CDMA

CBS Mobile head: Industry is overwhelming users

Fri, 01 Feb 2008 06:59:58 -0500

The mobile industry is overwhelming consumers with too many services and associated costs, in the process alienating advertisers as well, according to CBS Mobile chief Cyriac Roeding. Speaking this week at the AlwaysOn OnMedia NYC conference, Roeding said the viability of the mobile advertising platform hinges on carriers, OEMs and content providers simplifying mobile media buying, and positioning mobile as a clear alternative to television and the web. "How do we expect anyone to take this seriously as an advertising device if we keep telling them about the unbelievable complexity that arises out of the fact that we have 20 carriers in the U.S., then we have fundamental technologies, GSM and CDMA," Roeding said. "So let's make it simpler. Let's talk about usability, let's not talk about the next 15 menu items, and let's not try to copy another medium … If you are trying to make this the next online page, you will fail, because this is a new medium in its own right."

According to Roeding, it's imperative advertisers fully grasp the opportunity mobile presents. "If you can't answer that question in 10 seconds, you're out of the game," he said, adding the answer is that mobile is the only medium that people carry with them 18 hours a day. Roeding said that during the last quarter, CBS Mobile's sports initiatives alone drew 75 million mobile page views and five million unique visitors, noting that mobile content providers must provide clear measurement benchmarks to encourage marketers to invest their budgets in mobile.

For more on Roeding's rant:
- read this OnlineMediaDaily article

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Sprint Nextel cuts 4,000 jobs, closes retail outlets

Fri, 18 Jan 2008 06:59:59 -0500

Sprint Nextel announced it would eliminate 4,000 jobs and close 8 percent of company-owned retail locations after losing 683,000 subscribers during the fourth quarter. According to Sprint, the cuts represent an effort to streamline its business in anticipation of "continued downward pressure on subscriber trends, revenues, and profitability in 2008"--in addition to slashing 4,000 internal positions, the operator will cut some outsourced services and contractor deals. Sprint also announced plans to eliminate some 4,000 third-party distribution sites while shuttering 125 of its corporate-owned retail locations.

The Sprint cuts follow Q4 losses of 683,000 post-paid subscribers and 202,000 traditional pre-paid users. The company reported a net gain of 500,000 subscribers through wholesale channels, including 256,000 new Boost Unlimited users and net additions of 20,000 subscribers within affiliate channels. Post-paid churn was 2.3 percent, with improved voluntary churn in both the CDMA and iDEN subscriber bases offset by higher involuntary churn. Sprint will announce complete fourth-quarter and full-year 2007 results Feb. 28.

For more on the Sprint cuts:
- read this release

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Verizon Wireless promises open access by late 2008

Tue, 27 Nov 2007 06:59:59 -0500

In a potentially game-changing announcement, Verizon Wireless said Tuesday morning it will open its network to enable subscribers to use handsets, software and applications not otherwise offered by the operator. Under an initiative dubbed "Any Apps, Any Device," Verizon will introduce open access nationwide by the end of 2008--early next year, the carrier will publish technical standards enabling the development community to create products to interface with the Verizon network, stating that any CDMA-based device meeting minimum technical criteria will be approved for consumer use. Moreover, any application the subscriber chooses will be allowed on approved devices.

"This is a transformation point in the 20-year history of mass market wireless devices--one which we believe will set the table for the next level of innovation and growth," said Verizon Wireless president and chief executive officer Lowell McAdam in a prepared statement. "Verizon Wireless is not changing our successful retail model, but rather adding an additional retail option for customers looking for a different wireless experience." Verizon said it will continue to provide a full-service offering spanning from retail stores to 24/7 customer service and technical support, as well as optimized software applications.

Microsoft was quick to endorse Verizon's decision. "Microsoft is very excited to see Verizon Wireless make such a bold move to satisfy the demands of wireless consumers," said senior vice president of mobile communications Pieter Knook in a prepared statement. "As people's mobile needs become more sophisticated and varied, they will require smarter and more adaptable mobile devices. We are proud to support any open access that puts more power in people's hands to connect them to the information they want when and where they want it."

For more on the Any Apps, Any Device campaign:
- read this release

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Sprint income plummets in third quarter

Thu, 01 Nov 2007 07:59:58 -0400

Sprint Nextel said today that net income dropped 77 percent in the third quarter, a decline precipitated by the carrier's struggles to sign new subscribers. Sprint reported third-quarter net income of $64 million, or 2 cents a share, down from $279 million, or 9 cents, in the same period a year ago. The operator suffered net losses of 60,000 wireless subscribers, led by defections from the Nextel and Boost Mobile brands. Sprint Nextel now serves 34.1 million customers on CDMA and 18.7 million on iDEN, with 1.2 million PowerSource users accessing both platforms.

According to Sprint, post-paid churn for the quarter was 2.3 percent compared to 2.0 percent in the second quarter and 2.4 percent a year ago. Post-paid ARPU came in at about $59, a 3 percent year-over-year decline and a 2 percent sequential decline--modest CDMA ARPU growth was offset by iDEN declines. Data contributed more than $10 to overall post-paid ARPU in Q3 and more than $13 to CDMA post-paid ARPU.

For more on Sprint's disastrous third quarter:
- read this release

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Data revenues up, but Sprint profits tumble

Wed, 08 Aug 2007 06:59:59 -0400

While Sprint reported a sharp decline in second quarter profits, a fall the carrier blamed on weaker operating earnings, start-up costs from its WiMAX initiative and higher merger costs, its total wireless revenues rose 3.1 percent to $8.79 billion, galvanized in part by total data service revenues that increased 40 percent compared to the year-ago period and 4 percent sequentially. Sprint reported Q2 net income of $19 million, or a penny a share, compared with net income of $370 million, or 10 cents a share, a year earlier. During the quarter Sprint gained 16,000 post-paid customers, with total subscriber numbers growing 5 percent from the year-ago period to 54 million.

Sprint reported post-paid Q2 ARPU of more than $60, an annual decline of more than 2 percent but an improvement over the 5 percent year-over-year drop reported in the first quarter. CDMA ARPU increased from the year-ago period while iDEN ARPU declined: Data contributed approximately $9.75, or 16 percent, of Sprint's overall post-paid ARPU in the quarter, with data ARPU on the CDMA platform amounting to approximately $12.75. Sprint also reported promising initial sales of the Samsung Upstage handset/MP3 player, while crediting the Samsung M300 and Sanyo Katana devices for increasing sales of Vision-capable devices to 95 percent of CDMA additions for the quarter.

For more on Sprint's Q2 earnings:
- read this release

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