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Posts Tagged ‘wireless’

Net and wireless service providers don’t get much forgiveness

Thursday, May 2nd, 2013

Temkin GroupAll companies make mistakes. But how much goodwill have they built up for consumers to forgive them? Not so much for TV, wireless carriers, and Internet service providers, who come in at the bottom of a forgiveness rating survey.

The companies they do forgive may be a bit of a surprise. Based on a study of 10,000 U.S consumers and 246 companies across 19 industries, Advantage Rent A Car has earned the most forgiveness from its customers.

USAA is next on the list for three of its businesses: banking, insurance, and credit cards. This data comes from the recently published 2013 Temkin Forgiveness Ratings that examines the likelihood of consumers to forgive companies if they make a mistake.

The other companies in the top 10 of the ratings are H.E.B., BlackboardAldiAlaska Airlinescredit unions and Publix. At the other end of the spectrum, HSBC earned the two lowest scores for its credit card and banking businesses.

Forgiveness is an asset that every organization needs. Consumers are more willing to forgive companies that consistently treat them well,” states Bruce Temkin , Managing Partner of Temkin Group.

Here are some additional highlights from the 2013 Temkin Forgiveness Ratings:

  • WiFi iconSix of the bottom 12 companies are TV service providers: Cox CommunicationsTime Warner Cable ComcastVerizon,Charter Communications, and Optimum (iO)/Cablevision.
  • TV service providers, as an industry, earned the lowest ratings, followed by Internet service providers and wireless carriers.
  • Grocery chains are the highest scoring industry, followed by hotel chains, auto dealers, and rental car agencies.

Temkin Group examined year-over-year results for the companies and industries. Here are some highlights of that analysis:

  • With a jump of 29 percentage points, Chrysler is the most improved company in 2013. Six other companies improved by 20 points or more: Continental AirlinesCitigroupAvisEarthLinkAmeriprise Financial, and Alaska Airlines.
  • With a drop of nearly 20 percentage points, US Cellular fell the most in 2013. Nine other companies fell by more than 10 points:Bright House NetworksHSBCCox CommunicationsHertzPNCSunTrust BankDollar Rental CarHyatt, and TD Ameritrade.
  • Credit cards made the largest improvement followed by auto dealers, rental car agencies, and airlines.
  • TV service providers, retailers, and appliance makers are the only industries to decline.

The ratings cover the following industries: Airlines, appliance makers, auto dealers, banks, car rental agencies, computer makers, credit card issuers, fast food chains, grocery chains, health plans, hotel chains, insurance carriers, Internet service providers, investment firms, parcel delivery services, retailers, software firms, TV service providers, and wireless carriers.

This results can be accessed from the blog, Customer Experience Matters, at ExperienceMatters.wordpress.com as well as from the Temkin Ratings website, www.TemkinRatings.com.

Give customers faster wireless, they use more

Thursday, March 7th, 2013

smartphonesWireless customers who experience faster and more consistent network speeds spend considerably more on their wireless service plans, according to the J.D. Power and Associates 2013 U.S. Wireless Network Quality Performance StudySM—Volume 1 released today.

Now in its 11th year, this semiannual study evaluates wireless customers’ most recent usage activities in three areas that impact network performance: calling, messaging and data.

Overall network performance is based on 10 problem areas that affect the customer experience: dropped calls; calls not connected; audio issues; failed/late voicemails; lost calls; text transmission failures; late text message notifications; Web connection errors; slow downloads; and email connection errors.

Network performance issues are measured as problems per 100 (PP100) network connections, with a lower score reflecting fewer problems and better network performance. Carrier performance is examined in six geographic regions: Northeast, Mid-Atlantic, Southeast, North Central, Southwest and West.

The study finds that the amount of monthly wireless spending is considerably higher among customers who experience fewer problems with slower connection speeds.

For example, smartphone customers who experience between 1 PP100 and 10 PP100 with slow mobile web speeds spend an average of  $11 more per month than those who experience between 11 PP100 and 20 PP100 ($140 vs. $129, respectively).

Customers experiencing more consistent network speeds are more likely to be brand advocates, as 31 percent of smartphone customers who experience between 1 PP100 and 10 PP100 “definitely will” recommend their carrier, compared with 24 percent among customers who experience between 11 PP100 and 20 PP100.

“It’s very interesting to see the dramatic financial difference between wireless customers who consistently experience a fast network connection and those who experience higher problem incidence in this area, especially when using Internet-based services,” said Kirk Parsons , senior director of telecom services at J.D. Power and Associates. “

Added to this, the network advantages of using 4G LTE technology, in terms of spectrum efficiencies and increase in data connection speeds and reliability, it’s not unexpected that wireless carriers are rushing to expand and upgrade their networks to align with this latest generation of service.”

According to Parsons, the key is getting wireless customers to upgrade to 4G-enabled devices, including smartphones and tablets, as satisfaction and loyalty levels among these customers is much higher than among those using devices with other 3G/4G technology standards, such as WiMAX and HSPA+.

Overall, satisfaction is significantly higher among smartphone customers using 4G networks than among those using previous-generation networks (7.3 vs. 7, respectively, on a 10-point scale). This satisfaction gap is due to the level of problems experienced with network quality. On average, 4G LTE smartphone customers experience significantly fewer issues with data than do 3G customers (16 PP100 vs. 19 PP100, respectively). This in turn translates to higher brand loyalty. Notably, 12 percent of smartphone customers using 4G LTE service indicate they are likely to switch their carrier within the next year, compared with 15 percent among those using 3G.

“Based on varying degrees of consistency with overall network performance, it is critical that wireless carriers continue to invest in improving both the voice quality and data connection-related issues that customers continue to experience,” said Parsons.

For a 17th consecutive reporting period, Verizon Wireless ranks highest in the Northeast region. Verizon Wireless achieves fewer customer-reported problems with dropped calls, initial connections, transmission failures and late text messages, compared with the regional average. Verizon Wireless also ranks highest in the Mid-Atlantic, Southeast, Southwest and West regions.

U.S. Cellular ranks highest in the North Central region for a 15th consecutive reporting period. Compared with the regional average, U.S. Cellular has fewer customer-reported problems with dropped calls, failed initial connections, audio problems, failed voice mails and lost calls.

LTE subscriptions surge by 19 million in the last year

Friday, December 7th, 2012

LTE connections in North America rocketed to 22.3 million — adding almost 19 million subscriptions in 12 months and representing 51 percent of all 43.7 million LTE connections worldwide at the end of the third quarter of 2012, reported 4G Americas, according to data from Informa Telecoms & Media.

Another “billion” milestone is expected by the end of 2012, with all 3GPP technologies, including GSM, HSPA and LTE, comprising a massive subscription base of 6 billion and more than 90 percent of the global cellular connections.

“The 2012 year in wireless is definitely all about LTE,” stated Chris Pearson, President of 4G Americas. “At the third quarter of last year, there were 4.5 million LTE connections and 36 LTE deployments worldwide. We expect about 130 commercial LTE networks by the end of this year, the ramping up of subscriptions and many new devices in the offering with the holiday season approaching.”

Aggressive deployments of LTE networks continue on a global basis, with 128 commercial LTE networks in 58 countries to date, and subscriptions at the end of the third quarter 2012 at 43.7 million.

While HSPA and HSPA+ will remain the leading mobile broadband technology for the next decade, LTE is clearly the growth phenomenon. Informa expects that LTE subscriptions will surpass 1 billion in the year 2018.

The following global statistics were reported at the end of the 3Q 2012:

  • 6.4 billion total cellular connections
  • 5.8 billion 3GPP subscriptions (90 percent market share)
  • 1 billion HSPA-LTE mobile broadband subscriptions
  • 478 commercial HSPA networks in 181 countries
  • 242 HSPA+ networks in 119 countries
  • 43.7 million LTE subscriptions
  • 128 commercial LTE networks in 58 countries (December 5, 2012)

Following are key regional statistics for the 3GPP family of technologies at the end of 3Q 2012:

Western Hemisphere – All Americas

  • 828 million 3GPP subscriptions; nearly 80 percent market share
  • 220 million HSPA mobile broadband subscriptions; quarterly addition of 10 million subscribers
  • 242 million HSPA-LTE subscriptions; annual addition (12 months) of 79 million subscriptions for 48 percent annual growth

North America – U.S. and Canada

  • 180.7 million 3GPP subscriptions; 49 percent market share
  • 139 million HSPA-LTE mobile broadband subscriptions; annual addition of 40 million connections
  • T-Mobile USA deployment of HSPA+ dual carrier at 42 Mbps (peak theoretical)
  • No. 1 in LTE subscriptions worldwide: 22.3 million LTE connections; quarterly addition of 6.9 million LTE connections
  • LTE connections are expected to surpass HSPA connections in 2016
  • 19 commercial LTE networks launched to date, including Bell Mobility and Rogers Wireless in Canada and AT&T, MetroPCS, Sprint and Verizon with affiliates in the U.S.
  • 200+ million LTE connections forecast by 2017 (Informa Telecoms & Media)

 

Statistical Charts
For more information and to view a variety of statistical charts on the 3GPP family of technologies, visit www.4gamericas.org.

Companies shedding customers they could have kept, research says

Thursday, December 6th, 2012

AccentureAre you doing enough to hold onto your customers? Many companies are not and they’re shedding consumers they could have kept using social listening and by providing more responsive customer service, according to an Accenture survey.

One in five consumers switched companies they buy from, including wireless phone, internet service, and retailers, according research released by Accenture (NYSE: ACN).

This marks a five percent increase in switching over 2011 levels.  However, the eighth annual Accenture Global Consumer Survey also found that the majority (85 percent) of consumers say the companies could have done something differently to prevent them from switching.

The survey, which polled more than 12,000 consumers in 32 countries, found that among those consumers who would have stayed if their provider had acted differently, two-thirds (67 percent) pointed to having their customer service issue resolved during their first contact as a factor. More than half (54 percent) might have remained loyal if they had been rewarded for doing more business with their provider.

Wireless & Internet providers saw the most switches

The survey revealed that, of the ten industries covered, the largest rises in switching were among wireless phone providers (26 percent of consumers switched in 2012, up from 21 percent in 2011); internet service providers (23 percent switched, up from 19 percent in 2011) and retailers (22 percent switched, up from 16 percent in 2011).

Broken promises are a top area of frustration for consumers, according to the survey: nearly two-thirds (63 percent) of respondents indicate it’s extremely frustrating when a company delivers a different customer service experience from what it promised upfront.  Seventy eight percent of consumers say they are likely to switch providers when they encounter such broken promises.

Other frustrations that make consumers more likely to switch include:

  • Having to contact customer service multiple times for the same reason (selected by 65 percent of consumers)
  • Dealing with unfriendly customer service agents (65 percent)
  • Being on hold for a long time when contacting customer service (61 percent)
Personally, we’ve experienced every one of those problems and indeed, just this year switched home warranty providers and other services because of them. You have to wonder why some firms even bother with Facebook pages or Twitter accounts they don’t bother to monitor.

“The sobering reality is that ‘tried and true’ strategies for customer acquisition, loyalty and retention are struggling to keep pace with consumers who are perpetually in motion, more technologically savvy than ever, and increasingly unpredictable,” said Robert Wollan, global managing director—Accenture Sales & Customer Services.

“The news this year is that customers want to be loyal but customer service often fails to meet their expectations. In the digital marketplace, companies must improve social listening capabilities and apply predictive analytics designed to quickly identify and respond to potential customer issues before problems arise.”

Selling More With Tailored Experiences

The Accenture study found that a tailored experience is critical to a strong customer relationship.  Nearly half (48 percent) of respondents say that, compared to 12 months ago, they have higher expectations of getting specialized treatment for being a “good” customer.

A similar proportion (50 percent) say it is extremely important for customer service people to know their history so they don’t have to repeat themselves each time they call.

Nearly a third (31 percent) of respondents prefer companies that use information about them to make their experience more efficient from one step to the next.  However, only a quarter (24 percent) said their providers deliver tailored experiences.

Among the ten industries included in the survey, providers in the travel and tourism, retail banking and life insurance industries earn the highest marks for providing tailored experiences: 32 percent of respondents say travel and tourism providers offer tailored experiences, followed by 27 percent who say the same about retail banks and 25 percent about life insurance providers.

Companies need to use analytics

“To convince consumers to stay – and spend more—many companies will need to develop more tailored offers and interactions that connect with consumers’ specific needs,” said Michelangelo Barbera, managing director—Accenture Sales & Customer Services in Europe, Africa and Latin America.

“Taking such proactive steps to keep customers requires companies to use analytics to mine the vast stores of data they possess to gain greater insight into customers’ desires and intentions and behave in the ways that customers want them to. Failing to use that data equates to not listening and can result in customers searching for someone who will.”

Corporate Websites, Expert Review Sites Top Social Media Influence

As technology provides an ever-growing number of channels for consumers to interact with companies, the Accenture survey found that on average consumers use five to six channels to learn about and select providers, including:

  • Word of mouth, relied upon by 79 percent of consumers to get information about providers
  • Corporate websites, used by nearly three-quarters (71 percent) of consumers
  • Online sources such as expert review sites, news sites and product comparison sites, used by nearly two-thirds (63 percent)
  • Social media sites such as Facebook and Twitter, used by 47 percent of consumers.

Looking more closely at the influence of social media, the survey found that 31 percent of consumers say they trust comments posted by people they know, echoing the importance of word of mouth.  More than a quarter (28 percent) say positive comments in social media affect purchasing decisions and 28 percent say negative comments do so.

“Consumers, particularly in North America, appear to be migrating to increasingly polarized camps: one group that prefers traditional interactions, such as telephone, and one tech-savvy group that demands seamless interactions across all digital platforms,” said Kevin Quiring, managing director—Accenture Sales & Customer Services in North America.

“Many companies, however, approach their customers with a decades-old, ‘one size fits all’ sales and service model that they must evolve to satisfy the different ways consumers want to interact with the companies they buy from.”

For more information:

 

AT&T investing $14B to expand and enhance its networks

Wednesday, November 7th, 2012

At&t

Here’s some good news for AT&T customers – especially those using its mobile service.

AT&T plans to invest $14 billion over the next three years to significantly expand and enhance its wireless and wireline IP broadband networks to support growing customer demand for high-speed Internet access and new mobile, app and cloud services.

The investment plan – Project Velocity IP (VIP) – expands AT&T’s high-potential growth platforms, helping drive continued increases in revenues from existing and new products and services, and earnings per share.

A major commitment

“This is a major commitment to invest in 21st Century communications infrastructure for the United States and bring high-speed Internet connectivity — 4G LTE mobile and wireline IP broadband — to millions more Americans,” said Randall Stephenson, AT&T chairman and chief executive officer.

“We have the opportunity to improve AT&T’s revenue growth and cost structure for years to come, and create substantial value for shareowners.

“Revenues in our key growth areas — wireless data, U-verse and strategic business services — are all growing at a strong double-digit rate. Project VIP expands our potential in these key platforms and makes them available to many more customers,” Stephenson said.

“With our strong balance sheet, these capital investments are manageable. We are very confident in our ability to execute this plan. These are things we’ve done before – logical extensions of proven technologies and already successful businesses.

AT&T’s Project VIP consists of several individual initiatives, which are outlined below.

Investing in Mobile Internet Growth

  • 4G LTE Expansion. AT&T plans to expand its 4G LTE network to cover 300 million people in the United States by year-end 2014, up from its current plans to deploy 4G LTE to about 250 million people by year-end 2013. In AT&T’s 22-state wireline service area, the company expects its 4G LTE network will cover 99 percent of all customer locations.
  • Spectrum. AT&T has acquired spectrum through more than 40 spectrum deals this year (some pending regulatory review) and has plans to buy additional wireless spectrum to support its 4G LTE network. Much of the additional spectrum came from an innovative solution in which AT&T gained FCC approval to use WCS spectrum for mobile broadband. Between what the company already owns and transactions pending regulatory approval, AT&T expects to have about 118Mhz of spectrum nationwide. The company will continue to advocate with the FCC for release of additional spectrum for the industry’s long-term needs.
  • Densification & Small Cell Technology. As part of Project VIP, AT&T expects to deploy small cell technology, macro cells and additional distributed antenna systems to increase the density of its wireless network, which is expected to further improve network quality and increase spectrum efficiency.

 

Tech travel: from train to tweets (infographic)

Monday, April 16th, 2012
bullet train

A Japanese bullet train, only one aspect of tech and travel.

On my last Amtrak train ride, I worked via the train’s wireless network for the entire three hour  trip. GPS devices have replaced paper maps for many people.

Nearly all of us use the Internet to research and book travel these days. And one of the annoyances of flying is the need to turn-off electronic devices for take-offs and landings.

This infographic takes you on a trip from train to tweets in 171 years.

tech travel infographic

Semiconductor industry sees growth slowing, less hiring planned

Monday, December 19th, 2011

KPMGWhile semiconductor industry executives note the rise of the United States as the second most important market for growth, behind China, their revenue and profitability growth expectations overall are down from a year ago and they do not plan to hire as many people, according to a global survey conducted by KPMG, the U.S. audit, tax and advisory firm.

In KPMG’s Seventh Annual Global Semiconductor Industry Survey, 41 percent of the semiconductor executives surveyed expects that revenue will grow by more than 5 percent next year, compared with 78 percent a year ago, and 87 percent in 2009.

They also see less growth in profitability, with 30 percent anticipating profits to increase by greater than 5 percent over the next 12 months, compared with 37 percent last year.

Industry pausing for breath

In addition, this year the Semiconductor Business Confidence Index, a metric based on survey data, measured 46, compared to 60 in 2010 and 61 in 2009. The confidence index has risen from 36 in 2008, indicating that forecasted industry conditions entering 2012 will not be as severe as the beginning of 2009.

“It is not unexpected to see the industry take a breath after two strong years following the economic and industry downturn,” said Gary Matuszak, KPMG Global Chair for the Technology, Media and Telecommunications practice. “Executives continue to pursue their growth agendas, and will be acquisitive, but remain very apprehensive about the direction of the economy.”

In fact, in the KPMG survey, capital spending, R&D spending, and hiring are at lower levels than prior years. Just 27 percent, compared with 46 percent a year ago, anticipate capital spending to increase by more than five percent. Thirty-three percent expect more than a five percent rise in R&D spending, compared with 47 percent a year ago. And 19 percent of the respondents predict workforce growth of greater than 5 percent, compared with 29 percent in 2010.

U.S. Market Growing In Importance

Semiconductor executives continue to note the increasing importance of the U.S. market.

Consider that in 2008, 38 percent of the executives felt that the U.S. was an important market for revenue growth, behind China (79 percent), Taiwan (44 percent) and Japan (40 percent). In each subsequent year an increasingly greater number of executives named the U.S. as an important market.

Today, 50 percent, as compared with 47 percent a year ago, view the U.S. as important, second to China, at 60 percent, with Japan ranked third, at 37 percent.

“Wireless, computing and consumer applications are providing the strongest demand for semiconductors, and with retail sales strengthening, especially during the peak holiday season, the U.S. consumer is showing an appetite for the latest and greatest,” said Ron Steger, partner in charge, KPMG Global Semiconductor Practice.

“China’s decrease in importance might be the result of the Chinese government’s tightening in lending but it is clear that the industry sees the China and U.S. markets as the two most significant global end markets for growth.”

The KPMG survey respondents were also asked to rank the importance of application markets in driving revenues.

The top driver of current revenue growth for 2012 was wireless handsets and other wireless communications devices again. However, computing has become the second most important driver, followed by consumer products, a switch in positions from last year’s survey.

Also of note is the rise in alternative/renewable energy (solar, thermal, battery technologies) and medical application markets, although both are still at relatively low levels. “Worthy of note is that the respondents appear to be signaling that conditions in the renewable energy market may be bottoming out, a positive data point,” said Steger.

In other survey findings:

  • Sixty-four percent of semiconductor executives believe that global semiconductor revenue will be impacted 3 percent or more by counterfeit technology, including a third who said the impact will be 5 percent or more.
  • To combat counterfeiting, the top three actions by companies are deploying more sophisticated identification technologies, providing detailed testing protocols and enhancing product return testing programs.
  • More than a third of the respondents said there will be an increase over the next 12 months in the number of semiconductor intellectual property (IP) infringement cases in which their company is involved.

Digital media driving U.S. communications industry growth

Wednesday, September 28th, 2011

forecast coverDriven largely by new media technologies, the U.S. Communications Industry spending is on pace to grow 4.1% in 2011 to $1.120 trillion and forecast to expand at a 5.5% compound annual growth rate (CAGR) in the 2010-2015 period, outpacing nominal GDP growth by 90 basis points, according to a new forecast released today by Veronis Suhler Stevenson (VSS), a private investment firm.

By the end of 2015, the Communications Industry will be the eighth-fastest-growing and fourth-largest U.S. economic component, according to the 25th edition of the VSS Communications Industry Forecast2011-15 .

Communications Industry growth in the 2010-2015 period will be driven primarily by the rapid convergence of computer, internet and wireless mobile technologies fueling the ongoing transformation of the media landscape and leading to new industries, platforms, channels, and consumer and institutional behaviors.

VSSF chart

Strong gains in six sectors

Consumer and Institutional end-users are demanding instant and constant access to information, and their investment in state-of-the-art information and technology services remains central to effective decision-making on many fronts.

In the forecast period, these trends are manifested by strong gains in four of the six Industry Sectors covered in the VSS Forecast: Targeted Media, the fastest growing industry sector, with an expected 7.9% CAGR in the period, fueled largely by the Pure-Play Consumer Internet & Mobile Services segment.

That will post a CAGR of 16.2% – outpacing GDP growth by over 3x; Business & Professional Information & Services, which is expected to generate a 7.3% CAGR; Education and Training Media & Services – including Not-for-Profit Instructional Media and K-12 Instructional Media – which is anticipated to produce a CAGR of 5.2%; and Entertainment & Leisure Media, which will record a 5.6% CAGR from 2010 to 2015.

Major segments that have been negatively impacted in recent years by the migration to digital platforms and economic factors are expected to stabilize during the forecast period, according to the VSS Forecast.

The Traditional Consumer Advertising Media sector, which includes the Broadcast Television, Consumer Magazine Publishing, and Broadcast & Satellite Radio segments, among others, will generate growth in the forecast period, albeit trailing GDP, as brand-related digital products and delivery methods gain a stronger foothold for most traditional media outlets.

Business & professional services sector growing

John Suhler, co-founder, president and general partner of VSS, said, “Business & Professional Information & Services continues to be a fast-growing sector, in part, because it has long embraced digital content and related software services and delivery.

“Also, the sectors that held up well in the last economic downturn – Targeted Media, Business & Professional Information & Services, Education & Training Media & Services, and Entertainment & Leisure Media – are all expected to record solid growth in the forecast period, thanks in large part to their migration to digital platforms and delivery methods.”

Time spent with the internet, including traditional media brand-related digital and pure-play platforms – covering usage at home, school and work – increased 6.0% in 2010 to 397 hours per person.

The growth came from consumers spending more time with social media and workers using software to access and manipulate information. Time spent with mobile media in 2010 soared 49.7% to 77 hours per person, thanks in large part to increased smartphone penetration.

With the introduction and rapid adoption of computer tablets by consumers and businesses, those factors are also expected to fuel a 35.3% increase in time spent with wireless media in 2011, reaching 104 hours per person. The segment will post a 19.8% CAGR during the forecast period, with consumer purchases of more e-books, music, mobile applications and streaming video driving the increase.

VSSForecast2

Targeted Media fastest growing sector

Accordingly, Targeted Media – which includes products and services from operators that provide advertising and marketing messages to vertically defined consumer or business niches – will be the fastest-growing sector in 2011 and during the forecast period, increasing 7.1% to $199.66 billion this year and posting a 7.9% CAGR in the 2010-2015 period, reaching $272.50 billion.

In addition to the Pure-Play Consumer Internet & Mobile Services segment, growth in Targeted Media will come from Branded Entertainment Marketing, where Consumer Events and Paid Product Placements will post CAGRs of 8.5% and 9.7%, respectively, to end 2015 with spending of $33.36 billion and $6.15 billion.

Enterprise IT and telecom spending to rise 6 percent this year, according to In-Stat

Friday, July 15th, 2011

InStatThere has been little good news about the economy lately, particularly on the jobs front. New In-Stat research, however, shows that Enterprise business spending on IT and telecom services, which include cloud computing, wireless, wireline voice, wireline data, and business IP/VoIP, will move in a positive direction in 2011, increasing a healthy 6 percent over 2010.

“There will be positive growth across all 20 verticals with education and healthcare and social services leading the surge with growth of 10 percent and 9 percent respectively,” says Greg Potter, Analyst. “These increases in spending are across all product groups except wireline voice which will decline by about half a percent.”

Additional data includes: 

  •     Enterprise spending on public cloud computing services is set to expand 139% from 2010 to 2011.
  •     Enterprise spending on wireless data is set to approach $17 billion in 2015.
  •     Enterprise spending in the healthcare sector on wireline data will approach 2 billion in 2014.
  •     Enterprise spending on wireline voice will remain flat, with traditional TDM services continuing their decline, only reaching $3.4 billion in 2011.

The In-Stat research, Enterprise Markets for Telecom Services: Wireline Voice, Wireline Data, Wireless, Cloud Computing, and VoIP in 20 Verticals provides forecasts of US business telecom spending for the 2010-2015 period with detailed segmentation by product category, size of business, corporate liable spending, individual liable spending, and vertical market.

AT&T buying T-Mobile for $39B

Monday, March 21st, 2011

At&tNEW YORK – AT&T Inc. (NYSE: T) is buying T-Mobile USA from Deutsche Telkom AG in a cash-stock deal worth $39 billion. The deal, which is likely to face regulatory scrutiny, would make AT&T the largest US cellphone company.

AT&T, now the second largest wireless carrier in the US, and T-Mobile, the fourth, would have a combined 129 million subscribers, surpassing previously number one Verizon Wireless, which has 102 million subscribers.

Due to the regulatory process, AT&T does not expect the deal to close for a year.

“This transaction represents a major commitment to strengthen and expand critical infrastructure for our nation’s future,” said Randall Stephenson, AT&T Chairman and CEO.

“It will improve network quality, and it will bring advanced LTE capabilities to more than 294 million people. Mobile broadband networks drive economic opportunity everywhere, and they enable the expanding high-tech ecosystem that includes device makers, cloud and content providers, app developers, customers, and more. During the past few years, America’s high-tech industry has delivered innovation at unprecedented speed, and this combination will accelerate its continued growth.”

As part of the transaction, Deutsche Telekom will receive an equity stake in AT&T that, based on the terms of the agreement, would give Deutsche Telekom an ownership interest in AT&T of approximately 8 percent.

Improves service quality for U.S. wireless customers
The company says AT&T and T-Mobile USA customers will see service improvements – including improved voice quality – as a result of additional spectrum, increased cell tower density and broader network infrastructure. At closing, AT&T will immediately gain cell sites equivalent to what would have taken on average five years to build without the transaction, and double that in some markets.

We would hope it improves service for both firms. AT&T’s has some noticeable gaps now.

For more: AT&T’s announcement of the merger

 

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LOC-AID homes in with $13M financing for mobile location platform

Monday, February 7th, 2011

Loc-aidBOCA RATON, FL - LOC-AID, a company that operates the world’s largest mobile location platform and allows mobile developers to locate their customers for enterprise authentication, fraud management, and hyper-local marketing, has raised $13 million in a Series C financing.

The round was led by private equity firm H.I.G. Ventures, venture firm Intersouth Partners, and the Florida Growth Fund, managed by Hamilton Lane.

LOC-AID achieved record results in 2010 and secured commercial connections with all of the largest North American wireless carriers. Led by President and CEO Rip Gerber, LOC-AID has built a proprietary location platform that allows mobile developers to enable any location-based service for any application on any wireless device.

This round of funding will expand LOC-AID’s industry-changing location technology and bolster its ability to connect enterprise developers to wireless customers for a wide range of location-based services including fraud prevention, proximity marketing, asset management, presence, check-in services, and more.

“We took the long-awaited promise of network-based location and made it available to the enterprise developer community,” said Rip Gerber, President and CEO of LOC-AID. “Last year our platform was adopted by the largest wireless carriers, including AT&T, Verizon Wireless, Sprint, and T-Mobile. Today we are location-enabling leading corporations in financial services, media, ecommerce, web-based services, transportation, entertainment, healthcare, and government services. We’re excited to have the Florida Growth Fund join as an investor.”

“We believe LOC-AID has unlocked the value of location-based services for the enterprise by expanding the reach of location-based services to ALL mobile devices, not just smartphones or devices with GPS technology that require an application to be downloaded to allow for the device to be tracked,” said Gregory Baty, vicep resident of Hamilton Lane, who manages investments made by the Florida Growth Fund. “LOC-AID provides that stable and reliable bridge between applications and location data without which the location services eco-system will not grow.”

John Glushik, partner at Intersouth Partners, and LOC-AID board member, said, “Mobile Location Services is experiencing explosive growth, and LOC-AID is the clear leader for the mobile enterprise. This round of financing marks the largest investment made in a ‘Location-as-a-Service’ company and Intersouth is pleased to continue its support of this great company.”