Analyst Show Flashes CTIA Wireless 2008 in Las Vegas this year featured more than 1,200 exhibitors showcasing offerings that span the device, infrastructure, enabling technology, entertainment and business application sectors. Current Analysis was at the the show, and our analysts wrote intelligence reports on many announcements made there. Highlights from these reports appear below. Clients with a subscription to respective modules can read the full report by clicking the Client Access links. |
Contents
AT&T to Change Retail Experience with Microsoft Surface
| Analysts: Bill Ho, Avi Greengart | Wireless Services - U.S
Announcement Summary
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April 2, 2008 - AT&T and Microsoft announced a collaborative alliance that will transform the way consumers shop for mobile devices. AT&T will become the first company to bring Microsoft Surface to life in a retail environment, giving customers the ability to explore their mobile worlds using touch and device-recognition technology.
Analytical Summary
• Current Perspective: Positive on AT&T’s deploying customized Microsoft Surface systems at its retail stores, because Surface can enhance the retail customer experience, which can be overwhelming and complex. Surface – and the custom application AT&T is using – provides an engaging self-service approach that allows customers to explore device features and discover carrier services. It may lead to expanded service and accessory sales. It may also lower staffing costs in the future. It helps AT&T stay out in front of its competitors – T-Mobile was supposed to be Microsoft’s launch partner for Surface, but AT&T stole its thunder. Perhaps the most promising use of the technology will be helping to further train store sales staff, who will learn by osmosis while helping customers use the system and when playing with it during slow periods during the day.
• Vendor Importance: Moderate to AT&T, which captures a significant percentage of its activations through retail sales stores, and bringing Surface in provides a differentiated buying experience. While Surface is captivating, the cost of a system in every AT&T corporate retail store may not be in the cards. The upcoming test stores (likely AT&T Experience Stores) will be a beta trial of sorts to gather behavioral learning to improve on the customer experience down the road.
• Market Impact: Moderate on the wireless services segment as the systems are only initially being deployed in five stores starting April 17th. Even once the technology is rolled out to all of AT&T’s stores, it only addresses the symptoms of complexity, not the cause. AT&T may not be able to capitalize on the competitive benefits of having the technology as other carriers are free to deploy their own versions.
| Client access - Full report in Wireless Services - U.S.
| Client access - Full report in Mobile Devices
Yahoo! oneSearch 2.0 Promises Quantum Leap in Mobile Search
| Analyst: Deepa Karthikeyan | Wireless Services - U.S
Announcement Summary
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April 2. 2008 – Yahoo! unveils oneSearch 2.0, the latest enhancement on the oneSearch product which launched just over a year ago. The key feature enhancements revolve around Search Assistant for predictive search query inputting and a voice-enabled search functionality, to allow users to search and receive federated search results on ‘just about anything’ using speech. In the coming months, oneSearch 2.0 users will be able to integrate this application to their own mobile phone ‘idle screen’. Lastly, Yahoo! intends to open up oneSearch federated results to all Internet content publishers and developers. These third parties will be able to write rich metadata to integrate their relevant content into oneSearch results.
Analytical Summary
• Current Perspective: Very positive on the announcement of Yahoo!’s oneSearch 2.0, as this product update promises to take mobile search to a whole new dimension. With new features such as voice-activated search, a predictive Search Assistant, idle screen integration and a broadened, more ‘inclusive’ (as opposed to ‘exclusive’) approach to federated search, Yahoo! oneSearch 2.0 threatens to be the most sophisticated mobile search product in its class.
• Vendor Importance: High to Yahoo!, as oneSearch 2.0 extends the ‘federated search’ nature of oneSearch 1.0 to an ‘Open Search’ model, and provides further valuable differentiation (notably via the new vocal search functionality). Allowing users to place oneSearch 2.0 on the ‘idle screen’ also makes the product a far more threatening direct-to-consumer proposition.
• Market Impact: High on the mobile market, as Yahoo! oneSearch 2.0 will represent a fearsome challenge to mobile operators, both in its direct-to-consumer guise and through competing service provider channels. Home-screen integration will also reduce consumer appetite for on-portal mobile search, jeopardizing the status quo of other search portals like Google and MSN. Going forward, OneSearch 2.0 will revolutionize the search function and set standards for new entrants.
| Client access - Full report in Wireless Services - U.S.
| Client access - Full report in Wireless Services - Europe
NextPoint Fortifies Integrated Border Gateway with Additional IP Mobility Functionality
| Analyst: Joe McGarvey | Carrier IP Telephony
Announcement Summary
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April 1, 2008 – NextPoint announced it has added new mobility-enabling features to its Integrated Border Gateway (IBG) product suite. This addition is designed to bring combined or distributed edge-to-edge IP session management solutions to fixed and mobile operators. NextPoint claims that the solution is in lab trials with Tier 1 service providers in North America, Europe and Asia.
Analytical Summary
• Current Perspective: PPositive on NextPoint’s addition of IP mobility functionality to its Integrated Border Gateway (IBG) session management product, as compliance with both 3GPP and 3GPP2 specifications for enabling devices to roam among disparate IP networks brings the platform closer to the concept of a convergence gateway, a product class proposed to enable operators to reduce the complexity of their access networks. By adding support for both the Packet Data Interworking Function (PDIF) and the Tunnel Termination Gateway (TTG), NextPoint’s IBG is able to provide IPsec termination and IP mobility for carriers deploying either CDMA- or GSM-based networks, respectively. While the PDIF function is generally available and set for customer trials, NextPoint still needs to complete integration of the TTG functionality, meaning that it could be several more months before the device is ready for GSM-based deployments.
• Vendor Importance: Moderate to NextPoint, which needed to show that it was capable of keeping up with the schedule it had set for development milestones of the IGB when the platform was introduced in late 2007. The inclusion of the PDIF and TTG functions, relatively on time, indicates that NextPoint’s product development efforts have not been slowed by distractions created by the merger of NexTone and Reef Point to form the company. From a competitive standpoint, it is important for NextPoint to show that it can keep up with the development prowess of rivals, such as Acme Packet, which introduced TTG functionality in February 2008.
• Market Impact: Moderate to high on the security gateway and session border controller (SBC) markets, which are on a course to add functionality to their respective products that enable service providers to offer fixed mobile convergence (FMC) services. These competitors are looking to add the rich mix of functionality and features to their products that match the needs of mobile and fixed operators that are looking to collapse multiple session management functions into one or a couple of devices. With the integration of both PDIF and TTG functionality into the IBG, NextPoint arguably takes the lead in assembling a multi-access convergence gateway.
| Client access - Full report in Carrier IP Telephony
AOL Offers AOL MyMobile on Windows Mobile Handsets
| Analyst: Deepa Karthikeyan | Wireless Services - U.S
Announcement Summary
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April 1, 2008 – AOL announced the launch of its MyMobile application that combines its services like AIM and AOL Mail in one portal. The downloadable application which is free, allows users to customize and personalize their home page with AOL’s services. The application features intuitive carousel-based user interface that provides for a PC like experience. Although the beta application is available via all carriers, it is only applicable to Windows Mobile devices in the immediate term.
Analytical Summary
• Current Perspective: Slightly positive on AOL’s beta launch of its MyMobile application on Windows Mobile handsets as it is an interactive suite of AOL services that enables users to find information and browse content for free, without having to leave AOL MyMobile, providing them with a one stop solution. The impressive UI features easy to use carousel navigation, along with drop-down lists and intuitive menus that mimics the PC experience.
• Vendor Importance: High to AOL, as the beta MyMobile application reinforces its mobile ambitions and improves its competitive stance in light of Yahoo!’s Go 3.0 launch, which is targeted at the same demographics. The application is not subscription based, which will heighten its adoption rate and the advertising component provided by Thirdscreen Media will open a new revenue source for the company.
• Market Impact: Moderate on the U.S market as portal-based applications from Internet players like Yahoo! and AOL are not entirely new to this space. However it is important to note that the latest iteration of these applications have an advertising component to them which is a sign that the Internet players are pushing this revenue model by applying the expertise of their new partners.
| Client access - Full report in Wireless Services - U.S.
Sprint Announces the Launch of Its First Two QChat Models, the Sanyo Pro 200 and Pro 700
| Analyst: Meredith Eitt | Mobile Devices
Announcement Summary
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April 1, 208 -- Sprint announced the upcoming launch of two new Nextel Direct Connect devices: the Sanyo Pro-200 and the Sanyo Pro-700. These new Nextel Direct Connect devices will expand the reach of the industry-leading Nextel Direct Connect push-to-talk (PTT) service and incorporate the speed of Sprint Mobile Broadband and Sprint's largest voice calling area. These new devices are expected to be available for purchase through the Sprint direct sales force in limited markets later this month for $49 and $79, respectively.
Analytical Summary
• Current Perspective: Positive on the impending launch of the Sanyo Pro 200 and Pro 700, because they are Sprint’s first two handsets to support the new QChat CDMA PTT feature and take advantage of Sprint’s highly anticipated Rev. A deployment. Customers interested in PTT will no longer be limited to Sprint’s bulky iDEN and PowerSource models.
• Vendor Importance: High to Sprint, as its PTT network is vital to its business; the new Sanyo QChat phones will broaden the spectrum of Sprint’s industry-leading service by giving customers a faster, more efficient alternative to the carrier’s iDEN network that is still interoperable within both the QChat and iDEN service. The Sanyo Pros will lead the way for more new QChat models to be launched that take advantage of Sprint’s Vision and Power Vision features, meaning higher ARPU rates for the struggling carrier.
• Market Impact: Moderate on the wireless services market, because Sprint’s PTT network is the strongest on the market and Sanyo’s new CDMA QChat phones give potential customers even more reason to choose Sprint over its competitors’ weaker PTT networks. Customers turned away from the carrier by the bulky look and expensive price points of the classic iDEN phone now have new more attractive models from which to choose that do not compromise on service.
| Client access - Full report in Mobile Devices
Verizon Business Upgrades PBX Mobile Extension with Ascendant Software
| Analyst: Kitty Weldon | Enterprise Mobility - U.S.
Announcement Summary
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April 1, 2008 -- Verizon Business announced its new PBX Mobile Extension solution, featuring a software version of the RIM/Ascendant Voice Mobility Suite (VMS). The previous version required a dedicated server to run the application. The VMS extends basic PBX functionality to any cell phone, including call transfer, four-digit dialing, a single corporate voice identity to outside parties, and a single mailbox, as well as advanced features such as broadcast notification, enhanced conferencing, voice continuity in the case of outages, and the ability to save money with international PBX rates.
Analytical Summary
• Current Perspective: Slightly positive on Verizon Business’ software-based mobility extension solution, as it replaces the premises hardware version launched last spring, thus offering enhanced cost containment and ease of management. However, while we agree that having a separate server for PBX extension added unnecessary complexity, and the RIM/Ascendant platform is a powerful solution, it is not clear that the software version offers much distinctly new functionality, making it a bit of a stretch to describe it as a new offering.
• Vendor Importance: Moderate to Verizon Business, as its forays into FMC are healthy signs that demonstrate the continued blending of its wireline services with the assets and strengths of sister organization Verizon Wireless, and they point to Verizon’s recognition of wireless as a key growth area for its enterprise initiatives. It is important for Verizon Business to offer an array of FMC solutions to appeal to its installed base of enterprise customers, including both premises and hosted options, to make gains in this emerging space where there is no clear-cut leader.
• Market Impact: Low to moderate on the enterprise mobility market, as replacing a hardware solution with a software solution with essentially the same functionality is not likely to change adoption greatly. The hardware version of RIM/Ascendant’s Voice Mobility Suite (on which Verizon Business based its previous FMC offer) is being phased out altogether. Therefore, RIM/Ascendant’s other carrier partners and its own direct sales force will all have the same software solution to offer the market.
| Client access - Full report on Enterprise Mobility - U.S.
Sprint to Launch Samsung Instinct in June
| Analyst: Art Greengart | Mobile Devices
Announcement Summary
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April 1, 2008 – Sprint and Samsung Mobile announced the upcoming availability of a new wireless device, Samsung Instinct, which combines full touch screen functionality. This device speeds up the user experience and brings the customer’s most-used applications and contacts within a single finger tap.
Analytical Summary
• Current Perspective: Slightly positive on Sprint’s offering the Samsung Instinct, because it provides Sprint with a concrete way to convey the value of its Simply Everything plan. If Sprint markets it properly – as a GPS navigation system, mobile TV screen and streaming music player, in addition to a 3G Web browsing phone – consumers will have a genuine reason to consider Sprint over its competitors. However, if Sprint positions it as an iPhone alternative, it will fail – not only isn’t in an iPhone, it isn’t even a smartphone of any kind. Still, with a lower price point, plenty of functionality, and $100 million in marketing behind it, the Instinct should be a hit for Samsung and could be the halo product Sprint needs to rally around.
• Vendor Importance: Very high to Sprint, which needed to inject some life into its core CDMA lineup. High to Samsung because Sprint is putting so much money and faith behind it, and while Samsung has had hit products in the U.S. and touchscreen products overseas, it has not had any of its touchscreen phones in the U.S.
• Market Impact: High on consumer handsets, because the iPhone drove consumer awareness around mobile Web browsing; with all-you-can-eat pricing, the Instinct and Sprint’s ad campaign supporting it may bring other use cases, especially navigation and TV to consumers’ attention as well. However, this class of product is increasingly moving to the smartphone category. In some respects, this may be the high end featurephone’s last hurrah.
| Client access - Full report in Mobile Devices
Alcatel-Lucent and GENBAND Keep the Knot Tied for Mobile NGN Solutions
| Analyst: Jeff Ogle | Carrier IP Telephony
Announcement Summary
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April 1, 2008 – Alcatel-Lucent announced the extension of its strategic relationship with GENBAND, a developer of next generation media gateways and the inclusion of its new G9 Converged Media Gateway to be used in its carrier-grade Mobile Next Generation Network (NGN) solution. The media gateway, in a compliant 3GPP solution, provides a migration path to centralized call servers with distributed gateways and to IMS based networks. GENBAND has been a trusted partner to Alcatel-Lucent for years.
Analytical Summary
• Current Perspective: Positive on Alcatel-Lucent’s move to extend their strategic relationship with GENBAND because it provides an ongoing and improving source for a high performance media gateway, which is a critical component to Alcatel-Lucent’s Mobile NGN solution and already positioned for global deployment. For GENBAND, already an Alcatel-Lucent “trusted partner,” it provides a strong product endorsement and distribution arm which it can leverage to sell its latest generation of carrier-class media gateways such as the G9.
• Vendor Importance: Moderate to high to both Alcatel-Lucent and GENBAND because the strategic as well as the supply chain relationships are maintained. Further, Alcatel-Lucent is also an investor in GENBAND and thus has a vested interest in their success. GENBAND, being a smaller private company, needs the sales distribution channel that a Tier 1 vendor like Alcatel-Lucent brings to the table such as worldwide reach and strong tier 1 operator relationships.
• Market Impact: Moderate to high on the CIPT market segment because Alcatel-Lucent claims it has already deployed over 20 million GENBAND media gateway ports since 2004 and the newer G9 gateway is proving to be a best-of-breed product that should improve the competitiveness of the overall solution being offered. Alcatel-Lucent’s solution currently offers 3GPP Release 4 and Release 5 support for mobile NGN solutions, with the media gateway providing the bridge and migration path to an IMS network architecture. The extension of the formal relationship and the addition of the new G9 gateway ideally positions GENBAND for anyone who is evaluating a mobile NGN solution.
| Client access - Full report in Carrier IP Telephony
Qualcomm’s Gobi Is Poised to Accelerate Adoption of 3G Laptop Usage
| Analysts: Kitty Weldon, Rolf Schonhowd | Enterprise Mobility - U.S.
Announcement Summary
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April 1, 2008 -- Qualcomm announces progress for its Gobi chipset, to be integrated into laptops with support for multiple WWAN radios, simplifying the manufacture and distribution of these solutions. Certification by carriers T-Mobile International, Telefonica, Verizon Wireless and Vodafone is in progress, laptop vendors will be shipping products in ‘08, and mobile security vendors Smith Micro, Birdstep Technology, Diginext B.V., Stonestreet One and Absolute Software are developing Gobi-compatible software.
Analytical Summary
• Current Perspective: Positive on Qualcomm’s Gobi momentum, including imminent carrier certification by major U.S. and global operators, and a rapidly growing set of laptop OEMs that will be embedding Gobi chipsets. Gobi is a game-changing technology when it comes to the adoption of embedded 3G mobile broadband; end users no longer have to decide in advance which carrier to activate, as their laptop will support a wide variety of radio options. This makes the adoption and usage paradigm much closer to that of embedded WiFi, and it also makes it easier for carriers and laptop vendors in terms of manufacturing and inventory management, as well as ensuring global roaming with other carriers regardless of wireless technology.
• Vendor Importance: Moderate to Qualcomm, as Gobi seems likely to become a de facto standard when it comes to embedded laptop chipsets. The old model of having to marry a laptop to a particular carrier and deal with interoperability problems when roaming will no longer make sense as more carriers and laptop vendors standardize on what is clearly a better solution. PC cards still have value, as they can be easily swapped out and upgraded, but just as embedded WiFi drove adoption of WiFi significantly, the embedded model is already helping to accelerate 3G usage for laptops; Gobi will boost acceptance even further.
• Market Impact: High on the enterprise mobility market, as the convenience of WWAN cards and embedded modules is already having a significant impact on mobile usage patterns. While 3G is still slower and often more expensive than WiFi (let alone DSL), mobile workers are starting to feel liberated from the vagaries of spotty hotspot restrictions, even if they have to pay $60 for a practically unlimited WWAN data plan. With the added bonus of Gobi, end users and the entire value chain, including distributors, carriers, and especially laptop vendors, will all benefit.
| Client access - Full report on Enterprise Mobility - U.S. | More information
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Microsoft Announces Availability of WM 6.1 and MDM Server, Targeting Mid-to-Large Enterprises
| Analysts: Kitty Weldon, Rolf Schonhowd | Enterprise Mobility - U.S.
Announcement Summary
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April 1, 2008 -- Microsoft announced immediate availability of System Center Mobile Device Manager 2008 and Windows Mobile 6.1, with plans for a Microsoft Mobile Services Plan (MMSP) to be available from mobile operators worldwide. The software is targeted at midsize and large businesses to manage and help protect Windows Mobile phones. Operators AT&T, O2, Orange, Tata Teleservices, and Verizon Wireless announced they are in discussions with Microsoft to deliver the Microsoft Mobile Services Plan.
Analytical Summary
• Current Perspective: Positive on the availability of Microsoft’s new enterprise platform consisting of MDM Server, and the Windows Mobile 6.1 update, as they will provide businesses with significantly enhanced features for device management, usability, and security. As a result, Microsoft will be in a much stronger position to support the deployment of sophisticated mobile line-of-business applications, which require robust IT device and policy management capabilities. Microsoft is also positioning its newly available platform to be offered as an enterprise service by key operators with its Mobile Services Plan, which packages software rights and application support.
• Vendor Importance: High to Microsoft, because WM 6.1 and MDM Server are the complementary client and server components that are key to its more aggressive push into large enterprise accounts. The solution will also make the company more competitive with key rivals RIM and Nokia. In addition to device management and security, WM 6.1 also provides improvements in browsing, set-up, organizational and productivity tools, messaging, and the overall user interface and comes armed with an expanded set of business applications.
• Market Impact: High on the enterprise mobility market, because Microsoft had long lagged rivals in device management and security, but it had become a significant player nonetheless due to its expansive device line-up through OEMs and its tie-in with other Microsoft applications, management tools, and development platforms. MDM Server in conjunction with Windows Mobile 6.1, although requiring a separate behind-the-firewall server, will become a platform of choice for many business customers.
| Client access - Full report in Enterprise Mobility - U.S.
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Sony Ericsson Touts First 3G Phone at AT&T
| Analyst: Brad Akyuz | Mobile Devices
Announcement Summary
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March 31, 2008 – Sony Ericsson announced the upcoming availability of the new Z750a, its first 3G/HSDPA handset designed for the U.S. market. The Z750a has a mirrored clamshell design boasting a hidden exterior display that lights up when in use, and features a 2.0 megapixel camera, multimedia player, full HTML browser and stereo Bluetooth. The phone will be available through AT&T stores and dealer outlets for $49 after a $100 mail-in rebate with new two-year service in early April.
Analytical Summary
• Current Perspective: Slightly positive on the new Sony Ericsson Z750a phone, because it is the company’s first 3G phone designed for the U.S. market and has an attractive case, feature list and price point. However, this does not change the fact that the vendor is extremely late to the 3G game in this market. Major rivals have long flooded AT&T shelves with HSDPA handsets that offer similar functionality at the same price points, and the Z750a’s $49 price tag and pretty mirrored design may not be enough to help it stand out on shelves at times when AT&T pushes other HSDPA devices such as the Samsung A737 and LG Trax for $30 and less.
• Vendor Importance: Very high to Sony Ericsson’s U.S. business unit, because the vendor has long been relying on a single mid-tier device (the W580i Walkman phone) along with an entry level phone or two for nearly all its sales in the U.S. market, thus any new device picked up by AT&T is crucial for its success. The fact that the new addition is an HSDPA device is equally important given the vendor’s lateness to market with 3G handsets and carrier promotion patterns which favor devices that can support multimedia services.
• Market Impact: Low on consumer handsets, because AT&T has already offered a wide spectrum of HSDPA-powered clamshell phones with matching functionality at similar if not more competitive price points for over 18 months. The Sony Ericsson Z750a is a very nice phone, but is not significantly differentiated.
| Client access - Full report in Wireless Services - U.S.
Verizon Wireless Launches Loopt Mobile Application
| Analyst: Deepa Karthikeyan | Wireless Services - U.S
Announcement Summary
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March 28, 2008 -- Verizon Wireless has announced the launch of its new social networking cum LBS application, Loopt, which will enable its members to locate other users on a map, facilitating easy coordination between them. Users have the freedom to hide their location details, reveal it only to a few select members, or turn off the feature completely, giving them more control over the application. At launch, Loopt will be available on 20 handsets and it will be priced at a monthly fee of $3.99 that excludes data charges.
Analytical Summary
• Current Perspective: Slightly positive on Verizon Wireless’ launch of Loopt on its phones, as the service complements the carrier’s existing suite of applications, which include VZ Navigator and Chaperone. Loopt mobile is interesting in that it combines the attributes of location tracking with those of social networking, creating a dynamic end product. The service requires users' permission to be active and it can be switched off at any time, providing users with more control over the service and assuring them of the safety factor.
• Vendor Importance: Moderate to Verizon Wireless, as Loopt provides it with an additional presence in the social networking and LBS segments. Loopt’s networking aspect makes it a sticky application; the service is also carrier-interoperable, which will ensure traction and increase subs for the carrier.
• Market Impact: Moderate on the wireless services segment, because the increase in traction for services such as Loopt is a sign that the industry acknowledges their value and contribution in the ecosystem. The combination of social networking sites and LBS is very lucrative, as it furthers the networking aspect, which is evident in recent initiatives taken by social networking sites such as Facebook (via the launch of FindMe).
| Client access - Full report in Wireless Services - U.S.
Acme Packet Makes Move to Expand Role in Build Out of IP Infrastructure
| Analyst: Joe McGarvey | Carrier IP Telephony
Announcement Summary
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March 31, 2008 – Acme Packet announced the deployment of its Open Session Routing (OSR) architecture and products and an ecosystem of companies for delivering SIP-based interactive communications within and between mobile, fixed and transit networks. The OSR features the Acme Packet Net-Net Session Router (SR), a session routing proxy that works in conjunction with best of breed routing databases and relieves existing signaling routing elements in the network of session routing functions. Acme Packet says the OSR and SR are operational in several Tier 1 service provider networks around the world.
Analytical Summary
• Current Perspective: Positive on Acme Packet’s revelation of deploying its Open Session Routing (OSR) architecture in the networks of several unnamed Tier 1 carriers, as the announcement indicates that Acme Packet is attracting customers to the company’s solution designed to provide a centralize location in the network for routing signaling. This will also create additional market opportunities for the Acme Packet Session Router (SR), the centerpiece of the OSR architecture that has largely taken a secondary position in Acme Packet’s product portfolio to its session border controllers (SBC). The biggest downside of the OSR announcement is that it brings Acme Packet’s product family into the functional domain of softswitches, a positioning the company has avoided in the past and one that it has cited as a weakness among competitors.
• Vendor Importance: Moderate to Acme Packet, as the company’s product line responsible for the bulk of revenue generation will remain SBCs and security gateways for the immediate future. The OSR architecture and the SR provide Acme Packet with a mechanism for penetrating further into the signaling infrastructure of the company’s hundreds of service provider customers. However, the company’s fortunes will not slack appreciably if the SR in unable to attract a significant number of customers.
• Market Impact: Moderate on competitors in the SBC, softswitch and signaling routing segments of the telecommunications industry, as Acme Packet’s OSR architecture is the most recent of many efforts to provide a mechanism for service providers that have adopted IP-based session control to scale their networks gracefully and efficiently. Acme Packet, which is bringing an open approach to scaling next-generation signaling environments by leveraging its compatibility with multiple third-party routing databases and products, joins Tekelec, Sonus, NextPoint and others in offering a solution to do so.
| Client access - Full report in Carrier IP Telephony
AT&T Announces MediaFLO Launch Again, This Time in May
| Analyst: Bill Ho | Wireless Services - U.S
Announcement Summary
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March 27, 2008 -- AT&T announced that it would launch AT&T Mobile TV in May. The mobile television service is powered by Qualcomm’s MediaFLO USA, and AT&T will feature two exclusive channels. In support of the service launch, AT&T will offer two devices, the LG Vu and the Samsung Access. The carrier did not include any device or service pricing in the announcement.
Analytical Summary
• Current Perspective: Slightly negative on AT&T’s pre-CTIA teaser announcement on the launch of MediaFLO service, because this is the second corporate announcement that promises service rollout. The initial announcement predicted service availability in late 2007 and now the target date is May 2008. While the month is more specific and two devices (LG Vu and Samsung Access) have been identified, service details and device pricing are sorely lacking, awaiting another announcement in May. To its credit, the carrier has announced that one of its two exclusive channels in the lineup will be Sony Pictures’ mobile movie offering (i.e., PIX).
• Vendor Importance: Very high to AT&T, because it needed to show that it can execute on its service promises. AT&T has a track record of delivering on integration challenges (e.g., AT&T Wireless GSM integration, backend billing and provisioning integration, TDMA sunset, etc.); however, services rollouts have encountered bumps on the road (i.e., Video Share, Cingular Music). Therefore, actually offering service in May, as pledged, will go towards re-building credibility.
• Market Impact: Low on the wireless services segment, because it is unclear whether MediaFLO has even gotten any traction with first-mover Verizon Wireless. It is also unclear what the real service differentiator for AT&T’s Mobile TV offering may be, as the MediaFLO channels are the same. AT&T will hang its prospects on two exclusive channels, one of which is Sony Pictures’ PIX channel; though Verizon Wireless has already countered that differentiation by launching its own two exclusive channels (i.e., an ESPN Radio audio channel and a Hispanic-focused Tr3s video offer from MTV) on the same announcement date.
| Client access - Full report in Wireless Services - U.S.
| Client access - Full report in Mobile Devices
MOTO Split: Good or Bad?
| Analysts: Virginia Lee, Avi Greengart | Wireless Infrastructure, Mobile Devices
Nevermind what Carl Icahn thinks, competitors in the Mobile Device and Wireless Infrastructure markets will have their own views on the proposed split of Motorola into separate handset and infrastructure businesses. And, in fact, they will be decidedly different views – with unique implications. That's why Principal Analyst Virginia Lee gives a thumbs up to the plan from the infrastructure perspective, while Research Director Avi Greengart emphatically slams the plan from the devices angle.
Analytical Summary - Wireless Infrastructure
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• Current Perspective: Slightly positive on the split of Motorola into two independent companies – one focused on devices, the other on network infrastructure. The move has the potential to further invigorate the more profitable networking and enterprise units, possibly even setting the stage for a scale improving merger. At the same time, though, a long lead time – and the potential for the deal to not even materialize at all – will cause a dangerous distraction that could severely impact an otherwise solid (and improving) network infrastructure business.
• Vendor Importance: High to Motorola because the company is under pressure to shore up its ailing Mobile Devices business without damaging growth in its other businesses. A move to separate the two businesses is a necessary step in either rebuilding each organization while attempting to entice potential merger/acquisition partners. To be sure, weakness in Motorola’s networks business did not necessitate the move; yet until the network’s unit is freed from an underperforming device business, there is no way the company would extract maximum value from it.
• Market Impact: Moderate on the wireless infrastructure market. In the near-term, Motorola will operate as usual since the intended action may (or may not) happen until 2009. As such, the vendor will be mired in distractions and speculation until the separation or some other event takes place. To that end, however, competitors will be quick to seize any opportunity to position Motorola as weak and capture any infrastructure or device share they can from the company.
| Client access - Full report in Wireless Infrastructure
Analytical Summary - Mobile Devices
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• Current Perspective: Negative on Motorola’s upcoming split, because the only reason to split handsets off from the rest of the company is if new CEO Greg Brown has no faith that the division can right itself anytime soon. Under different circumstances, spinning off the handset division from other businesses could be a positive strategic move – Motorola has benefitted from synergies between its handsets and infrastructure (e.g., in iDEN and WiMAX), but has little integration with the Enterprise group and none with the IPTV and STB business units. But with the troubles in the handset division, another distraction is the last thing Motorola needs.
• Vendor Importance: Very high to Motorola, because this is structurally altering the company and replacing management – again – while the company’s handset sales continue to decline worldwide. However, it also temporarily quiets Carl Icahn, who was becoming a major distraction for senior management.
• Market Impact: Moderate on consumer handsets and smartphones, because aside from the distractions inherent in the split, Motorola’s handset fortunes should be relatively unchanged. Motorola had more latent than actual synergies with its enterprise group, and nearly all telecom vendors have already split off infrastructure from handsets over the past decade. However, “unchanged” is not a positive assessment for Motorola’s handset company: the challenge is to run a company that still sells tens of millions of phones a year in geographies around the world, while fixing the company’s problems, holding off Wall Streeters who want a quick fix, and designing consumer products that can compete with the best from Nokia, Samsung and Apple.
| Client access - Full report in Mobile Devices
AirWalk (Finally) Launches Its CDMA2000 Femtocell
| Analyst: Peter Jarich | Wireless Infrastructure | Client Access
Announcement Summary
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March 21, 2008 -- AirWalk announced that it would introduce its EdgePoint femtocell for CDMA2000 networks at this year’s CTIA Wireless conference and trade show. Building on the company’s experience with CDMA2000 picocells, the EdgePoint offer will be a compact (7” x 7” x 2”), limited-range (approximately 250 feet) base station configured for either 1xRTT or EV-DO services.
Analytical Summary
• Current Perspective: Slightly negative on AirWalk’s new EdgePoint CDMA2000 femtocell, because officially launching the product puts AirWalk in a position to execute on the femtocell market opportunity and its own picocell expertise. Yet, coming to market following Samsung (which has already registered commercial success at Sprint) and competing for a limited market opportunity means product or solution differentiators are needed. Beyond offering CDMA2000 operators femtocell vendor diversity, AirWalk does nothing to suggest that the EdgePoint is a product worth consideration – not even highlighting its success with CDMA picocells.
• Vendor Importance: High to AirWalk, because the company’s focus on CDMA picocells makes it an obvious supplier of CDMA femtocells. To this end, the company had hinted at its femtocell plans for the past year. Yet, before the company can actually tap the market (and compete with existing femtocell suppliers), it must officially launch its product.
• Market Impact: Low on the wireless infrastructure and femtocell markets, because the CDMA femtocell opportunity will be, ultimately, a global niche. While CDMA networks are still being expanded and built out, the number of operators capable of a CDMA2000 femtocell launch (i.e., mature market operators actively promoting CDMA) is relatively limited, thus driving most competition and competitors into the WCDMA space.
RADWIN Sets New Price and Performance Benchmark with New 2000 Series of Sub-6 GHz Wireless Backhaul Solutions
| Analyst: Glen Hunt | Carrier Infrastructure | Client Access
Announcement Summary
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March 20, 2008 – RADWIN will announce the RADWIN 2000 series high-capacity sub-6GHz radio system to address the backhaul needs of 3G, 4G and WiMax operators at this year’s CTIA show. The RADWIN 2000 offers 50 Mbps full-duplex net throughput, and supports up to 16 T1s/E1s. The system also leverages RADWIN’s proprietary air interface, advanced space diversity, and MIMO and OFDM technologies to deliver robust, interference-resistant service performance under varying network environments.
Analytical Summary
• Current Perspective: Positive on RADWIN’S upcoming announcement of its new 2000 series broadband wireless backhaul devices, since they deliver a welcome relief for two critical pain points experienced by mobile operators – CapEx and link performance. RADWIN’s new solution delivers carrier-class performance in a sub-6 GHz radio system at a new price benchmark – a target price of around $5,000 per link. The new system provides 50 Mbps of throughput over a 20MHz channel and can handle up to 16 T1/E1s plus Ethernet. The system leverages the company’s proprietary air interface design and leverages its advanced space diversity and MIMO-OFDM technologies to deliver on its high performance and environmental immunity claims.
• Vendor Importance: High to RADWIN, since the launch of its new 2000 series radios continues its stated charter to offer highly cost effective mobile backhaul solutions that push the technology and cost parameters of microwave gear. The company claims it is finished with Alpha-level field trials, is entering the Beta test phase with a large Israeli service provider, and is on target for a general availability release in June 2008. The new un-licensed devices will be sold through various channels, including sister companies Ceragon and RAD Data Communications, to complement Ceragon’s portfolio of licensed solutions and to leverage other existing RAD family channels.
• Market Impact: Moderate to high on the mobile backhaul market, since the new RADWIN 2000 series products bring carrier-class attributes to the market in a highly affordable package to address specific wireless backhaul needs. With their aggressive price points keeping costs down, mobile operators will be able to better penetrate rural and sparsely populated areas to supply broadband services. To further expand cost effectiveness, the 2000 series offers operators various options to adjust the footprint and capacity by making various configurations of the indoor unit available to match specific traffic/density requirements. With traditional price points being as high as $20,000 per link, the new RADWIN 2000 product should receive considerable attention from mobile operators who need or can use a product that leverages the sub-6GHz spectrum.
AT&T Would Like to Remind You that It is Open, Too
| Analysts: Bill Ho, Avi Greengart, Kitty Weldon
| U.S. Wireless Research Portal
| Client Access - Wireless Services U.S. | Client Access - Mobile Devices
| Enterprise Mobility - U.S. | Client Access
Announcement Summary
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March 18, 2008 -- AT&T highlighted the activities planned for CTIA, including three events targeting the development community (i.e., the Enterprise Developers Summit, Fast Pitch, and Open Call) that will encourage the creation of innovative wireless applications. AT&T also announced a new Web site that helps wireless customers learn about and experience many of the choices available to them, including “bring your own device” options for consumers and businesses.
Analytical Summary
• Current Perspective: Slightly positive on AT&T writing press releases touting its openness, because “open networks” and “open devices” are glorious buzzwords that Verizon Wireless and Google are co-opting, while AT&T has actually had similar structures quietly in place for years. In addition to the press release, AT&T is running developer contests (with a $70K prize and a place on the AT&T Media Mall deck) at CTIA for the third year in a row, and it has created a mostly static Web site highlighting its open network and application policies. However, having an open network has not made a dent in the company’s business so far; AT&T is offering no unique service plans for its BYOD (bring your own device) option, and devices still need to be custom built with AT&T’s unique technology-frequency combination (GSM/HSDPA 850/1900), which is not used by any other major carrier in the world.
• Vendor Importance: Moderate to AT&T, specifically its core wireless business, which will remain oriented to carrier-sourced handsets and contract-related offers for the foreseeable future. However, AT&T cannot let rivals run off with the openness slogan; if anyone makes money on open devices, it might as well be AT&T. AT&T also needs to preempt regulators from defining the terms of what being open means, as that could theoretically impose considerable restrictions on AT&T’s business.
• Market Impact: Very low on the wireless services segment, because all the talk about open networks, open devices, and open applications is only relevant to consumers willing to pass up significant subsidies to get them. While Fast Pitch and Open Call (the self-described high-tech “American Idol”) are intended to excite a developer community to bring innovative applications, these applications eventually wind up on the AT&T Media Mall anyway. Still, AT&T has already had an open network (pretty much any quad-band GSM phone will work on the network today), and yet nobody buys these devices and uses them to run the mythical “killer app” that open networks are supposed to engender.
