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Contents Unlimited by Boost Takes on MetroPCS and Cricket in California and Texas| Analysts: William Ho, Matthew Kunkle | Wireless Services - U.S. | Client Access | Announcement Summary
northern and southern California markets. The plan called Unlimited by Boost, range from $45 to $55 a month, depending upon market. Plans include unlimited nationwide calling while inside the local market. Roaming outside of the local market is billed at $0.15 per minute, with LD included. Text and picture messaging is not included, but instead charged at regular Boost Mobile rates: SMS $.10 to send, free to receive. The Motorola C290 at $99.99 is the only handset available at launch. This is a CDMA 1xRTT handset with no PTT capability. Analytical Summary • Current Perspective: Positive on Boost Mobile’s trial of unlimited calling plans in MetroPCS and Leap Wireless’ Cricket properties, because Sprint as a whole is taking an offensive posture against these regional upstart carriers after many defensive tries using local postpaid plans. Boost’s value story beyond matching the unlimited local and long distance calling can be found at a wider home calling area coupled with lower roaming fees. If customers can get beyond only one handset choice, it could bode well for Boost’s future net addition, churn and ARPU prospects. • Vendor Importance: High to Sprint, because by using Boost Mobile as a proxy, it alleviates the postpaid arm from continuing to fight those regional unlimited calling carriers. Besides, the Boost prepaid unit is the logical choice as it targets the same demographics to that of MetroPCS and Cricket. High to Boost Mobile, because plan offerings ranging from $45 to $55 can help the subsidiary’s overall ARPU and draw a subscriber base beyond the low ARPU bearing pay as you go customer. • Market Impact: Moderate on the prepaid wireless services market, because the Unlimited by Boost plans are focused on specific MetroPCS and Cricket territories. Moderate to high on the wireline services segment since Unlimited by Boost has the same effect to stimulate wireline substitution as those unlimited regional calling carriers. ESPN and Verizon Wireless Lift Lid on ESPN Mobile TV Programming| Analyst: Weston Henderek | Wireless Services - U.S. | Client Access | Announcement Summary
March 27, 2007 – ESPN has unveiled the program lineup for its new ESPN Mobile TV channel which is available through the Verizon Wireless V CAST TV service. The new channel will offer a wide variety of sports content including live events such as the Summer X Games, the NIT Championship, Arena Football League games, IndyCar races, NCAA baseball, softball and lacrosse games, and college football games from the Big East, Big Ten and the ACC. The channel will also offer a wide host of mobile exclusive ESPN programming such as ScoreCenter and ReSet. Verizon Wireless devices capable of receiving ESPN Mobile TV programming include the Samsung u620 and the LG VX9400. Analytical Summary • Current Perspective: Slightly positive on Verizon Wireless’ official launch of ESPN Mobile TV on the V CAST TV service, because sports content from one of the industry leaders in that category is one of the features that will help drive adoption of mobile TV services for Verizon Wireless. However, despite being tailored for the MediaFLO service, ESPN Mobile TV will not offer all the same live sports content as the standard ESPN channels. • Vendor Importance: High to Verizon Wireless, because live sports content and games through ESPN is one of the most compelling channels offered on the carrier’s V CAST TV service. Sports fanatics will likely see the inclusion of live ESPN content as a compelling reason to subscribe to V CAST TV. For ESPN, continuing to branch out in the mobile TV space represents another solid growth avenue after the failure of Mobile ESPN. • Market Impact: Moderate to high on the wireless services market, because offering live sports content is one of the most compelling areas to drive mobile TV adoption. As a result, leading carriers and MVNOs will continue to boost the amount of sports content offered through their mobile TV and video services. Kyocera’s New Designs Are Pretty (But Are They Pretty Enough?)| Analyst: Avi Greengart | Mobile Devices | Client Access | Announcement Summary
March 27, 2007 -- Kyocera announced five handsets focused on creating a distinct design language with a new, sophisticated look. The line-up includes the E5000 (an elegant, slim EV-DO handset with a first-of-its-kind, iconic "S" hinge design), E2000 (a sleek EV-DO clamshell), E1000 (a crisp, affordable clamshell with a 1.3-megapixel camera and Bluetooth), M1000 (a stylish handset with a hidden QWERTY keypad for the power texter), and S1000 (an ultra-affordable bar). The company did not announce pricing and availability for the handsets. Analytical Summary • Current Perspective: Neutral on Kyocera’s new branding and handset lineup, because the new imagery and branding, which leans heavily on Asian motifs to emphasize Kyocera’s Japanese heritage, is a positive change from the day-glo colors and simplicity message of the past few years, especially when combined with the most attractive designs Kyocera has ever offered. Unfortunately, this is somewhat faint praise, as the old designs were either ugly or …strange. Without extensive advertising, the new branding will not have much impact. The new phones should keep existing clients happy, but they are not innovative enough to get Kyocera the extensive shelf space in Tier 1 carriers it needs for long-term success. • Vendor Importance: Very high to Kyocera, because the company’s strategy of aggregating all the Tier 2 carriers and MVNOs does not generate enough volume for long-term success in the hyper-competitive U.S. handset market. Kyocera needs to retain its existing base and gain new sales wins, and the existing product line is generally uninspiring. • Market Impact: Very low on the consumer handset market, because the new branding and design are unlikely to change Kyocera’s competitive position. The market is so competitive that even the “S” hinge on the E5000, which is striking, and a smart redesign of the Strobe do not appreciably change industry dynamics in any way. However, with Nokia retreating from CDMA and Kyocera, Sanyo, UTStarcom, and Pantech all struggling, the CDMA market may be open to new Chinese entrants. Motorola Launches New Enterprise Digital Assistant, Defining New Device and User Segment| Analyst: Kathryn Weldon | Enterprise Mobility - U.S. | Client Access | Announcement Summary
March 27, 2007 – Motorola launches the MC35, an Enterprise Digital Assistant a durable device that combines EDGE cellular technology, built-in GPS capabilities, WiFi and Bluetooth, with laptop functionality, camera, and bar code reader. The device lists for $640 to $750 depending on features, and supports Windows Mobile 5.0. Analytical Summary • Current Perspective: Positive on Motorola’s new MC 35 EDA as it defines a new class of device for a growing but underserved business segment, the blue collar manager, which can also be defined as the intersection of “task workers” and “information workers.” The device combines legacy Symbol’s expertise, channels and experience in the high-end ruggedized field service and industrial automation segments with Motorola’s strengths in the smartphone and mobile office space to carve out a new niche in which there are no real competitors. • Vendor Importance: High to Motorola as this launch helps validate the Symbol acquisition. The MC35 should appeal to more casual field workers and their managers who don’t need to pay $2,000+ for a truly industrial strength ruggedized device with full bar code scanning, but who need a scaled down version to access both field service/asset management and mobile office applications. • Market Impact: Moderate on the enterprise mobility market as it is rare to see a new device segment introduced to the market. At $600-800 this device will likely seed new competitive offerings both from the traditional ruggedized device vendors such as Intermec, but also among smartphone competitors. The latter segment may see a place in their lineup for a more ruggedized device for industrial and field service workers who want to more economically bridge the blue collar and mobile office worlds within a single device. AT&T and Cisco Launch 3G WWAN Module for ISR Routers| Analysts: Kathryn Weldon, Brian Washburn | Enterprise Mobility - U.S. | Client Access | Announcement Summary
March 27, 2007 -- AT&T plans to launch an option for its AT&T Wireless WAN Connectivity Service in June 2007, using Cisco's ISR (integrated services router) with its HWIC (high-speed WAN interface card) module. The equipment supports 3G data transport for diverse, secure wireless broadband backup options for wireline IP-based business services. The gear supports automatic failover to keep critical applications running without interruption in the event of a circuit failure; it can also be used as a temporary primary connection, or to provide bursts of additional bandwidth. Analytical Summary • Current Perspective: Positive on AT&T's adoption of the Cisco ISR HWIC module, because the carrier expands the range of options available through its Wireless WAN Connectivity Service. Various Cisco 2800/3800 series ISR models can support VoIP, WiFi, and VoIP over wireless LAN in addition to a standard list of features, enabling all manner of end-to-end wireless options. Although temporary and backup scenarios will likely dominate demand for 3G wireless between fixed locations, it can only enhance AT&T’s WWAN proposition. Cellular transport not only provides an attractive option for temporary and ad hoc connectivity; it also serves to add redundancy if dedicated lines and DSL connections come in to the building via the same route and may both be subject to simultaneous outages. • Vendor Importance: Low to moderate to AT&T, because the carrier first launched its Wireless WAN Connectivity Service (as Cingular Wireless) back in February 2005. Wireless – originally via microwave, and more recently via mobile wireless data networks – has become a well-established medium for diverse backup transport. The addition of 3G functionality to Cisco's ISR models will mean AT&T can now provide these routers as a managed point of demarc option. However, nothing previously stopped Cingular's Wireless WAN Connectivity customers from deploying an ISR inside the point of demarc if they wanted to tap its particular LAN-side features. Still, to get WWAN as well, they previously had to buy a separate WWAN router and interconnect it to their existing Cisco devices. • Market Impact: Low to moderate on the enterprise mobility market, because Cisco's ISR series have proved a popular choice for carriers rolling out managed services to small businesses and branch offices. Cisco is in the business of selling its gear to all comers, so any fixed-line transport competitor able to tap a 3G wireless data network (through ownership or on a resale basis) can run the vendor's HWIC module through acceptance testing and add the Cisco ISR with a 3G wireless backup business option to their own portfolios. Sonus Networks Acquires Zynetix| Analyst: Ken Rehbehn | Wireless Infrastructure | Announcement Summary
March 27, 2007 -- Sonus Networks announced a definitive agreement to acquire privately-held Zynetix Ltd., designers of an IP-based GSM mobile switching center distinguished by support for IP-based pico and femtocell base station technology. While traditional MSCs are connected to base stations over a TDM backhaul network, the Zynetix solution establishes IP data sessions to devices located on an IP broadband network. Zynetix has provided GSM solutions to government agencies and private enterprises since 2003. Analytical Summary • Current Perspective: Very positive on Sonus Networks’ acquisition of Zynetix, because the move smartly extends Sonus Networks’ already extensive role in mobile networks (with G-MSC deployments) to embrace a rapidly expanding trend: small form factor GSM base stations (i.e., pico and femtocells) accessed via broadband IP networks. Zynetix can point to a four-year track record that includes deployments with ip.access picocells. Future integration of Zynetix capabilities into the Sonus Networks portfolio should yield an eloquent integrated solution delivering cost-effective support for large-scale femto/picocell deployments. • Vendor Importance: High to Sonus Networks, because the company is executing on a strategic plan to go beyond tandem trunking. Earlier moves into the access market with voice over broadband were a key first step. Now, adding capable soft-MSC support for IP-based GSM base stations for mobility access serves as a second step. Moving forward on this vision is essential for robust future growth. • Market Impact: High on the GSM/UMTS network market, because the move addresses MSC requirements for femto/picocell call supervision with an elegant hybrid approach: a traditional MSC interface to the core network and non-traditional IP connectivity to the radio network. Vendors counting on complicated solutions to solve the same problem – IMS with mobility management, for example – will need to counter Sonus Networks’ approach. Juniper Networks Steel Belted Radius Embraces Femtocell, UMA, & GAN Deployments| Analyst: Ken Rehbehn | Wireless Infrastructure | Announcement Summary
March 26, 2007 – Juniper Networks enhanced its Steel-Belted Radius (SBR) SIM/AKA Server to support SIGTRAN (signaling transport) support as well as AAA features supporting subscriber authentication via 802.1X and non-802.1X hotspots, Unlicensed Mobile Access (UMA), Generic Access Networks (GAN) and Femtocell technologies. Analytical Summary • Current Perspective: Slightly positive on Juniper’s SBR SIM/AKA Server enhancements that extend support for SIGTRAN as well as new subscriber authentication support for WLAN hotspots, Unlicensed Mobile Access (UMA), Generic Access Networks (GAN) and Femtocell technologies because the move demonstrates the company understands and addresses key emerging wireless access technologies. • Vendor Importance: Moderate to Juniper, because adding AAA support for a variety of new access technologies helps the company maintain high relevance in wireless operators. Already a major supplier of AAA capability, most notably to CDMA operators with PDSN gateways, Juniper needed to stake out ground in new wireless access technologies to remain a key player, while answering Cisco’s recent moves to provide AAA support for UMA. • Market Impact: Low on the wireless infrastructure market, because Juniper’s additional functionality represents modest, generally expected feature evolution. Support for AAA variation across emerging access technologies is table stakes for any vendor offering a general-purpose AAA platform. Symantec Gets Serious about Mobile Security| Analyst: Kathryn Weldon | Enterprise Mobility - U.S. | Client Access | Announcement Summary
March 26, 2007 -- Symantec Corp. announced it will offer Symantec Mobile Security Suite 5.0, a solution designed to provide customers with the same security and data protection capabilities on their Windows Mobile smartphones and PDAs as what has become standard for laptops and other computing devices. Symantec Mobile Security Suite 5.0 will include anti-virus, firewall, anti-SMS spam, and data encryption technologies that are easy to deploy, manage, and maintain. This kind of layered security can not only mitigate the unique security risks of mobile devices, but can also enable companies to comply more easily and cost-effectively with internal security policies and external regulations. Analytical Summary • Current Perspective: Positive on Symantec’s launch of the Mobile Security Suite 5.0, as the product provides a one-stop shop for mobile security. This is an important step by Symantec, because security is one of the key barriers to enterprise adoption of wireless applications, and most solutions in the market are “point” products, requiring the IT manager to manage and support multiple and often incompatible software solutions. While some companies will look to a managed solution instead, or have already purchased component products, the vast majority of potential users of wireless technology for real business applications have been waiting for a more comprehensive solution such as this. • Vendor Importance: Moderate to high to Symantec, since the vendor is the first major software company, and certainly the first major security company, to take advantage of the significant growth potential for enterprise mobility by addressing one of the market’s most serious problems. Mobile security represents an as yet relatively untapped market, in spite of the endless discussions by thought-leaders about its importance as a barrier to wireless adoption. There is no likelier company than Symantec in the industry today to become a (or “the”) leader in this space, because traditional security competitors are not as focused on mobility and traditional mobility players do not have a full suite to offer or a comparable experience and customer base. • Market Impact: High on the enterprise mobility market, because there are few one-stop shops, either for enterprise mobility deployment and management or for mobile security. There is pent up demand among large enterprise companies for an end-to-end solution addressing anti-virus/anti-spam, policy management, mobile VPNs, access control, and loss mitigation via endpoint encryption. This move will shake up the market, as fragmented as it is. Since smaller, less powerful companies than Symantec have been the only game in town, they will be hard-pressed to compete head to head with the software giant. Moto Makes Good on New Base Stations| Analyst: Peter Jarich | Wireless Infrastructure | Announcement Summary
March 27, 2007 – Motorola announced its universal base station (UBS) and picocell M810 platforms. Both will be deployed this year in CDMA2000 1X and EV-DO configurations. The UBS will support LTE and UMB going forward. The picocell M810 is a low-power eight carrier product for in-building and outdoor applications. Analytical Summary • Current Perspective: Very positive on Motorola’s new universal base station (UBS) and Picocell M810. Promises of deployments “beginning this year” are disappointingly vague. Yet, an integrated solution supporting CDMA today and LTE or UMB tomorrow delivers on promises the company started making last year while smartly leveraging its R&D into multiple opportunities. • Vendor Importance: High to Motorola because the vendor has made EV-DO, LTE, and UMB strategic imperatives. Moving on a platform which supports LTE and UMB going forward, and EV-DO today, shows a commitment to 3G evolutions…while still generating revenues in the near-term. • Market Impact: Moderate on the wireless infrastructure market. It was well understood that Motorola was preparing a next-generation base station platform – the launch will come as a surprise to nobody. Promised support for LTE, UMB and EV-DO in one solution, however, will force CDMA competitors to develop their own evolution stories in order to keep operators happy. Nortel Makes Good on 1.5 GHz WiMAX with MSV| Analyst: Peter Jarich | Wireless Infrastructure | Announcement Summary
March 27, 2007 – Nortel announced an IMS and WiMAX trial with Mobile Satellite Ventures (MSV) in the 1.5 GHz spectrum. The trial will focus on voice and data applications (including VoIP) and test the ability to deliver seamless services over a terrestrial and satellite network integrating devices and silicon from Kyocera, WiNetworks, and Runcom. Analytical Summary • Current Perspective: Positive on Nortel’s WiMAX and IMS trial with MSV. Trials do not ensure commercial success and MSV is not an established mobile carrier. Yet, Nortel talked up the 1.5 GHz WiMAX opportunity last year; pulling in a trial with MSV argues that Nortel is executing on the opportunity with IMS elegantly solving network integration issues while highlighting the breadth of Nortel’s capabilities. • Vendor Importance: High to Nortel because absent a WiMAX win with Sprint, the company has largely been forced to play catch-up in order to showcase its WiMAX credibility and build mindshare. For credibility, every trial is important. Trials with high-profile operators like MSV, in turn, clearly support mindshare building. • Market Impact: Moderate on the wireless infrastructure market. Again, trials may not lead to commercial deployments. Yet, few operators launch a network with only one vendor…meaning that MSV’s trials may point to potential 1.5 GHz deals for other vendors…a necessity if the operator hopes to see certified 1.5 GHz WiMAX kit. Samsung and Sprint Try to UpStage the iPhone| Analyst: Avi Greengart | Mobile Devices | Client Access | Announcement Summary
March 26, 2007 – Sprint and Samsung announced the UpStage, the first U.S. wireless phone designed with a revolutionary form factor with the look of a phone on one side and an MP3 player on the other. UpStage is the first Sprint phone to include PC synchronization software for sideloading music, and achieves astonishing battery life with an included battery “wallet.” The UpStage will be available in early April for $149 with a two-year contract. Sprint has also reduced OTA song download pricing to $.99 per track. Analytical Summary • Current Perspective: Positive on Samsung and Sprint bringing a near-total music package with device, service, and software. The double sided form factor is a double edged sword – it makes doing anything other than basic voice, text messaging, and music rather awkward. But the UpStage’s design will stand out at retail, which has been a proven formula for LG with its Chocolate phone at Verizon Wireless. It is ideal for consumers who want to make phone calls and listen to music – and do nothing else. The most innovative aspect of the UpStage is the included battery wallet, bringing exceptional talk and music time to such a tiny device. PC synchronization software is included – the first time Sprint has encouraged sideloading – and OTA song download pricing was reduced to $.99. However, it only comes with 64MB of storage out of the box, making a separate microSD purchase mandatory, and the $149 price point somewhat illusory. • Vendor Importance: High to Samsung because price pressures have forced the company – and everyone else – into phones that sell for $0 - $49 after carrier incentives and carry razor thin profit margins. Samsung needs more devices like the UpStage that sell above $100 high margin devices. Very high to Sprint because it desperately needs both a hit device and something to help put its brand back on the map. Sprint’s brand proposition used to be about data services before it bought Nextel and went on an uninspiring “Power” trip. $.99 track download pricing brings the company back in line with market expectations while still providing something extra (instant gratification on the go), and the UpStage is certainly an exciting form factor, even if it can be occasionally frustrating to use. • Market Impact: High on the consumer handset market. While the UpStage doesn’t actually upstage anybody, this is the strategy – if not the form factor – that vendors are increasingly taking to compete with the iPhone. Rather than attacking Apple head-on with comparable $500 devices, musicphones like the Samsung UpStage and Nokia 5300 XpressMusic aim to provide mass market music capabilities at a third of the price of the iPhone. Tropos Hints at WiMAX| Analyst: Peter Jarich | Wireless Infrastructure | Announcement Summary
March 27, 2007 – Tropos announced its new MetroMesh NG multi-protocol picocell system. Leveraging the Tropos MetroMesh OS, the new system supports picocell wireless deployments in multiple technologies (WiMAX, WiFi) and multiple bands (licensed, unlicensed). No details were provided on product rollout plans. Analytical Summary • Current Perspective: Neutral on Tropos’ new MetroMesh NG multi-protocol picocell system. The ability to support new technologies including WiMAX and WiFi broadens the market for Tropos gear and opens up new deployment options for spectrum owners. Yet, with no announced timeline or product roadmap, it’s unclear when Tropos will ever leverage the capability. • Vendor Importance: Low to Tropos because the company remains focused on WiFi mesh in the near-term. Yes, the ability of Tropos to integrate new technologies into its mesh could deliver new sales going forward. Today, the company already supports WiFi and 4.9 GHz and has given no indication of when it will actually support integrated WiMAX access (or transport). • Market Impact: Moderate on the wireless infrastructure market. Until Tropos actually rolls out WiMAX-based picocells, its ability to deliver them is academic. Yet, the notion that picocells are necessary for any operator hoping to deliver robust data services could drive the market’s thinking (or operator inquiries). Alcatel-Lucent Makes Good on CDMA Smart Antennas| Analyst: Peter Jarich | Wireless Infrastructure | Announcement Summary
March 27, 2007 – Alcatel-Lucent announced the availability of its intelligent antenna solution for CDMA2000 customers. An incremental upgrade to the vendor’s Mod Cell 4.0 platform, intelligent antenna processing techniques applied to the forward and reverse links can deliver up to a two-fold increase in network voice and data capacity. Analytical Summary • Current Perspective: Positive on Alcatel-Lucent’s support of intelligent antenna technologies in its CDMA2000 portfolio. The vendor has been promising smart antenna support since the introduction of the Mod Cell line and, as an incremental upgrade, this is a smart way to improve voice and data capacity. A lack of details on product and deployment costs – not to mention a similar support for UMTS – is unfortunate. • Vendor Importance: High to Lucent because it remains the market’s CDMA market leader and has been talking up smart antenna support for years. Facing evolving traffic demands, the new upgrade delivers investment protection, signals a commitment to CDMA customers, and makes good on the company’s past product claims. • Market Impact: High on the wireless infrastructure market. At a very basic level, major new product capabilities form the CDMA market’s network leader should drive competitors to respond. More broadly, new CDMA voice and data capabilities provide a stronger foil to LTE, UMB, and WiMAX in the near-term. Sprint Drops Price for OTA Music Downloads to 99 Cents| Analyst: Weston Henderek | Wireless Services - U.S. | Client Access | Announcement Summary
March 26, 2007 -- Sprint announced that it has dropped the pricing of over-the-air music downloads to $0.99 per song, in addition to launching an updated Power Vision Access Pack and Power Vision Music Pack. The carrier has priced the new Power Vision Packs at $15 and $20 per month. In addition, the carrier has also announced the new Samsung UpStage handset, which doubles as a phone and an MP3 player. Analytical Summary • Current Perspective: Positive on Sprint’s announcement that it is reducing the cost of OTA music downloads from $2.50 to $0.99 per song, because pricing its 1.5 million-song library at the same per-song rate as iTunes will help drive music downloads and make Sprint much more competitive with other wireless music services. In fact, at $0.99 per song, the Sprint service is now half the price of Verizon Wireless’ OTA music downloads. • Vendor Importance: High to Sprint, because the carrier has been struggling in recent quarters in the wake of its merger with Nextel. In addition, the Sprint OTA music service had the most expensive song downloads in the industry at $2.50 per song. Dropping the price of OTA music to $0.99 per song and the launch of a compelling music handset, the Samsung UpStage, will help Sprint on the music front. • Market Impact: High on the wireless services market, because with Sprint charging only $0.99 per song for OTA music downloads, other leading carriers such as Verizon Wireless will likely be forced to drop the price of their OTA music downloads to the same levels. As a result, $0.99 per song will likely become the new standard price for OTA music downloads for all carriers with a music download service over the course of 2007. Axerra Launches the AXN10-8NR Pseudo-Wire Access Device for Cell Site Aggregation| Analyst: Glen Hunt | Carrier Infrastructure | Announcement Summary
March 26, 2007 - Axerra announced the availability of its AXN10-8NR Pseudo-Wire Access Device which is designed for mobile backhaul at cell site locations and provides support for all generations of mobile traffic including CDMA2000, EV-DO, GSM, GPRS, and UMTS. The AXN10-8NR spans a wide range of operating temperatures making it possible to co-locate within a cell tower; support for transport technologies such as Ethernet, xDSL, PON, cable HFC, or WiMAX provides further operator flexibility. Analytical Summary • Current Perspective: Positive on the announcement of Axerra’s AXN10-8NR Pseudo-Wire Access Device which is designed to backhaul traffic directly from cell site locations. The unit can leverage multiple transport technologies such as carrier Ethernet, xDSL, PON, cable HFC, or WiMAX to provide backhaul support. The ability to aggregate multi-generational mobile traffic at the cell site improves overall RAN optimization allowing earlier generations of base stations to continue to provide services while 3G and 4G services are being ramped up. • Vendor Importance: Moderate to Axerra since the AXN10-8NR is a further extension of its line of scalable Pseudo-Wire solutions. With the AXN10-8NR, Axerra’s solution set ranges from small, low-cost access solutions suitable for co-location at the cell tower to redundant, high-density solutions suitable for larger RAN aggregation applications. • Market Impact: Moderate on the mobile backhaul market since it enables the mobile operator to optimize the links originating from the cell towers which further reduces the number of backhaul circuits required to service the tower’s transport needs. The system also provides an improvement in the bandwidth capacity to meet the needs of emerging mobile data and video traffic by leveraging packet-based transport technologies. Axerra, however, is not alone with its tower based backhaul solution; vendors such a Tellabs have also launched hardened devices suitable for tower-based deployments. AT&T Offers Wireless and Broadband Bundle Customers Free Napster Online Music Service| Analyst: Brue McGregor | Digital Home | Client Access | Announcement Summary
March 26, 2007 – AT&T and Napster announced a new promotion that grants new and existing AT&T broadband and wireless customers a free one-year membership to Napster To Go, which comes with unlimited access to over 3 million digital music song titles. The offer is valued at $180 and becomes available on April 1, 2007 throughout AT&T’s entire 22-state traditional service footprint for qualifying customers who meet strict bundle requirements. AT&T customers can sign up for the Napster promotion at its wireless retail stores or via phone through its call center. Analytical Summary • Current Perspective: Slightly positive on AT&T’s fostering of a new Napster promotion with free online music service for both its wireless and broadband customers, because these subscribers receive unlimited access to 3 million digital music tracks, a total value of $180. If the new Napster To Go promotion attracts substantial interest, it will help reduce AT&T subscriber churn since the offer is geared towards long-term customers with new two-year cell phone plans and a free one-year Napster subscription. • Vendor Importance: Moderate to high to AT&T, because by partnering with Napster it offers both its wireless and broadband customers a good will gesture of digital music membership for one year. It blends nicely with AT&T’s “Three Screen Strategy” of being able to seamlessly take access of music content with you, since the Napster To Go service comes with unlimited rights to a catalog of over 3 million songs on a PC, wireless phone or downloaded to a compatible MP3 player. • Market Impact: Moderate on AT&T’s competitors, because while free access to music content will attract many types of consumers at first glance, the promotion has some strings attached and only is available to a few high-end AT&T wireless and broadband bundle plans. Napster uses the business model of unlimited access to millions of songs for a low monthly fee, competing with similar services from Yahoo! and Rhapsody. UTStarcom Moves on GSM Networking| Analyst: Peter Jarich | Wireless Infrastructure | Announcement Summary
March 26, 2007 – UTStarcom announced the introduction of GSM functionality in its Moving Media 2000 wireless network solution. Leveraging a distributed, IP-abased architecture, the solution is commercially available and includes GSM base stations, an MSC, media gateway, signaling gateway and OMC. Analytical Summary • Current Perspective: Slightly positive on UTStarcom’s extension of the Moving Media 2000 portfolio into GSM, because with the TELOS acquisition delivering GSM assets, the move to address GSM is logical – the technology has a greater reach than CDMA. Yet while a deal with SeaMobile is encouraging, GSM alone will not meet operator demands and compact, distributed capabilities are not uncommon. • Vendor Importance: High to UTStarcom, because GSM (along with CDMA) opens up broader market opportunities and is key to the company’s push on transport markets. Shipboard and airline operators will want more than just CDMA services, and the vendor in turn will want more than just CDMA as it hopes to grow revenues. • Market Impact: Low on the wireless infrastructure market, because IP-based GSM solutions are relatively unique. Distributed switching, however, is not. More importantly, UTStarcom might be able to point to CDMA customers, but it has no references speaking to the credibility of its new GSM kit, and no solution for operators looking to migrate from GSM to 3G. Sequans Goes Big on Wave 2 WiMAX| Analyst: Peter Jarich | Wireless Infrastructure | Announcement Summary
March 26, 2007 – Sequans Communications announced its newest WiMAX mobile station chipset, the SQN1130. Supporting the Wave 2 Mobile WiMAX specifications, features include 2X2 MIMO, low power consumption (280 mW active), and >30 Mbps throughput. Separately, Siemens and Alpha Networks were announced as SQN1130 customers. Analytical Summary • Current Perspective: Very positive on Sequans’ new Wave 2 WiMAX chipset, the SQN1130. While the endorsement of major-league device makers would be encouraging, impressive performance claims – low power consumption, compact packaging and 2X2 MIMO – teamed with the support of Siemens and Alpha Networks bodes well for the solution. • Vendor Importance: Very high to Sequans, because WiMAX silicon is the company’s business and Wave 2 WiMAX is the version of the technology that operators want, delivering many of the features that set WiMAX apart from 3G. To execute on the WiMAX opportunity, Sequans needs a credible, early-to-market Wave 2 offer. • Market Impact: High on the wireless infrastructure market, because Sequans is far from alone in its support for Wave 2 WiMAX silicon. Yet the promise of Wave 2 silicon, teamed with products built on it, is critical for making WiMAX into a successful market and making Sequans into a successful WiMAX supplier. Formotus Launches Service for Rapid Deployment of Mobile Applications| Analyst: Kathryn Weldon | Enterprise Mobility - U.S. | Client Access | Announcement Summary
March 26, 2007 - Formotus launches “click and deploy” Software As A Service, FormoPublish Professional Edition, offering easy access to mobile business process applications, and leveraging Microsoft’s Office Infopath solution. The service is supported on Windows Mobile devices and costs $35 per device per month. An Enterprise Edition is also available supported on a behind the firewall server. Analytical Summary • Current Perspective: Slightly positive on Formotus’ new FormoPublish service as it provides an option for non-technical users such as SMBs without internal development resources to deploy mobile business applications rapidly, without having to write any code. While at $35 per device per month, this may be a boon to some users, the managed “software as a service” only supports Windows Mobile devices, and there are many other wireless technologies from better-known vendors. Still, it is encouraging to see this kind of innovation and the service may help spur on adoption of mobile business usage among new user segments. • Vendor Importance: High to Formotus as this is the first product launch of this new market entrant and is the culmination of development efforts that began at the end of 2005. The vendor will have to prove itself in a market that is becoming crowded with tools vendors, mobile application vendors, VARs/SIs and middleware providers all targeting the business user looking to access existing database-oriented business process applications from mobile devices. • Market Impact: Low to moderate on the enterprise mobility market, as there are many routes to market for business process applications. By leveraging industry and de facto standards such as Microsoft InfoPath and Web services standards such as XML and SOAP, Formotus and other emerging market players are targeting SMBs or companies wishing to outsource mobility, promising to deliver relatively low-cost “painless” solutions. Formotus’ hosted service model (with an optional behind the firewall version for larger enterprises) may indeed appeal to companies without internal development personnel, but the vendor has its work cut out for it in penetrating a competitive market. AirWalk Introduces CDMA Femtocell| Analyst: Peter Jarich | Wireless Infrastructure | Announcement Summary
March 22, 2007 -- AirWalk Communications announced a femtocell solution for CDMA voice and data services. Details regarding technologies supported, product availability, and network integration options were not available. Analytical Summary • Current Perspective: Negative on AirWalk’s CDMA femtocell launch, because CDMA operators can benefit from femtocells and AirWalk gets credit for being one of the first vendors to announce a product publicly. Yet, missing details regarding planned availability, core network integration options, and standards support (i.e., 1X, EV-DO, etc.) do nothing to paint the solution as capable or well thought out. • Vendor Importance: High to AirWalk, because despite being relatively quiet for the past few years, operator interest in femtocells plays directly into AirWalk’s focus on compact, integrated 3G RAN solutions. The first step in leveraging the opportunity is bringing product to market. • Market Impact: Moderate on the wireless infrastructure market, because AirWalk kicks off what will doubtless be a flurry of CDMA-related femtocell announcements. Yet, as bigger (more credible) CDMA players enter the space, AirWalk will still need to prove its capabilities and competitive differentiators. ADC Fills in FlexWave Details with ip.access OEM| Analyst: Peter Jarich | Wireless Infrastructure | Announcement Summary
March 22, 2007 -- ADC announced an OEM agreement with ip.access. Per the agreement, ADC will integrate ip.access’ nanoGSM picocells into a hardened outdoor enclosure, with ADC’s LoopStar, millimeter wave, and WiMAX solutions providing IP transport functionality. Analytical Summary • Current Perspective: Positive on ADC’s announced OEM with ip.access for indoor and outdoor picocell solutions, because while the absence of femtocell plans is puzzling, ip.access lends credibility to ADC’s FlexWave solution while smartly highlighting the vendor’s transport capabilities and outdoor enclosure integration… setting it apart from other ip.access OEMs. • Vendor Importance: High to ADC, because the company maintains no history in the compact RAN business. FlexWave may be the vendor’s new solution for in-building coverage. Customers, however, are unlikely to deploy products with no history in the market. ip.access provides that history. • Market Impact: Moderate on the wireless infrastructure market, because partnering with ip.access vastly improves the credibility and strength of ADC’s new in-building wireless strategy. Yet, the partnership with ip.access is not exclusive and it was expected, given the details provided at the launch of the FlexWave solution. Motorola Finally RIZRs to the Challenge| Analyst: Avi Greengart | Mobile Devices | Client Access | Announcement Summary
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