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Sprint in alleged talks to acquire Clearwire, cablers huddle 'round for some LTE pie
'Tis the season for patent disputes and wireless industry takeovers, or so a recent glut of moves would indicate. Shedding a little light on Clearwire's recently announced allegiance to LTE, Bloomberg is reporting that the company's currently in talks to sell its business to Sprint, and perhaps secure the funding it so desperately needs for a network build out. According to several insider sources, the third place wireless carrier's considering a joint investment (amongst other options) with Comcast, Cablevision and Cox, that would give the cablers a bundled high-speed, wireless broadband competitive advantage, and Sprint an LTE boost in its battle against AT&T and Verizon's rival 4G networks. None of the players in this rumored takeover have yet to comment on the purported transaction, although the business gossip has had quite an uplifting effect on Clearwire's shares. While we can't speculate as to the veracity of the claim, we know one thing for sure -- that LTE network's not gonna build itself.
Clearwire adding 120Mbps 'LTE Advanced-ready' technology to its holdings, restates commitment to WiMAX
Is it really fall? We can't say for certain that this is what Dan Hesse was referring to when he told us face-to-face that something spectacular would be coming our way a bit later in the year, but Clearwire definitely just announced its intent to add "LTE Advanced-ready" technology to its 4G network. In what'll likely go down as the most shocking mobile news this side of the proposed T-Mobile / AT&T merger, America's biggest WiMAX fan has finally caved to the realities of the next-gen wireless war: LTE's winning, and it's picking up all sorts of steam. Verizon Wireless has been building out LTE at a breakneck pace, and soon enough, Ma Bell (and presumably, T-Mob) will be following suit. According to the bizarrely worded release, Clearwire will be leveraging "deep spectrum resources and an all-IP network to meet long-term mobile broadband demands." Translation? An "unmatched LTE network" capable of serving current and future wholesale / retail customers. We're told that the initial LTE rollout will target "high-demand areas of current 4G markets," taking advantage of existing 4G infrastructure in order to reduce expenditures. For those curious about transmission rates, you can look forward to download speeds exceeding 120Mbps (or so it says). In a telling quote, Dr. John Saw, Clearwire's Chief Technology Officer, confesses: "This is the future of mobile broadband. Our extensive trial has clearly shown that our 'LTE Advanced-ready' network design, which leverages our deep spectrum with wide channels, can achieve far greater speeds and capacity than any other network that exists today. Clearwire is the only carrier with the unencumbered spectrum portfolio required to achieve this level of speed and capacity in the United States. In addition, the 2.5GHz spectrum band in which we operate is widely allocated worldwide for 4G deployments, enabling a potentially robust, cost effective and global ecosystem that could serve billions of devices. And, since we currently support millions of customers in the 2.5 GHz band, we know that our LTE network won't present harmful interference issues with GPS or other sensitive spectrum bands." No doubt, that closer there is a direct shot at the dilemmas faced by LightSquared -- a company that Sprint curiously just inked a partnership deal with. It's hard to envision how this unholy love triangle's going to play out, but the company's making it quite clear that its LTE network will be "LTE-Advanced-ready," enabling it to have a leg-up on the laggards here in the States. The dirty little secret in all of this is that Clearwire's still waiting on "additional funding" to fully implement its LTE desires, which involve the use of multicarrier, or multichannel, wideband radios that will be carrier aggregation capable. As you'd likely expect, the company closed with a restatement of its support to the existing WiMAX network, but it's practically a guarantee that you've seen the last expansion effort on that one. In case you've been looking the other way, Clearwire hasn't produced plans for a new WiMAX market in all of 2011. Now you know why.
Ask Engadget: what's the best deal in prepaid wireless?
We know you've got questions, and if you're brave enough to ask the world for answers, here's the outlet to do so. This week's Ask Engadget inquiry is coming to us from Alejandro, who's looking to cash in on the sudden glut of absolutely respectable prepaid smartphones. If you're looking to send in an inquiry of your own, drop us a line at ask [at] engadget [dawt] com. "I'm looking to grab a new phone using a prepaid service. What's the best prepaid phone service in terms of overall price, phone selection and other bells / whistles. Thanks!" We're guessing he's looking for a smartphone here, so before you yell "Cricket!" and run for the hills, give a bit of consideration to folks like Virgin Mobile and Boost Mobile, amongst others. Any of you had a particularly charming experience with a prepaid provider? Speak up in comments below!
Sprint posts Q2 2011 earnings: net subs up, contract subs down, net loss of $847 million
It's another mixed bag worth of earnings for the folks in Overland Park. Sprint just announced its Q2 2011 earnings prior to the market's open today, and while it's obviously doing its darnedest to paint a rosy picture, the raw numbers show a somewhat different backdrop. Despite having its third consecutive quarter of adding more than one million total net new wireless subscribers, the vast majority of those are coming from the (admittedly less lucrative) prepaid side. In fact, the company lost 101,000 postpaid subscribers in the period, and we're guessing that the one-two punch of WiMAX hitting the expansion skids while VZW built out LTE at a breakneck pace didn't help matters. 674,000 prepaid subs were added to the mix (through Virgin Mobile, Boost Mobile, etc. arms), and despite seeing quarterly sequential and year-over-year growth in wireless service revenue, the carrier still reported a net loss of $847 million. In a way, it's the same story on a different day for The Now Network, and while the just-announced LightSquared partnership may end up bolstering things in time, it'll take something a bit more jarring to turn things around by Q3. Or Q4... right, Dan?
Dan Hesse: Sprint's not following Virgin's tiered data movement, but 'nothing is guaranteed forever'
Without a doubt, it's the 800 pound gorilla in the carrier realm: will Sprint follow AT&T, T-Mobile USA and Verizon Wireless down the woeful tiered data route, laced with pain, confusion and general awfulness? We asked Sprint CEO Dan Hesse that very question today at Sprint's campus, and the answer wasn't exactly heartening. He stated that people are simply willing to pay a price premium (when it comes to rate plans) for something that's just dead simple -- something that they don't have to think about when they use. He (rightly) admitted that most average consumers have no concept of what a gigabyte is, or how long it takes to use one up, and that's why the outfit's unlimited plans are still striking a chord -- and in fact, more so now than ever with its three main rivals giving it an even stronger differentiator. When asked whether Sprint would eventually have no other option but to switch to tiered data plans if heavy users begin to come over in droves, Hesse replied that having enough bandwidth to efficiently go around "could be an issue," and while it's working diligently with OEMs and app developers in order to implement things like WiFi offload, we were told that "nothing is guaranteed forever." We specifically asked if the recent tiered testing implemented at Virgin Mobile (which runs on Sprint's network) was an early indication that Sprint was also leaning this way, and Dan was steadfast in his denial. According to him, the postpaid and prepaid sectors are markedly different beasts, and it's not reasonable to consider that Sprint will follow Virgin's footsteps. Moral of the story? Sprint's clinging to unlimited for as long as it can, but we get the impression that a transition is imminent -- even if it's still a few years out.
Sprint's Dan Hesse: significant 4G plans to be announced this fall
We're here at Sprint's monolithic campus in Overland Park, and part of our day was spent speaking directly with CEO Dan Hesse. Amongst other things, the bigwig confessed that it had been awhile since his company (or Clearwire) had launched a 4G market. While Verizon Wireless has been pushing out LTE to new cities on what feels like a fortnightly basis, there's been nary a WiMAX deployment in the US during 2011. But that, friends, is gearing up to change. According to Hesse: "We're going to come out with a great story this fall around 4G, and it'll all become clear." He seemed curiously excited about whatever's around the bend, and Sprint's VP of Product Development, Fared Adib, seemed similarly giddy about the impending unveiling. Neither of 'em would crack on what markets would be addressed or what tactics would be used to match rivals in terms of 4G reach, but whatever the case, we're guessing Sprint users will be a lot happier with their service once they get through the summertime blues. Oh, and it's worth mentioning that Sprint's "not exclusive to WiMAX, nor the Clearwire relationship." Not a soul on the campus would talk details surrounding that rumored LightSquared investment, but judging by the smiles, it's at least on the table.
Ford adds operator assist to its SYNC service, lets you scream at a cospecific
Ford is keeping up with the dashboard arms race by beta-testing live operator assistance within its SYNC system. If the voice-controlled navigation fails to capire no matter how loudly you panic, it'll give you the opportunity to say "operator" and vent at a real-life human being instead. Of course, GM drivers already have this option via OnStar, and there's also the OnStar FMV for everyone else, but the premium annual subscription is a hefty $299. Meanwhile, SYNC costs just $60 per year after a three-year complimentary period. Some of those bucks will trickle down to Wisconsin-based MyAssist, whose operators are set to handle the incoming salvos on Ford's behalf. The question is, who can they call? Navigate to further details in the PR after the break.
AT&T revamps global data packages, gives international travelers (slightly) more for their money
Let's face it: roaming internationally, particularly when it comes to mobile data, is a terrible decision. And we've got the breakdown to prove it. Thankfully for you, said decision just became marginally less terrible thanks to a handful of plan revisions from AT&T. The new international data package tiers are slightly less galling than the ones they're replacing, but they're hardly what we'd consider a bargain. Folks looking to roam overseas in around 100 qualified nations will see $24.99 / month net them 50MB of global data (up from 20MB), while $49.99 / month gets 'em 125MB (up from 50MB). The $99.99 monthly package provides 275MB (up from 100MB), while the $199.99 / month tier offers 800MB of data (up from 200MB). Even still, the avid jetsetter can blow through 800MB in a single workday abroad, and none of these new options hold a candle to an unlimited rental from a firm like Xcom Global. Still, it's a huge relief to see a major US carrier moving international data rates in the right direction, and hopefully we'll see sensible figures published in our lifetime. The world ain't gettin' any smaller, you know? P.S. - We're still waiting to hear back on whether your existing global data plan will include a higher amount of data per-dollar.
Microsoft, Facebook, RIM, and others write to the FCC in support of AT&T-Mobile merger
FCC Chairman Julius Genachowski has mail. It's only a page and a paragraph long, but the letter he's received this week has much gravitas attached to it, coming as it does from a select group of the tech industry's biggest companies, all of whom are lending their support to AT&T's proposed acquisition of T-Mobile. Of the eight new proponents of the deal, Microsoft, Facebook and Yahoo form a sub-group of software / web content distributors, whereas Qualcomm, RIM, Avaya, Brocade, and Oracle will have been motivated to speak up because they see the takeover as expanding opportunities to sell their mobile and networking hardware. The entire octet agrees that the melding of AT&T and T-Mobile's networks into one is a requisite move for broadening mobile broadband availability in the US and for keeping the country competitive with the rest of the world. In their words, "an increasingly robust and efficient wireless network is part of a virtuous innovation cycle." Virtuous for them, perhaps, but what about consumers faced with an increasingly binary choice of mobile carrier? Who shall protect their virtue?
Verizon Wireless killing one-year contracts on April 17th, assumes you won't even care
Okay, so maybe you'll care, but you'll still opt for the two-year option once your contract is up. That's according -- more or less, anyway -- to a Verizon Wireless spokesperson, confirming to our inquiry this afternoon that the carrier's one-year contract option will be eliminated on April 17th. The reason, as you might expect, revolves around historical customer preference. That's a fancy way of saying that most customers prefer the stout hardware discounts that are available with a lengthier two-year agreement, and barring that, they can still choose month-to-month, prepaid or a rival. Not that VZW would encourage the latter, but hey -- America's about options, man.
Senator asks DOJ and FCC to do their jobs, provide friction for AT&T / T-Mobile tie-up
There's always one. Back in the winter of 2009, Senator Kerry made public his request for Fox and Time Warner to keep the Bowl Games online, and one Chuck Schumer took to writing an open letter to Steve Jobs regarding the iPhone reception woes that eventually led to a dedicated press event (mostly) disputing the matter. Now, Minnesota Senator Amy Klobuchar is urging the FCC and DOJ to "take a close look at the proposed AT&T and T-Mobile merger," noting that the outcome would undoubtedly have a huge impact on consumer choice, price and service in the wireless industry. Of course, it's not like these two wouldn't be doing just that in the coming months, but it's good to see a fire starting early in Congress to make sure due diligence is done. Having a carrier that provides service to 42 percent of all US wireless subscribers has the potential to seriously shift the economics of things, and potentially more interesting are the implications of a rejection. In fact, many are suggesting that AT&T will likely have to sell off major assets and promise expansion to rural / poor areas in order to gain approval, which ties in nicely to Verizon Wireless CEO Dan Mead's own comments regarding concessions. We're also hearing that regulators could take as long as 18 months to fully investigate, and you can bet we'll be following the play-by-play as it all unfolds.
Verizon Wireless CEO 'not interested' in buying Sprint, won't waste time opposing T-Mobile / AT&T merger
Well, isn't this just something. It only took Sprint a matter of hours (on a Sunday evening, no less) to push out a detailed list of gripes concerning the proposed AT&T / T-Mobile USA tie-up, but Verizon Wireless won't even be wasting its time. According to an interview with Reuters ahead of CTIA, VZW CEO Daniel Mead confessed that his company wouldn't be lobbying the FCC or any other entity to stop the inevitable, noting that "anything can go through if you make enough concessions." That's a pretty bold quote in and of itself, but of course, this is coming from the man who made an awful lot of those so-called concessions in order to pick up Alltel a few years ago. Continuing on, he blasted out this gem: "We're not interested in Sprint. We don't need them." In other words, there's nary a chance in Hades that America's current largest wireless carrier will be making a bid to keep it that way by shelling out for The Now Network. Why? Quite simply, he'd rather focus on being the most profitable US carrier rather than the largest. Not exactly what you'd expect coming from Verizon Wireless' CEO, but hey -- if he's down for the competition, we're down with watching from the sidelines.
T-Mobile answers its customers' most Frequently Asked Question: no iPhone
Never mind the practicalities of T-Mobile and AT&T using different 3G bands, Apple not having approved any deal for extended distribution of its phone, or the fact AT&T's acquisition of T-Mobile isn't set to complete for another year. The immediate reaction to AT&T agreeing to buy T-Mobile USA was to ask, "so that means the iPhone's coming to T-Mo, right?" Well, wrong. T-Mobile has delivered an FAQ on its site informing customers about the forthcoming transition, including the unequivocal notice regarding the iPhone: "T-Mobile USA remains an independent company. The acquisition is expected to be completed in approximately 12 months. We do not offer the iPhone. We offer cutting edge devices like the Samsung Galaxy S 4G and coming soon our new Sidekick 4G." So that settles that (for a year, anyway). In other news, service and billing won't be changing, and there's a promise that T-Mobile devices will continue to operate as they do now even after the acquisition is complete. Ominously, however, the company fails to answer its own question about pricing changes, stating only that it'll honor "all contracted plans that are entered into before the change of ownership."
AT&T agrees to buy T-Mobile USA from Deutsche Telekom for $39 billion (update)
Wowzers! AT&T and Deutsche Telekom have entered into a definitive agreement for the sale of T-Mobile USA for $39 billion in cash and stocks. The combined customer base of this upcoming behemoth will be 130 million humans, though the agreed deal will have to pass the usual regulatory and closing hurdles before becoming complete. The two companies estimate it'll take them 12 months to get through all the bureaucracy -- if they get through, the proposed network merger will create a de facto GSM monopoly within the United States -- but we don't have to wait that long to start discussing life with only three major US carriers. AT&T envisions it as a rosy garden of "straightforward synergies" thanks to a set of "complementary network technologies, spectrum positions and operations." One of the other big benefits AT&T is claiming here is a significantly expanded LTE footprint -- 95 percent of Americans, or 294 million pops -- which works out to 46.5 million more than AT&T was claiming had it gone LTE alone. Of course, T-Mobile has never put forth a clear strategy for migrating to LTE, suggesting that AT&T plans on using the company's AWS spectrum to complement its own 700MHz licenses as it moves to 4G. You might be groaning at the thought of yet another LTE band, but it's not as bad as you might think: MetroPCS already has a live LTE network functioning on AWS, so there's precedent for it. For further details, hit up the gallery below, the Mobilize Everything site, or the official press release after the break. In the event of the deal failing to receive regulatory approval, AT&T will be on the hook for $3 billion to T-Mobile -- a breakup fee, they call it -- along with transferring over some AWS spectrum it doesn't need for its LTE rollout, and granting T-Mo a roaming agreement at a value agreeable to both parties. Update: TmoNews obtained a copy of Deutsche Telekom's press release regarding the deal -- it looks like the German company will be getting $25 billion in cash and $14 billion in stock, giving it an 8 percent stake in AT&T when all is said and done. Read the full document after the break. %Gallery-119355%
Vimpelcom moves forward with $6 billion Wind Mobile merger, intends to hurdle regulatory snags
If you thought Verizon Wireless and Alltel's marriage underwent a good bit of scrutiny, you'll soon be swearing that Vimpelcom and Wind Mobile are on some sort of global watch list. The Amsterdam-based Vimpelcom has taken a giant leap towards the completion of a $6 billion merger with Wind Telecom, the latter of which has around 117 million subscribers spread across Algeria, Bangladesh, Egypt, Pakistan, North Korea and Canada. If and when the two link hands, the combined effort will be home to a staggering 173 million customers, creating the fifth largest mobile operator by subscriber count. Wind Mobile's head honcho seems more than enthused about the news, and he's hoping that the tie-up will allow prices to sink for just about everyone involved. Claiming feats such as "more access to international cooperation for roaming and long distance services" and the ability to utilize "more leverage and increased scale" to drive down prices, Anthony Lacavera isn't showing any public signs of worry when it comes to regulatory hurdles. In months past, the CRTC took issue with Globalive Wireless -- operator of Wind Mobile -- starting up in Canada, primarily due to the company's largest lender (Orascom) residing outside of the Great White North. As of now, things seem to be sailing right along, but you can bet this marriage won't be formally recognized before a borderline-obnoxious amount of investigating goes down behind the scenes. [Thanks, Kelvin]
Vodafone's UK network taken down by a break-in (update: some services restored)
Some of our UK readers have woken up to the less than awesome discovery this morning that their phones have lost all connectivity to the outside world. 3G, 2G, SMS, and BlackBerry services on the Vodafone UK network are all down for what seems like a significant proportion of its user base -- an issue the carrier has since identified as being caused by a break-in at its Basingstoke exchange center. No further details have been provided, though work is naturally underway to repair the damage done and we're assured customers' private data has remained so. We can't imagine quite such a service disruption being caused by a random act of vandalism or burglary, perhaps a disgruntled employee felt the need to vent his or her frustrations in grand style? Or has O2 gone gangster on the competition? [Thanks to everyone who sent this in] Update: Vodafone got in touch to say that 2G and 3G voice connectivity has been restored as of lunchtime in the UK and text and data services should be up within "the next couple of hours." The company estimates the issue has affected "a couple of hundred thousand users", though it expects that number to drop to zero before the day is through.
Motorola's Atrix 4G coming to AT&T on March 6th for $200, bundled with Laptop Dock for $500
Don't ever say Ma Bell lacks cahones. On the same day that existing Verizon customers began pre-ordering the CDMA'd iPhone 4, AT&T has come clean with what's next on America's largest GSM network. While announced at CES 2011, pricing and release information had eluded the luscious Atrix 4G... until now, that is. AT&T will begin pre-sales for the Froyo-powered Motorola Atrix 4G Android superphone on February 13th, with the standard $199.99 + two-year contract ($50 more than we were led to believe, mind you) getting one into your grubby mitts. We're told to expect general availability on March 6th "or earlier," putting it just about in line with the date we'd heard rumored. Moreover, those looking to buy will should have a difficult time laying off of the Laptop Dock bundle, which nets you an Atrix 4G as well as a $499.99 dock for the grand total of $499.99 on contract. You heard right -- those who opt to buy the dock at a later time will be asked to shell out five Benjamins, whereas that same tally on day one will also include the phone. It should be noted, however, that the bundle only applies if you also sign your name to a Data Pro plan and tethering add-on, so be sure you're down for that monthly hit before committing in haste. Oh, and just in case you simply can't stop spending, the carrier is also offering an Entertainment Access Kit for Atrix 4G customers which includes the Motorola HD Multimedia Dock, a Bluetooth keyboard and mouse, and a remote control for $189.99.
T-Mobile starts up 4G ad campaign by poking a stiletto into AT&T's network (video)
We suspected T-Mobile's new advertising campaign would ruffle some feathers, but we weren't ready for quite such brazen trash-talking right off the bat. Of course, it's trash talk dressed up in a pretty white and Magenta dress and delivered in the most angelic of voices, but T-Mobile makes its point to AT&T subscribers loud and clear: we got 4G, you don't. Whether you consider the network's current 21Mbps theoretical max a true representation of 4G or not, we'll leave up to you; just make sure to join us past the break for the Apple-scented commercial, which also teases the myTouch 4G, a HSPA+ handset that T-Mobile happens to be launching today. Update: AT&T isn't taking this one lying down. It countered with the following statement this afternoon: "T-Mobile's claims about 4G are based on the same HSPA+ technology we have deployed to 180 million people today, more than T-Mobile's reported 140 million, and we'll have it rolled out to 250 million people by the end of this month, substantially more than the 200 million T-Mobile says it will have by year-end."
Sprint fails to impress Wall Street with Q3 2010 earnings, still notches 644k net adds
Sprint certainly isn't out of the woods yet, but at least it's picking up customers from somewhere. The company's Q3 2010 earnings were ushered out today, and while its stock fell around ten percent on the news, a few silver linings were present. The carrier saw postpaid subscriber losses of 107,000, but that's an 87 percent improvement compared to Q3 2009. The CDMA network added approximately 276,000 postpaid customers during the quarter, 471,000 (net) prepaid subscribers and 644,000 total wireless subscribers from a net perspective. It also landed its second best postpaid churn result ever, but the bottom line still looks battered -- the operator announced a net loss of nearly a billion dollars ($911 million, if you're scouting specifics). Of course, phasing out iDEN should probably help things in the long run, but even its 4G advantage could quickly fade if (or more likely, when) Verizon gets its LTE act together next year.
FCC set to approve rules compelling carriers to alert you when you're about to go over your limit
Politicians do love themselves a sharp and emotive turn of phrase, of which few are as good as "bill shock." That's the term the FCC has used to sum up all those instances when you've had unexpected surcharges on your monthly wireless bill, caused by unknowingly going outside the bounds of your geographical coverage or monthly allowance. Seeing this issue as something it could help alleviate, the Commission set up a Consumer Task Force back in May in an effort to seek out solutions, and now it has returned with perhaps the most obvious one: getting your network operator to shoot out a voice or text message warning you when you're about to incur costs outside of your normal plan. That's basically what AT&T already does with iPad owners approaching their monthly data limits, which the federales see as a good practice that should be extended across all carriers. We can see no good reason why it shouldn't.
