| Editor's Corner: I love Motorola's Project Ara for modular phones - I just don't think it will work Also Noted: Fierce Innovation Awards 2013: Telecom Edition
Spotlight On... HitBliss, Target Ticket and Vevo challenge Netflix, Amazon in online video
Motorola rumored to be building the Moto G; Some of Apple's new iPhones have battery problems and much more... Industry Voices: Juniper: In-app advertising is ripe for growth as rich media and RTB gain prominence  They said what??!? Top wireless executive quotes of 2013
It's no secret that the vast majority of what wireless executives say in public is not surprising. Usually it's a recitation of phrases, talking points and ideas they have made in the past that they are simply reinforcing. However, every once in a while, in an interview or unguarded moment, wireless executives can let loose a whopper: Special report
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News From Across the Wireless Industry:
1. Comcast launching out-of-home streaming with rebranded Xfinity TV Go app
2. Level 3 CNS revenues climb to $1.4B, helping narrow losses
3. FCC establishes new rules to overcome rural call completion issues
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I love Motorola's Project Ara for modular phones - I just don't think it will work
Google's (NASDAQ:GOOG) Motorola division made a splash by unveiling Project Ara, its open-source modular phone project that will work with Phonebloks, a similar effort, to craft a system that will let users around the world customize the hardware of their phones. It's an entirely laudable goal, both from an environmental perspective (Why throw out your whole phone when one component fails?) and from a user's perspective (Why wait a year to get a more powerful processor? Why settle for the camera your handset maker of choice decided to give you? Why not decide to jettison a camera altogether in favor of a projector?). It's not a new idea, either (see the failure of Modu). I just don't think it can get off the ground and practically function. All of this comes down to generating and harnessing the enthusiasm of a massive group of people. They need to buy into the idea that customizing your phone, component by component, is worthwhile. If Google, Phonebloks and any of their partners cannot do that, their goal of "a more sustainable and democratic smartphone" is doomed. A lot of this is going to depend on how Project Ara is structured, and that is still up in the air and will be determined by the feedback the project gets from the Phonebloks community. Motorola expects to have an alpha release of the Module Developer's Kit (MDK) sometime this winter. "There are a lot of ways this could take shape between what we have today--with no customization of an individual [smartphone] model--and of completely mixing and matching components," noted Reticle Research analyst Ross Rubin. There are many examples of modular development in the electronics and machine worlds. The SEMA show brings together auto enthusiasts who build custom cars. The Xi3 Corporation helps build custom computers. Bug Labs even brings modular design to "Internet of Things" applications and components. In all of these cases though, a small group of enthusiasts power the development. It's not a mass market phenomenon. What will keep Project Ara from meeting the same fate? At this point, it's not clear...Continued  More
Read more about: Smartphones
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Today's Top News 1. Sprint to cover 100M POPs with 2.5 GHz LTE by end of 2014
Sprint (NYSE:S) posted its first quarterly net profit since 2007 in the third quarter under new ownership of Japanese parent SoftBank. However, the carrier still lost subscribers as the hangover from its shutdown of the Nextel network at the end of the second quarter continued to hurt its results.  | | Click here for key slides from Sprint's third quarter earnings presentation. | SoftBank, which took control of Sprint in July, now owns around 80 percent of the company, and has pledged to turn it into a stronger competitor against its larger rivals, mainly by taking advantage of the 2.5 GHz spectrum Sprint acquired along with partner Clearwire in July. Sprint is expected to demonstrate the speed and capabilities of those airwaves at a small media event later today at its innovation center in Silicon Valley. Sprint CEO Dan Hesse said on the company's earnings conference call that the company would demonstrate "groundbreaking advancements" in network and device technology. Clearwire, the previous owner of Sprint's 2.5 GHz radio waves, said last year that an LTE Advanced network running on 2.5 GHz could support theoretical peak speeds of up to 168 Mbps by 2014. As for the company's financials, Sprint reported a net profit of $383 million, compared with a year-ago loss of $767 million. Here is a breakdown of Sprint's key quarterly metrics: Network Vision/LTE: Sprint said it currently has more than 26,000 Network Vision multi-mode base station sites on air, up from the 20,000 it reported at the end of the second quarter. Additionally, the carrier said it has started realizing "significant cost savings" from the shutdown of the Nextel platform, including tower rent, backhaul and utilities. As part of Network Vision, Sprint has launched LTE in 230 total markets across the country and expects to cover 200 million POPs with LTE on its 1.9 GHz spectrum by the end of 2013. On the company's quarterly conference call, Hesse, along with Steve Elfman, president of network operations at Sprint, gave more details on the company's LTE plans. Sprint will complete the modernization of its 1.9 GHz network by mid-2014, Elfman said. The company has also started deploying LTE on its 800 MHz spectrum, which was freed up from the Nextel shutdown. That deployment will continue into 2014. As for its 2.5 GHz spectrum, Sprint plans to have 5,000 2.5 GHz TD-LTE sites on air by the end of 2013, a goal in line with Clearwire's previous buildout plans. Starting next year Sprint will begin deploying 2.5 GHz spectrum on a much wider basis, starting first in dense urban markets where capacity needs are greatest, Elfman said. However, the goal is to take 2.5 GHz nationwide. "We want to be very aggressive in our deployment across the country," Elfman said. He added later that "the goal is to build 2.5 and use that 120 MHz across the nation." Hesse said that Sprint plans to have 100 million POPs covered with 2.5 GHz LTE service by the end of 2014. Hesse said the LTE deployment would roll out in stages, first on 1.9 GHz, then 800 MHz and then 2.5 GHz airwaves. He said it would take time for the 2.5 GHz coverage to catch up to its 1.9 GHz coverage. The 2.5 GHz spectrum is expected to give Sprint a significant speed and capacity boost, and going forward all of Sprint's postpaid smartphones will support LTE on all three bands. Elfman said that on Sprint's 1.9 GHz spectrum, average LTE downlink speeds are 6-8 Mbps. On unloaded 2.5 GHz spectrum, Sprint is seeing speeds of 50-60 Mbps, he said. Verizon Wireless (NYSE:VZ) now covers 301 million POPs with LTE and has started deploying LTE on its AWS spectrum to augment capacity. By the end of the year, AT&T Mobility (NYSE:T) plans to cover 270 million POPs with LTE and then 300 million by mid-2014. T-Mobile US (NYSE:TMUS) now covers 202 million POPs with LTE. "We continue to believe Sprint can take significant share once they have deployed their 2.5GHz spectrum giving them a speed and capacity advantage; however, it could take longer than expected," New Street Research analyst Jonathan Chaplin wrote in a research note. iPhones and smartphones: Sprint activated 1.4 million Apple (NASDAQ:AAPL) iPhones in the quarter, the same as in the second quarter of 2013 and down slightly from 1.5 million in the year-ago period. Sprint sold 5 million smartphones in the quarter, which represented 92 percent of Sprint platform postpaid handset sales, the proportion highest ever. Subscribers: Sprint reported a total loss of 313,000 wireless customers in the quarter, compared to a loss of 423,000 in the year-ago period. The losses included a troubling loss of 360,000 Sprint postpaid customers, which is higher than Sprint said it wanted. The carrier gained 84,000 Sprint prepaid customers and 181,000 wholesale customers. Hesse said that Sprint is experiencing elevated Sprint platform churn because of its Network Vision network modernization project. He said the effort has affected the company's CDMA call quality and coverage, a situation he expects to continue through next year. The carrier also said that its iDEN network shutdown continues to affect its results as large enterprise customers that had both CDMA and iDEN move to other carriers. "Postpaid losses were worse than we expected and well worse than consensus," Chaplin wrote. "We believe Sprint will continue to face sub losses over the next three quarters at least." Churn: Sprint's total retail postpaid churn was 2.09 percent in the quarter, flat from the year-ago period. Sprint's total retail prepaid churn was 3.78 percent, up from 3.37 percent from the year-ago quarter. Sprint platform postpaid churn was 1.99 percent, up from 1.88 percent in the year-ago quarter. ARPU: Sprint reported best-ever Sprint platform postpaid ARPU of $64.28 in the quarter, up from $63.21 in the year-ago period. Sprint platform prepaid ARPU was $25.33, down from $26.19 in the year-ago quarter. Financials: Sprint's net operating revenue fell 2 percent to $8.68 billion. The company reported best-ever Sprint platform service revenue of $5.83 billion, up from $5.62 billion in the year-ago period. Wireless service revenue clocked in at $7.3 billion and grew year-over-year for the 13th consecutive quarter. Sprint reported adjusted EBITDA of $1.34 billion, up 5 percent year-over-year. For more:
- see this release
- see this CNET article
- see this Bloomberg article
- see this Kansas City Star article Special Report: Wireless in the third quarter of 2013 Related Articles:
SoftBank makes $1.26B investment in wireless distributor Brightstar
Sprint shakes up sales and marketing organizations under SoftBank
SoftBank's Son urges patience with Sprint turnaround, says it could take 2 years
SoftBank extends Sprint CEO Hesse's contract through 2018
Sprint launches 'One Up' handset upgrade program, following rivals
Sprint loses 2M subs and $1.6B in Nextel shutdown, plans nationwide 2.5 GHz LTE network Read more about: Network Vision, subscriber growth
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2. Report: BlackBerry met with Facebook to discuss potential bid
BlackBerry (NASDAQ:BBRY) executives visited Facebook (NASDAQ:FB) last week to see if the social networking giant had any interest in a potential bid for the company, according to a Wall Street Journal report. The report, citing unnamed sources, said that it remains unclear whether Facebook is interested in a bid. The companies declined to comment, according to the Journal. Facebook could attempt to build its own smartphone using BlackBerry's hardware assets and patents, but Facebook CEO Mark Zuckerberg has publicly dismissed rumors that Facebook would build its own phone, calling it the "wrong strategy." Facebook has largely focused its recent mobile efforts on Facebook Home, a software overlay on top of Google's (NASDAQ:GOOG) Android platform, though Home has not proven that popular. Speculation about a Facebook bid is the latest turn in BlackBerry's recent wild ride. Last week the Globe and Mail reported that former Apple (NASDAQ:AAPL) CEO John Sculley is exploring a bid for the company. Sculley declined to comment but told the paper: "I've been a longtime BlackBerry fan and user." BlackBerry is currently working with a consortium led by its largest shareholder, Fairfax Financial Holdings, to take BlackBerry private in a $4.7 billion deal. But while the parties conduct due diligence on that potential bid, BlackBerry can look for other suitors until Nov. 4. BlackBerry co-founders Mike Lazaridis and Doug Fregin also are considering a bid for BlackBerry, according to a regulatory filing made public earlier this month. Other parties, including Chinese PC and smartphone maker Lenovo, are reportedly eyeing BlackBerry as well. Meanwhile, BlackBerry continues to tout the success of its cross-platform BlackBerry Messenger application. The company said that in the app's first week of availability, it has been downloaded more than 20 million times, giving the service more than 80 million active monthly users. "Clearly, the momentum of BBM for BlackBerry, Android and iPhone continues to grow and while we are excited by the download numbers we saw this week, downloads do not speak to the way people interact with each other using BBM and we will now focus on active use of BBM--the connections being made and the conversations in which our BBM community engages," Andrew Bocking, executive vice president of BBM at BlackBerry, wrote in a company blog post. Despite the success of BBM, it is unlikely to revive BlackBerry hardware sales. Other similar programs for different smartphone platforms like WhatsApp and Viber have a big lead, and BlackBerry has already signaled its plans to shift its hardware business away from the consumer smartphone market to focus on the enterprise segment. For more:
- see this WSJ article (sub. req.)
- see this BlackBerry post
- see this AllThingsD article
- see this separate WSJ article (sub. req.)
Related Articles:
Report: Former Apple CEO Sculley considers BlackBerry purchase
BlackBerry trumpets 10M downloads of cross-platform Messenger app
Report: Lenovo looking at potential BlackBerry bid
BlackBerry issues open letter to customers, says it's here to stay
BlackBerry co-founders could make run at acquiring company
Report: BlackBerry opens up to idea of breaking up company Read more about: Smartphones, Facebook
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3. Senate confirms Wheeler, O'Rielly to FCC posts
The Senate on late Tuesday unanimously confirmed Tom Wheeler to be the next FCC chairman and also unanimously confirmed Michael O'Rielly, a staffer for Sen. John Cornyn (R-Texas), as one of the two Republican commissioners on the five-member panel.  | | President Barack Obama nominated Tom Wheeler as head of the FCC in May. (Official White House Photo by Lawrence Jackson) | The confirmation vote was delayed for two weeks by Sen. Ted Cruz (R-Texas), who had placed a hold on Wheeler's nomination over concerns with answers Wheeler had given on whether the FCC will require more disclosures from the sponsors of political advertisements. According to The Hill, Cruz lifted the hold after Wheeler told him during a private meeting Tuesday that stricter disclosure requirements for the donors behind political TV ads are "not a priority" for him. Wheeler takes over as the FCC recovers from the 16-day government shutdown earlier this month and as it is preparing a series of critical spectrum auctions for 2014 and beyond. The commission has been led since this spring by Acting Chairwoman Mignon Clyburn, a Democratic commissioner, following the resignation of former Chairman Julius Genachowski. Wheeler was president of the CTIA from 1992 to 2003 before joining D.C.-based venture capital firm Core Capital Partners as managing director in 2005. He also headed the National Cable Television Association from 1979 to 1984. Wheeler, who raised almost $250,000 for Obama's 2012 re-election effort, is seen as someone with the technology and policy chops to do the job. However, as a former lobbyist, he also took some flak from public interest groups and some lawmakers. Still, in the wake of his confirmation and the confirmation of O'Rielly, both received largely widespread praise and wishes of good luck from carriers, think tanks and public interest groups. "I congratulate Tom Wheeler and Michael O'Rielly on their Senate confirmations," Clyburn said in a statement. "Tom brings a tremendous depth of experience, talent, and knowledge that will serve him well as the leader of this critically important agency. I have no doubt that he will be an outstanding FCC Chairman. With his extensive public policy expertise and understanding of the communications landscape, Michael will certainly be an invaluable asset to the commission." "On behalf of CTIA member companies, I wish to extend my congratulations to Tom and Mike on their Senate confirmation," CTIA President Steve Largent added in a statement. "Tom's deep knowledge of communications issues, strong leadership and clarity of vision in the dynamically changing communications sector will benefit consumers and the economy as we migrate to an increasingly mobile world. Mike also brings an impressive depth of experience in telecommunications, and an appreciation of the important role that wireless broadband plays in driving wireless investment and innovation." Wheeler and O'Rielly will arrive at an agency that has a full agenda, especially from a wireless perspective. Earlier this month, The FCC delayed by eight days the start of the auction of 1900 MHz PCS H Block following the government shutdown; the auction was supposed to start Jan. 14, 2014, but will now begin Jan. 22, the FCC said. The commission is also set to begin incentive auctions of broadcast TV spectrum to increase mobile broadband capacity sometime next year. The FCC is also going to auction several other blocks of spectrum--in the in the 1695-1710 MHz, 1755-1780 MHz, 2020-2025 MHz, and 2155-2180 MHz bands--by February 2015, known as AWS-3. At the same time, the FCC has an ongoing proceeding on whether and how to limit spectrum holdings by carriers, which likely will be finalized before the incentive auctions and AWS-3 auctions. For more:
- see this TIME article
- see this The Hill article
- see this CNET article
Related Articles:
Sen. Cruz blocks Wheeler's FCC nomination
Analysts: Government shutdown could imperil FCC's agenda
FCC lays out contingency plans in case of government shutdown
Obama nominates Senate aide O'Rielly for Republican FCC spot
FCC nominee Wheeler backs away from past comments on AT&T/T-Mobile merger
Wheeler nominated to be new FCC chair Read more about: wireless spectrum
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4. Ericsson study: Smartphone users expect wireless tech to relieve traffic headaches
TOKYO--Automobile traffic is a huge problem in most major cities in the world, and smartphone users in those cities think that wireless operators will be instrumental in easing traffic congestion as well as resolving other issues that plague city dwellers. In a study released today by Ericsson (NASDAQ:ERIC) ConsumerLab and discussed in-depth here at the Ericsson Business Innovation Forum media event, Michael Bjorn, head of research at Ericsson ConsumerLab, said that demand for new communications and information technologies has the potential to dramatically alter city life by 2016. The study, which surveyed 7,500 iPhone and Android smartphone users between ages 15 and 69 in Sao Paolo, Beijing, New York, London and Tokyo, queried consumers about 18 new services relating to important aspects of city life. The study also asked smartphone users about areas of their life that they were most satisfied with and least satisfied with. Not surprisingly, the three main areas where city dwellers are most dissatisfied are in traffic, child/elderly care and communications with city authorities. And in most of those cases, those surveyed believe that services to alleviate these problems will be available in a limited amount within a year and to the mass market within three years. Regarding automobile traffic issues, 47 percent of those surveyed said that they were interested in a personal navigator system for help with driving as well as walking. Approximately 40 percent of those surveyed said they would use such a service every day. Likewise 47 percent of those queried said they would use a self-driving or self-parking car and 40 percent said they would use that service every day. Although wireless operators may not always be the driver of the solutions, Bjorn said that in most cases wireless and Internet companies were seen as being able to help deliver the services to the consumer. For example, 47 percent of those surveyed said they expect mobile operators to enable a personal navigation concept. In fact, out of all 18 concepts that Ericsson presented to the survey takers, the personal navigation concept was considered the biggest opportunity to wireless carriers. Not surprisingly, car makers were viewed as being the source of such services as self-parking cars or self-driving cars. For more:
- see this release Related Articles:
Ericsson study says only 7% of consumers want to reduce TV subscriptions
Ericsson study: Mobile TV viewing on the rise, cord-cutting fairly stable Read more about: ConsumerLab
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5. Samsung quietly makes push for Tizen at its developer conference
Samsung Electronics welcomed application developers to San Francisco on Monday for its first-ever Developer Conference, and although the company is a behemoth in the Android smartphone and tablet markets, it has been quietly making a push for another platform it supports: Tizen. According to CNET, outside of the conference's keynotes and big speeches by Samsung executives, Tizen is cropping up in discussions between developers, in meetings with Samsung partners, and in incentives offered to developers. "The whole conference has got to be seen in the context of Tizen," Ovum analyst Jan Dawson told CNET. "Samsung is proving it's good at working with developers so they'll transition to Tizen when the time comes." Samsung is the largest backer of the Tizen Association, an open-source group that was created through the merger of the former MeeGo and LiMo platforms. Other Tizen supporters include Sprint (NYSE:S), Intel, Huawei, Orange and Vodafone. Samsung has positioned Tizen as one of its many platform options, but analysts have consistently said Samsung could be using Tizen as a hedge against Google's (NASDAQ:GOOG) Android. (Samsung also supports Microsoft's (NASDAQ:MSFT) Windows Phone 8 platform.) CNET reported in July that Samsung delayed its Tizen phone release by several months to the fourth quarter of 2013, but it now appears that delay could be even longer: One of Samsung's partners told CNET that Samsung now plans to launch Tizen phones in January at the Consumer Electronics Show in Las Vegas. Samsung declined to comment about the timing of its Tizen launch, according to the report. Samsung co-CEO JK Shin said in August he expects Tizen will expand beyond mobile devices to power a host of connected devices across multiple industry verticals. One of the biggest hindrances to Tizen right now is a lack of apps and developer interest, which Samsung and Intel are working to overcome. Beyond just Tizen, GigaOM notes that Samsung is using its developer conference this week to market itself as a platform destination for developers. Samsung's new mobile SDK supports Samsung's pen, gestures, multiwindow and motion features with 800 APIs available to developers. Further, Samsung is trying to impress upon developers that its hardware, such as its Galaxy Note series using its "S-Pen," can be a springboard for app developers. Samsung said that simply by adding the digital pen to the Note series, more 1,800 pen-enabled apps were created. Samsung is also touting its prowess in the TV market as a benefit for developers seeking to create apps that work across multiple screens. In the past, both Google and Samsung executives have downplayed any talk of tension between the two companies. However, the developer conference gives Samsung an opportunity to attract developers to its vision and platform for creating digital experiences across multiple devices. According to GigaOM, there was barely a mention of the word "Android" during Samsung's developer keynote. Samsung showed a similar approach to Android during its S4 launch earlier this year.
For more:
- see this CNET article
- see this GigaOM article
Related Articles:
Samsung posts another record profit in Q3, but warns of tough smartphone competition
Samsung's Shin: Tizen will power more than just mobile devices
Samsung seeks software prowess via new startup accelerator
Samsung, Qualcomm announce competing smart watches: Galaxy Gear vs. Toq
Samsung exec confirms 'Galaxy Gear' smart watch, Galaxy Note III
Why Samsung's PR overture to Android developers backfired Read more about: samsung, Mobile Applications
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Also Noted
SPOTLIGHT ON... HitBliss, Target Ticket and Vevo challenge Netflix, Amazon in online video  Online video services are working to differentiate themselves by finding new ways to get their content in front of consumers, seeking out the newest, hottest offerings and creating innovative new business models that cater to viewers' individual profiles. This is generally good news for consumers, who have a greater number of offerings to pick and choose from for their specific needs. In a new special report, FierceOnlineVideo profiles three entrants to the online video industry--HitBliss, Target Ticket and Vevo--that have either recently launched or started getting more mainstream attention. Find out more about what they're doing in this special report.
Quick news from around the Web. @FierceWireless: Sony's Hirai Mixes Camera With Phone Geeks to Catch Apple. Article via @BloombergNews | Follow@FierceWireless > Electronics manufacturing company Hon Hai was among the winners of 4G spectrum licenses in Taiwan. Article > American Express, United Airlines, Virgin Atlantic and other companies agreed to join in Samsung's mobile wallet service. Article > Google Hangouts now supports SMS messages. Article > Twitter updated its app for iOS and Android to include support for in-stream video and other features. Article > Motorola's follow-up to the Moto X is rumored to be the Moto G. Article > Intel will manufacture Altera's 64-bit ARM chip, a notable shift in Intel's position on ARM technology. Article > China Mobile is advertising a Nov. 11 launch of 4G technology. Article > Apple's iPad Air goes on sale Friday, and has received largely positive reviews. Article > Some of Apple's new iPhones suffer from battery problems. Article > Between July and September, Android remained the leading smartphone OS, with 52 percent of the smartphone market. Apple commanded around 41 percent ahead of the launch of its new iPhones. Post Telecom News > The FCC is addressing service providers' need to resolve long-distance call completion in rural areas by requiring them to record, retain and report rural call completion data. Article > AT&T is putting plans on hold to increase charges for special access services after facing an outcry from its wholesale competitive carrier customers. Article Cable News > Time Warner Cable CEO Glenn Britt disclosed Tuesday that he was treated for melanoma in 2008 and that doctors told him recently that the cancer has recurred. Article > Weeks after rivals Verizon FiOS TV and AT&T U-verse TV added out-of-home streaming capabilities to their mobile video apps, Comcast said Tuesday that it will soon let subscribers watch 35 live networks on Apple iOS and Google Android devices. Article And finally… Ashton Kutcher is now a Lenovo engineer. Article
Juniper: In-app advertising is ripe for growth as rich media and RTB gain prominence
 | | Siân Rowlands | It is fair to say that there were a few raised eyebrows amongst analysts, advertisers and the world's media back in July: Facebook announced its Q2 results for 2013, stating that a mere 18 months after launching its mobile advertising product, it had seen over 40 percent of its advertising revenue attributable to mobile. No doubt that same group of people, myself included, are eagerly awaiting Facebook's third quarter results, due to be released soon, and wondering to what extent that percentage has trained on. Will the company have begun generating more revenue from mobile advertising than desktop? It certainly seems to be moving in that direction. In order to get a clearer idea of where the mobile advertising market currently stands, it's probably best to backtrack somewhat. Juniper's recent report--Mobile Advertising: In-App, Mobile Internet & Messaging Strategies 2013-2018--found that at present the annual spend on mobile advertising is over $13 billion: however this is expected to increase three-fold in the next five years, reaching almost $40 billion by 2018. This growth is allied to--and partially driven by--a number of factors, most notably the introduction of more innovative ad formats, as the industry finally moves away from ineffective banner adverts, and new payment mechanisms. Mobile banner ads are incredibly prevalent in mobile apps--but why? They're easy to implement, take up a small amount of space on the screen and are a proven method of advertising online. However they are, in their current form, implemented in a fashion which is, say we, often highly wasteful and ineffectual. They are often irrelevant to the person viewing them, and are frequently perceived as a penance by the end user--I want my content for free, therefore I must be obliged to wait between levels of my game until an advertisement for a product which I have no desire to purchase and is in any case ideally suited to a demographic to which I do not belong. And which lives in another country...Continued More Read more about: mobile advertising
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