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Wireless Carriers’ Ho-Hum Economics of Wi-Fi Calling; The Real Money is Still in Data

telecom revenueThe year 2013 marked a significant turning point for phone companies that have handled voice telephone calls for over 100 years. For the first time, the volume of domestic telephone calls and the revenue generated from them was nearly flat. For the last two years, both are now in decline on the wireless side of the business as North Americans increasingly stop talking on the phone and text and message instead.

The U.S. wireline business peaked in the year 2000 with 192 million residential and office landlines. Over the next ten years, close to 80 million of those — 40 percent, would be permanently disconnected, replaced either by cell phones, cable telephone service, or a Voice over IP line. Wireless companies picked up the largest percentage of landline refugees, most never looking back.

Over one-third of more than $500 billion in annual revenue generated by telecom companies in 2013 came from voice services. Although that sounds like a lot, it’s a pittance of a percentage when compared to 2005 when AT&T, Sprint, T-Mobile, and Verizon Wireless earned most of their revenue from voice calls. Ten years ago, wireless companies principally sold plans based on the number of calling minutes included, and many customers often guessed wrong, paying per minute for calls exceeding their allowance.

At first, this represented a revenue bonanza for the wireless industry, which earned billions selling customers minute-based calling plans that came with built-in cost-controlling deterrents for long-winded talkers — the concern of using up their calling allowance.

attverizonStarting in 2008, wireless industry executives noticed something peculiar. While revenue from texting add-on plans was surging, the growth in calling began to level off. Wireless voice usage per subscriber peaked at an average of 769 minutes in 2007 and began falling after that year. By 2011, the average customer was making 615 minutes of calls a month. As customers began downgrading calling plans, wireless carriers shifted their quest for revenue towards text messaging.

For awhile, texting earned wireless companies astounding profits that required little extra investment in their networks. SMS service at most carriers was effectively priced at $1,250 per megabyte, broken up into 160 byte single messages. In 2011, over 2.3 trillion text messages were exchanged. A message that cost a wireless carrier an infinitesimal fraction of a penny to send and receive cost consumers up to 20 cents or more apiece if they lacked an optional texting plan. To further boost revenue, some carriers like Verizon Wireless began to pull back offering customers a variety of tiered texting plans with different messaging allowances, switching instead to a single, more expensive unlimited texting plan. Many customers balked at the $19.95 a month price and began exploring other forms of messaging each other.

chetan sharmaThe industry’s demand for profit eventually threatened to kill the goose that laid the golden egg. At the same time wireless carriers were raising prices on text messages and forcing customers into expensive texting add-on plans, free third-party messaging apps began eating into texting volume. By 2012, the use of SMS declined for the first time, with 2.19 trillion text messages sent and received, down 4.9 percent from a year earlier.

It took little time for the wireless industry to realize the days of offering plans based on calling minutes and texting were quickly coming to an end. Younger users began the cultural trend of talking less, texting more — but using a growing number of free alternative apps to do so. As a result, both AT&T and Verizon shifted their plans away from focusing on revenue from calling and texting and instead moved to monetize data usage. Today, both carriers offer base plans featuring unlimited voice calling and texting almost as an afterthought. The real money is now made from selling packages of wireless data.

Wi-Fi calling allows customers to make and receive voice calls over a Wi-Fi connection, not a nearby cell tower. The prospect of bundling that option into a cell phone just a few years ago would have been unlikely at some providers, unthinkable at others. It was never considered a high priority at any traditional carrier, although T-Mobile began offering the service all the way back in 2007.

Since most calling plans now bundle unlimited calling, letting calls ride off the traditional cellular network is no longer much of an economic concern.

wifi callingSome even expect carriers to eventually embrace Wi-Fi calling, declaring it superior to alternatives like Hangouts and Skype, which require an app to handle the call. A Wi-Fi call can be received by anyone with a phone.

This month, the last holdout, Verizon Wireless, capitulated and announced it had won approval from the FCC to introduce Wi-Fi calling to customers, joining Sprint, T-Mobile, and AT&T. But Verizon plans to initially limit that service, offering an app that must be installed to make and receive Wi-Fi calls. The other three carriers integrate Wi-Fi calling directly into the primary phone call app already on the phone.

The introduction of the service is unlikely to have a significant economic impact on any wireless carrier. Most have ample room on their networks to handle cell call volumes. Whether a call is placed over Wi-Fi or traditional cellular service, it will ultimately end up on the same or a similar IP-based phone switch as it makes its way to the called party.

With little revenue-generating opportunities for voice calling or SMS messaging, companies have nearly stopped the practice of monetizing individual telephone calls, preferring to offer unlimited, all-you-want calling and texting plans that used to cost consumers considerable amounts of money.

Now wireless carriers see fortunes to be made slicing up and packaging gigabytes of wireless data, sold at prices that have little relation to actual cost, just as carriers managed with text messaging for the last 20 years. A Verizon Wireless customer using 12GB of data in October that kept a now-grandfathered unlimited data plan paid just under $30 for that usage. (This month Verizon raised the price of that coveted unlimited plan by $20 a month.) Verizon charges $80 for that same amount of data on its new “XL” data plan. Verizon’s cost to deliver that data to customers is lower than it was five years ago, but customers wouldn’t know it based on their bill. As always with the wireless industry, costs often have no relationship to the price ultimately charged consumers.

Sprint Raising the Price of Unlimited Data to $70; Existing Customers Will Still Pay $60

SprintSprint customers thinking about subscribing to an unlimited data plan may want to decide before Oct. 16, when Sprint raises the price of its cap-free plan for new customers by $10 to $70 a month.

Sprint and T-Mobile are the last remaining holdouts still offering unlimited data, and T-Mobile’s costs $80 a month. AT&T and Verizon Wireless still have a dwindling number of customers holding onto unlimited data plans discontinued a few years ago.

Current Sprint customers will be grandfathered in at their current rate, and Sprint has dropped any mention of de-prioritizing unlimited users’ data for the benefit of those on capped plans.

Sprint CEO Marcelo Claure previously warned in July he was no fan of unlimited data and would be discouraging Sprint customers from keeping their cap-free plan. A $10 price increase for new customers won’t likely convince existing customers to give up unlimited data, but further price increases in the future might.

Sprint’s problem remains its wireless network, which has often performed poorly in consumer ratings. As video streaming becomes more popular, Sprint’s network may have some of the most trouble trying to keep up, slowing speeds for everyone. Alienating a loyal customer base that has put up with Sprint’s endless promises of a better network on the way may prove unwise if those customers continue defecting to T-Mobile.

Sprint Chairman Calls U.S. Wireless Networks “Very, Very Bad”

Masayoshi Son

Masayoshi Son

Sprint, for perhaps the 5th time in three years, is promising a major network turnaround in the near future that will boost their network’s performance and potentially restore the wireless provider to third place in the U.S. wireless market.

Masayoshi Son, who serves as both the CEO of Japanese carrier SoftBank and chairman of Sprint proved defensive about Sprint’s performance, which recently dropped to America’s fourth largest carrier after trading places with T-Mobile, despite posting improved financial results for the quarter.

Once again, Son told investors the state of America’s wireless network coverage was downright lousy.

“When I come to the [United] States, this network is not something you should be proud of,” Son said on a Sprint conference call with analysts. “It’s very, very bad.”

John Legere, the outspoken CEO of T-Mobile, took to Twitter to berate his smaller competitor.

“Does that make Sprint’s network ‘VERY, very, very bad’ or just completely terrible,” Legere wrote. “It’s easy to boast about your network in Japan, @masason. That’s 146k square miles, or basically most of California. #notthathard ;),” he added.

sprint all inSon has been relatively quiet since failing to inspire regulators to allow him to merge Sprint and T-Mobile into a single company to help both compete more effectively against giants AT&T and Verizon Wireless. After promising to invest vast sums to improve Sprint’s relatively poor performing network and coverage area, Son seemed to disappear and Sprint started losing more customers than it could add. Some have expressed frustration about Sprint’s seemingly endless promises a network turnaround was just around the corner, but never seemed to actually materialize. Many have since left for T-Mobile, which added 2.1 million new customers this year.

Although this quarter may signal Sprint is turning things around by adding 675,000 net new customers, analysts question whether Sprint’s drop to fourth place and the amount of spending that will be required to improve its wireless network could lead Son to ditch his shares in Sprint two years after acquiring an interest in the carrier. Son himself admitted he lost confidence in Sprint after the idea of a merger with T-Mobile flopped. But now he claims he is back, personally overseeing plans for Sprint’s next generation network with U.S. based engineers every night between 10pm-2am Japan time.

Customers seem unconvinced, peppering comment sections with reactions ranging from surprise Son was willing to criticize Sprint’s network (a criticism many agreed with), to exasperation that Sprint has promised better service for years and has yet to provide it.

“You know your carrier’s service sucks when even the CEO says it sucks,” commented one reader.

As Clearwire Service Prepares to Shutdown, Customer Service Agents Suggest Comcast as Alternative

clear-logoClearwire users seeking alternatives after the wireless ISP shuts down its WiMAX network this fall are surprised to hear some Clear customer service representatives recommending Comcast as their best option.

Stop the Cap! reader Randall Page has been looking for a new ISP after receiving a notification from Clearwire its network is ceasing operations before the end of this year and he needs to find a different provider:

Dear Valued CLEAR/Clearwire Customer,

You are receiving this notice because our records show you are subscribed to services on the CLEAR 4G (WiMAX) Network or Clearwire Expedience network. Sprint is in the process of implementing major enhancements to the Sprint 4G LTE Network, including the deployment of Sprint Spark, an enhanced LTE network capability, by repurposing the CLEAR 4G (WiMAX) Network and Clearwire Expedience Network. As a valued customer, we are providing you formal notice that Sprint will cease operating the CLEAR 4G (WiMAX) Network and Clearwire Expedience Network on November 6, 2015 at 12:01AM EST.

What this means to you:

  • Sprint will no longer support CLEAR 4G WiMAX and Clearwire Expedience devices or services.
  • Your CLEAR 4G WiMAX and Clearwire Expedience devices and services will no longer work, including your ability to contact 9-1-1.
  • You should not return your device(s).

To discuss your options or learn more, please call 1-888-888-3113.

Thank you for your business.

CLEAR/Clearwire Wireless


The Page family has used Clearwire for years to get Internet service in their rural home near Lynden, Wash. The service was affordable and more than adequate for the occasional web browsing and e-mail Page’s parents rely on. After learning the service was being discontinued, Page called Clearwire customer service to learn what other options were available.

“They claim they will essentially match your current level of Clearwire service on the Sprint network,” Page told Stop the Cap! “Although Clearwire originally advertised unlimited service, the representative was not willing to match that through Sprint. Instead, they built a recommended usage plan based on reviewing actual use over the last several months.”

Clear/Clearwire's modems and routers were designed to work with their WiMAX network, which is being decommissioned. This equipment will be obsolete and cannot be reused on a new provider.

Clear/Clearwire’s modems and routers were designed to work with their WiMAX network, which is being decommissioned. This equipment will be obsolete and cannot be reused with a new provider.

Page was offered a 30GB plan adequate for his parents, but the quoted price of $110 a month was more than twice the price of Clearwire. The family also had to pay $200 for a replacement modem compatible with Sprint’s LTE network to replace the Clearwire WiMAX modem that isn’t.

“No consideration for Clearwire customers, no special promotions, no loyalty discounts, nothing for customers like us who have been with Clearwire for almost five years,” Page complained. “When Alltel was sold off and their network was changed, customers were given a free replacement phone as a courtesy, but Sprint seems to care less about us.”

Sprint acquired Clearwire in 2013 mostly for its massive spectrum holdings in the 2.5GHz band. After the deal closed, Sprint fired 75% of Clearwire’s workforce and began planning the end of Clearwire’s legacy WiMAX network, also familiar to first generation 4G Sprint customers who used it before the launch of LTE service.

Clearwire’s higher frequency spectrum never penetrated buildings well and did not reach as far as wireless signals on lower frequencies, which meant Clearwire was required to build a large cellular network to deliver reasonable service. Sprint inherited 17,000 Clearwire-enabled cell sites in the deal, many deemed redundant. A Sprint filing with the Securities & Exchange Commission indicated Sprint was shutting down no fewer than 6,000 of those sites by the end of this year, with the remaining transitioned to TD-LTE service as part of the Sprint Spark project.

The change will allow Sprint to better monetize its 2.5GHz spectrum by selling usage-based plans and more expensive home wireless broadband service. It’s the second major wireless technology shutdown organized by Sprint. In 2013, Sprint shut off the last 800MHz iDEN Nextel cell site inherited from its acquisition of Nextel. Sprint now provides LTE 4G service over the frequencies formerly used by Nextel.

Page was not happy with Clearwire’s alternative through Sprint, and remarkably the representative then suggested his family should sign up for Comcast service instead.

“I was floored to hear a representative working on behalf of Sprint recommend Comcast,” Page said.

It isn’t the first time Clearwire has done this:
clearwire sprintClearwire’s own Facebook page was abandoned in 2013, presumably right after its sale to Sprint was complete. Stranded customers are complaining about the impending loss of service and the lack of alternative options and information.

Wireless 'n WiFi's high usage data plan has gotten good reviews from Stop the Cap! readers,  although it is expensive.

Wireless ‘n WiFi’s high usage data plan has gotten good reviews from Stop the Cap! readers, although it is expensive and relies on Sprint’s less-than-great network.

Unfortunately, the Page home is not serviced by Comcast and DSL from CenturyLink is not an option either. Page and his immediate neighbors are instead joining a group “family plan” on a wireless carrier and will share a Wi-Fi hotspot that can reach three homes. It technically violates the terms and conditions of most family plans to share a connection in this way but it is the only affordable choice the families have for now.

Those rural Clearwire customers who cannot subscribe to cable or DSL broadband might also explore some options from Wireless ‘n WiFi, which sells high limit 3G/4G LTE plans that work on Sprint’s 3G and 4G networks.

Their current plan offers up to 60GB of usage per month, up to 30GB of which can come from using Sprint’s 3G network. The service costs a still steep $109.99 a month (including all taxes and fees) and comes with additional startup costs:

  • Rental of NetGear 341u USB modem and MBR1200B Cradlepoint Wi-Fi Router ($100 equipment deposit required, refunded when equipment returned)
  • $49.99 Activation Fee
  • $8.95 Priority Mail Shipping (for Equipment)
  • $268.93 total startup cost includes all charges referenced above (not including monthly service fee)

Service is month-to-month, no term contract. Overlimit fee is $5/GB.

freedompop plans

Some lighter users report reasonably priced service is available from FreedomPop, as long as you are careful to avoid over 10GB of usage per month ($59.99) and you turn off revenue generators like automatic top-off and other various extras they pitch (including data rollover if you find you use up most of your monthly allowance anyway).

Fine Print Fun: Sprint Backs Off From Throttling All Wireless Video Traffic to 600kbps

sprint all inSprint’s all-new “All-In” wireless plan was supposed to simplify wireless pricing for consumers by bundling a leased phone, unlimited voice, data, and texting for a flat $80 a month, but customers slogging through the fine print discovered speed throttling and roaming punishments were silent passengers along for the ride:

To improve data experience for the majority of users, throughput may be limited, varied or reduced on the network. Streaming video speeds will be limited to 600Kbps at all times, which may impact quality. Sprint may terminate service if off-network roaming usage in a month exceeds: (1) 800 min. or a majority of min.; or (2) 100MB or a majority of KB. Prohibited network use rules apply—see sprint.com/termsandconditions.

Although many smaller wireless carriers also have limits on off-network roaming usage, none have proposed to permanently throttle web videos to a frustratingly slow 600kbps. At those speeds, Sprint customers could expect buffering delays or degraded HD video.

Many customers contemplating switching to the All-In plan considered the speed throttle a deal-breaker and let Sprint know through its social media accounts. Even websites friendly to Sprint were very critical of the plan:

Sprint 4G Rollout Updates:

We just aren’t seeing the new and innovative thing with All In. You already have plans that price out the same way as All In (some even less expensive). It appears as a marketing gimmick that is disguising a desperate move to limit streaming. This is not popular with your current customers and your new customers are likely going to hate you for it. After they find out.
Marcelo, it’s really bad that David Beckham touts unlimited movie watching and you reference unlimited watching videos in your Press Release. 600kbps video streaming can hardly run any YouTube or Netflix streaming. It will buffer significantly even with the lowest resolution settings. 600kbps is insufficient for most moderate quality video streaming on a smartphone screen.



Sprint CEO Marcelo Claure got the message and announced late yesterday the video speed throttle was gone, but general network management would remain.

“At Sprint, we strive to provide customers a great experience when using our network,” said Sprint CEO Marcelo Claure. “We heard you loud and clear, and we are removing the 600 kbps limitation on streaming video. During certain times, like other wireless carriers, we might have to manage the network in order to reduce congestion and provide a better customer experience for the majority of our customers.”

Claure has been hinting the days of unlimited data from Sprint may be coming to an end sometime in the near future. Sprint is among the last carriers that offer a truly unlimited experience, and some customers have used Sprint as a home broadband replacement and have created congestion issues as they consume hundreds of gigabytes of wireless data, which can slow Sprint’s network to a crawl in some areas. T-Mobile experienced similar issues and recently updated their terms and conditions to apply a speed throttle after 21GB of usage during a billing cycle.

Unlimited 4G LTE customers who use more than 21 GB of data in a bill cycle will have their data usage de-prioritized compared to other customers for that bill cycle at locations and times when competing network demands occur, resulting in relatively slower speeds. See t-mobile.com/OpenInternet for details.

Customers report in high volume areas speeds drop well below 1Mbps if they are temporarily sentenced to “speed jail.”

Many of those attempting to use a wireless carrier as their primary home broadband connection do not do so because of convenience or selfishness. Often, they have no other choice because they are bypassed by cable operators and not served by DSL. But it does not take too many customers to start creating problems for wireless carriers if a nearby cell tower becomes congested. Online video is probably the most bandwidth intensive application for wireless companies, especially HD video streaming. The growth of video traffic also raises questions about whether AT&T and Verizon’s efforts to move rural customers to an all-wireless phone and data platform will work well for the companies or customers.

LTE-Unlicensed: How the Wireless Industry Plans to Conquer Your (and the Cable Industry’s) Home Wi-Fi Hotspot

special reportWith billions of dollars in new revenue and royalties to be made, Qualcomm and some members of the wireless industry are pushing regulators to quickly approve a new version of LTE wireless technology that will share many of the same frequencies used by home and business Wi-Fi networks, creating the potential for speed-killing interference.

Wireless operators believe LTE-Unlicensed (LTE-U) could be used to offload much of the growing wireless data traffic off traditional 4G LTE wireless data networks. With the cost of securing more wireless spectrum from regulators growing, LTE-U technology would allow operators like AT&T, Verizon, Sprint and T-Mobile to use the U-NII-1 (5150-5250MHz) and U-NII-3 (5725-5850MHz) unlicensed bands currently used for Wi-Fi to deliver high-speed wireless broadband traffic to their customers.

Qualcomm and Ericsson, behind the newest iteration of LTE, have a vested interest promoting it as the ideal choice for metrocell, indoor enterprise, and residential small cell applications. Every manufacturer incorporating LTE-U technology into everything from carrier-owned microcells to smartphones will owe royalty payments to both companies. With billions at stake, Qualcomm is doing everything possible to tamp down fears LTE-U signals will create harmful interference to Wi-Fi signals.

qualcomm lte-u

http://www.phillipdampier.com/video/CES2015 Qualcomm Demonstrates LTE-U 1-2015.mp4

At the Consumer Electronics Show in Las Vegas held in January, a Qualcomm representative went as far as suggesting LTE-U will improve home Wi-Fi service. (5:42)

RCRWireless News:

[Qualcomm] set up a screened room with eight pairs of access points occupying the same channel and added Wi-Fi access-point terminals in one room and LTE-U terminals in another. The results show the average throughput of 3.3Mbps with Wi-Fi alone more than doubled to 6.7Mbps when the LTE-U access point was introduced.

In another test to show that LTE-U is a better neighbor to Wi-Fi than Wi-Fi itself, they took eight Wi-Fi nodes and replaced four of them with LTE-U nodes, the result of which showed a 1.9Mbps increase in average Wi-Fi throughput. In almost every test, the LTE-U enhanced network outperformed traditional Wi-Fi.



Industry observer Dave Burstein is concerned advocates of LTE-U are trying to rush approval of the technology without verifying Qualcomm’s non-interference claims.

“The telcos are considering 40 and 80MHz channels that could easily swallow half of more of the Wi-Fi spectrum,” Burstein writes in response to an EE Times article about the technology. “If Wi-Fi is important, that’s a mistake to allow. Advocates are trying to rush it through even though there is not a single independent test or field trial.”

Qualcomm dismisses the interference complaints pointing to its own research showing the two standards can co-exist adequately. But multi-billion dollar wireless companies with nationwide Wi-Fi networks at stake are far less confident. In fact, LTE-U has already divided the two largest wireless carriers in the United States. Verizon Wireless is an original proponent of LTE-U while AT&T has expressed “concern,” a polite way of saying it isn’t happy. What separates AT&T and Verizon Wireless? AT&T has invested in a nationwide network of more than 34,000 Wi-Fi hotspots. Verizon offers just over 5,000, most for FiOS customers or those in especially high traffic venues.

A Stanford University professor with no ties to Qualcomm or the wireless industry privately shared his belief allowing 5GHz Wi-Fi signals to commingle with LTE-U is going to cause problems.

lte-u-unlicensed-spectrum-v3The development of “Wild West” Wi-Fi has always tracked differently than the licensed cellular/wireless business. Over more than a decade, evolving Wi-Fi standards have come to expect interference from other nearby Wi-Fi signals. In a densely packed city, more than two dozen Wi-Fi signals can easily be found all competing for their own space across the old 2.4GHz and newer 5GHz unlicensed bands.

Wi-Fi proponents credit its robustness to its “politeness protocol.” Before a wireless router or home hotspot fires up its Wi-Fi signal, it performs several tests to check for other users and constantly adjusts performance by backing off when it discovers interference from other signals. That is why a user can receive strong Wi-Fi signals but still endure reduced performance, as the hotspot accommodates nearby hotspots and other traffic.

It works reasonably well, according to Rupert Baines, a consultant at Real Wireless.

“But [Wi-Fi signals] are delicate, and they rely on implicit assumptions that there aren’t other things there (or aren’t too many),” Baines told EE Times. “In effect, they behave as though the unlicensed band were not technology neutral but were Wi-Fi only.”

The intrusion of LTE-U changes everything.

http://www.phillipdampier.com/video/Wireless Week Tuesdays with Roger LTE-Us Gain is Wi-Fis Loss 3-24-15.flv

On the March 24, 2015 episode of Tuesdays with Roger, Recon Analytics’ founder Roger Entner talks with Wireless Week about the questions raised as major carriers, including T-Mobile and Verizon Wireless, plan to launch LTE into unlicensed territory. Concerns abound, particularly for consumers and companies who rely on Wi-Fi and don’t want licensed use in unlicensed bands to interrupt that service. (7:31)

Change in and of itself is not necessarily a bad thing, especially if LTE-U is superior to Wi-Fi, and some proponents suggest it is. Jag Bolaria, an analyst at The Linley Group, argues LTE better manages data/call handoff better than Wi-Fi access points can. LTE is also a more efficient spectrum user than Wi-Fi.

Last week, South Korea’s LG U+ demonstrated LTE-U was capable of 600Mbps speed, eight times faster than traditional LTE. But to accomplish that level of speed, LG U+ had to occupy 60MHz of bandwidth in the 5.8GHz band and allocate an extra 20MHz from its traditional LTE service. The company plans to further expand its use of South Korea’s 5.8GHz unlicensed band by occupying 80MHz of it to further boost speeds to 750Mbps. But the company did not say how the tests affected others sharing the same frequencies.

If LTE-U is superior, then why not gradually move every user towards the technology and away from Wi-Fi?

Aptilo Networks AB CEO Torbjorn Ward answers LTE-U is a solution in search of a problem.

“I think LTE on unlicensed sounds like a good idea if it wasn’t for the fact that there are four billion devices on Wi-Fi out there,” he told Light Reading, noting that 802.11ac can already run at 100Mbps, so there’s little need for the LTE boost. “I think when it comes to unlicensed, you can do a longer range with LTE, but I don’t see the full benefit.”

That does not seem to matter to LTE-U’s developers or cell phone companies that lack robust Wi-Fi networks of their own.


In the original Qualcomm/Ericsson proposal, both companies promote the fact they could launch LTE-U in the unlicensed Wi-Fi bands “as-is.” That is a big problem for AT&T and other Wi-Fi users because LTE-U evidently employs few, if any protection protocols in its initial specifications for other traffic. Verizon Wireless is reportedly lobbying against the development of interference protection protocols and has publicly asserted its interest in deploying LTE-U regardless of other users.

“In [the] USA, there are no requirements for unlicensed deployment that require changes to LTE air interface,” Verizon stated in its proposal: “New Band for LTE deployment as Supplemental Downlink in unlicensed 5.8GHz in USA.”

LTE-Unlicensed has been characterized as "rude" for not avoiding interference to other users.

LTE-Unlicensed has been characterized as “rude” for not avoiding interference to other users.

Clint W. Brown, business development director of mobility wireless connectivity at Broadcom, and a vice-chairman of the Wi-Fi Alliance counters it is premature to approve LTE-U in the unlicensed Wi-Fi band without more testing and information about its interference protocols.

“We’ve heard about the tests they’ve done, but it’s not factual,” Brown told EE Times. We haven’t seen the data and we don’t know how the tests were set up. First, I’d like to see if [LTE-U] can detect low-level signals. Second, I want to make sure it features a ‘Listen before Talk’ decision process so that LTE-U will wait for an opening rather than barging into the conversation already taking place in the unlicensed spectrum. Third, there should be a back-off mechanism, when it sees a collision. “We aren’t aware of any publicly available documents explicitly stating those attributes.”

The Federal Communications Commission has also now taken an interest and issued a public notice asking stakeholders and consumers to share their thoughts on LTE-U and a companion technology known as Licensed Assisted Access (LAA) that would hand off data sessions between a wireless carrier’s traditional 4G LTE network and LTE-U.

The makes the discussion political as well as technical. The FCC traditionally permits industry groups to define standards, but Republican Commissioner Mike O’Rielly now worries the FCC might butt into that process.

“The decision to jump into this space rather casually causes me great concern,” O’Rielly said. “In particular, any step that could insert the commission into the standards work for LTE-U comes with great risk. I will be vigilant in ensuring that the commission’s involvement does not result in taking sides with various stakeholders, hindering technological innovation, or having any say about what technologies should or should not be deployed.”

monopolyFor the moment, O’Rielly’s concerns about the FCC are premature as long as a division exists over LTE-U among many of the industry players:

  • Companies FOR LTE-U: Verizon, China Mobile, Qualcomm, Ericsson, NTT DoCoMo, T-Mobile USA, Deutsche Telekom, TeliaSonera, and China Unicom.  Equipment manufacturers also in support: Nokia, NSN, Alcatel-Lucent, LG, Huawei, ZTE, Hitachi, Panasonic, and others;
  • Companies AGAINST LTE-U (as now defined): Orange, Telefónica, Vodafone, AT&T, Sprint, SouthernLINC, US Cellular, DISH and a handful of vendors.

Burstein also uncovered evidence the wireless industry may be stacking the deck against increased competition and consumers. He found 11 of the world’s largest wireless companies (including AT&T, T-Mobile, and Sprint) quietly colluding on a proposal that would block anyone other than currently licensed LTE users from being able to use LTE-U on a standalone basis. The opaquely-titled proposal, “Precluding standalone access of LTE on unlicensed carriers,” is at least frank about its reasoning: “Standalone deployment in unlicensed spectrum implies drastically different business models from nowadays and might impact the value chain.”

In other words, if consumers are able to get savings from LTE-U using a new generation of non-traditional providers like Republic Wireless or Cablevision’s Freewheel that do not depend primarily on cellular networks, it could cost those 11 traditional wireless companies billions in lost revenue. To stop that, the companies propose requiring a special LAA “guard signal” to stop standalone access of LTE-U. Since only licensed cell phone companies have access to those frequencies, it automatically locks out new upstarts that lack mobile spectrum of their own.

Sneaky insertions like that may be exactly why the Obama Administration’s FCC is being more activist about monitoring the wireless industry, potentially cutting off anti-competitive proposals before they can become adopted as part of a formal technical standard.

http://www.phillipdampier.com/video/Fairness to Wi-Fi and LTE unlicensed 5-8-2015.mp4

RCRWireless News gets deep into the development of LTE-Unlicensed and how it will impact cellular infrastructure, Wi-Fi and small cells. (25:39)

Killing Off Affordable Rural Internet: BMI Loses $99 Sprint Unlimited, Gains 10GB Verizon Plan for $100

bmi.net-logoRural Americans who cannot get cable broadband or DSL will now pay more money for less service as wireless carriers continue to cancel affordable mobile broadband plans with a generous usage allowance in favor of premium-priced, stingy usage-capped wireless Internet.

Two weeks after Millenicom was forced to drop affordable Verizon wireless broadband service, Blue Mountain Internet received word its unlimited Sprint broadband reseller agreement was being terminated the following day, forcing the company to hurry out cancellation notices to affected customers.

“We received notification yesterday from our upline provider that our mobile broadband accounts utilizing the Sprint network (Net2) will all be cancelled on Friday, Oct. 31st, 2014,” the company wrote in an email to customers. “We apologize for the short notice but we just received notice yesterday.”

BMI had offered customers an unlimited use mobile broadband plan from Sprint for $99 a month. It has been replaced with a Verizon plan that costs a dollar more and comes with a 10GB monthly data allowance with a steep $20/GB overlimit fee. “Heavy users” can pay $120 a month for a monthly allowance of 20GB. Affected customers intending to switch to Verizon get a discount off the monthly plan price if they pay quarterly: $85 (10GB) or $100 (20GB).

Blue Mountain Internet Mobile Broadband Rental Prices & Plans

Package Network Traffic Traffic Email AV Optimizer Best Price Monthly Quarterly
      Optimized Accts Licenses Software paying quarterly 3 months
VMBB-HalfGig 1 1/2Gb 1.5Gb 1 1 Yes $19.99/Mo $24.95 $59.97
VMBB-1GB 1 1Gb 3Gb 1 2 Yes $34.95/Mo $39.99 $104.85
VMBB-3GB 1 3Gb 9Gb 1 2 Yes $52.95/Mo $59.99 $158.85
VMBB-5GB 1 5Gb 15Gb 1 2 Yes $69.99/Mo $79.99 $209.97
VMBB-10GB 1 10Gb 30Gb 1 2 Yes $84.95/Mo $99.99 $254.85
VMBB-20GB 1 20Gb 60Gb 1 2 Yes $99.99/Mo $119.99 $299.97
Plan Details: Network 1 Overages are charged at a rate of $20/Gigabyte – regardless of plan. Hardware options available or you can bring your own device (BYOD). Traffic optimizer software is free for Windows & Macintosh. Optimizer does not compress video or already compressed files.

EVDOinfo notes that with Millenicom and BMI losing their relationships with Verizon and Sprint respectively over the course of just one month, “it seems unlikely that we’ll see another [reseller] emerge with a no-contract, high-data plan using one of the major carriers’ networks.”

Millenicom customers were being offered a slightly different plan if they agreed to switch to a Verizon Wireless account: 20GB a month for $99 with a $15/GB overlimit fee. Customers signing up for a “More Everything” plan will pay considerably more. A 30GB plan with a mobile hotspot device costs $150 a month, not including fees and taxes. A one-year contract commitment usually applies.

Sprint Realizes Not Everyone Wants a $200 Cell Phone Bill: Announces $20, 1GB Family Data Plan

budgetIf your family budget cannot handle a $200 monthly cell phone bill from AT&T or Verizon and you can keep your data usage to around 1GB, Sprint has a deal for you.

On Wednesday, Sprint unveiled a low-end family data plan offering 1GB of data for $20 a month, an improvement over the 600MB data option Sprint used to offer. It’s also a better deal than the 500MB $20 buys you on Verizon’s network or the piddling 300MB AT&T delivers on its budget plan.

“This entry-level sharable data allowance reinforces Sprint’s commitment to offering customers the best value in wireless,” said Marcelo Claure, Sprint CEO. “We’re offering customers a choice – whether they need a small amount of data or are a high-end data user.”

Customers can build their own plan in three steps. First, choose the shared data allowance. For 1GB, it’s $20 per month for up to 10 lines. Second, add data access for phones with unlimited talk and text while on the Sprint network. The data access charge for non-discounted phones is $25 per month per line for 1GB through 16GB. Third, add your tablet devices for $10 per month per line and mobile broadband devices for $20 per month per line. There is no early termination fee and no annual service contract with non-discounted phones.

In addition, when customers switch their number to Sprint, a family with up to 10 lines can get 20GB of shared data and unlimited talk and text for only $100 a month through 2015.

This chart reflects a 2GB shared data plan for two lines that amounts to $75 a month before taxes, fees and surcharges.

This chart reflects a 2GB shared data plan for two lines that amounts to $75 a month before taxes, fees and surcharges.

Since wireless carriers discovered reports of a spectrum crisis were vastly exaggerated, they have fallen all over each other with “double your data” promotions and other allowance boosters. Sprint’s family plans allow customers to divide up an inexpensive data plan across all phones on the account. If you spend most of your time on Wi-Fi or share an account with parents or grandparents not accustomed to using much data, Sprint’s plan may deliver enough data to satisfy.

Sprint has hemorrhaged its high-end customers for several quarters, mostly because its 3G data service is barely usable and its new 4G LTE network has rolled out at the typical speed of a glacier and its performance has not always impressed. Sprint has cut prices and is trying to find a stable niche among budget-conscious postpaid customers unwilling to pay AT&T and Verizon’s asking price but are willing to tolerate reduced coverage in favor of a better price. Sprint and T-Mobile are both competing for these customers. Verizon says it cannot be bothered being seen as a discount carrier, and AT&T is committed to keeping its average revenue per customer numbers growing.

Framily Values: Sprint’s Dan Hesse Out, What T-Mobile Merger? and Major Layoffs Ahead

Out: Hesse

Out: Hesse

Sprint CEO Dan Hesse has left the building. He won’t be the last.

Hesse was appointed to lead Sprint in December 2007 after the catastrophic mess created when Sprint and Nextel merged. Now he’s gone because of his catastrophic failure to convince regulators a merger with T-Mobile USA made sense.

Brightstar Corporation CEO Marcelo Claure, appointed to Sprint’s board of directors by Softbank Mobile CEO Masayoshi Son earlier this year, is now in charge, and his commitment to save Sprint isn’t much different from what Hesse promised almost seven years earlier.

“The strategy is simple,” Mr. Claure said in an interview Monday. “We have to get back in the game.”

On a company-wide town hall call on Thursday, Claure outlined his three priorities: cut prices, improve the network, and decrease operational costs. Priority number one, price reductions, which have already started.

In: Claure

In: Claure

Claure blasted Sprint’s current pricing models, which he admitted were out of line considering how bad Sprint’s network is these days. He also trashed Sprint’s upgrade efforts, calling the “rip and replace” method of upgrading individual cell sites too slow, admitted social media networks were loaded with negative comments about Sprint’s performance, and that absolutely nobody understood the company’s most recent marketing attempt – a talking hamster selling Sprint’s Framily plan.

“We’re going to change our plans to make sure they are simple and attractive and make sure every customer in America thinks twice about signing up to a competitor,” he said. “When you have a great network, you don’t have to compete on price. When your network is behind, unfortunately you have to compete on value and price.”

Sprint’s network isn’t just behind, it’s downright prehistoric in places. Its 3G network borders on unusable in large cities, WiMAX is on life support, and Sprint’s 4G LTE network expansion is taking so long, by the time it is finished, LTE might be considered passé.  Hesse had avoided a more aggressive timetable to protect Sprint’s share price from the precipitous drop that would come from an upgrade spending spree.

Those days are over.

Claure warned the changes for Sprint would not just include price cuts and upgrades. It will also mean major job cuts, although Claure would not specify exactly how many Sprint employees were headed for the unemployment office. Unlimited data may also be headed for the door – Claure would not commit to retaining the unlimited use wireless data plans Sprint has been known for under Hesse’s leadership. Kansas City officials are also worried Sprint’s new executive team wants to move the company headquarters west, likely to California.

sprintnextelMasayoshi Son and Claure both agree that U.S. regulators were no fans of Sprint either — sending clear and unambiguous warnings that continued efforts to merge Sprint with T-Mobile USA were futile. So a proposed merger between the two companies is off. T-Mobile USA CEO John Legere wasted no time piling on, advising Sprint customers in tweets to #SprintLikeHell to another wireless carrier (preferably his).

Some predictable grumbling from Wall Street has also been heard over Claure’s plans to disrupt the comfortable profits earned by American wireless companies.

“Expect capital spending to rise,” says analyst firm Moffett Nathanson in a research note. “They will also have to cut their service prices, which are simply are too high relative to competitors.”

With a dramatic cut in prices, Sprint’s financials will look “ugly” in the coming quarters.

http://www.phillipdampier.com/video/Bloomberg Here is Why Sprint Stopped Talks With T-Mobile 8-6-14.flv

Sprint ended talks to acquire T-Mobile US a person with knowledge of the matter said, as regulatory concerns outweighed the potential benefits of combining the third- and fourth-largest U.S. wireless carries. Bloomberg’s Alex Sherman reports on “Market Makers.” (4:07)

http://www.phillipdampier.com/video/Bloomberg Sprint Faces Tough Road Running Business 8-6-14.flv

Craig Moffett, founder of MoffettNathanson LLC, talks about reports of Sprint Corp.’s decision to end talks to acquire T-Mobile US Inc. due to regulatory concerns. Moffett speaks with Tom Keene and Brendan Greeley on Bloomberg Television’s “Surveillance.” (3:25)

http://www.phillipdampier.com/video/Bloomberg Sprints Dropped T-Mobile Bid Adds Options Ergen 8-7-14.flv

Dish Network Chairman Charlie Ergen said Sprint’s decision to drop its bid for T-Mobile US has opened up more options for his satellite-TV carrier as it looks for ways to expand into the wireless business. Alex Sherman reports on “In The Loop.” (4:01)

http://www.phillipdampier.com/video/Bloomberg Sprint CEO Right Man for Right Company 8-11-14.flv

Patterson Advisory Group Chairman and CEO Jim Patterson and Bloomberg Intelligence Telecom Analyst John Butler discuss challenges facing Sprint’s new CEO Marcelo Claure. Patterson and Butler speak on “In The Loop.” (5:47)

http://www.phillipdampier.com/video/Bloomberg Is Sprints New CEO up to the Challenges He Faces 8-11-14.flv

Bill Ho, principal analyst at 556 Ventures, and Bloomberg Intelligence’s John Butler discuss expectations for Sprint’s new Chief Executive Officer Marcello Claure and look at the challenges he faces as the head of the nation’s number three wireless company. They speak on “Market Makers.” (6:56)

The Talking Hamster is Dead: Sprint Kills Its Framily Plan, Unveils Cheaper Shared Data


The Frobinson Family

Sprint’s Framily Plan swims with the fishes starting this Friday.

Ex-CEO Dan Hesse’s latest (and last) attempt to get creative with a talking hamster selling cell service was a fantastic flop.

“There’s no longer going to be Framily as of this Friday,” incoming CEO Marcelo Claure said to employees, who oohed and applauded the forthcoming eviction of the eclectic Frobinson family.

Framily was the closest Sprint came to a desperate multi-level marketing scheme that turns customers into irritating recruiters hassling friends, family, and strangers to join their wireless plan for bigger discounts.

Framily began earlier this year offering four lines for $160 a month with 1GB of data each. Unlimited data was a $20 add-on.

T-Mobile’s John Legere mocked the plan from day one and more importantly obliterated its savings by undercutting it with T-Mobile’s Simple Choice plan ($100 a month for four lines and 2.5GB of data on a much faster network.)

evictionEven worse, if you were convinced to sign up for Framily and another member of your “extended family tree” decided Sprint’s network disruptions and performance were no longer worth the trouble, every other family member’s bill increased when they defected — talk about an awkward moment with friends and family.

“It’s quite the confusing plan to sign up and more confusing when people drop off,” said Roger Entner, founder of Recon Analytics. He noted Sprint’s network disruptions from the extensive upgrade effort had sent some customers packing.

“If Sprint doesn’t work for them, your price goes up. So you get penalized for Sprint’s network,” Entner said.

Out with the Frobinson Framily, in with Sprint’s Family Share Pack.

Starting Friday, the Sprint Family Share Pack will offer considerably more data for that $160 a month. At that price, Family Share offers four lines and 20GB of data, compared to 10GB of data for the same price from AT&T or Verizon. Really big families will appreciate Sprint’s support for up to 10 lines on one account. Existing customers won’t appreciate the fact Sprint won’t offer existing customers any promotions or discounts.

A kick-off offer promises even lower prices if you don’t mind sharing data. For $100, a family of four can share 20GB of data and unlimited talk/text through the end of 2015. As an added bonus, customers will get an extra 2GB per line for up to 10 lines. (The $100 offer is available Aug. 22 – Sept. 30, 2014 only when customers switch to Sprint. It includes $15 a month in line access charges waived through 2015. Valid only on 20GB or higher data allowance plans.)

For example:

Sprint Family Share Pack  Limited-Time Promotion
Price # of lines Data Additional 2GB per line Total Data for # of lines
$100 4 20GB 2GB x 4 lines 28GB
$100 10 20GB 2GB x 10 lines 40GB

Sprint Family Share Pack – How it Works

Customers can build their own plan in three steps as shown below.  First, choose the data allowance. Second, add up to 10 lines of data access with unlimited talk and text while on the Sprint Network.  Third, include your tablet devices for $10 per month per line and mobile broadband devices for $20 per month per line. There is no early termination fee and no annual service contract with non-discounted phones.

Sprint Family  Share Pack High Res2
Everyday pricing for competitors that have shared data plans:
Competitors-Shared-Pricing-Data-Plans2Limited-time Promotion for Customers Switching to Sprint Family Share Pack

For a limited time, customers who bring their number and activate on the Sprint Family Share Pack can receive a Visa Prepaid Card up to $350 to compensate for early termination fees charged by their current carrier. This switching offer will be available at Sprint stores and Sprint Telesales.

With the limited-time promotion, Sprint is waiving the data access charge for handsets, tablets and mobile broadband devices on 20GB or higher data allowances for up to 10 lines. To qualify for the offer customers must switch their number from another carrier to Sprint.   All devices must be purchased through Sprint Easy Pay. Existing customers do not qualify.


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