An Ignoble Experiment

2. LG plans up to 600 new retail stores to goose smartphone sales

Sprint Nextel's (NYSE:S) Virgin Mobile USA prepaid brand is offering T-Mobile USA customers $100 to switch over to Virgin's no-contract service. The action is a response to T-Mobile's new no-contract business strategy.

According to Virgin, its plans cost $334 less than T-Mobile's plans over two years.

Virgin said that T-Mobile customers who switch their existing T-Mobile number before May 31, activate a new phone and make a payment by May 31 will get a $100 service credit on their account within the first 30 days of switching.

Virgin argues that its "Beyond Talk" plan at $55 per month offers a better value than T-Mobile's comparable $60 per month "Simple Choice" plan. Virgin said that, after reaching 2.5 GB, Virgin customers are throttled down to CDMA EV-DO data speeds, not 2G data speeds as with T-Mobile. In February Sprint began offering LTE service and smartphones through Virgin and its Boost Mobile brand.

However, smartphone mobile hotspot functions are included in T-Mobile's monthly bill and on Virgin mobile hotspot functions cost an extra $15 per month (but Virgin adds an extra 1 GB).

Virgin Mobile has emphasized that it has offered a no-contract option far longer than T-Mobile, and has dismissed T-Mobile's claim that it is "revolutionizing the industry." T-Mobile no-contract offering could put pressure on Virgin and other prepaid and no-contract players.

Sprint's LTE network now covers around 100 million POPs, a target T-Mobile expects to hit by mid-year. Both carriers expect to have 200 million POPs covered with LTE by the end of 2013.

T-Mobile's Simple Choice plans start at $50 per month and come with no annual contract or traditional device subsidies. Customers can either buy their smartphone outright for the full cost of the device or they can make a down payment and then pay for the remainder of the cost of the device in monthly installments. Additionally, customers can bring unlocked devices to T-Mobile.

For its part, T-Mobile is brushing off the criticism and targeting from Virgin Mobile. "We're not worried about it," said Andrew Sherrard, senior vice president of marketing for T-Mobile, in an interview with CNET. "Between the network, plans, and devices, we feel good about what we've got. There's no need to respond."

Sherrard and David Carey, T-Mobile's executive vice president for corporate services, told CNET that T-Mobile's new plans are generating momentum and excitement among customers and increasing traffic to T-Mobile's stores. "I have every reason to believe this momentum will continue and carry forward," he said, but he noted that it was too early to tell how well the plans are doing in the market.

T-Mobile's biggest hurdle will likely be convincing consumers that it is better for them not to be locked into a contract, which many customers are used to. Analysts have noted that T-Mobile's monthly device payment plan acts as a kind of contract.

"We realize this new construct would take a conversation," Carey said. "We had to talk about how different it was, and where the benefits are. When something is new and different, it'll take time for clarity to come by."

For more:
- see this Virgin site
- see this CNET article
- see this AllThingsD article
- see this separate CNET article

Related Articles:
Sprint launches prepaid LTE service through Virgin, Boost
Virgin Mobile forced to shed 1.6M Lifeline subs due to FCC overhaul
Virgin Mobile, C Spire testing handset financing programs
Verizon, AT&T, Sprint shrug at T-Mobile's new no-contract plans
T-Mobile kills wireless contracts, will launch iPhone 5 on April 12
T-Mobile undercuts AT&T, Verizon with new Value plans, starting at $50/month

Read more about: Sprint, Virgin Mobile
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This week's sponsor is ID Analytics.

By Phil Goldstein

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3. TracFone's Straight Talk denies 1.5 GB monthly data limit

LG Electronics plans to increase the number of its branded retail stores in emerging markets this year as part of an effort to boost its smartphone sales and market share amid intensifying competition.

In an interview with the Wall Street Journal, LG Executive Vice President Kim Ki-wan said the company will grow its retail stores beyond the 3,000 it currently has and will also open new stores in India, the Middle East and Africa. LG said the number of stores will likely grow by as much as 20 percent, or 600, this year, and will sell a variety of the conglomerate's products, including smartphones, TVs and home appliances.

The announcement comes days after larger rival Samsung Electronics announced a partnership with Best Buy to open 1,400 "Samsung Experience Shops" within Best Buy locations in the United States. Samsung said that by early May, 900 Best Buy and Best Buy Mobile stores will feature the new Samsung mini-stores, with the remainder launching by early summer.

For the full-year 2012 LG ranked as the No. 5 handset maker overall, according to IDC, with 3.3 percent global market share and 55.9 million shipments. However, those figures were down from 5.1 percent market share and 88.1 million unit shipments in 2011. In the fourth quarter of 2012 Chinese vendors ZTE and Huawei booted LG out of the top five handset rankings, behind Samsung, Apple (NASDAQ:AAPL) and Nokia (NYSE:NOK).

LG has been struggling to gain traction with its line of Optimus-branded smartphones, and has focused on LTE connections and screen technology to set itself apart. LG's business, while down in terms of unit shipments, is turning a profit--LG's mobile phone operation reported an operating-profit margin of 2 percent in the fourth quarter and 0.6 percent for all of 2012.

Kim told the Journal that LG's improving profitability will let it spend more on retail and marketing efforts to boost smartphone sales, though that could put pressure on the company's margins. "The increased marketing spending should have some benefit for LG Electronics' smartphone market share, especially in the mid to high end," Sanford C. Bernstein analyst Mark Newman told the Journal. "However, it will be tough to compete with Samsung and Apple."

For more:
- see this WSJ article (sub. req.)

Related Articles:
Samsung to open 1,400 mini-stores within Best Buys, challenging Apple
LG expands Optimus lineup, emphasizes LTE devices
LG rides high in Q4 with a 23% bump in smartphone sales
Huawei, ZTE blast LG, HTC, Nokia and others out of global smartphone rankings
LG's handset unit turns a profit in Q3 on smartphone strength

Read more about: samsung, LG
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By Mike Dano

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4. Android dominance targeted in Microsoft, Nokia antitrust complaint

Straight Talk, a prepaid wireless service from América Móvil's MVNO TracFone Wireless, took to its corporate blog to deny claims that it only offers users 1.5 GB of data per month.

"You may have heard rumors online that there is a hard cap of 1.5GB for data on Straight Talk," the company wrote. "We want to clear this up for you right away: We are NOT cutting off data at 1.5GB on Straight Talk. The data limit in reference only applies to Bring Your Own Phone (BYOP™) AT&T-compatible SIMs on our sister brand, NET10. In fact, most of our customers enjoy their unlimited data plans with no issues or complaints regarding their data speeds or service. Please see sections seven and eight of Straight Talk's terms and conditions for full details." (The bolding and links were included in Straight Talk's original post.)

In its post, Straight Talk also offers hints on how users can limit their data consumption, including switching to Wi-Fi when available and employing data-management apps like Onavo.

Straight Talk's comments dovetail with what a Straight Talk spokesperson told FierceWireless in January. The spokesperson, who declined to be named due to company policy, said Straight Talk evaluates customers' data intake on a case-by-case basis and will throttle the speeds of those users who the company deems to be consuming too much data. The spokesman said "continuous video streaming" and other data-heavy services could cause a user to consume too much data, in which case the company would contact the user and warn them of a possible slowdown in their data speeds.

Straight Talk isn't the only wireless company to employ this kind of case-by-case approach to throttling. Clearwire (NASDAQ:CLWR) in 2010 announced a network management system that allows the company to selectively throttle the data speeds of heavy data users.

Straight Talk offers unlimited talking, texting and data starting at $45 per month for select feature phones, Android smartphones and, as of earlier this year, Apple's (NASDAQ:AAPL) iPhone.

In the fourth quarter TracFone posted net subscriber gains of 753,000 customers in the fourth quarter, much higher than the year-ago period and better than its net subscriber additions in the first three quarters of 2012. TracFone ended 2012 with 22.4 million customers, making it by far the largest MVNO in the United States.

For more:
- see this Straight Talk post

Read more about: Tracfone, Straight Talk iPhone, data caps
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By Jason Ankeny

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5. AT&T, Boingo ink international Wi-Fi roaming deal

FairSearch, a coalition of 17 technology and search firms including Microsoft (NASDAQ:MSFT), Nokia (NYSE:NOK), Oracle, Expedia and Hotwire, has filed a formal complaint with European antitrust regulators alleging that Google (NASDAQ:GOOG) is exploiting its open-source Android mobile operating system to "cement its control over consumer Internet data for online advertising as usage shifts to mobile."

Google is using Android as a low-cost "'Trojan Horse' to deceive partners, monopolize the mobile marketplace and control consumer data," said Thomas Vinje, an attorney representing the FairSearch group, citing contractual agreements requiring Android device manufacturers to pre-install Google apps and services and award them prominent default placement. The complaint calls on EU officials to probe Google's "deceptive conduct to lockout competition" in the mobile market, adding "Failure to act will only embolden Google to repeat its desktop abuses of dominance as consumers increasingly turn to a mobile platform dominated by Google's Android."

According to FairSearch, Android powered 70 percent of smartphones shipped at the end of 2012. The group adds that Google controls 96 percent of the mobile search advertising market, citing eMarketer data.

Speaking Monday to The New York Times, EU antitrust chief Joaquín Almunia declined to comment on the FairSearch complaint but said officials are examining Android independently of its two-year inquiry into whether Google has abused its Internet search power. Almunia added that he expects to receive proposals from Google this week to clear up concerns over its search practices, expressing hope that the proposals will make it easier for consumers to identify when Google is promoting its own services as opposed to competing efforts that might deliver superior results.

"What is clear in our view is the market dominance of Google," Almunia said. "This is obvious."

Almunia added that Google must offer EU officials a solution that makes both Google-branded search results and competitor results visible within the search engine on both mobile devices and the desktop. "I don't know if you should call it labeling, or whatever, but they need to distinguish," Almunia explained. "In some cases this can be achieved through the information you will receive through the natural search results. In other cases, maybe we will ask Google to signal what are the relevant options, alternative options, in the way they present the results."

Almunia also said that "it would not be surprising" if Google faced formal charges in a case concerning its Motorola Mobility device manufacturing unit. Both Microsoft and Apple (NASDAQ:AAPL) have filed complaints against Motorola Mobility, alleging unfair licensing conditions and abusive litigation.

Contacted by The New York Times, Google spokesperson Al Verney declined to specifically address either the FairSearch complaint or Almunia's comments, saying only that the company continued "to work cooperatively" with the EU commission.

Google has already cleared one antitrust hurdle: In January, the Federal Trade Commission closed a 19-month inquiry into Google's search business and determined the company had not violated competitive restrictions in the U.S. market.

For more:
- read this New York Times article
- read this Washington Post article

Read more about: Android, Microsoft
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By Phil Goldstein

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SPOTLIGHT ON... Developer contests don't always produce clear benefits

AT&T (NYSE:T) and Boingo Wireless announced a reciprocal Wi-Fi roaming deal that will give AT&T subscribers access to Boingo's global network of Wi-Fi hotspots in major international airports. Additionally, Boingo customers traveling in the United States will get access to AT&T's Wi-Fi hotspot network throughout the country, including at airports, restaurants, sporting arenas and retail locations.

As part of the deal, AT&T customers who use the carrier's Wi-Fi International app can get access up to 1 GB of Wi-Fi each month at no additional charge. However they must also be signed up for AT&T's "Data Global Add-On with Wi-Fi" package, which runs $60 per month for 300 MB and $120 per month for 800 MB.

Boingo said its Wi-Fi hotspots at major international airports are available to AT&T customers today, with service continuing to expand throughout 2013. The agreement could help AT&T customers reduce their international roaming charges if they offload their traffic to Wi-Fi.

Representatives from Verizon Wireless (NYSE:VZ), Sprint Nextel (NYSE:S) and T-Mobile USA did not immediately respond to requests for comment on their own international Wi-Fi efforts.

Earlier this year AT&T said it recorded more than 2.7 billion connections to its Wi-Fi network in 2012. The carrier said the figure is more than double the number it recorded in 2011. Perhaps more importantly, AT&T also said it saw three times more mobile device traffic, over 5.2 billion MB, exchanged on its Wi-Fi network in 2012. The carrier said 40 percent more connections were made in the fourth quarter of 2012 from smartphone and tablet devices compared with the fourth quarter of 2011.

Both AT&T and Boingo are members of the Wireless Broadband Alliance and are participating in the WBA's Next Generation Hotspot (NGH) trials for seamless Wi-Fi roaming. The WBA's seamless and secure cellular-to-Wi-Fi roaming initiative likely will not launch commercially until early 2014, and when it does AT&T is likely going to be a leading player, Christian Gunning, vice president of corporate communications at Boingo, recently told FierceBroadbandWireless.

The NGH program is designed to do several things, both for end users and for carriers. For customers, their phones will be able to jump onto the best network available, whether that be Wi-Fi or the cellular macro network, without them having to actively switch networks.

For carriers, the benefit is, in theory, two-fold from a Wi-Fi offloading perspective. Under NGH protocols, Passpoint-certified phones that access Passpoint-certified network equipment will know which cell tower they are connected to. Carriers can set rules that would push cellular traffic from the macro network onto NGH Wi-Fi hotspots if a phone is connected to a congested tower. Secondly, carriers will be able to cut down on roaming costs.

For more:
- see this release
- see this AT&T site
- see this separate AT&T site
- see this The Verge article

Related Articles:
AT&T notches 2.7B Wi-Fi connections in 2012
Boingo exec: Enhanced cellular/Wi-Fi roaming to launch commercially in 2014
AT&T, others pass first hurdle in WBA's global Wi-Fi roaming effort
AT&T's SIM-based Wi-Fi roaming sets stage for Hotspot 2.0
AT&T, Boingo Wireless will help WBA foster Wi-Fi roaming

Read more about: boingo wireless
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Also Noted

This week's sponsor is CCA.

Competitive Carriers Global Expo. April 17-19, New Orleans, LA. Register Today.

The smartphone race is going to intensify this year, with BlackBerry (NASDAQ:BBRY) challenging Microsoft (NASDAQ:MSFT) to be No. 3 behind Google's (NASDAQ:GOOG) Android and Apple's (NASDAQ:AAPL) iOS. Developer support is key in this kind of environment--and developer contests are a common strategy companies use to generate additional apps for their platform. Some of these contests are open to almost any kind of app or mobile game, while others look at highly specific audiences and use cases, like an AT&T hackathon where developers will attempt to create something that relieves autism. The real challenge for many developers will be to decide if entering these contests is worth their time, energy and expense. So how can developers pick the best contests to enter? Find out more in this FierceDeveloper special report.

Quick news from around the Web.

@FierceWireless: RT@FierceMobiCo: Feature: How @Evernote refined the way it updates features and design. Article via sister site @FierceDeveloper | Follow@FierceWireless

> Alcatel One Touch appointed Steve Cistulli, a 20-year product development veteran, as the company's new senior vice president of North America. Release

> The HTC One has received glowing reviews. Article

> Samsung announced its Galaxy Note 8.0 will be released in the United States April 11. Release

> Rogers in Canada appears to be preparing to launch the BlackBerry Q10. Article

> Apple will reportedly release "at least" two iPhones this year with different screen sizes. Article

> Best Buy is selling and HTC One for T-Mobile USA for $250. Article

> Cincinnati Bell said it will sell the Sony Xperia ZL for $249.99 with a rebate and contract. Article

Mobile Content News

> Around 60,000 apps have reportedly been removed from Google Play in recent weeks. Article

> WhatsApp has refuted reports it is in talks to sell its over-the-top messaging platform to Google. Article

> Downloads from the four leading application storefronts--Apple's App Store, Google Play, BlackBerry World and Microsoft's Windows Phone Store--climbed to a total of 13.4 billion worldwide during the first quarter of 2013, an 11 percent increase over the fourth quarter of 2012, research firm Canalys reports. Article

Mobile Developer News

> Will Android developers feel 'Home' in Facebook's new offering? Article

> More than three-quarters of all revenue was generated via in-app purchases (IAPs), with 90 percent coming from Asian markets. Article

European Wireless News

> EE intends to sign up more than 1 million subscribers to its LTE network by the end of this year, as the UK mobile operator makes the most of its diminishing lead on rival operators by also promising to double average LTE speeds to 20 Mbps. Article

And finally… Texting while flying could have contributed to helicopter crash. Article

Jarich: Huawei vs. the world

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