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Also Noted: Radisys
Spotlight On... Google's Motorola unveils low-cost Moto G, pushes for emerging markets
Sprint to launch HTC One Max Nov. 15; LG's G Flex curved smartphone may be coming to U.S. and much more... Industry Voices: Yankee Group: Bluetooth Smart and new technology for immersive customer experiences  3G/4G wireless network latency: How do Verizon, AT&T, Sprint and T-Mobile compare?
While downlink and uplink speeds are important factors in determining the consumer experience, a less heralded metric is network latency. Latency is defined as the time it takes for a source to send a packet of data to a receiver. Latency is typically measured in milliseconds. The lower the latency (the fewer the milliseconds) the better the network performance. With all that in mind, we at FierceWireless, with our partner OpenSignal, are aiming to change the focus of how network performance is measured. Starting this month FierceWireless and OpenSignal are reporting the network latency speeds of the Tier 1 U.S. wireless carriers. Special Report
 Microsoft pushes for TV white space, mixing policy and philanthropy
White space spectrum and technology can sometimes seem ho-hum, but it has a major backer in Microsoft. The software giant has embarked on a global strategy to develop and promote TV white space technology as well as spread the news about the benefits of liberalized spectrum policies in conjunction with the use of dynamic spectrum-sharing technologies. For more on Microsoft's white space efforts, check out this FierceWirelessTech special report.
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News From Across the Wireless Industry:
1. Vodafone boosts 'Project Spring' network upgrade spending to £7B
2. Verizon's Shammo: Customers are buying FiOS speeds of 50 Mbps, above
3. Ergen: Rights deals thwarting over-the-top pay TV
Today's Top News 1. Sprint abandons pursuit of H Block spectrum
Sprint (NYSE:S) stunned the market and said it will not participate in the Jan. 22 auction of the 1900 MHz PCS H Block. The news surprised the industry because Sprint owns spectrum directly adjacent to the H Block and was considered a key contender for the spectrum.  | | Euteneuer (Source: Sprint) | Speaking at the Wells Fargo Tech, Media & Telecom Conference, Sprint CFO Joe Euteneuer said that given Sprint's existing spectrum position, especially with the trove of 2.5 GHZ airwaves it acquired along with Clearwire, the company does not feel the need to go after the H Block, which sits right next to the PCS G Block spectrum it is currently using for LTE service. "Given our belief for the lower-band spectrum, we have made the decision not to participate in that auction," Euteneuer said. He said the FCC's rules for the spectrum, coupled with several other factors, made it less palatable. Regarding Euteneuer's remark about lower-band spectrum, he likely was referring to the FCC's forthcoming incentive auctions of 600 MHz broadcast TV spectrum, currently scheduled for next year. Dish Network (NASDAQ: DISH) has agreed to bid the reserve price of $1.56 billion in the H Block auction, but now appears to be the lead bidder with both Sprint and T-Mobile US (NYSE:TMUS) indicating they will not participate. The H Block is a 10 MHz block of paired airwaves that runs from 1915-1920 MHz (for the uplink) and from 1995-2000 MHz (for the downlink). Dish controls spectrum adjacent to a portion of the H Block, called AWS-4; Dish's 40 MHz of AWS-4 spectrum specifically runs from 2000-2020 MHz (for the uplink) and 2180-2200 MHz (for the downlink).
However, Dish has asked the FCC to let it use the 2000-2020 MHz band spectrum for downlink operations instead of uplink. If the FCC grants that request and then Dish wins the H Block auction, it will have even more spectrum for downlink operations. Further, LightSquared has asked the FCC to let it use its L-band spectrum for uplink operations; Dish is the leading bidder to win LightSquared's airwaves in an auction in bankruptcy proceedings on Nov. 25. The H Block spectrum will be auctioned in 176 individual Economic Areas across the country. The proceeds of the auction will be used to build a nationwide public safety broadband network, though the H Block auction will only cover a small portion of the full cost of building that network. "With the launch of Sprint Spark, Sprint is working to deploy its 2.5 GHz licenses along with licenses in 800 MHz and 1.9 MHz to provide customers greater network speeds and capacity. We expect to offer Sprint Spark in approximately 100 of the largest U.S. cities by the end of 2016," Sprint said in a separate statement in conjunction with Euteneuer's comments. Sprint's has dubbed its tri-mode LTE service as "Sprint Spark." The company has said the service, which combines 800 MHz, 1.9 GHz and 2.5 GHz LTE spectrum, will come to the top 100 U.S. markets during the next three years with speeds capable of reaching 50-60 Mbps and perhaps faster. The first markets with limited availability of Sprint Spark will be Chicago, Los Angeles, New York, Miami and Tampa, and is rolling out its LTE in waves. Sprint expects to cover 200 million POPs with LTE on its 1.9 GHz spectrum by the end of 2013, and will expand that to 250 million POPs by mid-2014. The company has also started deploying LTE in its 800 MHz spectrum, which was freed up from the closure of its Nextel iDEN network. 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 year end, a goal in line with Clearwire's previous buildout plans. Sprint expects to cover 100 million POPs with 2.5 GHz LTE by the end of 2014. Sprint controls 120 MHz of 2.5 GHz spectrum in 90 of the top 100 U.S. markets. Euteneuer said that in the fourth quarter Sprint will launch six to eight tri-mode lTE smartphones and that all of its phones next year will be tri-mode. "We now have a way to utilize 2.5 as a speed differentiation because of that capacity we have," he said, adding that Sprint will start deploying small cells next year. "The network experience just becomes much richer and we're hoping this key differentiation, when complete, is speed," he said. The Sprint CFO also said the carrier will work to maintain its unlimited smartphone data pricing, and that CEO Dan Hesse continually pushes the management team to see whether it is financially viable. "We are trying to protect unlimited for as long as it's possible," Euteneuer said. "If it doesn't become viable anymore then we would stop. But it's something we think we have a good long runway with." For more:
- see this webcast
Related Articles:
T-Mobile rules out H Block auction, willing to buy spectrum from 'a private party'
Sprint Spark to combine LTE in 800 MHz, 1.9 GHz and 2.5 GHz, will offer 50-60 Mbps peak speeds
FCC delays H Block auction following government shutdown
Dish: We likely won't 'meaningfully participate' in H Block auction Read more about: DISH Network, Joseph Euteneuer
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2. Verizon's Shammo: LTE capacity issues will be worked out by year-end
Verizon Wireless (NYSE:VZ) is currently experiencing higher than expected LTE data traffic and network stresses in a few major markets, but expects to have those issues ironed out by year-end, according to Verizon Communications CFO Fran Shammo. Speaking at the Wells Fargo Tech, Media & Telecom Conference, Shammo said that in Chicago, New York City and San Francisco, Verizon is experiencing some capacity issues. However, he said the company is mitigating the problems through the deployment of small cells, Distributed Antenna Systems and its AWS spectrum. "The amount of consumption of video took us a little bit by surprise," he said. However, now that Verizon's LTE coverage buildout is complete, Shammo said "all of my effort is around capacity." As each week goes by, the issues get smaller and will "dissipate" by year-end, he said. Verizon has previously said it would deploy AWS spectrum on 5,000 cell sites by year-end. In October, Verizon confirmed it had started deploying LTE in its AWS spectrum to boost capacity in key markets. In many markets where it is deploying AWS spectrum, Verizon will be able to use 20x20 MHz channels; wider channels allow for faster speeds. In some markets it will have smaller than 20x20 MHz channels. At the end of the third quarter, 38 percent of Verizon's customers were on LTE and generated 64 percent of its data traffic. Shammo said in certain markets the figure is much higher than 64 percent. "When we start to move 3G smartphones to 4G, the consumption really increases," he said. Looking ahead to next year, Shammo said Verizon is excited about Voice over LTE and LTE Broadcast, which it intends to demonstrate at the Super Bowl. Shammo said devices with chipsets capable of taking advantage of LTE Broadcast technology will start shipping in the fourth quarter, but that it will take some time to seed the postpaid base with such devices. The focus of Verizon Wireless, which Verizon expects to take complete control of early next year thanks to its $130 billion deal with Vodafone, will be on growing service revenue and average revenue per account, or ARPA. Shammo said those figures will be driven by increased device attachment rates to Verizon's Share Everything shared data plans, increased consumption and greater M2M growth. At the end of the third quarter, 42 percent of Verizon's postpaid accounts were on Share Everything plans, with 35 million accounts and 2.72 connections per account. Shammo said adoption of tablets has been significant: He said that 40-50 percent of all tablet sales a year ago were postpaid; now, almost all are. Shammo was asked about Sprint's (NYSE:S) forthcoming tri-mode LTE service, which it has dubbed "Sprint Spark." Sprint has said the service, which combines 800 MHz, 1.9 GHz and 2.5 GHz LTE spectrum, will come to the top 100 U.S. markets during the next three years with speeds capable of reaching 50-60 Mbps and perhaps faster. Shammo said "they're going to build out their network the way they're going to build out their network," but that all carriers use the same standards for LTE, which delivers average downlink speeds of 8-12 Mbps on a fully loaded network. The Verizon executive also touched on the company's 700 MHz A Block spectrum, which it has not yet sold after putting it on the block in 2012. "If a transaction makes sense, then we'll execute the transaction," he said. "If it doesn't, then we'll deploy it." For more:
- see this webcast
Related Articles:
Verizon launches Ellipsis 7 tablet, though converged service is still in the offing
Verizon trademarks ELLIPSIS for new video, voice, data device and service
Verizon's net adds below expectations, T-Mobile could be to blame
Verizon starts deploying LTE in its AWS spectrum
Verizon to buy Vodafone's 45% stake in Verizon Wireless for $130B Read more about: small cells
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3. T-Mobile rules out H Block auction, willing to buy spectrum from 'a private party'
T-Mobile US (NYSE:TMUS) indicated it will not participate in the Jan. 22 auction of the 1900 MHz PCS H Block, but said it is still shopping for more spectrum from an unnamed private company. On Monday, T-Mobile said it plans to sell new shares in a move that could raise as much as $1.8 billion. The company could use the cash "for general corporate purposes, including capital investments, enhancing its financial flexibility and opportunistically acquiring additional spectrum in private party transactions and/or government auction." According to a Securities and Exchange Commission filing, T-Mobile said although it does "not intend to participate in the FCC's upcoming auction of 1900 MHz PCS H block spectrum, we are currently considering an acquisition of spectrum from a private party. If we reach agreement to acquire such spectrum, we anticipate that a portion of the net proceeds of this offering will be used to finance such acquisition." Which company that private party might be has stirred speculation among the financial community. "We will be at a competitive disadvantage and possibly experience erosion in the quality of service in certain areas if we fail to gain access to necessary spectrum before reaching capacity, especially below 1 GHz low-band spectrum," T-Mobile wrote in the filing.
Given T-Mobile's preference for low-band spectrum, that may rule out some options, according to analysts. One possibility could be Aloha Partners, which controls AWS spectrum complementary to T-Mobile's. "Aloha is the 8th largest owner of spectrum in the United States with 12 of the top 40 markets including big ones like San Francisco, Denver and Sacramento," noted BTIG analyst Walter Piecyk. "This spectrum is also not encumbered by existing users." An Aloha spokesman did not immediately respond to a request for comment. Analysts think LightSquared's spectrum is likely off the table, given that it is not low-band spectrum and Dish Network (NASDAQ: DISH) is the lead bidder in an auction in bankruptcy proceedings to take control of the airwaves. Likewise, Dish's 700 MHz D and E Block could be a possibility, but that is unlikely, according to analysts.
However, a distinct possibility could be Verizon Wireless' (NYSE:VZ) 700 MHz A Block spectrum, which it has largely not yet sold after putting it on the block in 2012. "If a transaction makes sense, then we'll execute the transaction," Verizon Communications CFO Fran Shammo said at an investor conference Tuesday. "If it doesn't, then we'll deploy it." "The Verizon spectrum would not give it nationwide coverage. On the other hand, low-band spectrum (<1 GHz) enables a way to roll out coverage more cheaply," Piecyk wrote. "Incumbents AT&T and Verizon already benefit from their deployment of 700 MHz and 800 MHz spectrum and Sprint hopes to benefit after clearing iDEN off its 800 MHz band." New Street Research analyst Jonathan Chaplin wrote in a research note that Verizon's A Block remains the most likely target for T-Mobile. "Verizon started with around 150MM POPs covering two-thirds of the top 100 markets for an outlay of $2.4BN," he wrote. "They have since sold 4 of their 23 licenses (we are not sure which ones). It is plausible that they would be willing to sell the remainder for ~$2BN."
For more:
- see this T-Mobile filing
- see this Reuters article
- see this WSJ article (sub. req.)
- see this BTIG blog post (reg. req.)
Related Articles:
T-Mobile to raise $1.8B in stock sale, could use funds to buy spectrum
T-Mobile adds 1M subs in Q3 as 'uncarrier' strategy keeps rolling
T-Mobile, Verizon join forces on 600 MHz auction band plan
AT&T blasts T-Mobile proposal for 600 MHz auction
T-Mobile proposes sliding spectrum screen rule for 600 MHz auction
FierceWireless' spectrum auction guide: What you need to know about the upcoming auctions Read more about: T-Mobile USA
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4. Dish's Ergen leaves door open to deal with T-Mobile, other wireless options
Dish Network (NASDAQ: DISH) Chairman Charlie Ergen said his goal was to keep the company's wireless options open, but again did not rule out a merger or partnership with T-Mobile US (NYSE:TMUS), which itself is on the hunt for more spectrum.  | | Ergen (Source: Dish) | Speaking on Dish's third-quarter earnings conference call Tuesday, Ergen said the company has "a lot of optionality" when it comes to its wireless prospects. Dish is awaiting an auction of LightSquared's spectrum assets on Nov. 25, in which it is the lead bidder. Dish has said it likely will not meaningfully participate in the auction of the 1900 MHz H Block, which is scheduled to begin Jan. 22, but the company has agreed to bid the reserve price of $1.56 billion. Dish tried and failed to land both Sprint (NYSE:S) and Clearwire this spring; SoftBank wound up taking control of Sprint and Sprint bought Clearwire, leaving Dish with more than 40 MHz of wireless spectrum but no partner. Dish owns 40 MHZ of 2 GHz AWS-4 spectrum and also has small 700 MHz holdings. Ergen said Dish could sell its spectrum or build out its network on its own. Neither of those options has "a high probability," but they are possible. "And in between that is to partner with somebody who's already in the business," he said, according to a Seeking Alpha transcript. "And that partnership can take any number of forms of things going forward." T-Mobile said Monday it plans to sell new shares in a move that could raise as much as $1.8 billion. The company could use the cash to acquire spectrum in upcoming auctions. Ergen declined to comment on if T-Mobile is talking with Dish about buying some of its spectrum, though T-Mobile has firmly expressed its preference to acquire low-band spectrum below 1 GHz. However, Ergen said he had not ruled an acquisition of T-Mobile. "I don't really rule out anything," he said. "I think acquiring a company, selling our company, merging, partnering, those are all on the table," he said. "Those are all part of optionality, right?"
On the LightSquared front, Dish has asked the FCC to let it use the 2000-2020 MHz band of its AWS-4 spectrum for downlink operations instead of uplink, and LightSquared has asked the FCC to let it use its L-band spectrum for uplink operations. The theory is that Dish could then pair its AWS-4 spectrum with LightSquared's airwaves and have more spectrum for downlink (Dish also controls the 2180-2200 MHs AWS-4 band for downlink). All of the maneuvering could substantially enhance the value of Dish's spectrum portfolio, according to analysts. Further, the FCC's recent order on 700 MHz interoperability addressed interference concerns by modifying the technical rules of the 700 MHz D and E Blocks to remove the likelihood of interference. Dish agreed to reduce the power levels of transmissions on its E Block spectrum, and in return got an extension on its buildout requirements. Dish had asked the FCC to set a new buildout deadline on its 700 MHz spectrum that would require the company to cover 40 percent of the population covered by its licenses by 2017 and 70 percent by 2021. In terms of Dish's spectrum over all, Ergen said: "And I like where we are. And it's an asset that I think continues to increase in value on our balance sheet. And I think it helps us potentially transform the company going forward because we know we're in a mature business."
New Street Research analyst Jonathan Chaplin wrote in a research note that his views on what Dish will do with its spectrum were slightly complicated by T-Mobile's stock sale. "We doubt that TMUS will enter the fray for LightSquared; but they might," he wrote. "On the other hand, DISH could sell TMUS its 700 MHz spectrum, but we doubt it. TMUS' capital raise means that there is another bidder for spectrum sooner than we had expected, which modestly increases the risk for DISH. Beyond the near term, we see the two most likely outcomes for DISH to be: 1) either DISH will merge with DTV and retain its spectrum to build out a network, or; 2) DISH will sell, most likely to AT&T." For more:
- see this Seeking Alpha transcript
- see this Bloomberg article
- see this Denver Business Journal article
Related Articles:
T-Mobile to raise $1.8B in stock sale, could use funds to buy spectrum
AT&T, Dish, CCA cheer FCC's official stamp on 700 MHz interoperability deal
Dish, nTelos to launch commercial fixed LTE service in early 2014
Dish shareholder sues Ergen; LightSquared spectrum auction set for Nov. 25
Dish's Ergen singles out T-Mobile as potential wireless M&A partner Read more about: Charles Ergen
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5. U.S. Cellular says new billing system was necessary for iPhone launch
U.S. Cellular (NYSE:USM) said its recent billing system conversion, which has caused numerous headaches for the company and its customers, was necessary for it to monetize its LTE network and launch its first Apple (NASDAQ:AAPL) devices earlier this month.
Speaking at the Wells Fargo Tech, Media & Telecom conference, U.S. Cellular CEO Kenneth Meyers said that the billing system upgrade allows the company to offer shared data and subsequently launch the iPhone 5s, 5c and 4S, and iPad Air, to its customer base. "In order to do the iPhone as well as roll out shared data, we had to have a billing system conversion," Meyers said. Meyers acknowledged that the rollout of the new billing system was not "as smooth as we had hoped." He also said that the billing system glitches caused an uptick in churn in the third quarter that will likely continue into the fourth quarter.
"This is a very complex system. It's a whole business system that includes customer service, operations," he said. "We have seen some increase in churn and will see it in the fourth quarter," he noted.
U.S. Cellular lost 71,000 customers in the third quarter, including 60,000 postpaid subscribers and 11,000 prepaid customers. The company is working with billing vendor Amdocs to fix the problems, which were first reported in July. According to a recent Milwaukee Journal Sentinel report, U.S. Cellular customers have been angry over receiving multiple bills in a short time with inaccurate balances or overcharges. The lack of the iPhone also contributed to U.S. Cellular's churn, which Meyers said he hopes will be stifled now that the company has launched the Apple products. He said that in the fourth quarter of 2012, 40 percent of the voluntary churn in the company was due to it not offering the iPhone. "People left for the iPhone," he said.
Meyers also said that U.S. Cellular is once again requiring contracts, which he believes will also help reduce churn. In September, FierceWireless reported that U.S. Cellular was no longer using the "Belief Project" brand that it introduced two years ago, and had discontinued or changed many of the elements of the program. The main element of the Belief Project was the elimination of the requirement that customers to sign an additional two-year contract after they fulfill their first one. The U.S. Cellular chief also said that the company's LTE network now covers 90 percent of its customer base. He said that with LTE network nearly complete, coupled with the billing system conversion, U.S. Cellular will be able to offer a more "meaningful data experience" to its customers, including offering Voice over LTE. When asked if U.S. Cellular is concerned about being able to monetize LTE, a fear that has prevented some smaller operators from deploying LTE, Meyers said that he believes LTE is a necessary upgrade carriers if they are going to continue to serve their customers and compete in the market. "If you don't believe in data, you don't go to LTE," he said. When asked about the upcoming H Block spectrum auction, Meyers said that U.S. Cellular will likely sign up to participate in the auction but is still evaluating its options. He emphasized that the company's current spectrum holdings are strong because it has both high- and low-band frequencies, which gives it coverage and capacity. However, he added that in some markets U.S. Cellular does not have as much spectrum as it would like. For more:
- see this webcast Related Articles:
U.S. Cellular loses 71,000 subs in Q3, apologizes for billing system errors
U.S. Cellular launches shared data plans, weeks later than expected
U.S. Cellular, Amdocs struggle to fix billing system glitches
U.S. Cellular quietly retires 'Belief Project' brand and many of the perks Read more about: wireless spectrum, iPhone
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Also Noted | This week's sponsor is Radisys. |  | eBrief | Partnering for DPI Deployment Analysts project DPI in the marketplace will boom in the near term to secure networks and manage available bandwidth. See how carriers are teaming up with vendors for successful deployment. Learn more today! |
SPOTLIGHT ON... Google's Motorola unveils low-cost Moto G, pushes for emerging markets  As expected, Google's (NASDAQ:GOOG) Motorola Mobile division announced the Moto G, a low-cost version of its Moto X smartphone aimed at emerging markets. Motorola said the Moto G will go sale this week in Brazil and parts of Europe and will be available within the next few weeks throughout Latin America, Europe, Canada and parts of Asia. The device will also be available in the United States, India, the Middle East and more of Asia in early January. The Moto G is launching with Android 4.3 Jelly Bean, though Motorola said that it will be upgraded to Android 4.4 KitKat in a matter of weeks. The gadget sports a 4.5-inch, 720p LCD TFT display, a quad-core Qualcomm (NASDAQ:QCOM) Snapdragon 400 processor, 1 GB of RAM,, a 5-megapixel rear camera and a 1.3-megapixel front-facing camera.
The phone will be sold directly from Motorola as well as other U.S. carriers in early January, with the 8 GB model selling for $179 and the 16 GB version for $199, without a contract. According to The Verge, Motorola said it does make a profit on the Moto G (it wouldn't say how much) despite its aggressive price point. While Motorola sees an opportunity to sell the device to prepaid carriers in the U.S. market, the Moto G is really about the rest of the world.. The device is aimed at getting Motorola back in business in emerging markets. "The industry had really abandoned five billion people on the planet who were never going to pay $600 for a phone," Motorola CEO Dennis Woodside said in an interview with AllThingsD last week, showing off the device. "This is at literally a quarter the cost of the iPhone." Although the Moto G lacks many of the bells and whistles of the Moto X (there is no support for LTE, always-on voice recognition technology or actively displayed notifications) the device has strong specifications for such a low price point. "Outside the U.S., it's a great aspirational device," Woodside said. Of course, the device will also help Google spread its Android platform even further in emerging markets. Article Quick news from around the Web. @FierceWireless: Can Sprint tackle the last barrier to prepaid adoption? Article via @CNET | Follow@FierceWireless > Nokia Solutions Networks is focusing on expanding sales after years of concentrating on cost cutting. Article > AirWatch may be interested in buying Blackberry's services division. Article (sub. req.) > Samsung Electronics expects to supply half of the smartphones sold in Africa this year and aims to double these sales by in 2014. Article > BlackBerry's interim CEO, John Chen, says the company can work its way back to success. Post
> LG Electronics will reportedly be bringing its G Flex curved smartphone to the U.S. market. Article
> The Defense Department, which owns 470,000 BlackBerrys, is moving away from the vendor and launching a department-wide app store and a system for securing all mobile devices. Article > Test equipment maker Anite announced that its Conformance Toolset for protocol and performance testing supports the highest number of validated protocol conformance test cases for TD-LTE. Release > Google's Nexus 7 and Nexus 10 tablets are getting the Android 4.4 KitKat update today. Article > Cisco CEO John Chambers and Yahoo CEO Marissa Mayer will be among the keynote speakers at CES 2014 in Las Vegas next January. Article > Research firm IDC says that 21 percent of smartphones shipped in third quarter had big screens. Article > Verizon Wireless said that BlackBerry Z30 smartphone will be available online Nov. 14. Article > Sprint will launch the 5.9-inch HTC One Max for $250 with a two-year contract, starting Nov. 15. Article Telecom News > Consolidated Communications is hungry to pursue new deals that allow it to diversify its revenue streams. Article > A proposed online video bill by Senate Commerce Committee Chairman John D. Rockefeller (D-W.Va.) called Consumer Choice in Online Video Act has potential, but industry watchers say it will face protest from incumbent cable operators and the broadcast industry. Commentary > Verizon said that where it is converting problem copper-based customers to the fiber-based service it's finding that customers like purchasing speeds of 50 Mbps and higher. Article Cable News
> Dish Network CEO Charlie Ergen said that over-the-top pay TV services will emerge, but that difficulties striking rights deals with programmers will impact how soon new virtual services from Intel and other players get off the ground. Article > Subscriptions for FiOS Internet are outpacing FiOS TV sales, with popularity of over-the-top video services impacting subscription sales, Verizon CFO Fran Shammo said Wednesday. Article And finally… U.S. tech giant Apple is being investigated for tax fraud in Italy. Article
Yankee Group: Bluetooth Smart and new technology for immersive customer experiences
 | | Sheryl Kingstone | As situational context and personalization become increasingly important throughout 2014, real-time marketing platforms that leverage geo-location, local content and services will see increased success. Marketers must take seriously the opportunity available with beacons and Bluetooth Smart technology to gain an early edge. Bluetooth Smart technology is low energy, meaning it consumes a small amount of battery power, making it useful for micro-location geo-fencing of devices. It also enables data exchange without requiring any physical activation such as opening an app. Why is this relevant? · Discovery: Features like Bluetooth Smart technology enable users to easily discover relevant information such as local content and services. Add intelligence to the mix, and the future is about aggregated learning regarding behaviors and preferences that can help ensure relevant interactions. Geo-location-enabled mobile platforms can completely change an experience based on proximity. The entire outdoor or indoor experience can be a mecca for learning about the world around you such as displaying personalized location information, product information, video demonstrations and more. · Context: Real-time contextual interactions that combine, for example, where and when customers enter a store with their past purchase behavior, are critical for mobile personalization initiatives. Pop-up coupons based on customer value and precise-location are now a reality. Analytics based on rich customer profiles enable an unparalleled depth and breadth of customer segmentation that can be used for improved customer engagement strategies based on the individual preferences and patterns of each customer. · Engagement: It's about the interaction, not just the next best offer. With technologies like Bluetooth Smart, entire shopping lists can be delivered on-demand based on a particular grocery store and lists can be dynamically organized based on in-store location. Rich media content can be delivered, thereby significantly increasing engagement rate success. For example, marketers can leverage cardless loyalty plans and gamification through social interactions where winners receive bonus discounts after finding products. Social media gaming or sharable offers are another engagement strategy for rewarding customers based on sharing in-store. 
Yankee Group data shows mobility growing at a staggering pace: There are already over 195 million smartphones in use in the U.S., and that number is expected to grow to 250 million by 2017. With the exponential adoption of mobile devices, delivering optimized mobile experiences using technologies like beacons and Bluetooth Smart is the ultimate game-changer. The upshot: Companies must invest in mobile platforms that ensure location-based information is a pillar foundation. Qualcomm Retail Solutions, Mobiquity and SAP have successfully developed real-world case studies of micro-location mobile experiences. Communicating with users as they enter a geofence has been shown to be twice as effective as engaging with users who are merely "nearby." Smaller, 100-meter-radius geo-fences have been shown to be three times more effective than larger, 1000-meter radius geo-fences when used to trigger a communications. Some companies have also measured positive engagement percentage rates in the high 70s. Sheryl is the director of Yankee Group's Research group specializing in customer experience strategies. Her research helps business improve customer loyalty and acquisition. She provides strategic insight on how to define, improve and measure customer experience. Specifically, she is an advocate for cross-channel communications, with an emphasis on mobile experiences. Kingstone is a well-known industry analyst in the CRM market, with more than 25 years in the high-technology market. She has extensive speaking experience at conferences and seminars, is quoted in many business and industry journals and provides notable consulting experience with Fortune 1000 companies. |
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