By Saudi Ali, Thursday 5.11.2009
(SkyNewswire.com)--- The effort drives to cut down the mobile termination rates and reverberate actual prices for the service.
These values are what mobile operators charge to support other networks' traffic.
Signatories, including 258 MPs and 60 businesses, are asking for the fees to be reduced from 5p to lesser than 1p.
Pioneers of this campaign includes groups like BT and the mobile network 3. Mobile operators do gain from MTRs and supplies revenue but the signers claim that networks still do profit from the reduction for they can extend competitive prices to their potential clients.
On a sidenote, in Parliament the 258 MPs who are signers on this effort have also signed an Early Day Motion in Parliament for the MTR reduction.
A topic of examination by Ofcom for so long, MTRs ordinarily comprise of 14p per pound spent on internetwork mobile phone call charges.
Ofcom outlined a programme in 2007 to handle the costs, stating they would decrease by about 25% by 2011. In reply to this course of study, a consultation began last May to look into the rates for the period from the year 2011 to 2015.
Though MTRs have been falling year on year, campaigners reason the costs are still much more expensive than the real prices to mobile network operators.
In reaction for the developing need for MTR reduction, the European Comission asked for all regulators in Europe to cut down on the rates to further competition among mobile operators.
"This request is simply the initial stage in an ongoing crusade to present how MTRs stifle competition and increase the price of calling cheap mobile phones," said John Petter of BT Retail.
"Our aim remains for them to be set according to what they actually cost."
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Friday, October 30, 2009
Dont underestimate the IMEI of your Mobile Phone
Don't underestimate the IMEI
You can get high-end functions in an imitation phone that costs less than some entry-level models. But there are hidden risks, and you could lose out on useful features too.
By Saudi Ali, Friday 30.10.2009
Source : Chip Magazine
You can get high-end functions in an imitation phone that costs less than some entry-level models. But there are hidden risks, and you could lose out on useful features too.
By Saudi Ali, Friday 30.10.2009
Source : Chip Magazine
News reports have suggested that in the recent terrorist attacks on Mumbai, the attackers were allegedly using Chinese cell phones. This was recently proven in court using the handsets' IMEI numbers, which were cross checked against the manufacturer's records. Whenever a call is made from any handset, its unique 16-digit IMEI number appears on the service provider�s network logs, and it can use this number to pin-point the handset�s location within a one-kilometer radius.
Imported phones without IMEI numbers (or which all use the same one) were allowed to operate on Indian networks till earlier this year, but the government's Department of Telecommunications banned them earlier this year. Such phones can be used to get away with serious crimes, but there are also thousands of genuine users who bought these phones because they are so cheap. The ban makes their phones useless, but from a business point of view it also affects the importers of the Chinese and Taiwanese cell phones have been flooding the Indian markets.
Current statistics show that there are 25 million cell phones in use on Indian networks which do not report IMEI numbers. So these phones, which are often cheap knockoffs of genuine cell phone brands, might have been really tempting for the masses, they are a major concern for security. Regardless, they are still available in markets scattered across all towns and cities in India
In order to get a quick idea of the status of these phones, we headed out to Manish Market, one of Mumbai�s biggest sources of imported electronics. Coincidently, on our way there, our cab driver was watching Doordarshan on his "TV phone" resting on the dashboard. His phone could not only be used for watching a cricket match, but could make calls, exchange SMSes, transfer files via Bluetooth, play MP3 files, take photos, and basically do everything that a multimedia phone is capable of. The cabbie had paid only around Rs 5,000 for the gadget. He didn't even get a bill for it. We�d be least surprised if this TV Phone did not have a valid IMEI number.
Users can receive the geographic location, the address anywhere in the country of the nearest cell tower beaming to their stolen phone
On reaching the market we saw phones from random and uncommon brands, cheap knockoffs of genuine and popular brands, and finally genuine second-hand phones. The first category was the most interesting, where we saw brand names like YXTEL, CLOVE, TOP-1, LXD and some simply had �Bluetooth� printed on them. These have completely unique designs, unusual keypads and usually large touchscreens. The most striking thing about these phones is the value for money that they offer. They might not be very usable or refined, but the majority of them are priced between Rs 2,800 and Rs 5,000. A �Hi-Phone��an Apple iPhone knockoff�is available for as little as Rs 4,500, with most of the features in it, including a somewhat functional touch interface. Phones as cheap as Rs 2,800 also include features such as video recording, FM radio, large screen, Bluetooth, games, unique design, loud speaker, MP3 player, and above all good call and sound quality.
On a side note, phones are just the tip of the iceberg, there are MP3 players, DVD players, portable video cameras, digital cameras, you name it and you�ll find it. It is truly engaging to see the variety of Chinese products available, especially portable gadgets. The most shocking part is the endless rows of Chinese mobile phone knockoffs of brands such as Nokia, Apple, Samsung and many more. The shopkeepers� audacity is even more amusing; they sell them by telling their customers exactly which models they have imitations of. Some retail shops are quite large and some are as tiny as fruit-carts.
The shopkeepers also mostly insist that the phones have IMEI numbers�although whether these are valid and unique cannot be proven. In addition, their overall build quality isn�t very good, keypads are awkward to use, and even the touch screens are nowhere near as sensitive as the ones on their genuine counterparts. Video and photo quality is just about average. More importantly, these phones don�t have regular software. They use their own OSes (often simple Java interfaces) and therefore installing regular applications will usually not be possible. They don�t offer any warranty or support, no bill and no service centers. Most of these phones can be bought without any paperwork and no questions are asked.
The importance of the IMEI
Even if your phone doesn't stop working one day, a unique and valid IMEI number is important. IMEI stands for International Mobile Equipment Identity, and the 16-digit IMEI code is physically and digital marked on all GSM and UTSM (the third-generation telecommunication technology) devices. This code helps network service providers to allow or block service to devices. If you type *#06# on a handset, the number displayed on screen is the IMEI code, which should be unique to that particular handset. This code is like a fingerprint of a cellphone. Whenever a call originates from a device, this number is registered at the network provider's back end, so the handset can then be authenticated. Any interaction, be it phone calls, messages or data transfer, gets mapped to this code. That's how you can just call the service provider and ask them to block the phone by using the IMEI code when it phone is lost or stolen, to make it unusable. Now, what if someone swaps the SIM card with another one, hence changing the service provider? Well, here�s some interesting insight!
Tracking a cell phone
There are services and utilities that use the IMEI in addition to other tricks to help users keep track of their cell phones. Registered users can even track their phone if it gets lost or stolen. Micro LMTS, where LMTS stands for Lost Mobile Tracking System, is a stealth application which not only finds lost cell phones but can also alert users via SMS if the SIM card of the phone is changed. Furthermore, the message also contains the new phone number and its location, helping users to get it back.
Here�s how they do it. Whenever the SIM card is changed, the IMSI�International Mobile Subscriber Identity�also changes. LMTS detects this change, and sends a message to your pre-defined alternative number. The download instructions, prices and other details are available on their website, www.microlmts.net.
Other products on the market let users receive logs of the calls originated from the newly installed SIM card on a stolen phone. Even the use of personal data can be prevented by deleting contacts, SMSes and other multimedia content with the help of alternate numbers that are registered and coupled with the registered phone and SIM which is lost. Quite interestingly, users can even receive the geographic location, the address anywhere in the country of the nearest cell tower beaming to the stolen phone with the newly inserted SIM card.
So much is achievable when your handset has a valid digital fingerprint�the IMEI number. A phone that doesn�t have this digital fingerprint cannot be traced, if ever lost. So make sure you know what you're getting when you decide t pick up one of these cheap, tempting, feature-rich phones.
Tuesday, October 27, 2009
Smart Phone Android Pulse...
PAYG Android Pulse hits UK market, courtesy T-Mobile
Edited by Saudi Ali, 27.10.2009
By Charles Smith
25 October 2009 @ 03:40 pm BST
Next Technology Article
London - UK's first Android platform-based pay-as-you-go (PAYG) smartphone Android Pulse, which boasts of features like 3G support, accelerometer and 3.2-megapixel camera, has finally hit T-Mobile stores.
Until now, Android-based mobile phones could only be bought on contract basis but T-Mobile made an exception with Android Pulse in its attempt to bring Android-based smartphones to "a wider set of mobile users."
Manufactured by the Chinese company Huawei, the quadband GSM-based Android Pulse scores high in form factor, sporting a slimline, curvy black polished chrome exterior, measures 116x62.5x13.5mm and is light on the pocket, weighing only 130 gm.
Pulse comes loaded with a 3.5-inch HVGA TFT touchscreen display (with 320×480 resolution); is powered by a powerful Qualcomm 528 Mhz MSM7225 processor that allows users to open multiple applications with minimum lag time; and boasts of a decent 3.2-megapixel camera with autofocus, zoom function and video recording capability 9but no flash); a 2GB SD card; an accelerometer that senses if you rotate the device and changes the display to match; a trackball for hassle free menu browsing; integrated GPS with A-GPS support; integrated audio and video player, microSD card slot, miniUSB port and 2.5mm headphone jack. It also features HSDPA, HSUPA, WiFi, 3G and Bluetooth 2.0 connectivity - boon for those who love to browse on the Internet for long hours.
Most importantly, the mobile phone runs on the acclaimed and tested Google Android OS, which also runs HTC G1 (launched last year) as well as HTC Hero, HTC Magic and the most recent Samsung Galaxy.
Like all other Android-based phones, Pulse is also equipped with pre-installed Google applications (apps) such as Gmail, GoogleMaps and YouTube. Pulse owners also have access to Android Market, from where they can download many games and applications both free and paid (currently there are around 10,000 apps in Android Market).
Pulse's battery life is also decent, promising 300 hours (standby time) and 210 minutes (talk time).
Of course, Pulse cannot be compared to iPhone 3GS, Sony Ericsson Satio, HTC Hero, Palm Pre, BlackBerry Storm 2 or Motorola Droid in terms of features but, hey, Pulse is a cheap option if you are looking for a large touchscreen mobile phone with access to the Google Android apps market.
"We've had a huge amount of interest in the T-Mobile Pulse since its unveiling a month ago. The high spec and PAYG price point makes it a really compelling offer. And as it's the only Android phone that can be bought without a monthly contract , we think it will be the must-have mobile Christmas gift this year," said Nicola Shenton, Acting Head of Handset and Device Marketing at T-Mobile UK.
The PAYG mobile phone can also be bought on a £30 per month for 24 months contract from T-Mobile, which will land you the mobile phone for free plus 100 minutes of talktime and web access every month. Pay £40 per month for 18 months and you will get the Pulse for free plus unlimited web and £225 credit to spend on calls and texts.
This article is copyrighted by IBTimes.
Edited by Saudi Ali, 27.10.2009
By Charles Smith
25 October 2009 @ 03:40 pm BST
Next Technology Article
London - UK's first Android platform-based pay-as-you-go (PAYG) smartphone Android Pulse, which boasts of features like 3G support, accelerometer and 3.2-megapixel camera, has finally hit T-Mobile stores.
Until now, Android-based mobile phones could only be bought on contract basis but T-Mobile made an exception with Android Pulse in its attempt to bring Android-based smartphones to "a wider set of mobile users."
Manufactured by the Chinese company Huawei, the quadband GSM-based Android Pulse scores high in form factor, sporting a slimline, curvy black polished chrome exterior, measures 116x62.5x13.5mm and is light on the pocket, weighing only 130 gm.
Pulse comes loaded with a 3.5-inch HVGA TFT touchscreen display (with 320×480 resolution); is powered by a powerful Qualcomm 528 Mhz MSM7225 processor that allows users to open multiple applications with minimum lag time; and boasts of a decent 3.2-megapixel camera with autofocus, zoom function and video recording capability 9but no flash); a 2GB SD card; an accelerometer that senses if you rotate the device and changes the display to match; a trackball for hassle free menu browsing; integrated GPS with A-GPS support; integrated audio and video player, microSD card slot, miniUSB port and 2.5mm headphone jack. It also features HSDPA, HSUPA, WiFi, 3G and Bluetooth 2.0 connectivity - boon for those who love to browse on the Internet for long hours.
Most importantly, the mobile phone runs on the acclaimed and tested Google Android OS, which also runs HTC G1 (launched last year) as well as HTC Hero, HTC Magic and the most recent Samsung Galaxy.
Like all other Android-based phones, Pulse is also equipped with pre-installed Google applications (apps) such as Gmail, GoogleMaps and YouTube. Pulse owners also have access to Android Market, from where they can download many games and applications both free and paid (currently there are around 10,000 apps in Android Market).
Pulse's battery life is also decent, promising 300 hours (standby time) and 210 minutes (talk time).
Of course, Pulse cannot be compared to iPhone 3GS, Sony Ericsson Satio, HTC Hero, Palm Pre, BlackBerry Storm 2 or Motorola Droid in terms of features but, hey, Pulse is a cheap option if you are looking for a large touchscreen mobile phone with access to the Google Android apps market.
"We've had a huge amount of interest in the T-Mobile Pulse since its unveiling a month ago. The high spec and PAYG price point makes it a really compelling offer. And as it's the only Android phone that can be bought without a monthly contract , we think it will be the must-have mobile Christmas gift this year," said Nicola Shenton, Acting Head of Handset and Device Marketing at T-Mobile UK.
The PAYG mobile phone can also be bought on a £30 per month for 24 months contract from T-Mobile, which will land you the mobile phone for free plus 100 minutes of talktime and web access every month. Pay £40 per month for 18 months and you will get the Pulse for free plus unlimited web and £225 credit to spend on calls and texts.
This article is copyrighted by IBTimes.
Wednesday, October 21, 2009
Mobile Phone is Larger than people & threathening farmers.....
Why the farmers and phone companies may cease to be friends.
Thursday, October 22, 2009 edited by: Saudi Ali
LONDON LETTER: For years, the erection of mobile phone masts provoked fury in the UK. Now thousands of them are about to come down, writes Saudi Ali.
TENS OF thousands of mobile telephone masts are dotted around Britain’s green and pleasant land to supply the needs of mobile customers.
Everybody wants a good signal, but few want the masts.
An eyesore for many and a health risk for some, the masts have, however, been a valuable cash crop for farmers and landowners, offering a dependable income of up to £7,000 (€7,740) a year per mast, when little else of the farmer’s life can be depended upon.
The frenzy of mast erection reached its peak in the years after 2001 when mobile companies paid more than £22 billion (€24 billion) to the British government for 3G and broadband licences in the biggest auction of its type.
Specialist firms were set up to help farmers win the best deals, while the Country Land and Business Association weighed in to ensure the multibillion-pound telecom networks did not buy cheap.
Some locations were veritable gold mines, says David Pardoe of Savills estate agents, with a mast on a hill near a major town being worth “tens of thousands” to the landowner.
However, the Klondike days of the early part of the decade are gone. Sales of 3G handsets, which deliver high-speed internet access, have not been as successful as had been hoped, apart from Apple’s iPhone.
The UK now has more mobile phones than people, and the credit crisis and recession has hurt the telecoms companies’ bottom line, which explains the effort to shave £2 billion off costs over the next decade by pooling networks. It began with a sharing deal between T-Mobile and Hutchison 3G, and accelerated with the proposed merger of T-Mobile and Orange, while parallel arrangements have been announced by Vodafone and O2.
The Orange/T-Mobile merger announced last month will see 8,000 masts being decommissioned, while another 10,000 or more will disappear in coming years as the others start to share masts.
Of the 50,000-odd masts in the UK, almost one in two are on farmland, threatening farmers – often those with the best sites on mountains and hills near towns and cities – with losses that could run to £100 million a year, and more.
In Devon and Cornwall farmers can get £5,000 a year per mast: “In Sussex, one farmer has four of them in a line on his 100-acre farm, so the rent is a substantial part of his income,” said Tom Bodley Scott of estate agent Batcheller Thacker.
Mobile firms make good tenants, with the rent paid on time. “Farmers can make as much this way as they would from renting a cottage, and this is far less hassle than doing that where you can have all sorts of problems,” he said.
And the mast rents have been steadily increasing. In 2003 the average rent paid by mobile firms came to £4,400 a year, with this rising to £7,335 by last year, an 8 per cent rise on the year before.
Mobile firms are already attempting to secure better deals from farmers, threatening to remove masts unless rents are cut, though, so far, few have actually taken their equipment away.
Like their counterparts in Ireland, British farmers have been hit by falls in commodity prices for milk and cereals this year, though the fall in the value of sterling has softened the blow.
Some 2,000 farmers throughout the UK are quitting agriculture every year and the trend has rarely varied in recent years, says Tom Hind of the National Farmers’ Union.
So far, British farmers are being saved the worst of the pain because sterling’s weakness makes agricultural imports more expensive, thus leaving more of the home market for them.
“The situation is not as bad as it is elsewhere in the European Union for farmers, but things are not great in the rest of the economy so that has hurt farmers’ ability to diversify into other areas.
“The easiest way for them to make extra money, obviously, is for them to lease farm buildings as business units, but there isn’t too much of that going on at the moment,” says Hind.
Lawyers are likely to enjoy some rich pickings as phone companies attempt to quit rent deals, since, in many cases, they do not have the right to share masts under the terms of the original agreements.
But even as mobile firms seek to cull their mast numbers, concerns remain about the quality of coverage in rural areas, with the problem worsening as the data being transmitted becomes ever more complicated.
“Major technological developments are taking place. This is being done to save costs, but it wouldn’t surprise me if the mobile companies were coming back to knock on people’s doors in two years’ time to put masts up again,” says Bodley-Scott.
Thursday, October 22, 2009 edited by: Saudi Ali
LONDON LETTER: For years, the erection of mobile phone masts provoked fury in the UK. Now thousands of them are about to come down, writes Saudi Ali.
TENS OF thousands of mobile telephone masts are dotted around Britain’s green and pleasant land to supply the needs of mobile customers.
Everybody wants a good signal, but few want the masts.
An eyesore for many and a health risk for some, the masts have, however, been a valuable cash crop for farmers and landowners, offering a dependable income of up to £7,000 (€7,740) a year per mast, when little else of the farmer’s life can be depended upon.
The frenzy of mast erection reached its peak in the years after 2001 when mobile companies paid more than £22 billion (€24 billion) to the British government for 3G and broadband licences in the biggest auction of its type.
Specialist firms were set up to help farmers win the best deals, while the Country Land and Business Association weighed in to ensure the multibillion-pound telecom networks did not buy cheap.
Some locations were veritable gold mines, says David Pardoe of Savills estate agents, with a mast on a hill near a major town being worth “tens of thousands” to the landowner.
However, the Klondike days of the early part of the decade are gone. Sales of 3G handsets, which deliver high-speed internet access, have not been as successful as had been hoped, apart from Apple’s iPhone.
The UK now has more mobile phones than people, and the credit crisis and recession has hurt the telecoms companies’ bottom line, which explains the effort to shave £2 billion off costs over the next decade by pooling networks. It began with a sharing deal between T-Mobile and Hutchison 3G, and accelerated with the proposed merger of T-Mobile and Orange, while parallel arrangements have been announced by Vodafone and O2.
The Orange/T-Mobile merger announced last month will see 8,000 masts being decommissioned, while another 10,000 or more will disappear in coming years as the others start to share masts.
Of the 50,000-odd masts in the UK, almost one in two are on farmland, threatening farmers – often those with the best sites on mountains and hills near towns and cities – with losses that could run to £100 million a year, and more.
In Devon and Cornwall farmers can get £5,000 a year per mast: “In Sussex, one farmer has four of them in a line on his 100-acre farm, so the rent is a substantial part of his income,” said Tom Bodley Scott of estate agent Batcheller Thacker.
Mobile firms make good tenants, with the rent paid on time. “Farmers can make as much this way as they would from renting a cottage, and this is far less hassle than doing that where you can have all sorts of problems,” he said.
And the mast rents have been steadily increasing. In 2003 the average rent paid by mobile firms came to £4,400 a year, with this rising to £7,335 by last year, an 8 per cent rise on the year before.
Mobile firms are already attempting to secure better deals from farmers, threatening to remove masts unless rents are cut, though, so far, few have actually taken their equipment away.
Like their counterparts in Ireland, British farmers have been hit by falls in commodity prices for milk and cereals this year, though the fall in the value of sterling has softened the blow.
Some 2,000 farmers throughout the UK are quitting agriculture every year and the trend has rarely varied in recent years, says Tom Hind of the National Farmers’ Union.
So far, British farmers are being saved the worst of the pain because sterling’s weakness makes agricultural imports more expensive, thus leaving more of the home market for them.
“The situation is not as bad as it is elsewhere in the European Union for farmers, but things are not great in the rest of the economy so that has hurt farmers’ ability to diversify into other areas.
“The easiest way for them to make extra money, obviously, is for them to lease farm buildings as business units, but there isn’t too much of that going on at the moment,” says Hind.
Lawyers are likely to enjoy some rich pickings as phone companies attempt to quit rent deals, since, in many cases, they do not have the right to share masts under the terms of the original agreements.
But even as mobile firms seek to cull their mast numbers, concerns remain about the quality of coverage in rural areas, with the problem worsening as the data being transmitted becomes ever more complicated.
“Major technological developments are taking place. This is being done to save costs, but it wouldn’t surprise me if the mobile companies were coming back to knock on people’s doors in two years’ time to put masts up again,” says Bodley-Scott.
Monday, October 19, 2009
15 million mobile phone user in Ghana by end of 2009...
The mobile phone chart in Ghana is increasing almost at top. This is due to report forecast of 15 million mobile phone users by end of the year 2009. Buiseness group and enterprise is taking a serious look on this statement as this will gave an impact to boost their company buiseness, performance and economy.
By: Saudi ali
Report forecasts 15 million mobile phone users in Ghana by end of 2009
efo-callingThe number of Ghanaians using mobile phones is expected to reach 15 million by the end of 2009, the fourth quarter report on Ghana’s mobile phone market by London headquartered Business Monitor International (BMI) has said.
The report which was released last week indicated that the country’s mobile penetration is expected to “reach 60% penetration before the end of 2009. This will mean that it ends the year with close to 15 million mobile subscribers, which indicates a 27% expansion of the subscriber base during 2009. This is down from 57% in 2008, but this is very much a natural evolution thanks to a gradually maturing mobile market.”
It was however unhappy with the level of revenue earnings of some of the providers. The report said more worrying are Ghana’s (Average Revenue Per Users) ARPUs, which took something of a dive in the first quarter of 2009. This is a pattern that has been seen in many markets across Africa, exemplified by pan-African operator MTN’s results. ARPUs is how much the mobile phone companies make per each subscriber per month.
The report said MTN’s abridged results released during the period show that in every single one of the markets it operates in, ARPUs have gone down, some of them really dramatically.
According to the report a certain amount of this decrease is down to devalued currencies against the dollar, and the rest is due to decreased spending on the home market. In Ghana’s case, MTN’s blended ARPU fell from US$12 in fourth quarter 2008 to US$8 in first quarter 2009. This 31% drop in US dollar terms, however, was backed up by a 15% drop in local currency terms, so there is evidence that mobile spending did noticeably drop as people started to feel the effects of economic concerns.
It is however hard to determine which statistics to believe as there are different figures being published on Ghana’s mobile penetration.
A recent report carried by the Ghana News Agency (GNA) citing documents in its possession say they reveal disparities in the number of active mobile phone subscriptions in the country.
It said according to the National Communications Authority (NCA), its first quarter report for 2009, placed wireless penetration at 55% of the 24 million Ghanaian mobile telephony market.
The GNA also pointed to information on Millicom Ghana’ website, www.millicom.com, which says that wireless penetration in Ghana was 47%, citing interconnectivity activities between operators as its “authentic” source of information. Millicom Ghana is the operator of Tigo.
Other commentators believe that, the inefficient manner in which the NCA computes these figures is the source of the disparities. Despite the conflicting figures however, there is evidence that the mobile phone industry in Ghana is growing. With the eminent presence of Globacom in the country, there is optimism that the mobile market in Ghana would become even more exciting.
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By: Saudi ali
Report forecasts 15 million mobile phone users in Ghana by end of 2009
efo-callingThe number of Ghanaians using mobile phones is expected to reach 15 million by the end of 2009, the fourth quarter report on Ghana’s mobile phone market by London headquartered Business Monitor International (BMI) has said.
The report which was released last week indicated that the country’s mobile penetration is expected to “reach 60% penetration before the end of 2009. This will mean that it ends the year with close to 15 million mobile subscribers, which indicates a 27% expansion of the subscriber base during 2009. This is down from 57% in 2008, but this is very much a natural evolution thanks to a gradually maturing mobile market.”
It was however unhappy with the level of revenue earnings of some of the providers. The report said more worrying are Ghana’s (Average Revenue Per Users) ARPUs, which took something of a dive in the first quarter of 2009. This is a pattern that has been seen in many markets across Africa, exemplified by pan-African operator MTN’s results. ARPUs is how much the mobile phone companies make per each subscriber per month.
The report said MTN’s abridged results released during the period show that in every single one of the markets it operates in, ARPUs have gone down, some of them really dramatically.
According to the report a certain amount of this decrease is down to devalued currencies against the dollar, and the rest is due to decreased spending on the home market. In Ghana’s case, MTN’s blended ARPU fell from US$12 in fourth quarter 2008 to US$8 in first quarter 2009. This 31% drop in US dollar terms, however, was backed up by a 15% drop in local currency terms, so there is evidence that mobile spending did noticeably drop as people started to feel the effects of economic concerns.
It is however hard to determine which statistics to believe as there are different figures being published on Ghana’s mobile penetration.
A recent report carried by the Ghana News Agency (GNA) citing documents in its possession say they reveal disparities in the number of active mobile phone subscriptions in the country.
It said according to the National Communications Authority (NCA), its first quarter report for 2009, placed wireless penetration at 55% of the 24 million Ghanaian mobile telephony market.
The GNA also pointed to information on Millicom Ghana’ website, www.millicom.com, which says that wireless penetration in Ghana was 47%, citing interconnectivity activities between operators as its “authentic” source of information. Millicom Ghana is the operator of Tigo.
Other commentators believe that, the inefficient manner in which the NCA computes these figures is the source of the disparities. Despite the conflicting figures however, there is evidence that the mobile phone industry in Ghana is growing. With the eminent presence of Globacom in the country, there is optimism that the mobile market in Ghana would become even more exciting.
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Sunday, October 18, 2009
Prisoners too have mobile phone in their cell
This the latest trend on mobile phone where prisoners too have their own mobile phone in their cells. They share the sim card among them and used it to contact the outside world and to deal on smuggling drug into the prison.Even outsider too will contact this people for their smuggling purpose. So our authority have to ensure that this mobile phone to be ban inside prison. Monday, 19th October 2009
Mobile phone deals from prison
By Saudi
Prisoners are using hidden SIM cards and then sharing a few handsets
Prisoners are said to be using hidden SIM cards and sharing a few handsets
PRISONERS are believed to have been masterminding drug deals from La Moye using mobile phones hidden in their cells.
And now the States – along with the prison governor and Customs and Immigration – want to see the mobile phone network for the area taken down.
Prisoners are understood to be using hidden SIM cards and then sharing a few mobile phone handsets between them to make contact with the outside world. It is believed that people also text their friends in prison with the top-up codes to increase their credit.
Home Affairs Minister Ian Le Marquand said: ‘I am concerned about the ability to smuggle in mobile phones and SIM cards into the prison. It is an issue we are currently looking at to try to sort out.’
Article posted on 17th October, 2009 - 3.00pm
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Mobile phone deals from prison
By Saudi
Prisoners are using hidden SIM cards and then sharing a few handsets
Prisoners are said to be using hidden SIM cards and sharing a few handsets
PRISONERS are believed to have been masterminding drug deals from La Moye using mobile phones hidden in their cells.
And now the States – along with the prison governor and Customs and Immigration – want to see the mobile phone network for the area taken down.
Prisoners are understood to be using hidden SIM cards and then sharing a few mobile phone handsets between them to make contact with the outside world. It is believed that people also text their friends in prison with the top-up codes to increase their credit.
Home Affairs Minister Ian Le Marquand said: ‘I am concerned about the ability to smuggle in mobile phones and SIM cards into the prison. It is an issue we are currently looking at to try to sort out.’
Article posted on 17th October, 2009 - 3.00pm
Subscriptions
The Jersey Evening Post provides daily in-depth coverage of life in the Island. Subscribe here or find out about home deliveries service here. View a demo and subscribe to our online edition here.
ShareThis Article filed under: News
Other Articles
« Warren ‘not allowed’ to pay legal bill
CI CARS 468
Alvin's Hot Stuff Pizza - Monday & Tuesday
Place a free advert in the JEP and thisisjersey
AI 3
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* Comment
* Fair Play
* Letters to the Editor
* Picture galleries
ASL 120
PBS Jersey
Snowgoose Gifts
Close Finance
Jersey Evening Post:
In Today's Jersey Evening Post
In Saturday's JEP:
* Praise for Portelet
* Interview with war hero
* Costume Cavalcade
* The Week's entertainment guide
* Comment from Christine Herbert
* 3 pages of property; 3 pages of jobs; 3 pages of motors
Most Commented:
* Tax crisis as EU attacks
* Take a gander at this!
* Tax blow: ‘Don’t take it out on us’
* Suicides: 60% more than UK
* Motor price probe
* Plans for 73 homes on dairy site
* When you can’t count on zero-ten
October 2009 M T W T F S S
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Mobile Phone Ringtone Royalties Claim Denied
This is the latest news on Mobile Phone.
edited by : Saudi
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Mobile Phone Ringtone Royalties Claim Denied
Under: Mobile Phones Date: October 16th, 2009
Mobile Phone Ringtone Royalties Claim Denied
In a rather ridiculous attempt earlier this year, ASCAP, the royalty collecting arm of the music industry suit AT&T stating that every time a ringtone is played by a mobile phone the user is listening to a performance and thus a royalty payment is due to ASCAP; such is the greed of the music industry.
However, according to an article on mashable, ASCAP’s argument have been given the order of the boot as federal judge Denise Cote ruled a ringtone going off doesn’t constitute a public performance as the carrier has no control when a ringtone plays and any expectation of revenue when the ringtone goes off.
This is basically the music industry showing off their full extent of greediness and totally ludicrous, what next, will ASCAP want royalties from anyone who whistles, hums or sings a song?
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edited by : Saudi
Our RSS FeedNewsletterHands-on ReviewsAboutContact
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Mobile Phone Ringtone Royalties Claim Denied
Under: Mobile Phones Date: October 16th, 2009
Mobile Phone Ringtone Royalties Claim Denied
In a rather ridiculous attempt earlier this year, ASCAP, the royalty collecting arm of the music industry suit AT&T stating that every time a ringtone is played by a mobile phone the user is listening to a performance and thus a royalty payment is due to ASCAP; such is the greed of the music industry.
However, according to an article on mashable, ASCAP’s argument have been given the order of the boot as federal judge Denise Cote ruled a ringtone going off doesn’t constitute a public performance as the carrier has no control when a ringtone plays and any expectation of revenue when the ringtone goes off.
This is basically the music industry showing off their full extent of greediness and totally ludicrous, what next, will ASCAP want royalties from anyone who whistles, hums or sings a song?
Share a comment or problems with phones and networks.
Sign up to the Phones Review Newsletter (free) for updates and news CLICK HERE
No Comments»
Name (required)
Mail (will not be published) (required)
Website
Anti-spam word: (Required)*
To prove you're a person (not a spam script), type the security word shown in the picture. Click on the picture to hear an audio file of the word.
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Related on Phones Review
* Red Apple iPhone and Apple iPhone Air?
* Apple iPhone 4GB or Apple iPhone Nano?
* Apple release brand new buy iPhone 3G online tool
* iPhone SDK Apple pushes new builds
* iPhone 4.0: What comes after 3.0 OS Firmware?
Latest on Phones Review
* Unlimited Plans and FlexPay Confirmed for Project Dark
* Why no BlackBerry Storm 2 Announcement from Verizon?
* Video: Anti-iPhone Droid Commercial from Verizon
* Mobile Phone Ban for Students considered by French Senate
* Video: Motorola CLIQ unboxed and gets Hands-on review
* Spotted playing with Snapdragon Sony Ericsson XPERIA X3
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Friday, October 16, 2009
Making More Cheap International Calls via Broadband
BY: SAUDI
Skype and Vonage Mobile is making effective effort to the worldwide customer on cutting 50 percent for the international calls via broadband. Business group are likely to take a hard look at this latest additon as Vonage Mobile is said to be providing the ability to users to make unlimited calls throughout the world with no hassle and with one flat fee.
This is said to be a very good news to us in this Dynamic future as every action in our life must be in a fast, safe and cheap way. This is a very interesting option too to those business groups and enterprise as it plays a very important role to their business performance and achievements.
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October 12, 2009
More Cheap International Calls via Broadband
By Doug Mohney
Contributing Editor
Making international phone calls from a U.S. mobile phone appears to much more affordable over the past two weeks, as Vonage introduced its mobile VoIP application for a variety of platforms and AT&T announced it was going to lift the 3G handcuffs from the Skype mobile app for its iPhone. While Skype and Vonage (News - Alert) have struggled to effectively make a case beyond SMB usage, their efforts will put more pressure on per minute pricing.
Certainly, the new Vonage Mobile service has one eye cocked toward business users since one of the first three devices it supports is theBlackBerry ( News - Alert) family; the others being the iPhone and the iPod Touch; other smart phones platforms will likely be supported down the road. Vonage Mobile says it can help customers save more than 50 percent on calls to dozens of countries without the hassle of calling cards. Business users are likely to take a hard look at the addition of the Vonage World plan to Vonage Mobile by the end of the year, providing users the ability to make unlimited phone calls to over 60 countries for one flat fee.
I've also heard rumblings that Vonage may support SIP trunking at some point, a move that would provide some very interesting options to business and enterprise customers looking to get the most bang for the dollar out of their total telecommunications budgets. Will Vonage rise to the occasion and make a stronger business push? Only time will tell.
Meanwhile, Skype for iPhone on AT&T's (News - Alert) has always supported lower-cost Skype-Out calling via WiFi, but AT&T will now allow an updated version of the app to make calls via 3G and WiFi. Since there's a lot more 3G coverage over WiFi and since many times it is easier to use 3G rather than fussing with logging into a for-pay hotspot, this is good news for iPhone users who loveSkype ( News - Alert).
To be fair, Truphone has been plugging along with a mobile VoIP app for low-cost international calling for quite a while, supporting Nokia (News - Alert), iPhone family, Android, and BlackBerry. AT&T and Vonage's efforts in the marketplace will only serve to place more pressure on other U.S. carriers to allow/enable similar plans, as well as to create its own low(er)-rate/flat-rate international calling plans for mobile devices.
All things considered, carriers want to keep their customers on the books with some revenue, rather than having them depart and leaving them with no revenue. Don't be shy about seeing if you can negotiate better rates based upon what you can get from Skype, Truphone, and Vonage.
Doug Mohney is a contributing editor for TMCnet and a 20-year veteran of the ICT space. To read more of his articles, please visit columnist page.
Edited by Amy Tierney
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Skype and Vonage Mobile is making effective effort to the worldwide customer on cutting 50 percent for the international calls via broadband. Business group are likely to take a hard look at this latest additon as Vonage Mobile is said to be providing the ability to users to make unlimited calls throughout the world with no hassle and with one flat fee.
This is said to be a very good news to us in this Dynamic future as every action in our life must be in a fast, safe and cheap way. This is a very interesting option too to those business groups and enterprise as it plays a very important role to their business performance and achievements.
TMCnet
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October 12, 2009
More Cheap International Calls via Broadband
By Doug Mohney
Contributing Editor
Making international phone calls from a U.S. mobile phone appears to much more affordable over the past two weeks, as Vonage introduced its mobile VoIP application for a variety of platforms and AT&T announced it was going to lift the 3G handcuffs from the Skype mobile app for its iPhone. While Skype and Vonage (News - Alert) have struggled to effectively make a case beyond SMB usage, their efforts will put more pressure on per minute pricing.
Certainly, the new Vonage Mobile service has one eye cocked toward business users since one of the first three devices it supports is theBlackBerry ( News - Alert) family; the others being the iPhone and the iPod Touch; other smart phones platforms will likely be supported down the road. Vonage Mobile says it can help customers save more than 50 percent on calls to dozens of countries without the hassle of calling cards. Business users are likely to take a hard look at the addition of the Vonage World plan to Vonage Mobile by the end of the year, providing users the ability to make unlimited phone calls to over 60 countries for one flat fee.
I've also heard rumblings that Vonage may support SIP trunking at some point, a move that would provide some very interesting options to business and enterprise customers looking to get the most bang for the dollar out of their total telecommunications budgets. Will Vonage rise to the occasion and make a stronger business push? Only time will tell.
Meanwhile, Skype for iPhone on AT&T's (News - Alert) has always supported lower-cost Skype-Out calling via WiFi, but AT&T will now allow an updated version of the app to make calls via 3G and WiFi. Since there's a lot more 3G coverage over WiFi and since many times it is easier to use 3G rather than fussing with logging into a for-pay hotspot, this is good news for iPhone users who loveSkype ( News - Alert).
To be fair, Truphone has been plugging along with a mobile VoIP app for low-cost international calling for quite a while, supporting Nokia (News - Alert), iPhone family, Android, and BlackBerry. AT&T and Vonage's efforts in the marketplace will only serve to place more pressure on other U.S. carriers to allow/enable similar plans, as well as to create its own low(er)-rate/flat-rate international calling plans for mobile devices.
All things considered, carriers want to keep their customers on the books with some revenue, rather than having them depart and leaving them with no revenue. Don't be shy about seeing if you can negotiate better rates based upon what you can get from Skype, Truphone, and Vonage.
Doug Mohney is a contributing editor for TMCnet and a 20-year veteran of the ICT space. To read more of his articles, please visit columnist page.
Edited by Amy Tierney
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The CLIQ is Motorola's first smartphone based on Android, the platform that is supposed to save the company. The CLIQ for T-Mobile USA, also known as the DEXT in other markets, turns out to be a solid device. Read (and watch) this review to see just how good it is.
Review of LG's BL40 New Chocolate, with massive 4-inch display
LG BL40 New Chocolate review - widescreen fun
LG is back showing off a new flavor of its Chocolate handset, the BL40. The minimalistic touchscreen phone features a 4.0-inch super-wide cinematic display for improved web navigation and content viewing and offers users LG's new S-class user interface.
Review of the Samsung Gravity2 QWERTY phone for T-Mobile
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The Samsung Gravity2 is the recent update to T-Mobile's popular Gravity QWERTY messaging cell phone. The new Gravity2 features an improved keyboard and an updated look. Learn more in Ricky's full review.
Review of Garmin's nuvifone G60 navigation smartphone for AT&T
Review of Garmin's nuvifone G60 for AT&T
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Review of the Motorola CLIQ for T-Mobile - Moto's first Android phone
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The CLIQ is Motorola's first smartphone based on Android, the platform that is supposed to save the company. The CLIQ for T-Mobile USA, also known as the DEXT in other markets, turns out to be a solid device. Read (and watch) this review to see just how good it is. More
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Breaking News
Review of the Motorola CLIQ for T-Mobile - Moto's first Android phone
Motorola CLIQ review - Moto's first Android phone
The CLIQ is Motorola's first smartphone based on Android, the platform that is supposed to save the company. The CLIQ for T-Mobile USA, also known as the DEXT in other markets, turns out to be a solid device. Read (and watch) this review to see just how good it is.
Review of LG's BL40 New Chocolate, with massive 4-inch display
LG BL40 New Chocolate review - widescreen fun
LG is back showing off a new flavor of its Chocolate handset, the BL40. The minimalistic touchscreen phone features a 4.0-inch super-wide cinematic display for improved web navigation and content viewing and offers users LG's new S-class user interface.
Review of the Samsung Gravity2 QWERTY phone for T-Mobile
Review of the Samsung Gravity2 QWERTY phone
The Samsung Gravity2 is the recent update to T-Mobile's popular Gravity QWERTY messaging cell phone. The new Gravity2 features an improved keyboard and an updated look. Learn more in Ricky's full review.
Review of Garmin's nuvifone G60 navigation smartphone for AT&T
Review of Garmin's nuvifone G60 for AT&T
The Gamin-ASUS nuvifone G60 for AT&T is the best GPS navigation capable phone we've ever used. It's not the best overall phone, perhaps, but when it comes to navigating and location based services, the G60 is tops. Read, and watch, more about it in this review.
You can change the layout of this page by mousing over the main menu's home link, above, and then clicking on "Original Layout".
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news
Walmart launches its own Straight Talk prepaid phone service
By Jake Humphrey on Thursday October 15, 2009
On Wednesday Walmart announced that it would begin selling its own contract-free cell phone plans, as well as a handful of phones. More
news · carriers
*
product
Acer unveils S200 neoTouch with 3.8-inch WVGA touchscreen
By Michael Oryl on Thursday October 15, 2009
Earlier this week Acer launched its latest flagship Windows Mobile smartphone, the slab-shaped S200 neoTouch with a 3.8-inch touchscreen display. More
new products · smartphones · windows mobile · acer
*
news
Nokia reports 559 million EUR loss in Q3, its first reported loss since 1996
By Brian James Kirk on Thursday October 15, 2009
Nokia posted a loss of 559 million EUR (US$832 million) in the third quarter, the company's first net quarterly financial loss since it started reporting in 1996. More
news · cell phones · nokia
*
product
AT&T announces Dell Vostro 1520 3G laptop for small businesses
By Brian James Kirk on Thursday October 15, 2009
AT&T is now offering the Dell Vostro 1520 laptop with 3G data connectivity. The new laptop compliments the carrier's offering of 3G-enabled computing devices marketed for small businesses. More
new products · at&t · computing · dell
*
news
T-Mobile and Microsoft say "most, if not all" of Sidekick data recovered
By Brian James Kirk on Thursday October 15, 2009
T-Mobile and Microsoft say they have recovered a majority of the data thought to be lost in a recent server failure that affected Sidekick users. More
news · t-mobile · carriers · brian james kirk
*
news
New iPhone 3GS version blocks jailbreak modifications
By Brian James Kirk on Thursday October 15, 2009
Several sources are reporting that a new iPhone 3GS model that started shipping last week blocks the ability for consumers to jailbreak and unlock the smartphone device using currently available software. More
news · smartphones · os x · apple
*
product
Vodafone unveils RIM BlackBerry Storm2 9520 smartphone with improved touchscreen response
By Brian James Kirk on Thursday October 15, 2009
Vodafone has unveiled the Research In Motion BlackBerry Storm2 9520, a touchscreen smartphone that builds on the success of the Storm brand. It improves on touchscreen response and includes a 3.2 megapixel camera, WiFi, and more. More
new products · smartphones · blackberry os · rim
*
review
Review of the Motorola CLIQ for T-Mobile - Moto's first Android phone
By Michael Oryl on Wednesday October 14, 2009
The CLIQ is Motorola's first smartphone based on Android, the platform that is supposed to save the company. The CLIQ for T-Mobile USA, also known as the DEXT in other markets, turns out to be a solid device. Read (and watch) this review to see just how good it is. More
reviews · t-mobile · smartphones · android os · motorola · michael oryl
*
product
Samsung Blue Earth eco-friendly touchscreen phone to launch in Sweden this month, gets full specifications
By Brian James Kirk on Wednesday October 14, 2009
Samsung has announced that its eco-friendly Blue Earth touchscreen phone will launch in Sweden this month, followed by more regions in Europe and Asia. The company also released more specifications for the device. More
new products · cell phones · samsung
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news
Wi-Fi Alliance announces Wi-Fi Direct with Bluetooth-like features
By Brian James Kirk on Wednesday October 14, 2009
The Wi-Fi Alliance has announced Wi-Fi Direct, a new specification that will allow WiFi devices to connect to one another without the presence of a router. The technology could threaten Bluetooth's hold on the mobile accessory market. More
news · bluetooth & wireless
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news
AT&T shows off BlackBerry Bold smartphone with stunning white color scheme
By Brian James Kirk on Wednesday October 14, 2009
AT&T is quietly showing off a smart-looking and new white-clad variant of the BlackBerry Bold. More
news · at&t · smartphones · blackberry os · rim
*
news
Nokia tracking infectious disease with HealthRadar app
By Brian James Kirk on Wednesday October 14, 2009
Nokia is using Symbian software to track the spread of infectious disease in remote locations with HealthRadar, an application that collects data and aggregates it by SMS and real-time maps. More
news · software · nokia
*
product
Acer announces A1 Liquid, its first Android-powered smartphone
By Brian James Kirk on Wednesday October 14, 2009
Acer has announced the A1 Liquid, the company's first smartphone powered by Android. The smartphone features a Qualcomm Snapdragon processor, Wide VGA display and HSPA data connectivity. More
new products · smartphones · android os · acer
*
news
HTC rolls out Windows Mobile 6.5 for Snap and Touch Pro2
By Brian James Kirk on Wednesday October 14, 2009
HTC has released the first ROM updates that include Windows Mobile 6.5 for the HTC Snap and the HTC Touch Pro2. Additional devices are expected to receive the update in a timely manner. More
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The iPhone Is Too Cheap
Posted by Eric Zeman, Oct 12, 2009 11:33 AM
The $99 iPhone is turning the wireless industry on its head, and not in a good way. It's having an obvious negative affect on AT&T (NYSE: T)'s bottom line, and it's causing some serious pain for other makers of mobile devices.
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One of the biggest trends on Wall Street is the proper adoption of technology that will help each part of an organization be more efficient, says Jim Feingold, global head of Sales and Marketing and co-head of product strategy at Portware Neonode has launched a new type of touch screen, which operates on light and is easier to use. IBM's Jamie Bisker and Mark McLaughlin talk about customer driven business models, including some groundbreaking research in this area.
One of the biggest trends on Wall Street is the proper adoption of technology that will help each part of an organization be more efficient, says Jim Feingold, global head of Sales and Marketing and co-head of product strategy at Portware
Last week, analyst firm Yankee Group fired off a report begging mobile network operators to stop subsidizing devices so heavily. The report details how device subsidies are bad for the industry, and I am inclined to agree.
Yankee's Andy Castonguay notes, "AT&T's iPhone model is a prime example of the negative effects of the subsidization model. It shows that an AT&T iPhone account with high data usage doesn't break even until month 17 of a 24-month contract."
Consider. The full retail price of the iPhone 3GS 32GB is about $700. Consumers, however, pay only $300 if they buy it new. AT&T is eating $400 of the price of the phone upfront in order to convince customers to sign up for two-year contracts. The low price has convinced millions of new customers to join AT&T's network, but they are killing the company's profits.
Castonguay said, "The danger of this early success is that operators, OEMs and other companies can quickly become enamored with the titillating burst of media attention and begin to lose sight of the longer-term ramifications of their decisions -- namely, shrinking profitability. Assuming that an iPhone user maintains voice usage comparable to AT&T's average customer and data usage of 5GB per month, Yankee Group estimates that AT&T would achieve an operating margin per account of approximately 47%, leading to a total profit margin of 16.1% per user."
If AT&T were to drop the iPhone subsidy, it would get its money back in eight months, and see 33.4% profits per user -- double what it's currently seeing.
AT&T isn't the only company seeing the negative affects of subsidies. Even the free or sub-$50 phones that are sold by network operators cost $100 or more at full retail value. Each and every carrier is losing out on profit and margins by making devices more affordable for the end user to purchase up front.
The problem with AT&T's heavy subsidies of the iPhone are that it puts amazing pressure on devices priced in the $99 to $199 segment. There are a huge number of devices that would (and should) be priced in that range were it not for the $99 iPhone. Instead, some carriers and manufacturers are dropping the price of devices that would otherwise be $150, $130 or $120 down to the $99 price point -- or even lower -- to compete with the iPhone. It puts pressure on the entire system and drags down the industry's ability to make money.
Castonguay said, "Rising customer acquisition costs, exclusivity fees and flat-rate pricing are squeezing margins for coveted smartphone users. To reverse this trend, operators must spread the control and risks across OEMs and retailers to offer more affordable options and establish greater levels of clarity and trust with consumers."
As a consumer do I really want to pay $700 out of pocket for a mobile phone? Heck no, but that doesn't mean that the companies involved in the wireless industry don't deserve to make a profit. I don't want to spend more money on my devices, but I also don't want to see the companies making and selling them go out of business because the system is broken.
So, yeah, I'm going to say it: The iPhone is too cheap.
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Topics: Mobile
* Email this page E-mail this page
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* | Buzz up!
The iPhone Is Too Cheap
Posted by Eric Zeman, Oct 12, 2009 11:33 AM
The $99 iPhone is turning the wireless industry on its head, and not in a good way. It's having an obvious negative affect on AT&T (NYSE: T)'s bottom line, and it's causing some serious pain for other makers of mobile devices.
More Insights
Whitepapers
* Determining A Plan For Setting Prices
* Stackelberg Approach for Pricing Differentiated Services
Webcasts
* Gone in 6.0 Seconds: Protecting Laptops and Data from Theft
* Agile in the Enterprise – .NET Development & Beyond
Reports
* Google Rethinks The Operating System
* The Case for E-mail Consolidation
Videos
One of the biggest trends on Wall Street is the proper adoption of technology that will help each part of an organization be more efficient, says Jim Feingold, global head of Sales and Marketing and co-head of product strategy at Portware Neonode has launched a new type of touch screen, which operates on light and is easier to use. IBM's Jamie Bisker and Mark McLaughlin talk about customer driven business models, including some groundbreaking research in this area.
One of the biggest trends on Wall Street is the proper adoption of technology that will help each part of an organization be more efficient, says Jim Feingold, global head of Sales and Marketing and co-head of product strategy at Portware
Last week, analyst firm Yankee Group fired off a report begging mobile network operators to stop subsidizing devices so heavily. The report details how device subsidies are bad for the industry, and I am inclined to agree.
Yankee's Andy Castonguay notes, "AT&T's iPhone model is a prime example of the negative effects of the subsidization model. It shows that an AT&T iPhone account with high data usage doesn't break even until month 17 of a 24-month contract."
Consider. The full retail price of the iPhone 3GS 32GB is about $700. Consumers, however, pay only $300 if they buy it new. AT&T is eating $400 of the price of the phone upfront in order to convince customers to sign up for two-year contracts. The low price has convinced millions of new customers to join AT&T's network, but they are killing the company's profits.
Castonguay said, "The danger of this early success is that operators, OEMs and other companies can quickly become enamored with the titillating burst of media attention and begin to lose sight of the longer-term ramifications of their decisions -- namely, shrinking profitability. Assuming that an iPhone user maintains voice usage comparable to AT&T's average customer and data usage of 5GB per month, Yankee Group estimates that AT&T would achieve an operating margin per account of approximately 47%, leading to a total profit margin of 16.1% per user."
If AT&T were to drop the iPhone subsidy, it would get its money back in eight months, and see 33.4% profits per user -- double what it's currently seeing.
AT&T isn't the only company seeing the negative affects of subsidies. Even the free or sub-$50 phones that are sold by network operators cost $100 or more at full retail value. Each and every carrier is losing out on profit and margins by making devices more affordable for the end user to purchase up front.
The problem with AT&T's heavy subsidies of the iPhone are that it puts amazing pressure on devices priced in the $99 to $199 segment. There are a huge number of devices that would (and should) be priced in that range were it not for the $99 iPhone. Instead, some carriers and manufacturers are dropping the price of devices that would otherwise be $150, $130 or $120 down to the $99 price point -- or even lower -- to compete with the iPhone. It puts pressure on the entire system and drags down the industry's ability to make money.
Castonguay said, "Rising customer acquisition costs, exclusivity fees and flat-rate pricing are squeezing margins for coveted smartphone users. To reverse this trend, operators must spread the control and risks across OEMs and retailers to offer more affordable options and establish greater levels of clarity and trust with consumers."
As a consumer do I really want to pay $700 out of pocket for a mobile phone? Heck no, but that doesn't mean that the companies involved in the wireless industry don't deserve to make a profit. I don't want to spend more money on my devices, but I also don't want to see the companies making and selling them go out of business because the system is broken.
So, yeah, I'm going to say it: The iPhone is too cheap.
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