Posts Tagged North America
Clearwire narrows losses, reports user growth, signs up Cisco (USA)
Clearwire, the US wireless broadband operator 51% owned by Sprint Nextel, has reported a narrowing of first-quarter losses to USD71.06 million, compared to a pro forma loss of USD76.44 million a year earlier (before Sprint and Clearwire unveiled their USD12 billion partnership to combine their planned nationwide mobile WiMAX networks). Revenue in the three months to the end of March 2009 rose 21% year-on-year to USD62.1 million. According to TeleGeography’s GlobalComms database, Clearwire provides broadband internet services in at least 50 markets nationwide via fixed wireless networks which utilise a combination of pre-WiMAX and true 802.16e mobile WiMAX technologies. Clearwire, which has so far launched commercial WiMAX in Baltimore and Portland, Oregon, reported that it added 25,000 subscribers in the first quarter, bringing its total base to 500,000 (up 57,000 year-on-year). The firm expects to add 802.16e networks in Atlanta, Las Vegas, Chicago, Charlotte, Dallas/Fort Worth, Honolulu, Philadelphia and Seattle during 2009. The company said yesterday that it still plans to expand its ‘Clear 4G’ WiMAX service to 80 markets covering a potential 120 million customers by the end of 2010 but the plan could be altered depending on the availability of capital.
Also announced yesterday, Clearwire has selected Cisco as its national core infrastructure provider as it expands mobile WiMAX network coverage across the US. Clearwire’s all-IP network will be upgraded and extended under the deal, whilst separately, Cisco is also planning to move into the mobile WiMAX terminal device manufacturing market this year.
Add comment May 14, 2009
AT&T Offering Phones, BlackBerrys On Rural Spectrum (USA)
AT&T announced that the 1.5 million subscribers it will acquire from Verizon Wireless will be shifted from Verizon’s CDMA network to AT&T’s GSM network within 12 months of the deal’s completion. The assets were previously owned and managed by Alltel, which was acquired by Verizon Wireless earlier this year for $28.1 billion. AT&T, which will pay $2.35 billion for the assets, said it will spend another $400 million on the switchover. The AT&T-Verizon deal is expected to close in the fourth quarter of 2009, AT&T said. Subscribers in the mostly rural regions will be able to receive mobile broadband on AT&T smartphones, including iPhones and BlackBerry Bolds, after the transition is completed, the company indicated in an announcement late Friday. In a smaller deal in the wireless-infrastructure musical chairs exercises between the two largest U.S. wireless carriers, AT&T said it will sell some wireless assets of Centennial Communications to Verizon Wireless.
1 comment May 13, 2009
AT&T to acquire mobile assets from Verizon Wireless (USA)
AT&T has agreed to acquire mobile assets from Verizon Wireless for USD 2.35 billion in cash. AT&T will acquire mobile properties, including licences, network assets and 1.5 million current subscribers in 79 service areas, primarily in rural areas across eighteen states. Verizon Wireless is required to divest these properties as part of the regulatory approvals granted for its purchase of Alltel earlier this year. The states represented are Alabama, Arizona, California, Colorado, Iowa, Kansas, Michigan, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, South Dakota, Tennessee, Utah, Virginia and Wyoming. While the transaction primarily represents former Alltel assets, but it also includes assets from Verizon Wireless and the former Rural Cellular. AT&T expects integration costs for network conversion, amortisation of intangible assets and subscriber migration to result in dilution to EPS of approximately USD 0.06 per share in the first year after closing and to improve thereafter. Network conversion from Verizon’s CDMA network to GSM technology and transition of the operations to AT&T is expected to take no longer than 12 months from the date the transaction closes and to result in an additional planned capital investment of approximately USD 400 million over 2009 and 2010. The transaction is contingent upon regulatory approval and is expected to close in the fourth quarter. AT&T has also agreed to sell certain mobile assets of Centennial Communications to Verizon Wireless for USD 240 million.
Add comment May 11, 2009
Leap Wireless adds 493,000 new subscribers (USA)
Leap Wireless reported a hefty increase in its net new subscribers for the first quarter.However, it still came in behind competing wireless operator MetroPCS. Both companies have benefited from the current economic slowdown as mobile customers defect to their flat-rate, no-contract wireless services instead of sticking with landlines or high-end plans. MetroPCS appears to be doing a bit better than Leap after posting a net profit and higher customer additions in its latest quarter, although its churn rate and ARPU (average revenue per user) come in behind Leap’s. Leap added 493,000 new subscribers while MetroPCS plowed its way ahead with an additional 684,000 customers in the same period, and it expanded into highly-populated markets in New York and Boston and covered an additional 15 million people.Leap launched service in Chicago and Philadelphia toward the end of the first quarter, covering an additional 17 million people and adding 193,300 customers in those new markets.
Add comment May 11, 2009
Sprint given a year to close some Nextel iDEN networks
The US cellular operator Sprint Nextel has been given twelve months to shut down its Nextel iDEN networks in territories served by affiliate operator iPCS. Sprint and iPCS have been arguing for years over the future of the iDEN mobile data networks; iPCS says the systems contravene the affiliate agreement it has with Sprint which says the larger firm cannot compete with iPCS in its exclusive service areas. iPCS has won a number of court decisions over the past two years, but the latest final order by an Illinois Circuit Court means Sprint has no choice but to close down or sell the offending systems. Sprint and iPCS are also arguing over Sprint’s WiMAX wireless broadband networks, which the affiliate claims also breaks their exclusivity agreement.
Add comment February 9, 2009
Bell Aliant issues results, forecasts (Canada)
Regional Canadian telco Bell Aliant has posted 0.9% year-on-year rises in both operating revenues and EBITDA for full-year 2008, to CAD3.28 billion (USD2.64 billion) and CAD1.45 billion, respectively. Annual CAPEX fell by 2.4% to CAD529 million. High speed internet subscribers increased by 10.7% in twelve months, to 762,000 at end-December, with broadband monthly ARPU in the fourth quarter of 2008 reaching CAD36.71, up by 6.7% compared to the same quarter of 2007. Fixed line subscribers stood at 3.09 million at end-2008, down from 3.20 million a year earlier. Bell Aliant also issued guidance for 2009, including operating revenues of between CAD3.18 billion and CAD3.28 billion. Capital expenditures are expected to be between 13.5% and 14.5% of operating turnover in 2009 (down from 16% in 2008), with expansion of broadband services a strategic priority.
Add comment February 4, 2009
T-Mobile USA subscriber growth dwindles
T-Mobile USA has reported fourth quarter 2008 net subscriber additions of 621,000, down from 670,000 in the third quarter of 2008 and 951,000 in the fourth quarter of 2007. The slowdown in additions was compounded by an increase in churn to 3.3% in the three months to 31 December 2008, compared to 2.8% in the same period twelve months previously. Post-paid churn was 2.4% in the quarter, up from 1.8% in the final quarter of 2007. For the full year 2008 T-Mobile added over 4.07 million net new customers, including 1.13 million from its February 2008 acquisition of SunCom Wireless, to end the year with 32.8 million subscribers. Contract customers comprised 82% of T-Mobile’s customer base at the end of 2008, compared to 83% in the third quarter of 2008 and fourth quarter of 2007.
Add comment January 30, 2009
AT&T reports varied Q4 results
AT&T has reported growth in its wireless division, but experienced further declines in the fixed line sector in the fourth quarter of 2008. The company’s overall net profit for the quarter was USD2.4 billion, down 23.6% from USD3.1 billion twelve months previously. Revenue for the three months ended 31 December 2009 was USD31.1 billion, up 2.4% year-on-year. Wireless revenue rose 13.5% to USD11.5 billion, while total wireline revenue dropped 3.3% to USD17.07 billion. The company cited merger-related expenses, severance costs and upfront subsidies for the iPhone as contributing to lower income. Large declines in AT& T’s local and long distance business also played a significant role. Although the operator takes an initial hit in handset subsidies from the 1.9 million new iPhone customers it acquired in the quarter, in the long run it should generate significant profits from the higher monthly fees paid by users.
AT&T ended the quarter with 77 million mobile customers, slightly behind new market leader Verizon’s 80 million. AT&T’s churn rate remained flat at 1.2% for post-paid subscribers and was down slightly at 1.6% overall. Post-paid ARPU was up 3.9% versus the year-earlier quarter at USD59.59. The operator signed up a net 264,000 customers for its new U-Verse fibre-TV service to reach its year-end goal of one million. It had planned to reach 30 million living units by the end of 2010, but has now revised the target date to the end of 2011. AT&T added 357,000 broadband customers in the fourth quarter, including those who buy wireless aircards. In the fixed line division the number of primary consumer lines in service fell to 27.48 million from 31.01 million a year earlier.
Full-year 2008 revenue totaled USD124.0 billion, net income was USD12.9 billion and cash from operating activities totaled USD33.7 billion. AT&T issued a conservative forecast for 2009. The company has already taken steps to counter the financial downturn and has recently shed 12,000 jobs. The company has also said it will reduce its CAPEX spending on new equipment in 2009 by between 10% and 15%.
Add comment January 29, 2009
LG to Recall Mobile Phone Sold in Canada
LG Electronics Canada has issued a recall notice for one of its mobile phones after the handset was found to no longer comply with Canadian radio-emissions standards. The LG 150 is the only mobile phone manufactured by LG that is affected by the recall.LG has mobilized quickly in response to these findings on behalf of our customers, says Mr. William Cho, president and CEO of LG Electronics Canada. LG’s preliminary testing indicates that only LG 150 phones from specific production runs may be affected by this issue. LG is therefore recommending that all LG 150 phones manufactured within such production runs be returned in accordance with the guidelines set out below. LG is continuing to test the LG 150 phones. However, because customer satisfaction and safety continue to be our primary commitment, we are taking a proactive approach and working in cooperation with our carriers to recall all LG 150 phones in Canada.The company also noted that Health Canada is of the opinion, based on the review of test results and its assessment of current science, that the past and current use of the LG 150 should not pose immediate or long-term health concerns.
Add comment January 29, 2009
Verizon Communications reports 15.2% increase in Q4 net profit
Verizon Communications has reported a 15.2% increase in its net profit for the fourth quarter of 2008 to USD1.24 billion, with the growth driven largely by the cellular unit Verizon Wireless. Revenues for the quarter were up 3.4% at USD24.65 billion. Sales at the wireless unit rose 12.3% year-on-year to reach USD12.8 billion, with 1.2 million retail net subscriber additions taking its total customer base to 72.1 million. This will rise to over 80 million once subscribers of newly acquired Alltel Corp are transferred to the Verizon Wireless network. The fixed line division lost 911,000 customers in the final three months of 2008 and the ADSL broadband subscriber base also fell, losing 68,000 users. This was offset by growth at the FiOS fibre-optic broadband business, where 282,000 net new customers were added, taking the total to almost 2.5 million.
For the full year 2008 Verizon reported revenues of USD97.35 billion, up 4.2% on the 2007 figure. Consolidated net income was up 16.4% at USD6.43 billion. Capital expenditures totalled USD17.2 billion in 2008 compared with USD17.5 billion the previous year. ‘Verizon has shown that it is able to compete effectively in this economic environment,’ said Chairman and CEO Ivan Seidenberg. ‘We grew profits and maintained strong cash flows throughout 2008. In the fourth quarter, we continued to produce top-line growth, fuelled by strong sales volumes for broadband, wireless and strategic business services.’
Add comment January 28, 2009
Sprint looks for USD1.2bn savings from job cuts
The loss-making US cellular operator Sprint Nextel has announced that it will cut its workforce by 13% as it streamlines its operations in an attempt to make annual cost savings of USD1.2 billion. The job cuts will be across all levels of the workforce and are expected to be carried out by end-March. The latest redundancies come on the back of 4,000 job cuts made last year. ‘Labour reductions are always the most difficult action to take, but many companies are finding it necessary in this environment,’ said Sprint CEO Dan Hesse. Last month rival operator AT&T announced that it was axing 12,000 jobs – 4% of its workforce – in an effort to cut costs.
Add comment January 27, 2009
Mobile Connections Reach 4 Billion Worldwide
3G Americas, a wireless industry trade association representing the GSM family of technologies including LTE, today announces that a historic milestone was achieved for the wireless industry in December 2008 with 4 billion connections to mobile devices worldwide. This estimate by Informa Telecoms & Media represents 60% of the entire global population today. In some countries, millions of people are now experiencing connectivity to the world for the first time through wireless and changing their economic, social and political fortunes forever.
The Latin America and Caribbean region continues to show steady consumer growth with 16% year-on-year growth as subscription numbers are expected to reach in excess of 440 million, equating to 76% penetration, noted Marisol Gomez, Americas regional analyst at Informa Telecoms & Media.
Add comment December 26, 2008
India emerging leader in mobile marketing
Lowe Lintas, the agency whose work is behind conspicuous campaigns for products like Sunsilk shampoo and Fair and amp; Lovely cream, is eyeing India as an emerging leader in mobile marketing, with significant potential for digital advertising, its new chief executive officer Charles Cadell says.
“The biggest initiative (for us) will be digital, which we’re driving across the agency,” Cadell told Hindustan Times in an interview. “Globally, Lowe has acquired two digital companies in mobile and Internet marketing. India is still a long way behind the West and a lot of Asian markets on digitisation but in two to three years, India will lead in mobile marketing in the world. It’s going to happen very fast and agencies will not have the luxury of time on this,” he said.
The boom in mobile phones, in which India already has more than 32 crore connections, is expected to acquire a new momentum as people go beyond voice calls and text messages to use it to draw content that can be accompanied by ads.
Lowe is one of the biggest ad agencies in India and part of the global Interpublic Group. Cadell said Lowe Lintas was also focusing on new approaches to advertising in which content, rather than follow set campaigns, could be tied to them after being created as original property.
“There’s a headline thought that is taking us from being an advertising agency to being a communications company – we will be all about content creation, be it Bollywood film scripts, or in opportunities whenever a brand intersects with the consumer,” Cadell said.
“We will also be involved in property creation – something like Sunsilk’s Gang-of-Girls (an interactive Internet initiative to bring together Sunsilk consumers in sharing their lives and hair concerns),” Cadell said, adding that the agency will hold intellectual property rights (IPRs) while taking the content to clients or media houses. “We are looking at different revenue models,” he said without elaborating.
Add comment December 17, 2008
