to turn song discovery into profit.

A fascinating bit of reporting from the Wall Street Journal confirms some things that many in the communications industry already knew and some things we didn't.

1. eBay doesn't get Skype - this is as obvious as it gets.
2. The current Skype Management and investors don't want to deal with Niklas Zennstrom or Janus Friis
3. Mike Volpi, past Joost CEO wanted to change Skype's underlying technology to SIP - knowing this would upset Skype's founders Zennstrom and Friis - Coincidentally about five years ago at ITEXPO Niklas Zennstrom was giving a keynote and at the end of the presentation Andy Voss, founder of Session Border Conrol company Sansay asked why Skype doesn't support SIP. Zennstrom replied accurately that there are far more Skype endpoints than SIP endpoints.

What amazes me the most about this situation is that to all the people who understand Skype, there is a tremendous amount of value in the company and it is worth fighting over tooth and nail. To those who don't understand it - eBay for example, there is limited value.

This story keeps getting more interesting.

In the last two weeks I drove (well I was in the car anyway) for more than 1,500 miles meeting with tech companies in Montreal, Ontario, Massachusetts, Rochester, NY, Los Angeles and San Diego. The last stop on my latest trip was at CTIA where I saw dozens of companies from around the globe.

Most of my travels involve learning about companies in the communications and technology space and often advising them on how they can be more successful. Sometimes I get to see some very innovative solutions which I can't share at the time for a multitude of reasons (embargos, etc) and other times I get a firsthand look at things which I share as soon as I can. In many cases, companies ask me about TMC's experience in helping companies with their thought leadership, branding and lead generation activities.

As CEO of a media company which builds online, in-person and print communities for millions of global purchasing decision-makers each month, I have an unusual role of also writing about many of the companies, products and services I see. What is fun for me is finding new ways to bring buyers and sellers together. Buyers want to quickly learn about which products they should consider before purchasing and sellers are looking to sell as much as they can while spending the least amount in doing so.

It is an amazing place to sit because extremely often I see industry-changing technology which languishes because an engineer sets the marketing budget and has the corporate communications skills of sheetrock. Remember, I have an engineering degree so I feel I am uniquely qualified to beat up my brethren. Then there are the companies I visit where their products shouldn't be accepted for free, yet they sell in volume and make massive margins because they are able to communicate the benefits properly.

Then there are a slew of "Hail Mary" companies which have really cool products but no business model to speak of. Sometimes I can convince the founder of such a company to modify their offerings to actually make money but other times the companies die on the vine because they think they know best - after all, I just meet a thousand companies plus like them a year - what do I know?. Sometimes though the amazing happens and they  get purchased by a Google, Cisco or Oracle and thus the "Hail Mary" designation.

I am thrilled to act as a trusted advisor on PR and marketing issues and I figured it is unfair for me to only share information with people I choose to visit and subsequently I spoke on a webinar a month or so ago about hosted SEO which was well-attended and generated lot buzz in the industry. So many companies wonder about search engine optimization and what the trick is to ranking high. While there are lots of factors to consider, the basic premise is to write lots of content which people want to read and share with others.

SEO consultants get paid to help companies rank higher and in some cases they can boost a company's search rank for a while. But in the end, steady and relatively large amounts of content are what companies need to generate to rank high on various terms.

I could go on about building communities and improving SEO for hours - I am truly passionate about figuring out how to instantly bring a group of people with similar interests together on a single web portal. Coming from the world of magazines, it used to take TMC six months to build a mailing list and in many cases you really needed 18 months to do it right. Oh and did I mention you had to mail at least half a million subscription offers and it would cost you about $400,000 at a minimum to rent lists, print and mail your subscription forms? To show you how much things have changed, TMC has been involved in projects in the past few months where we built communities on new topics which are up and running and attracting hundreds of thousands of people in a matter of a few weeks. It is truly amazing to see how media has evolved through the use of news-generated, laser focused community building.

Again, these topics are a major passion of mine and something my team at TMC has gotten great at focusing on. The next webinar I will speak on takes place Thursday of this week, October 15^th at 12:00 PST and on it I will discuss how you can partner to boost your search engine marketing. I look forward to seeing you there. Be sure to register now so you don't miss it. As a reminder, you can view the archive if you aren't around at this exact time. Just be sure to register. Also, be sure to bring any questions you have. I look forward to answering them this week.

The Wall Street Journal has an interesting article today talking about Dallas-based venture funds which flopped by investing in telecom and networking companies. It explains that funds in Silicon Valley and Boston are doing better than those in Texas, Washington state or New York.

Coincidentally, today there is also news that online video company Ooyala has now raised $20 million and online video conferencing company ViVu raised $3 million. Both as you guessed it are based in Silicon Valley. Most importantly of course is the fact that wireless equipment maker Mass-based Starent Networks just got sold to Cisco for $2.9 billion.

If history is any guide and this trend continues, we can expect Mass and Silicon Valley to be parts of the country which recover more quickly from the economic downturn than the rest.

Where is my Mobile Data?

An overwhelming amount of wireless, communications and tech news is the best way to describe the last few weeks. Perhaps one of the most important nuggets is a catastrophic loss of T-Mobile USA Sidekick customer data and if you have one of these nifty little gadgets, be aware the wireless carrier asks that you not reset it. This issue highlights the problems with SaaS and cloud-based services. Google, thought to be the gold standard of hosted data companies has suffered outages and so have Amazon and Salesforce.com. The one constant here is cloud-based services seem to be as error-prone as CPE equipment which makes sense. If it can better, it will gain a larger share of the data center pie.

Android is Everywhere

But for Google, cloud computing is just one of many projects they have their hands in. Last week at the CTIA show in San Diego I witnessed Google Android everywhere... Android has even caused Verizon to start getting along with the search leader. And you wondered why that Nobel Peace Prize was awarded. At the same time, Microsoft rolled out Windows Mobile 6.5 and this platform is just not cutting it as it is tired and old. Once upon a time I marveled at this OS but then again I did the same with my Commodore 64 back in 1982. Yes it's getting better, but I used it myself and wasn't too impressed. One thing for sure is the web browsing on an iPhone 3GS seems to be far superior to either competitive mobile OS.

Will a Mobile Search for "Microsoft" Show Results?

The scary part of this equation for Microsoft has to be that they are in danger of losing the mobile device OS race altogether. And this is where Google and Microsoft will tell you the future of search is. In fact, Google is looking to tightly couple search with mobility in a way which will offset their inability to effectively compete with the sheer slickness and elegance of the iPhone.

AT&T Hates Google and Apple Learns From Decades of Defeat

Two points worth mentioning are that AT&T may be distancing itself from Google (hint, they aren't friends) and moreover, Android has some challenges ahead of it - primarily figuring out what Android really means in a world where open source platforms are able to grow in various and competing directions quite rapidly. The problem of course is for users and developers looking to easily roll out apps across a broad range of platforms which are all supposed to be equivalent. In reality they aren't and developers have to deal with individual phone models when programming for Android. The process is not as easy as it should be. Finally the concept of Apple owning the hardware shows how this can be superior to the open hardware scenario. Sure, it can cost more for non-open hardware which is controlled by a single provider but Apple seems to have learned from its experience of getting kicked in their rear by Microsoft in the eighties. They have realized it makes sense to price mobile devices reasonably (or have the carrier chip in as needed) so they can profit from software and music. Back in the eighties when we were all listening to Journey, Apple didn't get a cut of every piece of software on their platform. Now (what do we listen to nowadays?) they do. So for Apple, they have to be price competitive with their phones as they make it up on the backend.

Microsoft's Acquire or Die Mobile Strategy?

Going forward, Microsoft has its work cut out for it if it wants to be a major player in mobile search. After all, they are losing share and quickly in the mobile world. It seems they need to try and pick up Nokia and/or RIM and tell those pesky regulators this is the only way they can compete effectively with Google Android.

Why Develop a Revenue Strategy, We are having too much fun Prematurely Aging Ballmer?

Then again, some will point to the fact that Google hasn't figured out their mobile search strategy - and to some degree they are right. But to me the model is pretty obvious. Dominate the apps and service market by giving it away and then experiment endlessly by showing ads in various formats until you find a way to make money without upsetting (too many) users or advertisers. This is not rocket science as Adwords was born in this manner and YouTube is the latest Guinea pig. Just recently in fact, the company started to insert ads in the Google Maps application of the iPhone. Of course this is likely the reason Apple decided to buy a mapping company - they either don't like the idea of the company behind Android profiting from their platform or they are interested in getting a piece of the advertising pie for themselves. Maybe both - stay tuned.

Spare some Change? Here's a Decade's Worth

The one constant in communications is change and more change. We have ourselves an industry where new paradigms are invented constantly and new competitors emerge from unlikely areas. All the while, existing players have to learn how to navigate alliances and competitive sets to emerge as credible and profitable players in a mobile, broadband and fixed-line ecosystem of dizzying complexity.

From where I stand, fewer things can be more exciting. But for the companies making the products and those looking to partner and purchase, try not to blink or you could miss major and ground-breaking news. This is not Internet time, we have gone to the next level - things are happening at optical or photonic speed. Boy is it exciting. I'll have more to discuss soon but for now I need to brew a fresh pot.

Yahoo is increasing its focus on mobile devices with the recent rollout of a mobile home page which distills the best parts of the Yahoo! Web browser home to the important areas you need to know about. On an iPhone the new mobile home page is sleek and easy to use. Some new features include enhanced RSS reading I am looking forward to trying as well as enhanced video and better content uploading and pagination.

Some interesting stats from my interview today with Yahoo's Keith Saft are that from April of this year to now, the company has increased its markets covered from 17 to 32 and devices supported have gone from 400 to 1,900 leading me to wonder, do we really have more than 1,900 mobile devices in the world? Wow.

The video below goes into detail on Yahoo's mobile strategy and how the company differentiates itself in the market and where it thinks it will be able to generate revenue on the go.

While Yahoo! has absolutely amazing customer loyalty in many areas such as email and content such as financial and sports, I get the sense the company needs to be more aggressive in taking on Google in the mobile area. Still, the new Yahoo Mobile is a massive step in the right direction and I am sure shareholders hope the company will gain revenue-generating momentum from its success.

AT the CTIA show in San Diego I had a chance to sit down and speak with Latha Kalainesan the Practice Head of Cable & Wireless at outsourcing leader Infosys. Latha had some interesting comments regarding the M2M market worth listening to below.

I have been meaning to thank my tech vendors for a while - the companies which allow me to be as productive as possible on the road. I am going to be brutally honest and not sugar coat so brace yourselves.

Verizon EVDO - without this gem of a service I am not sure where I would be. I am able to upload 30Mb files in rapid-fire fashion as I perform video interviews worldwide. Moreover I am almost always connected to this service when there is no WiFi alternative. Amazingly, it is often faster than hotel broadband!

iPhone - Thank you Steve Jobs for reinventing the way a wireless phone works and in the process producing an environment where developers flourish providing applications which make the world a better place. In the interest of being honest, the lack of Flash support and multitasking for non-Apple apps is upsetting.

Verizon MiFi 2200 - All that you love about Verizon with the benefit of WiFi access.

Boingo* - A lifesaver when you have a few minutes to log onto a foreign WiFi network and don't want to establish an account. I have tested it worldwide and am happy with the service.

Dell Latitude E6500 - What an amazing laptop when it comes to battery life - but when it comes to Dell's ControlPoint Connection Manager which manages the wireless connections, this is the buggiest piece of crap I have ever used.

iGo AC power Adapter - they make a small and light adapter allowing me to power-up in the car and plane but it has lots of problems when it stops working from time to time. This is my third one in about five years and I am pretty fed up with its finickyness (Yes, I know that's not a word).

Plantronics** - I use this company's headsets in my office, on the go and even a stereo Bluetooth headset when I am in the need for great sound without wires. The company has solid products that are a pleasure to use. This was not always the case. They have evolved nicely over the last eight years.

CellPoint Flamingo Headphones* - Flamingos are the best wired headphones I have used from the perspective of staying in the ears. They are virtually impossible to shake out regardless of what you do.

Brookstone NXT flat-panel speaker - just plug it into a laptop or phone and play music from this device the size of stack of 25 postcards. It chews through batteries fast but packs the most sound for its weight and space.

Macbook Air - Great for presentations - people love this thing. The downside is it is finicky and I still haven't figured out how its keychain works.

Glance Networks* - One of the best services for screen sharing around... It doesn't have all the bells and whistles but is dead easy to use.

Targus Rolling Laptop Case - It works well, and takes a beating - carrying everything in this blog entry and more.

D-Link DWL-G730AP - This little gadget turns any wired connection into a wireless hotspot/access point. It works flawlessly and has been a pleasure to use.

Bose QuietComfort 3 headphones - they work great but are too pricey and should at least let you listen to music when the battery dies.

TomTom Go 740 Live - this GPS unit is not especially small or easy to read in the sun but it does let you connect to Google search and gives you real-time traffic alerts for $10/month. During a massive rainstorm it rerouted me twice in an hour and saved me precious time. It is a good, not great product which has proven to be more and less accurate than an equivalent Garmin unit. Its graphics are far inferior to Garmin. Also the connection with the base unit is flaky and not reliable.

Skype - Lets me talk to and see my family on the go - likewise with coworkers and colleagues. I hate when someone I don't know too well sees I am online and wants to have a lengthy chat discussion. Just because I am online doesn't mean I am not in a meeting, etc. Presence is not always accurate especially for me as I am always online. What I am saying is - hey, how about asking if I have a moment? Pretty please.

Google - Do I need to explain? I must search 100 times a day at least.

Remote Desktop - Microsoft Software which has saved my life allowing me to be as productive as possible on the road by "pretending" to be in the office. It hangs one out of a hundred times or so but otherwise it is great.

There is probably more but this is enough for now. Time to get back and put some of this tech to work.

The FTC has a new rule on disclosure of paid blogs/reviews with an $11,000 fine per offense so * denotes a free product/service and ** denotes some free products.

I applaud the FTC on this great idea which should reduce conflict of interest and wonder if they will move forward to ensure financial rating agencies, other government agencies and elected officials will have to play by the same rules as bloggers. I would love to know which laws are influenced by lobbyists and gifts on corporate jets for example. I am looking forward to seeing this happen but am not holding my breath.

With so much riding on Windows Mobile 6.5, you figured Microsoft would get it right. A tremendous headstart in the mobile OS game has been squandered as RIM, Apple and now Google eat marketshare like famished termites in a mostly foreclosed subprime neighborhood. I haven't had a chance to test Windows 6.5 yet but at least one reviewer says it sucks. This is not a good start for an OS many were hoping would be a serious competitor to the new entrants in the market.

Wonder what this news means for Windows 7.