Huawai gets called out...on plagerism?

The web sure makes it easy to steal information from other websites, and to some extent this is unavoidable.  This is a particularly interesting case: Huawai was at Railway Telecommunications event last November and needed to publicize it to their customers.  Rather than write up some original content and post it to their site, the took information nearly directly from a competitor in this space, Kapsch.  They even went as far as linking to Kapsch's site for "more information".  This is more than just lazy; the doc lists Kapsch personnel that will be at the event!  The best part: after discovering the theft, Kapsch posted all this information on their own site, along with a statement that they are "not amused".

Kapsch vs. Huawei: Find the differences: http://www.kapsch.net/kcc/EVENTS/Railway-Telecommunications/Find-the-differences

Is Jolla for Real?

Former visionaries from Nokia are trying something new, and it's getting plenty of notice. 
Finnish boutique smartphone company Jolla last month let us know a little more about their new smartphone platform, Sailfish OS. Many industry watchers have been watching to see what the small company can deliver.

According to Forbes: 

"The covers were taken off Sailfish OS  this morning, with a presentation video showing off the clean lines of the UI, including the multi-tasking, a number of applications, and the ‘pulley menu’".

Sharp eyed viewers will also spot a certain green logo… While Sailfish is not running Android, it does offer a significant amount of compatibility with Android applications. There should be a significant number of third party applications that will run on any Sailfish handset out of the box."

Jolla believes that Sailfish will become a legitimate alternative to Android and Apple's iOS. What makes this group of fewer than 100-odd Finns, most of them refugees from the sinking ship that is Nokia, think they stand a chance?  According to Quartz:

"Jolla cannot possibly take on Google and Apple head-to-head, and it doesn’t plan to. Rather, the company, which is rapidly becoming a Finnish-Chinese hybrid with headquarters in both Helsinki and Hong Kong, and an R&D operation in a yet-to-be-named location in mainland China, plans to nurture and grow an entirely new mobile “ecosystem” — meaning the phones, the operating system that runs on them, and the apps that run on that. And it plans to do it in China because that is the one market producing first-time buyers of smartphones fast enough to give such a scheme a chance.

In order to get its operating system and, eventually, Jolla-branded phones, in front of enough Chinese, the company has partnered with the largest mobile chain retailer in the country, D.Phone. Not only will D.Phone sell Sailfish-powered phones through its 2100 outlets; it is also part of the Sailfish Alliance, a group of software and hardware companies that will all be able to add standards and code to the open-source OS."

Here Comes the First Real Alternative to iPhone and Android - Quartz via Mashable: http://mashable.com/2012/12/02/here-comes-the-first-real-alternative-to-iphone-and-android/?goback=.gde_23013_member_194500408
 Is this the next big phone OS?  Meet Jolla's MeeGo based Sailfish OS - GigaOM: http://gigaom.com/europe/heres-what-jollas-sailfish-os-the-future-of-meego-looks-like/
Jolla Sets sail on the Smartphone Sea - Forbes: http://www.forbes.com/sites/ewanspence/2012/11/21/jolla-sets-sail-on-the-smartphone-sea-and-reveals-sailfish-os-with-android-support/

Making Sense of US Based Family Cell Phone Plans

Full disclosure: I have worked in telecom for most of my career, have worked for 3 of the 4 major telephony companies, and have managed a Mobile Virtual Network Operator (MVNO).  Despite this, I still find locating the best wireless phone deal for my family to be a confusing endeavor.

This week I set out to make sense of the current offerings available from Sprint, AT&T, Verizon, and T-Mobile for three users, all residing in suburban, northern Virginia:

1.     Self – Smart phone user, personal and business needs (plenty of minutes), data for email, browsing, a few apps, light texting

2.     Spouse – Smart phone user, personal use only (moderate minutes), light data use, light texting

3.     Teenager – Smart phone user, personal use, zero minutes, heavy data (videos, music downloading, etc.), heavy texting

There are three things to consider when purchasing a phone:

1)    Phone

What type of phone? Simple (a.k.a. “dumb phone”): it makes and receives calls; low-end smart phone: email, text, browsing, included apps; high-end smart phone: includes everything at the low end, plus the ability to download apps.  Takes advantage of more powerful processors, and faster data speeds.  This category includes iPhone, Galaxy III, etc.

How much do you want to pay for this new device?  Note: even if you are buying a really expensive phone, this is the smallest part of your outlay (more on that later). 

2)    Plan

There are essentially two types: month-to-month (a.k.a. Pay as you go) and contract.  For this exercise, I only looked at the contract based plans, but I did explore further (more on that later, as well).  There is also a difference between plans for individuals and for groups a.k.a. Family plans.  Family plans are generally less money than individual plans in this category, so that’s what I looked for.  Also consider price, what you get in the plan, and contract length in that order.   

3)    Network

Does the provider cover where you will be?  Will they provide the service you require at that location?  For example, if you are paying extra for a phone that uses LTE (4G) data, you’ll want to be sure the network provides this higher speed, not just “data”.  That’s pretty much it.  Gone are the days when we needed to worry about roaming, dropouts, or spotty coverage (unless you live, work, or travel through rural areas.  If you live in northern Maine, don’t even waste your time with a cell phone).  You may also want to consider customer service.  Based on personal experience, I feel Verizon is horrible and T-Mobile is fantastic, but your mileage may vary, as they say.   

Now take a breath.  These plans change all the time.  I’m writing this in December of 2012 so if you are reading this after May or June of 2013, you might consider everything below these words out of date.  You might still use everything above this paragraph. 

Now that we’ve got all that out of the way, let’s look at the current offerings:

AT&T

Like many of the plans, this is broken down into 3 steps.  Step one is to select the number of minutes to be shared.  There are 4 available: 700, 1400, 2100, and unlimited.  I selected the 1400 plan for $89.99 plus $9.99 for a third line.  More than I need, but 700 is really tiny.  Step 2 is to choose messaging or not.  We need it, so that’s another $30.  Finally, data.  250MB, 300MB, 3GB, and 5GB.  The 3GB is more along the lines of our needs, but if I wanted the ability to use my phone as a mobile hotspot (necessary in my case) I’m required to use the highest - $50.  Here’s the breakdown:

	Amount to Share	Monthly Rate
Voice	1,400 minutes	$99.99
Messaging	Unlimited	$30.00
Data	5GB	$50.00
TOTAL		$179.99

Verizon

This company now offers far simpler pricing, which is greatly appreciated.  Under the “Share Everything” plan, you pick a flat rate that includes unlimited voice and messaging, based on the phone type (see above).  Smart phones are billed at $40 each.  I need 3, so that’s $120.  As far as data goes, there are 6 different buckets available to share, from 1 to 10GB.  I can get away with 2GB for $60, but I can double that for an additional $10.

	Amount to Share	Monthly Rate
Voice	unlimited	$120.00
Messaging	unlimited	$0
Data	4GB	$70.00
TOTAL		$190.00

Sprint

This is the simplest to understand.  Spint simply charges $149.99 for 2 lines.  That includes everything needed for Smart phones: data and messaging (both unlimited), and 1500 minutes.  Why they limit the voice (but nothing else) is a small puzzle, it is what it is.  Adding the 3^rd line will run me $29.99.

	Amount to Share	Monthly Rate
Voice	1,500 minutes	$179.98
Messaging	unlimited	$0
Data	unlimited	$0
TOTAL		$179.98

 T-Mobile

My current carrier.  I’m currently paying about $130 for these services, but in order to upgrade my phones, I’m being required to accept a new, more expensive plan.  If not for this decree, I would not have gone shopping in the first place. 

T-Mobile now offers two types of plans, Classic (pick from each category) and bundled unlimited.  Classic is similar to my current plan.  For voice, almost every version includes either 1000 or unlimited shared minutes. For the plan that includes “unlimited” 4G data, I can pay $69.99 per line for the 1000 minute plan or unlimited for $10 more.  Since 1000 is a little light, I’d rater pay the extra $20 not to go over. 

The bundled unlimited plan is the same price, $159.99 for up to 2 phones.  If I want the ability to use mobile hotspot service they will add an additional $10.  T-mo never charged for this the past, but they and AT&T have clearly found a new revenue source…oh well.  Adding the 3^rd line with the same features will run me an additional $30.

A quick note about “unlimited”: marketing uses this term liberally, not figuratively.  Unlimited data at T-mo means 5GB.  If you go over, they won’t shut you off, just throttle you to a lower speed.  Read the fine print. 

	Amount to Share	Monthly Rate
Voice	unlimited	$199.98
Messaging	unlimited	$0
Data	5GB	$0
TOTAL		$199.98

Why is there a need to bother with a plan?  Because the carrier subsidizes the cost of the phone.  The true price of the phone is typically around $300 more than what the carrier offers it for.  They make up for this by forcing buyers into a multi-year (typically two year) agreement.  This is a fair deal, as long as you realize that the rate is high to cover the phone cost.  Carriers may not make back the cost of the phone well into year two.  That is why the cost of leaving a contract early is also high, to make up for any potential carrier losses. 

So now we’ve looked at 4 somewhat similar family share plans.  Let’s compare the plan costs, assuming 24 month contracts:

Carrier	Rate per Month	Rate over Contract Life
AT&T	$179.99	$4,319.76
Verizon	$190.00	$4,560.00
Sprint	$179.98	$4,319.52
T-Mobile	$199.98	$4,799.52

Notice anything?  The price difference is minimal.  The difference between the least to most expensive is $480, or $20 per month.  For this reason, it doesn’t pay to get bogged down in the individual piece parts of the plans.  If one charges lots more for data, but gives messaging gratis, what really matters is the monthly total rate, nothing more.

As I mentioned before, what many buyers don’t realize is that cost of the phone is the least expensive part of the total purchase.  Let’s assume that the devices I chose cost $200 each (about $500 without contract).  That’s $600 I can add to any of the plans.  The average contract total cost was $4,499.70.  With phones, that would be approximately $5,100.  That makes the phones less than 12% of the total cost – almost a throw-in! 

Based on this information, one might choose another option: buying the phones at full cost, ignoring the subsidy, and forgoing the contract altogether.  Except for the fact that the buyer (you) are paying for the devices up front, the savings are significant.  Plus, you are paying “as-you-go”, allowing you to leave at any point.  That brings me to the other option I mentioned earlier, month-to-month plans. 

No examination of cell phone plans could be complete without at least exploring this option, so to satisfy my curiosity I also paid a visit to Cricket Wireless.  Cricket is an MVNO that uses the Sprint network.  So for all front of the house operations such as customer service, the customer deals with Cricket, even though network coverage is governed by the carrier – in this case, Sprint. 

Cricket allows you to purchase your phone up front.  Then you own it, free and clear.  They do not offer family plans, but their smart phone plans are simple and straightforward:  Three different all inclusive plans, the only difference being the amount of data available.  They offer 1GB for $50 per device per month, 2.5GB for $60, and 5GB for $70.  For this exercise, I would likely take the $50 plan for each phone.  Cricket also gives a $5 discount for each phone over the 1^st, so I would realize a $10 savings per month.

	Amount to Share	Monthly Rate
Voice	unlimited	$140.00
Messaging	unlimited	$0
Data	3GB (total)	$0
TOTAL		$140.00

For comparison, the total cost over 2 years would be $3,360, a difference of $1,140 from the average cost of the contract plans.  If three phones can be purchased for less than that, it might pay. 

I did mention that the price for a high end smart phone was about $500, but Cricket currently only offers phones on the low and mid end of the spectrum. 

Conclusion

I recommend that the buyer consider all aspects of what makes up the cost of wireless phone ownership, not just the cost of the phone itself.  The real cost is the monthly plan.

Remember too that phone purchase under contract constitutes a long-term relationship, at a minimum of two years.  It could be far longer if the phones are purchased at different times.  Carriers are fond of the low-cost “add-a-line” options, for this reason. 

Be cautious of terms like “unlimited”.  “Night and weekend minutes” and other terms may be defined differently between carriers.  Lastly, expect the final cost to rise by 15% or more to include taxes and fees, rarely discussed at the time of purchase.  

After all this time, a suiter for Sprint

Well, it was bound to happen at some point...Sprint/Nextel is getting bought.  For at least the last ten years, there has been speculation that someone, anyone, is going to buy Sprint.  Most agree that their network and technology is excellent, and they have a somewhat strong customer base.  Sure, they took on a huge risk years ago with ION and blew $80B, taking on a large amount of debt and cementing them as the long-standing #3 Long Distance company in the US.  

Their next giant risk was shedding all profitable assets to "merge" with Nextel and become a pure-play wireless company. The trouble was that Nextel's network was that it is/was ideally suited to push-to-talk, a technology quickly waning in interest.  Worse, all devices on the network had to be manufactured by Motorola, a company unwilling to adjust it's handset lineup to include phones that could compete.  While Samsung and Palm were making the first sleek smartphones, Motorola was rolling out clunkers that finally included cameras.   

Never fully able to integrate these highly disparate networks, Sprint/Nextel now plunged further into debt and potential irrelevance.

During this time the stock was always buoyed by the possibility of a takeover. Now with the pending Merger of T-Mobile US (owned by Deutsche Telekom AG) with MetroPCS Communications, mergers like this one become far more likely.  

Sprint is saved, Japan gets another foothold in the US market.  The deal looks good for cunsumers and stockholders alike.  What could be bad? 

Softbank to buy Sprint/Nextel for about 20 Billion - Wall Street Journal

T-Mo & MetroPCS to walk down the isle?

Here is a merger that could make sense for its partners, customers, and US competition.  Apparently, MetroPCS has approved a merger with its current rival, T-Mobile USA.  Both of these companies had been looking to merge with others of late (MetroPCS with Leap Wireless, Sprint; T-Mo with AT&T Wireless).  These had failed for various reasons, but one thing is for sure: neither company feels it can succeed without the boost a merger would bring.  

Although MetroPCS has approved the merger, they have warned: "There can be no assurances that any transaction will result from these discussions, and the company does not intend to comment further unless and until an agreement is reached."

Reuters:MetroPCS approves merger with T-Mobile USA: report

Rethink Wireless: MetroPCS and T-Mobile USA Close to a Merger

Anchor weighs down African Internet

Its easy to forget how different things are in different parts of the world.  Take Africa, for instance:  A ship off the coast of Mombasa, didn't pull up their anchor properly.  One of three (THREE!) undersea cables was cut.  As a result, a significant amount of Internet service was slowed, or eliminated entirely, to several countries in East Africa.  The repair is said to take two weeks (I'm guessing that may be a rosy estimate).  In the meanwhile, the cost of diverting service to one of the other cables is expensive, so the Internet will just be slow. 

I would assume a network outage of this magnitude in Europe or the US would see an overall slowdown of perhaps several minutes if cable based, milliseconds if land based.  Ouch.

BBC: Ships Anchor slows down East African Web Connection