Fierce Wireless

Football was the main attraction during yesterday's Super Bowl XLVI, but the commercials in between the plays also captured many viewers' attention. The mobile industry was front-and-center during many of those commercials as it attempted to get some Super Bowl attention with a range of mobile-focused ads and technologies. It's no real surprise that advertisers are keen to tap into users' mobile interests; nearly 40 percent of respondents used mobile devices in response to TV ads during the game, according to mobile ad network provider InMobi, and 45 percent estimated that they would spend 30 minutes or more on their mobile devices during the game. 

Click here to watch the Best Buy ad and other mobile-focused Super Bowl ads.

Perhaps the best example of the mobile trend during the Super Bowl came from Best Buy, which is working to expand sales of mobile phones and smartphones through its retail locations. The company used its 30 seconds of Super Bowl glory to showcase mobile innovators--including  Instagram founder Kevin Systrom and Shazam creators Chris Barton and Avery Wang--in an effort to highlight the continued advances in mobile technology. The unspoken point, presumably, is that Best Buy is aware of trends in mobile technology and is well suited to help shoppers determine which phone to buy.

Another major step forward in the mobile technology trend came from website vendor GoDaddy, which displayed a QR code during the entire duration of its cloud-focused Super Bowl commercial.

But Super Bowl ads weren't the only place where mobile shined. The game was available on Verizon Wireless (NYSE:VZ) phones through its NFL Mobile app. And for those not on Verizon, the NFL itself created the free Super Bowl XLVI Guide app for viewers to obtain information on the game's teams and players. There's even a $1.99 app for iOS devices that allows users to view Super Bowl commercials and share them with friends.

For more:
- see this InMobi release
- see this FierceMobileContent article
- see this VentureBeat article
- see this Orlando Sentinel article

Special Report: Mobile highlights in Super Bowl commercials

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The gaming industry has gone through a rapid transformation in the past three years. With the smartphone penetration rate climbing, users are increasingly turning to mobile apps to get their gaming fix instead of portable gaming titles for the Nintendo DS or Sony PSP. The Nintendo and Sony franchises are clearly popular in their own right, but their overall market share in the portable gaming market is shrinking. Both companies design consoles as well as games, and have thus far avoided moving into the mobile space. Will Nintendo and Sony be able to ignore the mobile market forever? Should they even worry? Special feature

Cox Communications will cut more than 100 jobs when it finally closes down its wireless business next month, according to a report in the Atlanta Business Chronicle.

The report, which cited an unnamed source, said that engineers, product development managers and infrastructure designers will be affected by the job cuts. Cox said Kelly Williams, who has headed the company's wireless unit since Stephen Bye left to become CTO of Sprint Nextel (NYSE:S) in 2011, will remain with Cox's product strategy business.

Cox spokesman Todd Smith declined to comment on the specific number of job cuts, but did confirm that some are coming. "As previously announced, our wireless strategy has changed and we must adjust our workforce to align with our new strategy," he told FierceWireless. "Our employees have done everything we have asked and for that we are thankful. We are extremely focused on making this transition as easy as possible on our employees."

In mid-November Cox stopped selling wireless service to new customers and said that it would shut off all wireless service by March 30. The decision came after Cox abandoned plans to build its own wireless network; the company has been operating as an MVNO of Sprint since November 2010 and launched wireless service in less than 50 percent of its total footprint.

Cox said in November that all of its wireless customers would receive a $150 credit on their bill for every line of wireless phone service disconnected. The company said customers could keep their wireless devices and that all early termination fees would be waived.

In December Cox agreed to sell 20 MHz of its AWS spectrum covering 28 million POPs to Verizon Wireless (NYSE:VZ) for $315 million. The deal, which includes the option for Cox and Verizon to resell each other's services, is connected to Verizon's decision to spend $3.6 billion to buy AWS spectrum from SpectrumCo, a joint venture of cable companies Comcast, Time Warner Cable and Bright House Networks. The deals still need to be approved by the FCC and Department of Justice.

For more:
- see this Atlanta Business Chronicle article

Related Articles:
Verizon to buy Cox's AWS spectrum for $315M
Cox abandons wireless service
Could Sprint use Cox and SpectrumCo AWS spectrum to launch LTE?

Quick news from around the Web.

@FierceWireless: BTIG's Walter Piecyk: Pre-paid iPhone Could Disrupt the Wireless Market: Post (reg. req.) | Follow@FierceWireless

> A Windows Phone developer left the company to work on Amazon's Kindle team. Article

> Motorola Mobility warned that some of its refurbished Xoom tablets contained information from the previous owner. Article

> Ericsson's CEO said job cuts may be in the manufacturer's future. Article

> Simplexity MVNO Services, a mobile virtual network enabler, announced it will use the Sprint nationwide wireless network to offer third-party branded voice and data services. The deal covers CDMA and WiMAX. Release

> Google reportedly hired a senior designer from Apple for a secret project. Article

> The iPhone accounts for 75 percent of all handset industry profits. Article

> U.S. Cellular is offering a voice to text service. Article

> Motorola Mobility is looking for 2.25 percent of all Apple iPhone sales for a patent licensing agreement. Article

Mobile Content News

> Digital music service Rdio unveiled a redesigned version of its streaming application for devices running Google's Android mobile operating system. Article

> Verizon Communications and Coinstar-owned video rental service Redbox are teaming for a new multi-platform subscription service enabling consumers to access streaming entertainment via mobile devices and the Web. Article

Broadband Wireless News

> Former Federal Communications Commission Chairman Reed Hundt last week voiced strong opposition of spectrum legislation circulating in the U.S. House of Representatives. Article

> HTC said it fixed a Wi-Fi security hole in its Evo 3D. Article

> The NetAmerica Alliance of rural service providers has chosen to deploy Ericsson's 4G LTE mobile broadband router. Article

European Wireless News

> Everything Everywhere will begin repositioning its Orange UK and T-Mobile UK brands this week. Article

> A market research firm says that operators must cut network carriage costs by 50 percent or face an overwhelming eight-fold increase in the costs of radio access network equipment. Article

> Is the end near for feature phones? Editor's Corner

And finally... How to find out how romance failed. Article

Harbinger Capital Partners, the hedge fund that backs wholesale LTE provider LightSquared, reported a 47 percent drop in its biggest fund, thanks in large part to a writedown in the company's investment in LightSquared. LightSquared is still working to secure approval from regulators to launch its terrestrial service, which has been mired in concerns that its network interferes with GPS receivers.

According to multiple reports, the losses in 2011 caused Philip Falcone's Harbinger to see its assets drop to $4 billion at the end of 2011, from a high of $26 billion in 2008. Harbinger has invested $3 billion in LightSquared, and Harbinger cut the value of its investment in LightSquared by nearly 60 percent.

"The decline was primarily due to a conservative adjustment in the Fund's holdings of LightSquared, to be consistent with the results of work done by the Fund's third party valuation firm," Harbinger spokesman Lew Phelps said in a statement released to news outlets Friday. "The valuation takes into account uncertainty about the outcome of political issues related to alleged interference with the GPS system by LightSquared transmitters," Phelps added.

LightSquared is working with the FCC and National Telecommunications and Information Administration on GPS interference tests. The FCC must certify that all concerns have been addressed before LightSquared can begin operations, and the drawn-out process has increased concerns that LightSquared may run out of money. However, LightSquared officials said last month that the company has enough money to last for "several quarters."

Last week Sprint Nextel (NYSE:S) gave LightSquared until mid-March to get FCC approval to launch service. Sprint and LightSquared announced a 15-year, $9 billion network-hosting deal last July, whereby Sprint will build LightSquared's radio access network as part of Sprint's own network upgrade (LightSquared will operate its own, separate core network).

The FCC said last month that it will take public comment on a LightSquared petition until Feb. 27, with follow-up responses due by March 13. In December LightSquared petitioned the FCC to declare that GPS device makers are at fault for interference caused between LightSquared's L-band spectrum and GPS receivers, and that LightSquared, a licensed spectrum holder, should be allowed to launch commercial service as quickly as possible.

For more:
- see this Bloomberg article
- see this Reuters article
- see this WSJ article (sub. req.)

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Sprint extends lifeline to LightSquared until mid-March
FCC comment period keeps LightSquared hopes alive
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Sprint puts LightSquared pact on hold while awaiting word from regulators
LightSquared lands deadline extension from Sprint
LightSquared presses FCC to let it launch LTE service

As expected, HTC reported a 26 percent drop in fourth-quarter profit, but the Taiwanese smartphone maker also forecast a tough first quarter as it undergoes a "product transition" and warned that its first-quarter revenue could fall as much as 36 percent from the fourth quarter.

HTC reported net profit in the quarter of around $369 million, as was expected after the company released unaudited results for the fourth quarter in January. The company's 26 percent drop in quarterly profit was its first profit drop in two years. Revenue for the quarter clocked in at $3.42 billion, down 2.5 percent from the year-ago period. For the first time, HTC did not provide shipment volumes for the quarter, nor did it provide a shipment forecast.

However, it was HTC's weaker forecast for the first quarter that has analysts and investors worried. The company said that it expects revenue to be between $2.2 billion and $2.36 billion for the quarter, weaker than analysts' expectations of $2.86 billion, according to Bloomberg. 

"Our weakness in first-quarter guidance also comes from facing competition in the U.S. from iPhone and Samsung," HTC CFO Winston Yung said on a conference call. "LTE handsets also didn't meet our expectations." HTC said it expects first-quarter gross margin and operating margin to come in at around 25 percent and 7.5 percent, respectively, down from 27.12 percent and 12.71 percent in the fourth quarter. However, Yung said margins will return to levels the company experienced in the first three quarters of 2012 once the company's product transition is over, back to levels of 28 to 29 percent for gross margin and 14.86-15.81 percent for operating margin. 

HTC has been under pressure from other companies in the increasingly crowded market for devices running Google's (NASDAQ:GOOG) Android platform and Microsoft's (NASDAQ:MSFT) Windows Phone. The company is expected to debut new models later this month at the Mobile World Congress in Barcelona, Spain, including an Android smartphone with a quad-core processor dubbed the "Ville."

"In 2011 we saw growth in the global strength of our brand, as well as earnings and revenue growth," HTC CEO Peter Chou said in a statement. "While short term performance may not meet the results as expected, we have gained further experience and advancement in the areas of brand management and product innovation. These fundamental strengths and the groundwork we have laid will take us into 2012 with a renewed focus and determination."

Looking ahead to the rest of 2012, the company said in a statement that it will focus on growing its brand value, continuing to create competitive advantages through innovation, enhancing the efficiency of its marketing campaigns and driving down operating costs. HTC said it will focus on a globalized marketing campaign "to optimize its go-to-market strategy with operators, retail distributors, and end-users, and improve the efficiency of its marketing spend."

"It can be turned around," IDC analyst Melissa Chau told Reuters before HTC gave its first-quarter revenue guidance. "But the problem remains the same: How are they going to differentiate?"

For more:
- see this release
- see Bloomberg article
- see this Reuters article
- see this AP article

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Nokia (NYSE:NOK) and Nokia Siemens Networks denied a report that Siemens is actively seeking to replace Nokia Siemens CEO Rejeev Suri, who is leading the infrastructure vendor through a massive reorganization.

Suri

While a Nokia spokeswoman declined to comment, Reuters reported that Nokia called reports about Suri's exit "complete rubbish." Further, Nokia Siemens spokesman Ben Roome confirmed that Jesper Ovesen, the executive chairman of Nokia Siemens, said that the NSN board "has full confidence" in Suri.

On Friday Reuters reported that Sibylle Wankel, a Siemens supervisory board member, said that Siemens CFO Joe Kaeser has been looking around for a replacement to Suri. Wankel represents the IG metall trade union, which protested outside of NSN's Munich offices last week.

NSN said in November it would undergo a major restructuring to focus on mobile broadband and that it will slash up to 17,000 jobs by the end of 2013. The vendor said last month it expects to take substantial charges in the first quarter related to the restructuring. Since that November announcement NSN has sold several of its business units. In December it sold its wireline business to Adtran and its WiMAX business NewNet Communication Technologies, which is backed by private equity firm Skyview Capital. In November, NSN sold its microwave business unit to DragonWave.

For more:
- see this Reuters article
- see this separate Reuters article

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Telenor CEO Jon Fredrik Baksaas has expressed anger at the decision by India's Supreme Court to revoke the mobile licence it jointly holds with Unitech. Baksaas told Reuters that the ruling is a very serious attack on Telenor's investments, and withdrawing from the Indian market "is one alternative that is on the table."

Baksaas

The court's decision to cancel 122 mobile licences, which also impacts Etisalat, Russia's Sistema and many local mobile operators, follows accusations that the licences were subject to corruption when sold in 2008.

But the Telenor CEO is adamant that his company is being penalised unfairly. "We met every inch of that regulation of that licence. We have brought competition to the Indian market ... just to see a ruling that has significant retroactive consequences. It is an action that we have never seen in any country before."

Baksaas added that the move created a high level of uncertainty, and would immediately impact activities with its partner Unitech that involves investments totalling $3 billion in India. 

The CEO also stated that he would ask the company's largest shareholder, the Norwegian government, to lobby the Indian government on Telenor's behalf. "That is part of the tool kit," said Baksaas.

One institutional investor told Reuters that securing the Norwegian state's help would be the only route to salvaging Telenor from the situation.

Saeed Baradar, a telecoms specialist at Societe Generale in London, told Bloomberg: [Telenor] "really needs to get out because shareholders worry that capital discipline will be broken in India." He estimated that the operator may have to pay an additional $2.1 billion to rebid for the mobile licences that have been withdrawn by the court.

However, the court ruling seems likely to benefit some of the larger mobile operators, such as Bharti Airtel, Reliance Communications and Vodafone, which remain unaffected. Observers believe this upheaval could lead to much needed market consolidation. 

"This verdict is good news for established incumbent operators and, in the short term, we are likely to see some increase in tariffs," a director of consulting firm Frost & Sullivan told Reuters.

For more:
- see this Reuters article
- see this separate Reuters article
- see this Bloomberg article

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Vodafone overhauls Asian partnerships
Report: Ericsson and NSN battle for supremacy in India

A German court ordered Apple to stop online sales of its older model iPhones and 3G-enabled iPads, but Apple managed to reverse the ruling within hours. The dust-up stems from a court injunction secured by Motorola Mobility in December after Apple failed to license Motorola wireless patents.

Apple's iPhone 3G, iPhone 3GS and iPhone 4, but not its latest iPhone 4S, were involved in the dispute, as were all 3G models of the iPad, but not the Wi-Fi-only models.

An Apple spokesperson said Motorola repeatedly refused to license its patents on reasonable terms, despite having declared it an industry standard patent seven years ago.

However, Apple may still fall to a separate ruling in Germany related to its iCloud and MobileMe push email service. A court granted Motorola's request for an injunction against Apple's push email service; Motorola argues the products infringe on its patent for a similar paging technology.

"Apple believes this old pager patent is invalid, and we're appealing the court's decision," an Apple spokeswoman told AllThingsD, which noted that Apple is likely to fight the injunction. 

The battle between Apple and Motorola is just one of dozens of patent-infringement lawsuits spanning the globe and invovling just about every major smartphone manufacturer.

For more:
- see this Bloomberg article
- see this AllThingsD article
- see this Reuters article
- see this BBC News article
- see this Teltariff.de article (translated via Google Translate)

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Apple, Samsung legal battle comes under EU spotlight
Samsung Galaxy Tab 10.1 remains banned in Germany 
Samsung moves to block iPhone 4S sales in France, Italy
Report: Apple demands Samsung stop European sales of Galaxy phones, tablets
Motorola admits Xoom tablet faces Apple lawsuit in Germany

Hong Kong-based Hutchison Whampoa is expanding its European footprint with the purchase of Orange Austria for €1.3 billion.

The deal, which is expected to be completed by mid-2012, will see Hutchison 3G Austria become the third largest operator in the country after Telekom Austria's A1 and Deutsche Telekom's T-Mobile Austria.

The merging of 3G Austria with Orange Austria will create an operator with nearly three million subscribers and around 20 per cent of the total market, noted Reuters, adding that Hutchison was expecting to generate expense and Capex synergies of at least €500 million once the integration take effect.

The acquisition will also see some assets of Orange Austria sold to Telekom Austria Group for €390 million once the sale is formally closed. These are said to include existing spectrum, base station sites, certain intellectual property rights and the MVNO Yesss Telekommunikation.

Orange Austria is jointly owned by France Telecom and UK-based Mid-Europa Partners, with the French company expecting to receive around €70 million for its 35 per cent holding in the Austrian business, which had around €1 billion of debt.

Analysts working for the financial service firm Raymond James told Reuters that France Telecom could use the proceeds to strengthen its position in the Belgium operator Mobistar. "This would also leave more than enough to pay for half of the acquisition of minority interests in Mobistar while the other half would be paid by potential tax synergies."

For more:
- see this Reuters article
- see this Bloomberg article

Related Articles:
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A supervisory board member of Siemens has indicated that the company is looking for a new CEO for its networking equipment joint venture, Nokia Siemens Networks.

Suri

A Reuters report said that Sibylle Wenkel, who represents the IG metall trade union on the supervisory board of Siemens, had mentioned that the finance director of Siemens, Joe Kaeser, was conducting an executive search to find an alternative to current Nokia Siemens CEO Rajeev Suri.

A report carried by Dow Jones Newswire said that Kaeser had commented in November that restructuring at NSN would impact the profits of Siemens.

NSN's future prospects are also, along with Ericsson's and Huawei's, likely to be hurt by India's Supreme Court decision to revoke over 200 mobile licences and thereby cause consolidation in the much overcrowded market.

NSN reported weaker than anticipated fourth-quarter results, and it expected to struggle in the first quarter of 2012 as it implements a massive restructuring programme.

For more:
- see this Reuters article
- see this Dow Jones Newswire article

Related Articles:
Nokia Siemens to cut up to 4,100 workers in Germany, Finland
Nokia Siemens Q4 sales drop amid restructuring 
Nokia Siemens unloads WiMAX unit and 300 workers to NewNet 
Nokia Siemens lets slip which units will be axed 
Nokia Siemens slashes 23% of workforce in effort to save €1B

Deploying LTE or boosting efficiency gains in the macro network will not solve the problems of growing mobile data volumes and falling revenues per megabyte, according to a new study from Analysys Mason.

To tackle this daunting prospect, the market research firm says that operators must cut network carriage costs by 50 per cent or face an overwhelming eight-fold increase in the costs of radio access network (RAN) equipment.

According to Terry Norman, co-author of the study and lead analyst for Analysys Mason, if European operators attempt to meet the growing demand for data traffic by deploying more base stations, RAN costs could climb to $40 billion per year by 2016, compared with $5 billion per year in 2011.

"Operators can't afford to spend that sort of money," Norman said. "Therefore, operators will either accept network congestion or use pricing to control demand--neither is good business practice. The elegant solution is to make substantial efficiency improvements."

One option recommended by Analysys Mason is for operators to use small cells to carry a part of this traffic. "Because Wi-Fi is widely deployed and competitively priced, it is a leading candidate small-cell technology," Norman said.

However, the analyst warned that operators will be unable to attach adequate users to an outdoor Wi-Fi unit to relieve the congested macro cell that it is supporting. The study claims that almost 95 per cent of tablet users and 70 per cent of smartphone users will be found indoors, leaving very few heavy users of data outdoors.

While operators are already testing Wi-Fi offload, Analysys Mason recommends they extend the tests to include video services. It also suggests operators are unlikely to have the operational capability to deliver an effective Wi-Fi network and believes partnering with experienced companies is the way forward.

Of note, the study claims that the Wi-Fi industry must overcome present hurdles and deliver ‘carrier-grade' products and services, as already achieved by the femtocell industry.

The firm believes that the current battle between Wi-Fi and femtocell for small cell domination will be decided over the next two years, with the likely outcome being the convergence of the two technologies.

For more:
- see this Analysys Mason press release

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Telekom Austria, which formed its M2M division last September, said it has won 19 M2M projects valued at €5 million. The company also said it will launch a programme this spring to expand its existing partner network and solutions portfolio. Hannes Ametsreite, CEO of Telekom Austria, predicted at the time of the launch of the new unit that M2M penetration would increase from 145 per cent to 300-400 per cent in the future. Article

IDC's latest insight into mobile phone shipments states that the worldwide market grew more than 6 per cent in the fourth quarter of 2011. Encouraging news for the industry, given the economic uncertainties that seem to continue unabated.

But one blot on this rosy landscape was IDC's assertion that feature phones have become notably less popular and volumes are declining faster than previously anticipated.

While I'm confident IDC can justify this downward slide in feature phone shipments, I remain sceptical that smartphones--in their present format--will become the device of choice for the majority.

I watch many owners of smartphones to see what use they make of the numerous features and applications these devices can support--and from a very unscientific viewpoint, the vast majority seem to use primarily voice and messaging services.

Many users get confused and/or frustrated after attempting to access a website that fails to support mobiles. Or the handset operating system takes the user into a dialogue session that seems to offer no eventual return.

I also accept that this behaviour is age related.

But having attempted to use a smartphone myself, albeit not the latest available, I have found the experience largely unrewarding. It's not helped by poor battery life, the bulky size and unnecessary complexity.

I have been shown many times by enthusiastic owners of smartphones a specific app they've downloaded. While I can see the potential use of some, I remain sceptical as to how often these are used after the initial purchase.

So, I remain a Luddite with regard to smartphones, and hold high my rather ancient and battered feature phone as a symbol to smartphone owners that there is an alternative.

IDC's Ramon Llamas also accepts, as part of the company's mobile phone technology and trends team, that feature phones still comprise the majority of all mobile phone shipments.

"Feature phones accounted for a majority of shipments from four of the five market leaders during the quarter," Llamas said. "Even though their proportion is eroding, feature phones maintain their appeal on the basis of price and ease of use."

However, he maintains that feature phones are evolving to become more like smartphones, and will incorporate mobile Internet and third-party apps--a strategy he believes will stem the decline in shipment for these devices.

So, will everyone eventually become a smartphone owner? While the vendors and operators might encourage this, I wonder whether the average consumer will understand the benefit of making this transition. --Paul

A new ChangeWave Research survey of Amazon Kindle Fire owners found some disliked the device's lack of 3G/4G capability. When asked to name their top dislikes of the Kindle Fire, the majority (27 percent) said they disliked that there was no volume button, 21 percent said they didn't like the Kindle Fire's lack of a camera, 15 percent bemoaned the device's short battery life and 12 percent said they didn't like that it lacked 3G/4G capability.

Click here for details from ChangeWave's survey.

Overall, the survey, which queried 254 Kindle Fire owners in North America, found that demand for Kindle Fire tablets was strong. When asked what they were most satisfied with, 59 percent of Kindle Fire owners said they liked the price of the Fire, 31 percent liked the color screen and 27 percent liked the ease of use.

Amazon's release of the Kindle Fire tablet, which runs a modified version of Google's Android platform, raised some eyebrows due to the gadget's lack of wide area wireless capabilities. The Kindle Fire currently only supports Wi-Fi wireless connections. Apple's iPad, by contrast, has supported connections to cellular networks (currently Verizon Wireless (NYSE:VZ) and AT&T Mobility (NYSE:T) in the United States) since the launch of the original iPad.

However, there is strong evidence Amazon made a wise choice in forgoing 3G/4G connections in its Kindle Fire (Amazon's first Kindle ereader launched with 3G capability, though the cost of the service was built into the gadget's sale price and it could only access ebooks and not the wider Web). ABI Research found last year that only a quarter of all iPads supported 3G connections--a clear indication that most shoppers don't consider cellular connections a necessity. After all, the addition of 3G connections into the Apple iPad 2 raises the cost by $130.

For more:
- see this ChangeWave survey

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Shenandoah Telecommunications Company (Shentel) signed an addendum to its affiliate deal with Sprint Nextel (NYSE:S) that gives it access to additional 1900 MHz and 800 MHz spectrum in exchange for its building of an LTE network using Alcatel-Lucent gear that matches Sprint's Network Vision architecture.

The Sprint/Shentel affiliate deal appears to be similar Verizon Wireless' (NYSE:VZ) Rural America LTE program, which now includes 12 participating rural operator partners and is expected to see its first commercial launches early this year. Under the Verizon program, rural operators partnering with Verizon lease 700 MHz spectrum from Verizon and build and run their own LTE networks using the spectrum.

Shentel is a Sprint affiliate and has offered CDMA service in 1900 MHz spectrum in the Mid-Atlantic and Southeastern U.S. since 1995. As of the third quarter of 2011, the company counted around 341,000 wireless subscribers. In July 2010 the company also signed a deal with Sprint allowing Shentel to offer Boost Mobile and Virgin Mobile prepaid services.

Shentel said that its addendum with Sprint extends the initial terms of its affiliate deal an extra five years from 2019 to 2024. It also increases the cap on the net service fee from 12 percent to 14 percent on July 1, 2013.

For more:
- see this release

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Despite challenges, LTE catching fire among rural U.S. carriers

Dish Network vehemently argued against a number of recommendations AT&T Mobility (NYSE:T) made to the FCC regarding the stipulations that should be placed on Dish's spectrum licenses. And in its filing with the FCC, Dish clarified a number of elements of its mobile broadband plan, including its preference for LTE Advanced network technology and its intention to launch a retail offering (instead of a wholesale offering).

Dish is seeking the FCC's approval to build an LTE Advanced network with the 40 MHz of S-band spectrum in the 2 GHz range it purchased from TerreStar Networks and DBSD North America. Sprint Nextel has signed off on the company's plan, and has urged the FCC to approve Dish's spectrum transfer request. However, AT&T argued that Dish should be held to the same terrestrial buildout targets that the FCC imposed on LightSquared: at least 100 million POPs within 33 months, 145 million POPs within 45 months and 260 million POPs within 69 months.

"A new, next-generation LTE Advanced retail network simply cannot be viably built in the S-Band at the pace AT&T suggests," Dish wrote in its FCC filing. The company said it needs to wait for the LTE Advanced standard to be completed and suitable equipment to be designed so that it can launch its network with LTE Advanced technology, rather than another technology.

"Building a network before LTE Advanced devices are widely available would necessitate the use of an earlier standard, followed by a migration to LTE Advanced once network and consumer devices are available," Dish wrote. "Such a requirement would needlessly trigger backward compatibility and network modernization issues and costs for Dish's proposed network."

Dish said such LTE Advanced equipment for its S-band spectrum won't be available until 2015--which indicates that the company's planned mobile broadband network won't be launched for at least the next several years.

Separately, Dish also argued that its plan to launch a retail mobile broadband offering--instead of a wholesale mobile offering similar to what LightSquared intends to do--means that it needs more time to construct its network.

"Building a retail service from the ground up takes time and careful planning. Among other things, putting a new service together will require Dish to lease tower space across the nation, develop devices in conjunction with consumer electronics manufacturers, devise competitive rate plans, extend its brand identity, expand its national retail presence, upgrade its nationwide customer support/billing system, and maintain a competitive position in device and service offerings as customer expectations and demands evolve," Dish wrote. "At every step, a new retail service will face competitive pressure from incumbents with more experience and possibly a stranglehold on tower sites and other resources."

The comments are notable as they more clearly highlight Dish's mobile broadband strategy: To build a retail offering that would be sold straight to consumers. Indeed, Dish last year filed for the "Ollo" trademark to sell mobile phones, tablets, and telecommunications services.

Hanging over the issue is widespread believe that AT&T could be interested in purchasing or leasing spectrum from Dish. AT&T has said the FCC should not restrict Dish's ability to sell or lease its spectrum to larger telecommunications companies, a stipulation the agency placed on LightSquared. Dish made no mention of that issue in its most recent filing with the FCC.

For more:
- see this Dish FCC filing

Special Report: What's so great about LTE Advanced? (Lots, actually)

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Executives at AT&T Mobility (NYSE:T) believe that consumers want choice when it comes to their smartphone selection and that's why the company is hoping that struggling BlackBerry maker Research In Motion (NASDAQ:RIMM) is able to turn around its fortunes and succeed in the wireless industry. "We want RIM to succeed. We like choice," said David Christopher, chief marketing officer of AT&T Mobility and Consumer Markets. "They have a strong base. But they have to innovate quickly and execute."

Christopher

Last month Jim Balsillie and Mike Lazaridis, long-time leaders of RIM, stepped down as co-CEOs and co-chairmen of the company and RIM COO Thorsten Heins was named CEO.

In a wide-ranging interview with FierceWireless, Christopher also said that the company is excited about Nokia's (NYSE:NOK) Lumia 900, the LTE-capable Windows Phone that AT&T plans to debut in the next few months. "We think the design is great and different," Christopher said. "The Microsoft OS is really good."

He also said that he believes Nokia is still a pre-eminent mobile phone brand and has a lot of "inherent good will in their brand in the U.S." 

Christopher also talked about AT&T's decision to revamp its tiered data pricing plans. The company last month rolled out new pricing, and said that existing customers could keep their current plans or switch to the new plans. The new smartphone pricing provides $20 for 300 MB (up from $15 for 200 MB); $30 for 3 GB (up from $25 for 2 GB); and $50 for 5 GB, with mobile hotspot/tethering support (up from $45 for 4 GB for a data plan plus tethering).  

Christopher said that the plans were in response to customers using more data, noting that the $20 per month and $30 per month plans offer 50 percent more data for just $5 more. "We think this is a good deal for the service we provide."

Christopher added that AT&T plans to continue to differentiate its wireless service from competitors by emphasizing the overall experience of its network as well as the customer experience. "Our job as marketers with LTE is not just to convey the functional benefits but also the emotional ones," Christopher said. "When everyone has a fast network, it's got to be about more than speed. It has to be about the overall experience."

Look for more on FierceWireless' interview with Christopher next week.

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Check out this week's most-viewed stories across Fierce's wireless publications:

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