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AT&T has definite plans to also offer a shared family data plan, similar to something Verizon Wireless is working on, according to the company’s mobile CEO. This would make it easier for a subscriber to have a smartphone and tablet on a single data plan.
Brighthand.com Handheld News and Reviews
China’s ZTE plans to strengthen its foothold in the European telecoms market by building closer cooperation with the leading operators. The company is hoping that growing relationships with these larger multinational service providers will introduce ZTE to more extensive opportunities.
Dai Shu, director of corporate branding and communications at ZTE, told the China Daily newspaper the company is aiming to steadily increase its market share in European countries. “Since European-based telecom operators are closely involved with more than half of the world’s telecom network market, ZTE will benefit in the short and long run from cooperation with those multinational operators” he said.
The European market, according to Dai, is “more open and friendly to foreign telecom players” compared to the United States, where ZTE has run into resistance from politicians and the American administration over national security concerns, which ZTE denies are an issue.
Apart from closer relationships with the major operators, ZTE says it plans to shift its focus towards mid-level to high-end smartphones in an effort to reverse a decline in its gross profit margin. “We’ll do more promotions for our mobile phones in Europe this year,” Dai said, adding that ZTE will boost its advertising campaign due to many European consumers knowing little about the company.
The company says it has already made inroads with its entry-level Blade 880 smartphone, selling nearly 10 million since it was launched in the UK in late 2010. At Mobile World Congress in February ZTE made no pretense in its ambitions to become one of the top smartphone makers in the world with a high-end Android smartphone called the Era, a new phone running Android version 4.0, dubbed Ice Cream Sandwich. The company also announced a new Microsoft Windows Phone, the Orbit. ZTE said the Era will come to Europe in the second half of the year, but has been less specific on other models.
The third leg of ZTE’s European strategy it to target government and enterprise businesses with its telecoms and IT solutions. Xu Ming, ZTE’s vice president of wireless products, told China Daily that the company is looking to overseas markets to contribute more than 60 per cent of its total government and enterprise business sales by 2015.
For more:
- see this China Daily article
- see this Telecom Paper article (sub. req.)
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According to an expert, Apple’s next big move may be to become a wireless service provider, like Verizon or AT&T. This would allow the company to dispense with the “middleman” and control the entire smartphone experience.
Brighthand.com Handheld News and Reviews
Some of the details of the smartphones coming to Verizon in the coming months has leaked out. This shows that Big Red will be offering two of the most-anticipated models of the year, as well as many others.
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Those who own the Motorola Droid RAZR, RAZR MAXX, or HTC Rezound smartphones from Verizon will be receiving the Android OS 4.0 (Ice Cream Sandwich) upgrade by the end of May.
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Samsung announced today which of its models released in the U.S. will receive an Android OS 4.0 (Ice Cream Sandwich) upgrade in the coming months. This is good news for AT&T and Sprint users, but the situation is less rosey for Verizon and T-Mobile subscribers.
Brighthand.com Handheld News and Reviews
The CEO of Verizon has confirmed something that many of this company’s subscribers have been hoping for for a long long time: they will soon be able to connect multiple devices to a single data plan.
Brighthand.com Handheld News and Reviews
Microsoft may not be seeing much success with its Windows Phone platform, but Verizon Wireless is prepared to back Windows Phone 8 upon its release later this year, just in time for the 2012 holiday shopping season.
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AT&T Mobility (NYSE:T) is making changes to its GoPhone prepaid plans by requiring that customers who want data access sign up for plans that start at $ 25 instead of cheaper pay-as-you-go plans, according to research firm Current Analysis.
According to Current Analysis, smartphone users on AT&T’s GoPhone 10 cents per minute pay-as-you-go or $ 2 daily plans will not be allowed to opt for the carrier’s prepaid data packages starting April 18. Consumers who want to opt for the monthly data add-ons need to be subscribed to a prepaid monthly voice plan from the carrier starting at $ 25 per month. AT&T charges 1 cent per 5 KB of data on its prepaid plans or tells customers to purchase data packages. Prepaid customers can buy data add-on packages of $ 5 for 10 MB, $ 15 for 100 MB or $ 25 for 500 MB.
An AT&T spokeswoman did not immediately respond to a request for comment.
In addition to the $ 25 plan, which has 250 voice minutes and unlimited messaging, AT&T also offers a $ 50 prepaid monthly unlimited plan, which offers unlimited data access.
For the most part, Current Analysis said the move is a positive one for AT&T. Current Analysis analyst Deepa Karthikeyan wrote in a report that the move “will help the carrier earn a greater percentage of predictable revenue from this segment. AT&T was the only carrier to offer the benefits of a data package to its pay-as-you-go smartphone users, so its withdrawal should not result in too many negative reactions from its users. However, there are daily plan options that include different forms of unlimited Web access available at rival carriers, which might impact the carrier if its users decide that it is not worth spending north of $ 30 per month on a prepaid plan that can only offer them up to 10 MB of data access.”
Despite the upsides for AT&T, Karthikeyan wrote that AT&T ‘s decision may present problems because it robs AT&T of its unique factor in the prepaid segment, especially among Tier 1 carriers, and the decision may lead to higher immediate prepaid churn. Additionally, the 1 cent per 5 KB option is “not a viable solution for moderate-to-high data users, compelling them to opt for a $ 25 monthly plan at the minimum,” according to Karthikeyan.
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Correction, April 16, 2011: This article incorrectly stated what data packages are available to AT&T prepaid customers. Prepaid customers can buy data add-on packages of $ 5 for 10 MB, $ 15 for 100 MB or $ 25 for 500 MB.
Nokia (NYSE:NOK) responded to a credit rating downgrade by Moody’s Investors Service, arguing it remains in a strong financial position and is taking steps to turn its business around. The downgrade came less than a week after Nokia cut its financial outlook for the first and second quarters.
Moody’s cut its rating on Nokia’s debt to Baa3 from Baa2, and maintained a negative outlook, meaning that Nokia could be downgraded by Moody’s to “junk” status. Moody’s said it was worried by Nokia burning through cash and its deteriorating feature phone business. “Moody’s believes that the structural change facing Nokia’s Mobile Phones segment may not be easy to address, such as the market share gains recorded by makers of very low-end phones or new promotions by Chinese carriers,” Moody’s analyst Wolfgang Draack said in a statement.
In its response, Nokia noted that it still had an investment grade rating from Moody’s and that, as of March 31, it had gross cash balances of $ 12.7 billion and a net cash position of $ 6.4 billion. In a statement, Nokia CFO Timo Ihamuotila said the company “is quickly taking action. Nokia will continue to increase its focus on lowering the company’s cost structure, improving cash flow and maintaining a strong financial position.”
Last week Nokia indicated that its key non-IFRS Devices & Services operating margin would be around negative 3 percent in the first quarter, compared with the previously expected range of “around breakeven, ranging either above or below by approximately 2 percentage points.” For the second quarter, Nokia said it expects its Devices & Services operating margin to be similar to or below the level of the first quarter.
Nokia has been transitioning to using Microsoft’s (NASDAQ:MSFT) Windows Phone platform for all of its high-end phones, but its sales of Symbian-based phones have fallen off more sharply than it expected. Nokia said last week it is “taking tactical pricing actions” in the near term–i.e. cutting prices–and that it plans to bring new products to market in the second quarter of 2012. Nokia also said it will accelerate planned cost reductions and might look at “additional significant structural actions if and when necessary.”
According to a number of estimates, Samsung Electronics will sell more handsets–a mix of both smartphones and feature phones–during the first quarter than Nokia will. According to Bloomberg estimates, Samsung will ship 92 million mobile phones during the first quarter. A separate report from Reuters pegged Samsung’s quarterly shipments at 88 million. Nokia has said it expects to ship around 83 million phones.
If the forecasts are correct, it would mean that Nokia will lose its position as the world’s largest maker of mobile devices, a position the Finnish manufacturer has held for more than a dozen years.
For more:
- see this release
- see this WSJ article (sub. req.)
- see this Bloomberg article
- see this Forbes article
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Sound Off: Will Nokia’s Lumia 900 from AT&T be a hit?
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