Friday, February 24, 2012

Mobility Has Reached Tipping Point for Businesses

Symantec’s “2012 State of Mobility” report suggests business use of mobile devices now has reached a tipping point. Most organizations are making line-of-business application available. Some 59 percent of respondents reported this to be the case.

Also, 71 percent of businesses are now looking at implementing a corporate “store” for mobile applications.

The survey was conducted by Applied Research and involving 6,275 organizations of all sizes in 43 countries.

Security remains a key issue, though. Small and large businesses have suffered a variety of losses, measured by direct financial expenses, loss of data, and damage to the brand
or loss of customer trust.

Within the last 12 months, the average cost of these losses was $247,000 overall. Small businesses averaged $126,000 of loss, while enterprises averaged $429,000. In the end, however, most organizations feel that mobility is worth the challenges. About 71 percent of respondents say they at least break even on the risks versus rewards.

Google Nexus Tablet for Sale in April 2012?

The Google tablet would be in the same size class as Amazon's Kindle Fire tablet.
Kindle Fire
Google says it will formally adopt a hardware strategy featuring a range of devices that will compete with Apple products. 


A new Google Nexus tablet might be on the market in April 2012, and would represent one of the products Google plans to launch and support. 


According to Richard Slim, an analyst with DisplaySearch, Google is working on a tablet with a seven-inch display and 1280 by 800 pixels of resolution. 


Slim believes the device will retail for $199, in line with the Amazon Kindle Fire and Barnes & Noble Nook . Google Nexus tablet




Of course, Google also already markets three tablet devices in other form factors, by virtue of its ownership of Motorola Mobility. Those include the  10.1-inch Xoom, the 10.1-inch Xyboard (Xoom 2), and the 8.2-inch Xyboard. 


You might well argue that the seven-inch segment is big enough to require a presence. 

Amazon shipped 5.3 million Fires in the fourth quarter of 2011, according to DisplaySearch's numbers. 

Is "Spectrum Crunch" Real?

Two "debates" seem primed to rage over the next couple of years. First, there will be an argument about whether the mobile "spectrum crunch" is real or not.

Second, there will be a sharp debate about how to allocate a huge block of "refarmed" former TV broadcast spectrum for mobile purposes.

The first argument includes both doubters who suspect bandwidth issues are not as pronounced as most in the industry believe, as well as proponents of alternative approaches, such as allocating large amounts of new unlicensed spectrum.

Of course, many argue that the spectrum needs are real, noting that smartphone traffic in 2015 will be 47 times greater than it is in early 2012.  New devices such as tablets also use 120 times as much bandwidth as smart phones. 
Expect lots of sparring over spectrum issues over the next couple of years, for obvious business reasons. Without spectrum, a mobile service provider has no business at all. And many would argue more benefits will accrue to businesses and consumers if lots of unlicensed spectrum is made available. 

Google to Launch Line of Consumer Devices?

Google's Paid TV Service to Take on CableGoogle might be preparing to create and launch a whole family of consumer devices that would compete against Apple products. 


Depending on your perspective, that is either a dangerous shift of strategy or only the logical extension of Google's increased profile in the devices business. 



Google's Android operating system is a major global presence in smart phones and tablets, and Google also has built and sold a "hero" Nexus device to illustrate what it believes can be done in the smart phone area using Android. Google has purchased Motorola Mobility, and so now is a supplier of mobile devices. 


Google also provides support for a couple of firms building Chromebooks, meaning Google already is partly in the PC business. And Google already has cooperated with a few manufacturers on Google TVs.


Google recently announced it was going to build and market an in-home music entertainment system, as well. 


So a formal "hardware strategy" wouldn't be much of a stretch. 


Google and Apple seem destined to compete on many fronts, a fact that has been clear for a few years, dating back to the days when Eric Schmidt, then Google CEO, was a member of Apple's board of directors. Schmidt resigned in 2009.





Thursday, February 23, 2012

A Startling Difference in Android and Apple iOS Traffic Patterns

There is an almost-shocking finding in comScore’s recent “Mobile Future” report: 75.2 percent of all Internet traffic coming from Apple iOS devices comes through a Wi-Fi connection, while 71.4 percent of Android traffic come through mobile broadband access.

In December 2011, WiFi connections drove 40.3 percent of mobile Internet connections by smart phone and 92.3 percent of tablet Internet connections in the U.S. market.

For whatever reason, users of Android devices of all types seem to rely on their mobile broadband connections far more than iOS device users. Perhaps the difference is the use of Wi-Fi-only iPod “Touch” devices, or some difference in the types of data plans iOS users buy, compared to Android users.

It is a startling difference, whatever the reason.

T-Mobile USA to Light LTE Network in 2013

T-Mobile USA says it is gong to invest $4 billion in its business, including use of the spectrum it received from AT&T as part of the “breakup fee” for failure of the AT&T effort to buy T-Mobile USA, to launch its own Long Term Evolution network in 2013, the company says.

The $4 billion network modernization and 4G evolution effort, which will improve existing voice and data coverage and pave the way for LTE service by 2013, also will, at some point require additional spectrum, T-Mobile USA says.

As part of the modernization effort, T-Mobile USA will install new gear at 37,000 cell sites and “refarm” some spectrum to launch LTE in 2013. The key part of that effort is the integration of additional spectrum T-Mobile will receive as a result of the termination of the AT&T transaction.

T-Mobile USA also says it will deploy HSPA+ in its PCS (1900 MHz) spectrum band.

The new LTE 4G network will be available in “the vast majority of the top 50 markets,” with 20 MHz worth of bandwidth in 75 percent of the top 25 markets, the company says.
But not all the investments are network related. T-Mobile has for some time been trying to win more business users, and now plans to add 1,000 new sales people as part of that effort.

T-Mobile USA also will be increasing its advertising spending and looking for more mobile virtual network operator (MVNO) partners.

T-Mobile USA also will remodel its retail outlets and likely expand the number of locations, as well.

In the fourth quarter of 2011, T-Mobile USA reported service revenues of $4.57 billion, down from $4.69 billion in the fourth quarter of 2010. Operating income (OIBDA) was $1.40 billion, up from $1.34 billion reported in the fourth quarter of 2010.  

Blended average revenue per user in the fourth quarter of 2011 was $46, consistent with the fourth quarter of 2010.  Net customer losses were 526,000 in the fourth quarter of 2011, compared to 23,000 net customer losses in the fourth quarter of 2010.

T-Mobile USA had 33.2 million customers at the end of fourth quarter 2011, compared to 33.7 million customers at both the end of third quarter 2011 and the end of fourth quarter 2010.

T-Mobile USA executives noted that the inability of the firm to sell the Apple iPhone did have a material impact on the company’s fortunes during the year, especially in the fourth quarter, when the Apple iPhone 4S launched.

Churn from branded customers was 3.6 percent in the fourth quarter of 2011, up from 3.2 percent in the third quarter of 2011, and 3.4 percent in the fourth quarter of 2010.
This look at spectrum ownership in 2010 does not reflect the addition of former AT&T AWS spectrum to T-Mobile USA’s total, and the deletion from AT&T’s holdings


Wednesday, February 22, 2012

Google Shows Surprising Strength in Display Advertising


Facebook now is the largest recipient of display advertising in the U.S. market.  But Google’s display business is growing faster than anticipated, and will surpass Facebook’s next year, according to a new forecast by eMarketer.

That will come as a surprise to many who had thought it would be much harder for Google to catch up.

Net US Online Display Ad Revenues at Top 5 Ad-Selling Companies, 2011-2014 (billions)


Net U.S. display advertising revenues at Google reached $1.71 billion in 2011, just below the $1.73 billion Facebook earned the same year. In 2012, display revenue growth at both companies will be nearly identical. 

That is a huge change in market dynamics. Google is expected to surpass Facebook in 2013. 

Net US Online Display Ad Revenue Growth at Top 5 Ad-Selling Companies, 2011-2014 (% change)


The overall US display advertising market, which includes spending on online video, sponsorships, rich media and banner advertisements, grew 25.2 percent to $12.4 billion in 2011, eMarketer estimates, and will increase to $15.39 billion in 2012.

Both companies are pulling away from other contenders in the display category, as well. 

"Tokens" are the New "FLOPS," "MIPS" or "Gbps"

Modern computing has some virtually-universal reference metrics. For Gemini 1.5 and other large language models, tokens are a basic measure...