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2013/11/22

| 11.22.13 | Apple scores fresh victory over Samsung

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November 22, 2013
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Tuesday, December 10th, 1pm ET /10am PT

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Today's Top Stories

  1. AT&T, Sprint, T-Mobile agree to stop billing for premium SMS messages
  2. Apple wins $290M in new patent infringement verdict against Samsung
  3. FCC opens door to allowing cell phone calls on airplanes
  4. Verizon launches $5/day tablet data plan
  5. Report: Qualcomm cutting a small number of jobs


Editor's Corner: U.S. operators plan to launch VoLTE soon, but benefits to users are unclear

Also Noted: Radisys
Spotlight On... FCC: Mobile speed test app has been installed 30,000 times so far
Intel 'lost our way,' chairman says; Sprint MVNO PrepaYd activates 30,000 BYOD CDMA phones and much more...

The 25 Most Powerful People in U.S. Wireless and Wireline 2013
This list is a compilation of who we think are the innovators and leaders in the U.S. wireless and wireline markets. We realize that the telecom industry is a global business, and many of our candidates oversee international companies, but we selected people based upon their influence here in the United States. You may not agree with all our picks but we can assure you that this list was not compiled lightly. The Fierce editors scrutinized every person we selected to make sure we could justify their position. Let us know if you disagree with our picks or think we overlooked someone. Special Report


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News From Across the Wireless Industry:
1. Vodafone CEO would not say no to admirers of his 'beautiful assets'
2. Analysys Mason: Mobile M&A in Western Europe may help ease pressure on revenue
3. Google applies fiber broadband expertise in Kampala, Uganda


This week's sponsor is AT&T.

eBook | Driving The Business Case For The Connected Car

Outfitting automobiles with wireless connectivity has become a No.1 priority for car makers. Learn the latest on the connected car space and what it means for wireless operators, car makers and consumers. Download this eBook today.




Editor's Corner

U.S. operators plan to launch VoLTE soon, but benefits to users are unclear


Mike Dano

All of the nation's Tier 1 U.S. carriers have indicated they will probably launch Voice over LTE technology in the near future. However, it's unclear exactly what that launch will mean for actual wireless users.

First, let's start with what VoLTE is: It's a technology that will allow wireless carriers to transmit voice calls over LTE networks and through their IMS cores via IP, as they already do with data services. This means voice calls and data sessions will travel side-by-side over LTE, creating the possibility of innovative new services that combine the two. VoLTE is also much more efficient from both a network and spectrum perspective. Currently carriers transmit voice calls over circuit-switched 2G and 3G networks. VoLTE requires the installation of new software inside carrier networks and inside the phones themselves.

A number of carriers across the world have already launched VoLTE services. In the United States, MetroPCS became the nation's first carrier to launch VoLTE via the LG Connect smartphone in 2012, explaining that the technology would eventually allow it to deploy LTE on the spectrum it was using for CDMA voice calls. However, MetroPCS never really advertised its VoLTE service to customers, and T-Mobile US (NYSE:TMUS) hasn't discussed the technology much in relation to its now-completed acquisition of MetroPCS.

SK Telecom and LG Uplus in South Korea have also launched VoLTE. According to Ray Adensamer, senior product marketing manager for Radisys, the Korean carriers are charging slightly more for LTE services than for 3G services, partly because of the higher-quality voice calls enabled by VoLTE.

How will Sprint (NYSE:S), T-Mobile, Verizon Wireless (NYSE:VZ) and AT&T Mobility (NYSE:T) position VoLTE when they launch the technology? The carriers generally won't discuss their future plans. But according to the VoLTE vendors and analysts I spoke with, we should not expect any groundbreaking new services like real-time language translation or video voicemails. Instead, carriers likely will initially use VoLTE to reach parity with current communication innovations like FaceTime, Google (NASDAQ:GOOG) Hangouts, Google Voice, WhatsApp and other over-the-top messaging services...Continued

More

Read more about: RCS, LTE, Radisys
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> Is your strategy for small and medium-sized businesses bringing rewards? - Wednesday, December 4th, 11am ET / 8am PT / 4pm GMT
> LTE Advanced in unlicensed spectrum? - Tuesday, December 10th, 1pm ET /10am PT
> Unraveling the LTE Roaming Puzzle- Wednesday, December 11th, 2pm ET/ 11am PT
> Virtualization: The OEM Secret to Launching New Devices Faster and Cheaper- Now Available On-Demand
> Now Available On-Demand- ePMP - Connect the Unconnected

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> Carrier Network Virtualization - December 9-11 - Palo Alto, CA

Marketplace

> Whitepaper: OTA Updating Simplified - Using SaaS to Update Android Devices
> Whitepaper: Your Guide to iOS 7
> Whitepaper: Next-generation Network Security
> Whitepaper: Customer Experience for Service
> Whitepaper: Know What Customers Want Before They Do
> Whitepaper: The Future of Sales Performance Management
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Today's Top News

1. AT&T, Sprint, T-Mobile agree to stop billing for premium SMS messages


AT&T Mobility (NYSE:T), Sprint (NYSE:S) and T-Mobile US (NYSE:TMUS) entered into an agreement with 45 states to stop billing customers for premium SMS messages they receive. Verizon Wireless (NYSE:VZ) is not part of the settlement but said that it too will discontinue the practice.

The agreement was announced by the Vermont Attorney General's office, and said 45 states, led by Vermont, along with Delaware, Florida, Maryland, Oregon, Texas and Washington, have been talking with carriers about ending the practice. The office said premium SMS "accounts for the majority of third-party charges on cell phones and for the overwhelming majority of cramming complaints." Cramming is the term known for bills tied to unauthorized third-party services.

"This is a victory for cell phone users in Vermont and across the nation," Vermont Attorney General Bill Sorrell said in a statement. "While PSMS has some benefits, like charitable giving, it is also a major contributor to the current mobile cramming problem. We are pleased that AT&T, Sprint and T-Mobile have decided to stop the flow of money from the pockets of ordinary people to the bank accounts of scam artists. We're hopeful the other carriers will soon follow their lead. There is still much work to be done. My office will continue to work with other states for industry reforms and to recover money for consumers victimized by cramming."

In a statement to The Verge, Verizon said while it does we don't agree with all of Sorrell's allegations, it respects his efforts in the area.

"For years, Verizon has been vigilant in protecting our customers from bad actors," the carrier said. "There have been numerous times we have terminated programs and in some cases have taken aggressive legal action in order to ensure our customers were protected. Since premium messaging was first introduced, technology advances and smartphone adoption have dramatically changed the way customers access information. Verizon had previously decided to exit the premium messaging business because of these changes as well as recent allegations that third parties have engaged in improper conduct in providing premium messaging services to our customers."

Verizon said it is the process of winding down its premium messaging business but will continue to support text-to-donate for charitable programs and text-to-contribute for political campaigns, as did T-Mobile. AT&T said it will continue to allow charitable programs, according to AllThingsD. Sprint still supports both for the time being.

"We believe you should be treated fairly and not charged for unwanted services. Despite protections and processes put in place by T-Mobile and the industry, not all premium text message (SMS) vendors have acted responsibly," T-Mobile said on its website. "After careful evaluation of the program, T-Mobile is now in the process of protecting our customers from being billed for premium SMS services--except for charitable and political giving--as soon as possible, with as little impact as possible to our customers."

T-Mobile CEO John Legere posted on Twitter about the move. "We believe in making things right for our customers," he said.

More than two-thirds of mobile phone users received short message service spam last year, according to stats cited by researchers from the University of Minnesota and AT&T Labs in a paper they presented to the USENIX Security 2013 conference in August.

For more:
- see this Vermont Attorney General site
- see this The Verge article
- see this AllThingsD article
- see this CNET article

Related Articles:
Two-thirds of mobile phone users get SMS spam
The pros and cons of marketing apps via SMS
Motricity, Sprint end premium SMS aggregator deal
AT&T, Sprint follow Verizon's lead, suspend Jawa SMS codes
Judge denies restraining order motions in Verizon SMS fraud suit
Verizon Wireless files suit to squash premium SMS fraud

Read more about: T-Mobile USA, T-Mobile US
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Thursday, December 12th, 11am ET /8am PT

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2. Apple wins $290M in new patent infringement verdict against Samsung


Apple (NASDAQ:AAPL) won $290 million in damages from Samsung Electronics after a jury ruled in its favor in a retrial of the smartphone titans' 2012 patent infringement clash.

Apple won $1 billion in damages in a courtroom victory against Samsung in August 2012, though the damages in the ruling were later slashed by $450.5 million after U.S. District Court Judge Lucy Koh ruled the jury had erred in calculating the damages. Koh, who oversaw retrial, allowed lawyers for both sides half an hour to review how the jury made its calculations in case any adjustments are needed.

Apple argued it was due an additional $380 million, while Samsung said it should only owe $52 million for the portion of damages being reconsidered. The new ruling does not affect the roughly $600 million Apple was owed from the 2012 trial. The six-woman, two-man jury deliberated for part of three days before returning its verdict.

"For Apple, this case has always been about more than patents and money," Apple said in a statement to AllThingsD. "It has been about innovation and the hard work that goes into inventing products that people love. While it's impossible to put a price tag on those values, we are grateful to the jury for showing Samsung that copying has a cost."

"We are disappointed by today's decision, which is based in large part on a patent that the U.S. Patent and Trademark Office has recently deemed invalid," a Samsung spokesperson said in a statement. "While we move forward with our post-trial motions and appeals, we will continue to innovate with groundbreaking technologies and great products that are loved by our many customers all around the world."

The retrial did not center as much on different perspectives on innovation as the original trial did, nor did it provide many new revelations about the business of both companies. As AllThingsD notes, the new ruling likely will do little to settle the litigation between the two companies, which started in the spring of 2011 and has spanned multiple continents. Another case is set for trial next year before Judge Koh involving newer Samsung's products, and both sides are appealing various parts of this current case.

The case is widely seen as a proxy battle between Apple and Google's (NASDAQ:GOOG) Android platform, since Samsung is the largest Android handset maker. In July, the Wall Street Journal reported that Apple and Samsung held talks in recent months to try to resolve their disputes over patent infringement claims, but it now appears that any wide-ranging settlement is nowhere close at hand.

For more:
- see this WSJ article (sub. req.)
- see this AllThingsD article
- see this separate AllThingsD article
- see this The Verge article

Related Articles:
Apple's Schiller claims Samsung's alleged copying made marketing iPhone more difficult
Nokia, Samsung extend patent-licensing deal for 5 years
Rockstar, backed by Apple, blasts Google and Android handset makers with patent lawsuits
Samsung vows to fight Obama's dismissal of import ban on iPhone, iPad
Report: Apple, Samsung holding negotiations to settle patent disputes
Samsung confirms that Apple could get more than $1.05B in new patent trial

Read more about: Patent Disputes
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3. FCC opens door to allowing cell phone calls on airplanes


The FCC will explore whether to allow wireless voice calls on U.S. flights, opening up a potentially contentious debate over what kind of mobile use is socially acceptable on airplanes.

The commission placed the item on its agenda for its December meeting, and said it will consider a notice of proposed rulemaking "to revise outdated rules and provide airlines with the ability to permit passengers to use mobile wireless services via onboard airborne access systems."

According to the Wall Street Journal, while cell phone use would still be prohibited during takeoff and landing, the rules would lift an FCC ban on airborne calls and cellular data use by passengers once a flight hits 10,000 feet. The rules would only be provisional and the FCC would solicit feedback before deciding to amend them.

However, individual airlines would have to decide whether to allow cell phone use, and many may not do so to head off potential customer complaints. Airlines would also need to install equipment on planes that could communicate with cell towers on the ground.

FCC Chairman Tom Wheeler said in a statement that the new rules, if adopted, would "expand consumer access and choice for in-flight mobile broadband," meaning the commission thinks both Wi-Fi and wireless cellphone data plans could be used.

"Modern technologies can deliver mobile services in the air safely and reliably, and the time is right to review our outdated and restrictive rules," he said. "I look forward to working closely with my colleagues, the FAA and the airline industry on this review of new mobile opportunities for consumers."

The FCC decision comes just weeks after the Federal Aviation Administration said that airline passengers will be able to use mobile devices placed in "airplane mode" during all phases of flights, including takeoff and landings. That ruling continued to prohibit voice calls and cellular data usage.

Southwest Airlines, Delta Air Lines and Virgin America said Thursday that they do not plan on supporting in-flight phone calls, according to the Journal. "Years of customer feedback" show that "the overwhelming sentiment is to continue with a policy that would not allow voice communications while in flight," Delta said. United Continental said it would evaluate the FCC rules and JetBlue Airways said it would be open to changing its rules.

According to the New York Times, the Association of Flight Attendants, a union representing airline workers, came out quickly against the proposed rules. "Flight attendants, as first responders and the last line of defense in our nation's aviation system, understand the importance of maintaining a calm cabin environment," the union said in a statement. "Any situation that is loud, divisive and possibly disruptive is not only unwelcome but also unsafe."

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

Related Articles:
FAA's decision on mobile devices during flights leaves winners, losers for in-flight Wi-Fi
Report: FAA panel recommends loosening restrictions on passenger access to mobile devices
Report: FAA set to relax restrictions on passenger access to mobile devices
Report: FAA may loosen restrictions on passenger access to iPads, Kindles
Gogo to launch new in-flight Wi-Fi service in 2014 with promise of 60 Mbps speeds
Gogo says San Francisco flyers use the most in-flight Wi-Fi

Read more about: FCC, inflight calls
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4. Verizon launches $5/day tablet data plan


Verizon Wireless (NYSE:VZ) launched a new tablet-focused data plan that costs $5 per day, opening up a fight with its rivals as the holiday shopping season kicks into full swing and customers go hunting for tablets.

The daily plan from Verizon lasts 24 hours or until 300 MB is exhausted, whichever comes first. If a customer runs out of data, they can purchase another 300 MB for an additional $5. Verizon told Mashable that there are no activation fees as part of the plan. Verizon also offers monthly prepaid tablet plans, starting at $20 per month for 1 GB of data. Those plans last for 30 days or until the customer uses all of the purchased data.

In October, AT&T Mobility (NYSE:T) introduced a $5 tablet plan that gives subscribers 250 MB of data for a single day as well as a $25 plan for 1 GB that can be used any time in a three-month period.

T-Mobile US (NYSE:TMUS) upended the tablet pricing game shortly thereafter with 200 MB of free data for tablet customers as long as they keep their tablet on the carrier's network. Despite some initial confusion, T-Mobile has reiterated that customers will get 200 MB of free data for life as long as they keep their tablets on T-Mobile's network, regardless of whatever data plan they have, or if they do not have a separate data plan at all. However, in order to connect a device a customer needs a T-Mobile SIM card, which the carrier charges a one-time $10 fee for. In that sense, the offer of 200 MB of data is not truly "free."

Sprint (NYSE:S) offers a variety of tablet data plans, but its $5 plan only offers 25 MB. The company offers a $10 per month plan with 100 MB and a 2 GB plan for $15.

For more:
- see this Verizon post
- see this CNET article
- see this Mashable article

Related Articles:
LTE pricing: What's 1 MB of mobile data really worth?
T-Mobile CMO Sievert reiterates 200 MB of free data for all tablet customers
T-Mobile to offer 200 MB of free data for all tablet customers
Apple unveils new iPad Air, mini and brings them to T-Mobile
AT&T launches $5/day tablet data plan, powers Tesla's wireless services
AT&T to make all new customers sign up for Mobile Share plans

Read more about: T-Mobile US, Verizon Wireless
back to top



5. Report: Qualcomm cutting a small number of jobs


Chip giant Qualcomm (NASDAQ:QCOM) is planning a small number of layoffs, but the precise number is not known, according to a GigaOM report.

The report, which cited unnamed sources, said that Qualcomm has made cuts to its middle management ranks and is planning more layoffs across the board in order to cut expenses. The job cuts have been going on for past few days, the report said.

It is unclear what divisions might be affected, but the report said Qualcomm has cut several vice-president level executives and others have been demoted. The report added that one division saw nearly 100 jobs cut, though the number of total cuts is still not final. More may be coming, the report added.

A Qualcomm spokesperson declined to comment.

According to the San Diego Union-Tribune, Qualcomm has not filed Worker Adjustment and Retraining Notification Act (WARN) paperwork with officials in California, where the company is based, which is required for a layoff of 50 or more employees within a 30-day period. Qualcomm has around 31,000 employees worldwide, so a few hundred job cuts, if that is what is being contemplated, would not put a major dent in its workforce.

Qualcomm notched significant increases in earnings and sales for its last fiscal quarter, but warned that its growth rate would slow next year due to increases in the sale of less expensive phones. "In fiscal 2014 we are facing some mix and demand factors which we currently expect will moderate our QCT growth," Qualcomm CEO Paul Jacobs said during the company's earnings conference call with investors, according to a Morningstar transcript of the event. "In light of this we are taking near-term actions company-wide to prioritize investments, stay focused on growth but also control expenses in order to deliver operating profit growth in excess of revenue growth."

Qualcomm has been facing stiffer competition in emerging markets from the likes of MediaTek and Broadcom, and analysts and investors have said that Qualcomm will likely turn to Asia for continued growth. However, sales of lower-cost smartphones are higher there than in Western markets, which could cut into Qualcomm's revenues and margins.

For more:
- see this GigaOM article
- see this San Diego Union-Tribune article

Related Articles:
Qualcomm wants LTE deployed on unlicensed spectrum
Qualcomm puts focus on Internet of Things with new IPQ chips
Qualcomm pitches Gobi modem as device differentiator
Qualcomm's revenues jump 33%, but firm warns of coming slowdown
Qualcomm acquires Arteris' NoC tech assets, team
Qualcomm's new Wi-Fi platform targets Internet of Everything

Read more about: Qualcomm, chipsets
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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... FCC: Mobile speed test app has been installed 30,000 times so far

The FCC revealed the first data points from its mobile speed test application for Android devices, which it released last week. The app, which is available for free in the Google (NASDAQ:GOOG) Play store, runs periodically in the background when a user's phone is not in use and tests both cellular and Wi-Fi download speeds, upload speeds, latency and packet loss. According to the FCC, users can see how their broadband service performs and track it over time; testing is limited to 100 MB per month. The FCC will be aggregating the data to get a clearer picture of wireless network performance across the country.

According to the FCC, the app has been installed more than 30,000 times so far, and has generated around 40,000 collections of the full suite of mobile broadband speed measurements. Of the 40,000 tests, about 25,000 were manual and roughly 15,000 were scheduled, the FCC said, and roughly 23,000 tests were on LTE networks. All the major carriers were represented in the tests, according to the FCC, and results came in from all 50 states, and from small towns and major cities. However, the agency has not yet released actual network performance measurements. Post

Quick news from around the Web.

@FierceWireless: Analysys Mason: Mobile M&A in Western Europe may help ease pressure on revenue. Industry Voices | Follow@FierceWireless

> According to Intel's chairman, "we seemed to have lost our way." Article

> Sprint MVNO PrepaYd Wireless said it activated over 30,000 BYOD CDMA phones under its bring your own device plan. Release

> Comcast engineers are exploring how to eliminate wireless broadband "dead zones" by boosting the signals of Wi-Fi transmitters and connecting to 4G networks in areas that can't be reached by Wi-Fi, and even using data culled from social networks, emails and phone calls to determine where its subscribers will need access to the Internet, according to a patent application published today. Article

> Video game retailer GameStop acquired AT&T reseller Spring Mobile. Article

> Apple is now selling an unlocked and SIM-free version of its iPhone 5s on its website. Article

> The ESPN ScoreCenter app is a hit, and is also getting an overhaul. Article

> Nokia workers in China pledged to continue their strike. Article

Telecom News

> Ixia's legal and financial tangles continue to mount as the test and measurement company received a noncompliance notice from the Nasdaq stock exchange because of its delay in filing its Quarterly Report on Form 10-Q for the quarter ended Sept. 30. Article

> Verizon continues to make progress with migrating what it calls "chronic" copper customers to its FiOS fiber to the home (FTTH) network, an effort that helped it eliminate 600,000 repair dispatches in 2013 alone. Article

Cable News

> Charter Communications is close to securing bank loans and cash from "sovereign wealth funds and wealthy individuals" to finance a merger with Time Warner Cable, the Wall Street Journal reported late Thursday. Article

> Pay TV distributors will have to shell out $7.6 billion to local broadcasters to package their stations in basic cable programming packages, SNL Kagan said in a report released Friday. Article

And finally… Amazon might allow Londoners pick up their packages in the subway. Article


Webinars


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> Is your strategy for small and medium-sized businesses bringing rewards? - Wednesday, December 4th, 11am ET / 8am PT / 4pm GMT

Gain insights into where service providers are currently experiencing problems in the sales cycle, with a benchmark for the SMB market by sector, as well as ideas on how to increase efficiency. Register Today!

> LTE Advanced in unlicensed spectrum? - Tuesday, December 10th, 1pm ET /10am PT

As the operators prepare for the looming 1000x data challenge, small cells and utilizing all spectrum resources are in the front and center. But, does it work? What is needed? Tune into this webinar to get the answers Register Today!

> Unraveling the LTE Roaming Puzzle- Wednesday, December 11th, 2pm ET/ 11am PT

This webinar will delve into the challenges of LTE roaming as well as explore potential solutions. Register Today!

> Virtualization: The OEM Secret to Launching New Devices Faster and Cheaper- Now Available On-Demand

How do some OEMs manage to outpace the competition by launching new devices to market faster and cheaper without sacrificing functionality and performance? In this webinar, Red Bend Software will unveil this secret and present how virtualization can bring significant business benefits to smartphones, tablets and connected cars. Register today to view this presentation

> Now Available On-Demand- ePMP - Connect the Unconnected

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Events


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* General ad info: Click here.

> Carrier Network Virtualization - December 9-11 - Palo Alto, CA

Featuring new case studies from pioneers at the forefront of Software-Defined Networks and Network Functions Virtualization advancements, this event examines the steps needed to be taken to move Carrier SDN forward from research into reality, including a wide range of in-depth carrier perspectives from across the world. Click here to find out more. Limited free places for carriers, find out more.



Marketplace


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> eBook: Making Money from LTE

Currently there's a huge discrepancy among LTE pricing scenarios in the U.S. Some operatators are charging premium and others are offering free data. Find out how pricing strategies are currently being implemented and what is expected to come as operators gain the access to all of the necessary tools needed for more creative billing. Download this eBook today.

> eBook: eBook | Driving The Business Case For The Connected Car

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Jobs


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The Account Executive is responsible for selling Optimum Lightpath Products and services to mid market companies in an assigned geographic area. This position will sell to new accounts as well as to existing accounts as assigned. The AE-II will generate leads by cold calling, networking and referrals as well as closing leads generated through various marketing initiatives...Learn More

> Need a job? Need to hire? Visit FierceWirelessJobs

Announcing FierceWirelessJobs, the new FierceMarkets careers site. Find the perfect job or post your openings at http://www.fiercewireless.com/jobs.

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