Also Noted: Spotlight On... WCDMA subs in Asia Pacific exceed 50M in 1Q '07; iPhone buyers opt for more expensive model; NextWave launches Latin American unit; and much more...
1. AT&T gives free WiFi to DSL subs, but not to iPhone users AT&T announced that subscribers to its highest-speed DSL services will have free access to its WiFi hotspots throughout the country. Subscribers who get the company's Pro, Elite and FastAccess can use any of the company's 10,000 hotspots located in airports, coffee shops, McDonald's restaurants and Barnes & Noble bookstores for free. Those with lower tier services can add unlimited WiFi access for $1.99 per month. Connections at AT&T WiFi hot spots for non-subscribers run $7.99 per day. But iPhone users are left out of the fray, despite the fact that the device supports both EDGE and WiFi. It appears AT&T wants to de-emphasize the WiFi aspect (even though Apple CEO Steve Jobs emphasized the WiFi solution when asked about the drawback of supporting the slower EDGE network) given the fact that the carrier has disabled the WiFi capability in a host of other devices. The view of most carriers is that WiFi will cannibalize their mobile businesses. For more about AT&T's WiFi access strategy:
2. EarthLink to sell muni-WiFi in retail stores EarthLink said it plans to sell muni-WiFi service through retail outlets. The company hasn't disclosed which retailers will carry the service. EarthLink's service is currently operating in five cities--Anaheim, Calif.; Corpus Christi, Texas; Milpitas, Calif.; New Orleans; and Philadelphia. EarthLink currently offers EarthLink WiFi through its website at $6.95 a month for the first six months and $19.95 after that. The move comes after EarthLink revealed earlier this year that it is pulling back on its muni-WiFi business to focus on its existing contracts and larger cities for the rest of the year. This announcement came following the revelation that EarthLink lost $30 million during the first quarter, or 24 cents per share, as more subscribers exited from its core traditional dial-up business. For the rest of the year, EarthLink plans to focus on driving up usage in large cities rather than launching new projects. The company plans to cut in half its capital expenditures on municipal WiFi. EarthLink's plan is to make money through paid services such as monthly subscriptions and "anchor tenant" deals with city governments. But so far EarthLink has about 2,000 monthly consumer subscribers to its muni-WiFi services, which executives estimate cost an average of $40 per household to deploy. For more about EarthLink's plans to sell WiFi at retail stores: 3. Nokia Siemens unveils 3G femtocell On the same day the newly formed Femto Forum was commencing its conference in the U.K., Nokia Siemens launched a 3G femtocell and a network gateway to allow operators to manage multiple femtocells in subscribers' homes. But it made no mention of the Femto Forum. Femtocells are being billed as the next big thing in fixed-mobile convergence, promising to solve many of the shortcomings faced so far by several existing WiFi/cellular FMC services, namely a lack of compelling handsets and perceived complexity of the solution. The Femto Forum aims to create a standard for femtocells, designed to drive down the cost and encourage mobile operators to jump in. Nokia Siemens' gateway plugs into an operator's core network and is designed to manage femtocells from multiple vendors, but Nokia Siemens has announced that other vendors will have to make sure their femtocells conform to a proprietary interface. The Femto Forum hopes to get Nokia Siemens on board, but at present, any other vendors will have to rely on Nokia Siemens, which promises to "co-operate with femto vendors to ensure interoperability of their equipment to the Nokia Siemens Networks interface." For more about Nokia Siemens' 3G femtocell: 4. Rumor Mill: O2 close to deal for iPhone Telefonica's O2 mobile-phone business is rumored to be close to scoring a deal as Apple's exclusive network operator for the iPhone in the U.K., according to the Financial Times. According to the newspaper, Apple talked to four leading European mobile operators: Deutsche Telekom's T-Mobile, France Telecom's Orange, Telefónica's O2 and Vodafone. Apple plans to limit the iPhone's European launch this fall to the U.K., France and Germany. It will follow elsewhere in Europe next year, when it will also launch in Asia. European operators had a dilemma in negotiations because of concerns Apple seeks deals that could weigh in favor of Apple. O2 said: "We have not signed a deal with Apple." Apple said: "We...do not comment on rumors or speculation." For more about the potential deal between Apple and Telefonica's 02: 5. Nortel announces the "Unwired Enterprise" Nortel Networks announced its plan for creating the "Unwired Enterprise," which involves integrating WiFi into existing wired infrastructure. Nortel said it will bring to market WiFi products based on the 802.11n draft specification once it's ratified as a standard. The idea is to combine WiFi and mesh systems, switches and routers embedded with wireless capability and a unified network management platform. For instance, Nortel will integrate WiFi functionality directly with the Ethernet switch, as opposed to offering stand-alone equipment like a wireless access point or a router. Nortel's seriousness in the business can be measured by the fact that the vendor plans to build products in-house by upping its R&D spending. Previously, the company had outsourced its WiFi equipment to OEMs. For more about Nortel's "Unwired Enterprise" strategy: ALSO NOTED TODAY'S SPOTLIGHT... WCDMA subs in Asia Pacific exceed 50M in 1Q '07 > iPhone buyers overwhelmingly chose the higher-priced $599 8GB version of the iPhone instead of the $499 4GB version and bought a plethora of accessories in the days following the iPhone launch, Goldman Sachs analysts reported. Article > A European Union court rules that the French government acted legally when it changed the conditions of 3G licenses granted to SFR and Orange. Article > Australian wireless broadband provider Allegro claims to be first to market with business-grade WiMAX. Article (telecoms.com sub. req.) > The UMTS Forum is urging Latin America to support the international need for additional radio spectrum from today's UHF television broadcast bands to provide capacity and coverage for future mobile broadband services. Article > NextWave announced the launch of its Latin American unit headquartered in the Brazilian city of São Paulo. Release > Following Boingo's lead, Trustive launched flat-rate pricing across its European network. Article | Release And Finally... Gartner's advice to the enterprise: Stay away from the iPhone. Article
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