Confirmed: T-Mobile to Discontinue @Home service
January 12, 2010 at 4:33 am | In Uncategorized | Leave a CommentTags: @Home, @Home Service, Hotspot @Home, UMA, Wireline replacement
Update (Feb. 2010): T-Mobile confirms this (currently unofficial) rumor: @Home Service will be discontinued as soon as the current set of inventory (@Home routers) is sold, so if you like this service, go get the hardware now. T-Mobile will support existing subscribers. This removes the best wireline replacement service currently on the market in the U.S., as T-Mobile turns instead to focus on wireless-only services. Bad news for anyone that still likes to use a wireline phone (example: I use an excellnt Polycom conference phone for hours at a time in my home office).
Rumors are circulating that T-Mobile is about to discontinue their @Home service (although I have been unable to confirm this officially). Although these rumors refer to a statement made on January 7th by a T-Mobile rep, there is no official mention of it on the T-Mobile web site. Strange. Even the purported T-Mobile statement is vague, and gives no clear reason for the change.
If true, then my interpretation is that T-Mobile is focusing less on the interim step (supporting wireline use with a VoIP product delivering small profit) and is focusing more on the destination, mobile-only use (and wireline replacement). This is consistent with the original rumor that referenced COO dislike for its lack of profitability, reported by Boy Genius in December.
This would remove an attractive alternative for some consumers that are cutting the cord, but prefer to still maintain wireline (and cordless) devices in their home. For those that are interested in eliminating their telephone and Long Distance bills, please check out the menu of options that I just reviewed.
Here are links to the rumors (and I would welcome definitive news of this, if it exists):
- RUMORS – RUMORS- RUMORS – RUMORS- RUMORS – RUMORS- RUMORS – RUMORS -
T-Mobile shuts down @Home landline replacement service
January 8, 2010 — 7:49am ET | By Sean Buckley
“T-Mobile was so confident that its @Home landline replacement service would be such a draw for consumers that when it introduced the service in July 2008 it had a commercial showing a woman cutting down phone lines with a chain saw. Cautioning consumers not to literally cut down lines, the @Home service tried to sell the idea that you could cut the phone company’s cord and get dirt cheap calling through your broadband line. But with so many new broadband VoIP options on the market, the @Home service never took off the way T-Mobile envisioned it and now it’s going to stop selling the service. T-Mobile will, however, support existing @Home customers.
The idea was simple enough. For $10 a month, a user could make unlimited local and long-distance calls by plugging a T-Mobile provided box into their respective cable or DSL broadband line. Although T-Mobile did not disclose why it’s cancelling the service, it’s likely that T-Mobile realized just as did Verizon when it canceled its Hub service last fall that its customers would just use their wireless phone instead of a new landline replacement service
- MORE RUMORS – MORE RUMORS- MORE RUMORS- MORE RUMORS- MORE RUMORS -
No One’s @Home: T-Mobile Axes Landline Replacement
01/07/2010
T-Mobile USA said Thursday it will no longer sell its @Home landline replacement service, although it will continue to support the customers already using it. The Deutsche Telekom-owned wireless service provider introduced T-Mobile@Home in July 2008; for $10 per month, the product – a box plugged into a broadband connection and landline phone – allowed subscribers to make unlimited local and long-distance calls. T-Mobile didn’t say why it’s yanking @Home, but rival Verizon Wireless last fall axed its similar offering, Hub, because customers relied on wireless services rather than the landline replacement option. It’s fair to speculate that T-Mobile’s users are following much the same patterns. T-Mobile emphasized the @Home decision does not impact the company’s Unlimited HotSpot Wi-Fi service.
- ORIGINAL RUMOR- ORIGINAL RUMOR- ORIGINAL RUMOR- ORIGINAL RUMOR-
T-Mobile to discontinue @Home service
by Kelly Hodgkins on January 7th, 2010
About a month ago, one of our tipsters hit us up to let us know that T-Mobile was probably in the process of shutting down their @Home service. The @Home service allowed T-Mobile customers to make home phone calls via a T-Mobile router connected to the internet. The @Home service was an available add-on to most wireless service plans offered by T-Mobile for a modest $10/month. Bad news for future @Home customers, though, because another circulating rumor confirms what we reported a month ago — T-Mobile has supposedly halted future investment in the @Home service. Current customers can continue to use the service and T-Mobile will continue to support it for the time being. Once the current inventory of @Home routers has been sold, T-Mobile will no longer offer this service to new customers, though. Any T-Mobile customers interested in jumping on board, should do so tout de suite.
Eliminate your phone bill & Save $1,000/year: Cut the Cord!
January 10, 2010 at 4:01 am | In Uncategorized | Leave a CommentTags: @Home Service, Femto, Hotspot @Home, Wireline replacement
Save $1,000 per year by eliminating your Residential and Long Distance charges!
You can get more for far less: eliminating your $70 Telephone and Long Distance bill, and obtain the same services (and unlimited use) for $10/month. I’m saving $100/month in combined savings of telephone, Long Distance, and feature charges. Which would you choose:
Follow the flow chart and see which of the following options is best for you:
Several plans exist that allow you to get more for less: maintain the same telephone service (i.e., no changes in how you use the phone or the features that you expect to receive) at a fraction (15%) of the price. You can use these plans with assurance, as these plans work, are well-reviewed, widely-available, and are mature. These services have been serving customers for 5 years, so jump in the pool! The water is fine.
What you choose depends on your preferences:
- Fixed at home
(“I prefer to use wireline and cordless phones when at home, and do not intend to use a mobile phone”) - Fixed at home & mobile away from home
(“I prefer to use wireline and cordless phones when at home instead of my mobile phone”) - Mobile-only
(“I prefer to make/receive all of my calls with my mobile phone”)
A) You prefer: Fixed at home
You just want to reduce your costs without having to change the way that you use the phone.
Your Choices: You can obtain Internet telephone service from Vonage (in the U.S.), your Cable company, and your local Telephone company, in order of increasing cost (and decreasing savings). Many folks that are considering this step will prefer to choose a trusted partner–the existing Telephone company. However comforting, obtaining a replacement service from the phone company will likely save you less. But check out the prices and see for yourself which price plans are best for you. Beware of “teaser” rates, such as $9.99/month (small print: only for the first X months, then increasing to a much higher monthly rate). This option is increasingly unattractive: since nearly everyone has a mobile phone, why not consider a choice that gives you all of these benefits as a bundle with your mobile service (next Option B)? For more information on this option, please see the excellent, recent article “Switch to Internet Calling” [Glenn Fleischman, MacWorld, October 2009]–an excerpt of his article is available online here.
Vonage, for example, offers a basic $18/month 500-minute plan. Please note that this is far inferior to the $10/month bundle that you can achieve with T-Mobile’s @Home service (described is the “Savings Example” above, and below under “Fixed at home and Mobile away”).
Note: You do not have to lose your phone number; you may keep your home phone number and “port” your number to your Internet phone (or to another service, such as Google Voice, that bridges your home phone number with one or more devices, including your mobile phone, office phone, etc.). To keep your phone number, be sure to request this when you sign up for service with your new carrier, as they will take responsibility to promptly and seamlessly make this change.
Advantages:
Average cost savings of $37/month (using FCC averages, your savings will depend on your current bill)
Disadvantages:
Obtaining telephone service from a cable/Internet company means that you are more likely to keep their service.
Potentially poorer customer service (harder to troubleshoot than keeping service from the Telco).
B) You prefer: Fixed at home & Mobile away from home
You want to keep your existing home phone number and devices (along with cordless phones and answering machines), but you also use a cell phone
Your Choices: Mobile phone companies are starting to offer this option: a bundle that replaces your wireline service, while allowing you to keep your home phone number and devices. T-Mobile offers an excellent choice (in the U.S.) that gives you every feature that you can imagine for $10/month … if you use their cellular service. That’s the catch: each of these service bundles replaces your telephone service. For more information on this option, please see the excellent, recent article “Save Cell Phone Minutes by Placing Calls over Broadband” [Glenn Fleischman, MacWorld, October 2009]–an excerpt of his article is available online here.
Note: You do not have to lose your phone number; you may keep your home phone number and “port” your number to your Internet phone , your cellular phone, or to another service, such as Google Voice, that bridges your home phone number with one or more devices, including your mobile phone. To keep your phone number, be sure to request this when you sign up for service with your new carrier, as they will take responsibility to promptly and seamlessly make this change.
Advantages:
Average cost savings of $45/month (using FCC averages, your savings will depend on your current bill)
Disadvantages:
Obtaining telephone service from a cellular company means that you are more likely to keep their service.
Potentially poorer customer service (harder to troubleshoot than keeping service from the Telco).
C) You prefer: Mobile-only
Your Choices: Mobile phone companies are starting to offer this option: an option that lets you reliably and inexpensively use your mobile phone in place of your home phone. You have options, so choose depending on your preferences:
C1: You prefer Mobile-only, and get great coverage at Home
Any mobile carrier will sell you service that includes ample minutes (allowing you to use the phone all that you want, including at home), but there are even better options (read on).
Advantages:
Average cost savings of $40/month (using FCC averages, your savings will depend on your current bill)
Choice of cellular company; if you do not like the coverage or service that you receive, you can readily change carriers.
Disadvantage:
You lose use of any cordless phones, answering machine, FAX devices in your home.
C2: You prefer Mobile-only, and want better coverage at Home
Some mobile carriers will sell you service with an option for an in-home cell site. Really! You don’t have to be John McCain to get your own cell site (called a “femtocell”). Verizon Wireless and Sprint already offer this option, and AT&T will shortly. T-Mobile offers a different solution that lets their phones make high-quality calls over any Wi-Fi (in your home, or around the world), so it requires that you use a phone with UMA (Unlicensed Mobile Access) with Wi-Fi. For a more detailed comparison of the implementation costs, please see my review comparing the Sprint vs. T-Mobile solutions.
Advantages:
Average cost savings of $45/month (using FCC averages, your savings will depend on your current bill).
Choice of cellular company; if you do not like the coverage or service that you receive, you can readily change carriers.
Disadvantage:
You lose use of any cordless phones, answering machine, FAX devices in your home.
@Home service requires that you use a compatible (UMA) phone that makes calls over Wi-Fi, when possible.
C3: You prefer Mobile-only, and want unlimited, free calling at Home
Free, unlimited, at Home service
T-Mobile’s @Home service is a great deal (available in the U.S.) that gives you unlimited calling (including Long Distance calling to U.S. numbers), voice mail, three-way calling, caller ID (including Name) – a service bundle costing $50 or more from your Telco – for only $10/month. This is one smokin’ deal. (I use it in my Home Office each day).
Note: You do not have to lose your phone number; you may keep your home phone number and “port” your number to your cellular phone (or to another service, such as Google Voice, that bridges your home phone number with one or more devices, including your mobile phone). To keep your phone number, be sure to request this when you sign up for service with your new carrier, as they will take responsibility to promptly and seamlessly make this change. For more information on this option, please see the excellent, recent article “Save Cell Phone Minutes by Placing Calls over Broadband” [Glenn Fleischman, MacWorld, October 2009]–an excerpt of his article is available online here.
Advantages:
Average cost savings of $45/month (using FCC averages, your savings will depend on your current bill)
Choice of cellular company; if you do not like the coverage or service that you receive, you can readily change carriers.
Disadvantage:
You lose use of any cordless phones, answering machine, FAX devices in your home.
@Home service requires that you use a compatible (UMA) phone that makes calls over Wi-Fi, when possible.
Mobile-only is an increasingly compelling choice for nearly all consumers. Already, 25%of U.S. households have cut the cord in favor of mobile-only telephone service. For more info on this trend, see my earlier post on how and why consumers cut the cord.
P.S. This recommendation is written by a Bell Labs engineer who spent many of his early years designing and delivering the world’s best telephony service. So you can be assured that I do not make a recommendation to ditch it unless the options are clearly better. But technology moves on. In fact, AT&T recently asked the FCC “How long do we have to maintain the wireline network?” which effectively says that the wireline network is becoming obsolete and consumers will increasingly migrate away from fixed to mobile and Internet telephone service over the next few years.
Your Savings vs. Typical Savings
Your savings are best determined by your monthly bill—go grab one to determine what you are paying now and what you can actually save.
Typical Telephone charges of $43/month: The FCC reports that the average, residential telephone bill (in an urban center, in October 2007) is $43/month.
Typical Long Distance charges of $12/month: The FCC and other organizations report that the average Long Distance bill is approximately $12 (120 minutes x $0.06/minute), although this varies widely, depending on use.
Typical savings could be $540/year. A “typical” consumer would save less than I experience: an average bill is $55/month could be reduced to $10/month., yielding a savings of $45/month.
Reducing your Mobile Phone Bill when Travelling Abroad
December 1, 2009 at 2:10 am | In Uncategorized | 1 CommentTags: GSM, Hotspot @Home, international roaming, Prepaid, SIM, travel
Q: How do you travel internationally and use your mobile phone … without running up a huge bill?
It is possible to save 80% on your cell phone bills when traveling abroad and to limit your expenditures. People often ask about this, so I thought that I’d post the best practices, while supporting a variety of choices, from using your own phone and service plan to purchasing a phone abroad, international dialing, electrical adaptors for charging, and more. All of which you’ll need to know. My primary recommendation is to purchase service when you are there using a “Prepaid SIM.” While the simplest choice is to take your existing phone, the least expensive is to purchase Prepaid service abroad (that works for many countries).
Benefits: 80% Savings and Limit Your Cell Phone Charges
In addition to major savings, another major benefit of using this recommendation is that you can budget and control the amount of money spent on cell phone use when traveling. I’ll describe this for a hypothetical student/traveller who is traveling abroad for the first time, but the recommendations apply to anyone traveling abroad and who is calling locally or back to the U.S.
- Budget: The amount that you wish to allocate to spend calling home is entirely up to you. With a prepaid account, you can not accidentally run up a large cell phone bill when traveling. You can deposit a budgeted amount into your Prepaid account, and add to it if you wish.
- Savings: For example, if you send a text message a couple of times per day and makes a long phone call every other day or so, over a 3-week trip you’ll spend only $13 (and save $50 or more).
Simplest Plan: Take your existing phone
If you already have a cell phone, they you may be able to take your existing phone with you, but be prepared to pay very high rates for voice and text—over $1/minute and $0.35/text—since you will be Internationally Roaming and making International calls/texts. This is a great option to use if you expect that your son/daughter will hardly ever use the phone. This option is possible if you already have a GSM phone (the world standard for mobile phones, provided by AT&T, T-Mobile and others); if you have service from a CDMA carrier (Alltel, Sprint, Verizon) then your existing phone will not work abroad and you will have to get a new phone (your existing carrier offers special, WorldMode phones that can work abroad, but these phones are very expensive). If you are unsure whether you have a GSM phone and can use your existing phone, then please check out this post (with clear illustrations).
What to Do, Before You Depart
Just call your carrier’s Customer Care department (just dial 611 from your cell phone; it is a free call) and let them know that you want to use your phone when traveling internationally. Things to check on this call, before you depart:
- Is my phone capable of making calls on international networks?
(Your phone needs to support the international GSM frequencies, which are different from those used in the U.S. Your phone should be a “Quad band” phone that works on 900 MHz and 1800 MHz frequencies) - Does my service plan allow me to roam internationally and make international calls?
(To reduce fraud, most service plans have this option disabled, so you simply need to ask to turn it on. This will not incur a charge, but it allows you to make calls to the U.S. while roaming abroad)
Avoid Unwanted, Incoming Calls: To avoid unexpected charges from incoming calls while you are abroad, you may also wish to keep your phone turned off until you desire to use it to originate a call or text message. You would be surprised to find out, when you return, that you are charged international rates for calls that ring your phone—even those that you do not answer and that go to voice mail—for the amount of time that the caller is speaking.
Avoid Data Charges: To avoid exorbitant charges for mobile Internet (“data” charges, for web browsing, location-based services, email, etc.), you may wish to turn off data services on your phone or to simply avoid using the device for data services. International charges for data services are very costly and additional to your regular plan, and unwary travelers can incur bills of hundreds or even thousands of dollars.
Cheapest Plan: Take your existing phone and get Prepaid service there
The least expensive way to make calls abroad is to (a) take a phone that is compatible and (b) obtain prepaid service from a European mobile carrier. You will be able to call the U.S. for $0.07/minute and send text for $0.15—nearly as inexpensive as calling within the U.S.! Additionally, you can budget and control the amount spent on cell phone use (since the charges are quote different than those incurred at home, they can unexpectedly add up!).
What to Do, Before You Depart
If you have a compatible mobile phone, then you can take it with you and use the phone with a Prepaid account that you will obtain from a European carrier. The trick is that you will purchase your service from the European carrier when you arrive and that will provide you with the lowest possible rates. If you lack a compatible mobile phone (e.g., you have a CDMA phone or no phone), you can still use this option: you simply need to get a compatible phone when you land.
If you already have a GSM phone, then you just have a couple of things to check with your carrier’s Customer Care (just dial 611 from your cell phone; it is a free call) before you depart:
- Is my phone capable of making calls on international networks?
(Your phone needs to support the international GSM frequencies, which are different from those used in the U.S. Your phone should be a “Quad band” phone that works on 900 MHz and 1800 MHz frequencies) - Is my phone “unlocked”?
Phones are typically locked—for use only with a specific carrier—when they are purchased in the U.S. with a service plan. Just ask your carrier to unlock the phone to allow you to use it abroad with another carrier’s service plan.
Budget your Spend: You can budget the amount that you will place in your prepaid account and spend while traveling. Just give your ambassador the amount that you desire to spend, and they can deposit his amount (in their Prepaid SIM account) when they land in Europe. Like a debit card, they can recharge or “top up” their account if they use up all of their account.
Any unused funds will not go to waste, as you can always use the additional minutes after (s)he returns to the U.S.! Naturally, it would be most convenient if you provide those funds in the local currency (British Pounds if you arrive in the UK, or Euros elsewhere)—just call your bank and they will happily provide foreign currency before your trip.
What to Do, When You Arrive
You have a single, simple transaction to complete, ideally in the airport after you get your luggage (Example: Vodafone retail store in London Heathrow Airport). In the airport, go to the Retail Store of a major mobile carrier (I recommend Vodafone since they provide the best coverage across Western Europe) and ask to purchase the combination of:
- a basic, prepaid SIM card
(allowing you to budget how much you wish to spend on calling and SMS, and you can add funds to it at any time, e.g. Vodafone’s “Pay As You Go” plan) - an international roaming option that provides the best roaming rates for mobile service outside of the country that you are buying your prepaid service
(e.g., Vodafone’s “Passport” is free) For example, to activate Vodafone’s “Passport” feature:- Dial 5555, Press the Green “Call” button, then
- Choose option 2 and then Option 1
- an international calling plan that provides the best international calling/texting rates
- (e.g., “Vodafone International”) For example, to activate the Vodafone International call plan:
- Dial 36888, Press the Green “Call” button, then
- Choose option 2 and then Option 1
You are ready to travel and call or text anywhere! Just remember to dial/text using International Dialing (see “Dialing an International Number”), which includes the country code, to avoid calling the wrong party.
What If I Lack a (compatible) Cell Phone?
If you do not have a compatible mobile phone (e.g., you have a CDMA phone or no phone), you can still use the lowest-cost option. You simply need to get a compatible phone first: before you travel (at an AT&T or T-Mobile store) or when you land (at the Retail Store for a European mobile provider, such as Vodafone). If you are unsure whether you have a compatible phone, please read this post “Can I use my existing phone?“. After you get your phone, go back and complete the following section “Cheapest Plan: Take your existing phone and get Prepaid service there.”
I have no cell phone and want to start using one
To get a phone before you leave, you could go to the local wireless store and sign up for a GSM service plan: monthly or prepaid. But be clear about your intent to use the phone with a different carrier’s prepaid account while abroad and insist that they unlock the phone before you purchase anything. Also, be sure that the phone is compatible for use on International networks (you’ll want a “Quad-band GSM phone” that operates on the standard, international frequencies).
- Prepaid Plan
This can be an excellent way to start using cellular service if you do not yet have a cell phone plan. You can start cellular service that you can use when you return and get a phone that you can use abroad. Your initial costs will be slightly higher as you are paying for the mobile phone up front (instead of paying for is over many months of a service plan). I strongly recommend prepaid service for early cell phone users, as it allows you to budget your expenditures and can be far less costly than a monthly plan. You will get a GSM phone (which comes with a SIM card representing your U.S. prepaid plan). I recommend T-Mobile as they offer the lowest rates and best customer service, although you’ll want to be sure that the carrier provides good service where you’ll use it—check their online coverage map before purchasing. - Monthly Plan
Your initial costs will be lower since you are paying for the cell phone in monthly installments as part of your monthly plan, which you are obligated to pay for many months.
I have no cell phone and do not want to start using one
You may avoid buying a phone for use internationally (avoiding a significant cost) and simply borrow a friend’s phone for a moment to make a call/text using her phone and your service plan—by placing your SIM card in her phone before you call/text and removing it after you are done. Simply follow the section “Cheapest Plan: Take your existing phone and get Prepaid service there” and purchase a Prepaid Service plan from a European mobile provider when you arrive and periodically use a friend’s phone (see “SIM card?” section, below, for details).
Unlimited, Free Talk (using Wi-Fi)
An advanced option (that requires a bit more work, but well worth it if you want unlimited, free international calls) is to get a UMA-capable phone an duse any Wi-Fi hotspot to make free calls as if you were at home. Check out T-Mobile’s Hostpot @Home service, a $10/month option on top of your existing, monthly T-Mobile account (not applicable for prepaid users). T-Mobile lets you make/receive all of the calls that you want when you are connected to them via a W-Fi network. This includes international locations. So you could, for example, talk for an hour from a coffee shop in Rome to friends at home … for free. Or, if you are a business traveller, you could return all of your calls on your mobile for free when travelling abroad, avoiding thousands of dollars in roaming fees.
Purchasing “Prepaid SIM” service at the Airport
December 1, 2009 at 2:01 am | In Uncategorized | Leave a CommentTags: GSM, international roaming, mobile service, Prepaid, travel
Purchasing “Prepaid SIM” service at the Airport
Example: London Heathrow
An easy way to obtain inexpensive cell phone service in a country is to obtain a prepaid card at your port of entry, such as the airport. At London Heathrow airport, Vodafone has an excellent retail shop in Terminal 5. Unfortunately, Heathrow is a sprawling airport and Terminal 5 can be a (short) train ride away from your arrival terminal. For example, if you arrive from the US in Terminal 1, you can take a free train to Terminal 5 by following the signs to the Heathrow Express and taking the free leg to Terminal 5.
Vodafone Shop at London Heathrow: Terminal 5
Location: Terminal 5, Before Security
Opening Hours: 07:00 – 22:00
Telephone: +44 (0)7826 952 062
The store is situated between the UK side of departures and customs and is therefore open to both air-side passengers and land-side airport staff and visitors. The Terminal 5 Vodafone store at Heathrow airport replaces the Vodafone store in Terminal 1 with an even more comprehensive line up of products and services.
Within Heathrow airport, the location of Terminal 5 is shown in the following diagram:
GSM Phone? SIM Card?? Can I use my existing phone abroad???
December 1, 2009 at 1:59 am | In Uncategorized | Leave a CommentTags: GSM, international roaming, Prepaid, SIM, travel
GSM phones are the dominant world standard and allow you to roam and make calls nearly anywhere on the globe (desert islands excluded). In the U.S., GSM is used by AT&T and T-Mobile (as well as many other, smaller companies), so if you are served by those companies, you are virtually certain to have a phone that can be used abroad.
Can I use my existing phone when traveling internationally?
You can tell that you have a GSM phone by removing the battery cover of your phone and looking for a SIM card that is about the size as your fingernail (see example). It is often in a slot under the battery of the cell phone and needs to be removed carefully. The SIM card contains your service subscription; the mobile phone is just a radio. By separating the subscription information and the phone, you can easily change service plans and devices: just select the SIM card and install it in the desired device!
You can change service subscriptions as easily as removing one SIM and replacing it with another SIM. The SIM card contains your service subscription information, including your telephone number and service information (a more detailed explanation is available in the Wiki article). So, when traveling internationally, you can remove your SIM card (representing your service plan with your U.S. carrier) and replace it with a low-cost, Prepaid SIM card from the country that you are visiting.
Traveling without a Cell Phone
If you wish, you can even travel without a cell phone of your own and simply borrow a friend’s phone for a moment to make a call using her phone and your service plan—by placing your SIM card in her phone before you call/text and removing it after you are done.
Note: Safely store your original SIM card, as you’ll need to reinstall it when you return to the U.S.!!GSM Phone? SIM Card??
Dialing an International Number (when travelling)
December 1, 2009 at 1:59 am | In Uncategorized | Leave a CommentTags: international roaming, mobile service, travel
Q: How do you dial local, international numbers as well as call back home?
Unlike dialing at home, as a world traveler you need to learn to indicate the country as well as the number that you wish to reach. Just dialing a 7- or 10-digit number like you do at home (e.g., 5025551212) will not work; you need to explicitly indicate the country or else you may end up communicating with someone new and unintended.
Recommended: Universal, Cell Phone method
From a mobile phone, you can unambiguously dial any phone number by using the “+” character before the destination Country Code. Since the Country Code for the U.S. is “1”, dialing U.S. numbers from your cell phone simply requires that you first dial “+1” and then the 10-digit U.S. number (e.g., +1 5025551212). From a cell phone, the most difficult part is finding the “+” symbol on your cell phone keypad. This usually involves pressing or holding the “*”, “0″ or “#” key multiple times.
Cell Phone Example: to dial the USA number +1 (502) 555-1212, from a Nokia cell phone, press the “*” key twice to get the “+” symbol, enter the rest of the number to get 15025551212, and then hit “Send”.
This universal method is simpler than the following method since you do not have to remember or use any country-specific access codes to indicate that you are dialing an international number.
International Direct Dialing (uses country-specific International Access Codes)
Alternatively, you can also dial an international number from any phone (fixed or mobile) using that country’s International Access Code. Unfortunately—since the access codes vary by country—the number that you dial depends on the country that you are in! From Western Europe, you can dial U.S. numbers from any phone by first dial “00 1” and then the 10-digit U.S. number (e.g., +00 1 5025551212).
Example: Example: Dialing the U.S. from a phone in Europe
Using this method to dial a U.S. number from the UK,
you would dial 00 1 5025551212:
How the number is composed:
| Number | Comments |
| 00 | 00 is the International Access Code used to dial outside of the UK. |
| 1 | 1 is the international Country Code used to dial to U.S.A.. |
| 502 | 502 is the local area or city code used to dial to Louisville. |
| 5551212 | 555-1212 is the local number you desire to reach. |
To practice this method of dialing, try this site that clearly explains international dialing and provides the dialing instructions from anywhere to anywhere.
Mobile handsets with Wi-Fi are popular, generating more Traffic
October 30, 2009 at 4:59 am | In Uncategorized | 1 CommentAs expected, Wi-Fi is catching on as a feature of mobile phones, and is generating a significant fraction of the data traffic from those devices. Taking advantage of the widspread availability of Wi-Fi benefits End User and Mobile Operator (as discussed here, and this is similar to the busines case for femtocells). Wireless Week reported today that more than 5 of top 10 devices accessing Mobile Internet content have touch screens, Wi-Fi or an App store: up from only 1 in 10 last year. Although this does not explicitly define the amount of increase in the use of Wi-Fi alone, it is clear from the report that each of these features are major contributors to the increase in data use. [AdMob's September Mobile Metrics Report]. Smartphones and their users are consuming a lot of mobile data, and these features are making it possible.
Top Femtocell Vendor: Ubiquisys [ABI Research]
March 18, 2009 at 5:57 pm | In Uncategorized | Leave a CommentTags: Femtocell
Ubiquisys is rated #1 Femtocell vendor – again – by ABI Research in the latest vendor assessment.
To view the ABI rankings of Femtocell vendors, please check out ABI’s “Femtocell Vendor Matrix” ( http://www.abiresearch.com/products/vendor_matrix/Femtocell_Equipment_Vendor_Matrix). Please note that access is free, but registration on the ABI Research website is required. Close behind are vendors ip.access and Airvana. I think that Huawei is a strong competitor, too, as they are leading the market in higher-capacity Femtocells (for enterprise deployments) and have some major trials in action.
“Ubiquisys comes out on top of the vendor matrix yet again both in terms of innovation and implementation.” reports Senior Analyst Aditya Kaul. “Ubiquisys has the momentum going for it at the moment with multiple operator trials and rollouts across the world. ip.access has seen its partnership and close relationship with Cisco bear fruit. The firm has built upon its innovation and R&D expertise and is now in close competition with Ubiquisys. Closely following ip.access is Airvana, which has risen two positions from last year. Its modular approach allows it to integrate with multiple form factors and is one of the leading femto module suppliers to broadband gateway vendors.”
For additional detail on Femtocell vendors, please see my previous report, “Femtocell Product Scorecard.” that describes the overall Femtocell market maturity and vendor rankings.
Problem: Data Traffic Growing Faster Than Revenues
February 26, 2009 at 4:00 am | In Uncategorized | 8 CommentsTags: Femtocell, Mobile Internet profitability
Without a doubt, there is a growing problem of mobile data consumption vs. revenue: perhaps 100X growth of aggregate data vs. 2X growth of revenue (in the next 5 years). This growth in data consumption is reflected in operators’ measurements as well as analysts’ forecasts, and this trend is based on clear drivers that we can observe today. Operators recognize this threat to future Mobile Internet service profitability, and therefore Mobile Network Operator (MNO) profitability (as revenues shift inexorably from voice to data revenues).
Growth is Real, and Exploding
The rapid growth of data consumption is real, has been observed by many operators. Vodafone, for example, exemplifies the rapid growth in the last, two years, from a trickle to a volume that exceeds their voice traffic in European markets that they serve (see figure). This growth has been driven by many factors, including flat-rate and modestly-priced data plans.
Over time, this becomes problematic, as forecasts anticipate 100X traffic levels that threaten to overwhelm current networks. Current forecasts-based on observed MNO data traffic growth-anticipate at least a 2X growth per year over the next 5 years [Cisco, 2008], and perhaps growth of 300X to 500X over 10 years (from 2007-2017) [3Gamericas, 2008]. A recent Cisco study combined actual MNO traffic with analysts’ forecasts for mobile internet growth, and concluded that this trend would continue for at least the 5-year planning horizon, with data traffic more than doubling each year (see figure).
An independent assessment came to the same conclusion (data traffic doubling each year), while tracking the growth over a longer time frame (10 years, 2007-2018). The 3GAmericas study expects this trend to continue through 2018 (based on observed traffic and trends in service usage), as illustrated below.
Recent traffic increases have exceeded this estimate: “six to fourteen times more data is being used on mobile broadband networks today than in the previous year.” Frost & Sullivan recently reported [April 2009] – with “average users downloading more than 5GB per month.”
Isn’t Increasing Data Use “A Good Problem to Have”?
Yes, increasing consumption of data services is a good problem to have … up to a point. Operators have been trying for a decade to entice subscribers with data services, recognizing that this is their future, as voice usage eventually reaches a peak and pricing becomes commoditized. However, there is a dark side that is emerging: the rapid growth of data consumption is increasingly a concern to the degree that is expands faster than revenues; if costs increase without a similar increase in revenues, then the business is at risk, and something must be done to reduce overall costs to maintain profitability. Essentially, “data traffic is growing much faster than data revenues,” [Mike Roberts, Informa, 6/2008]
Why Is Data Consumption Rapidly Increasing?
Data growth is expanding due to (a) broad adoption of data services by subs (espec. on flat data plans that encourage use), (b) better devices (such as the iPhone and imitators), and (c) more, attractive data services (such as YouTube, Location-Based Services, Social networking, IM, Mobile TV, and thousands of downloadable Apps).
A) More Subscribers on Mobile Internet Data Plans
Developed markets will easily see 40% of subscribers on a data plan by 2012, most on a “Flat Rate” plan that encourages use (without a penalty of incremental cost for incremental use) [Forrester, 2008]. This trend is so strong that mobile Internet subscribers are expected to outnumber fixed Internet subscribers in 2011 (see figure).
B) More Capable Internet Devices
“The iPhone.” Need I say more? OK, the IPhone has redefined how subscribers can use the mobile Internet, and established that the masses can and will browse, use Location-Based Services, watch YouTube video, download and install applications, and more. iPhone users consume many times more data than average consumers, even those with media capabilities (see figure). Consequently, everyone is rushing to achieve similar success, and more. The network effect is a radical leap in data consumption by End Users-exactly what the MNOs desired, as this establishes that consumers will use data services, if they are simple, fun, and useful. Smartphone users consume car more data than the average subscriber. And smartphones are becoming a common purchase of consumers (although business users led the adoption). By 2011, 30% of the handsets sold in developed markets will be smartphones [Gartner, 2008].
C) More Services Used
End Users are consuming more services as a result of better devices and a wider variety of applications. Apple’s App Store, for example, has defined a model of data services on demand that is widely appealing, with 500 M downloads in less than a year of operation [Apple, 2008], establishing that there is a large market for data services [Piper Jaffray, 2008].
Summary: Data Growth Based on Strong Fundamentals
MNOs have a serious problem on their hand-data consumption growing out of control and out of synch with revenues-that is based on strong fundamentals. We see it already in current use, and the future certainly holds far greater growth due to all of the drivers: more data subscribers, flat rate plans, more capable devices, and more attractive services. We will discuss this business problem in greater depth in the next section, “100X Data Growth vs. 2X Revenue Growth.”
100X Data Growth vs. 2X Revenue Growth
February 26, 2009 at 3:59 am | In Uncategorized | Leave a CommentTags: Femtocell, Mobile Internet profitability
Having established that data traffic is expanding rapidly (see the previous post, Data Traffic Growing Faster Than Revenues) for fundamental, long-term reasons, let’s explore the central business problem: high growth in costs vs. modest revenue growth.
MNOs have turned to data services for revenue growth, recognizing that End Users have largely satisfied their demand for voice communication. As prices fell for a voice minute of use (just as with Long Distance before that), subscribers could afford to purchase more minutes for their dollar, but at a point their demand was sated and they had no desire to consume more. SMS has certainly provided an unexpectedly large increase in data use, but that is, like voice, largely played out. What next? Since 2001, with the introduction of the Mobile Internet, MNOs have focused on increasing revenue (APRU) by creating attractive data services: browsing, information, entertainment, and new communication services. Now, almost 10 years later, it appears that they have succeeded … and their problem has become, ironically, too much demand.
Data traffic is growing out of pace with revenues. Data is growing at a torrid pace since the introduction of high-speed and high-capacity, 3G networks a few years ago. Many operators have reported aggregate increases in data traffic far exceeding the 100% growth rate that is anticipated for the next 5 years. Revenue has certainly increased significantly, but only incrementally. No consumer is willing to pay 10X their current monthly bill, so the revenue increase is measured in a fractional increase of the current revenue, not multiples, and certainly not tens or hundreds of multiples.
The Danger of Flat-Rate (Unlimited) Service Plans
The main culprit in unrestrained usage is unrestrained service plans: flat rate pricing. Although (like prepaid) these plans are simple for subscribers to understand, and very attractive in avoiding unpleasant surprises, they invite unrestrained use with no marginal revenues. Although consumers are attracted to unlimited plans, the operator is then stuck with a subscriber that is not generating any additional revenue. Eventually, flat rate plans will have to go, or at least be modified and restricted to manage costs and maintain profitability. We can already see caps emerging in mature, fixed, broadband networks, where the access cost is quite low (relative to mobile Internet): Comcast (in the U.S.) has imposed usage caps on high-speed Cable Internet service customers to limit excessive use and eliminate abuse, and ensure that costs do not balloon, so that service and pricing is maintained for normal customers. Flat-rate pricing is unsustainable, leading to unrestrained usage with no incremental compensation.
Flat-rate plans have been very popular with subscribers; Operators have successfully employed flat-rate plans to sign up a wave of new users to 3G data plans.
- Significant adoption:
“Vodafone says it signed up 2 million consumer customers to its flat-rate mobile Internet plans in 2007.” ["Mobile traffic boom to revive base station market, Mike Roberts, Informa, 7 July 2008] - Mobile Internet is included:
Vodafone UK includes access to the internet and email on their mobile as an integral part of the monthly price plan. “Every plan will automatically include internet access”(Note: for post-paid customers, not pre-paid) ["Unlimited Internet on New Voda Plans," Mobile Business Magazine, 7 May 2008] - Many operators employing Flat-rate Data Plans:
“The best examples for flat, mobile broadband offerings can be found in the Austrian market. T-Mobile has launched Fairclick for €25 which includes 10GB data volume on HSDPA. When it comes to content flat fee, again H3G sets currently the top benchmarks. The X-Series which has been launched in the European H3G countries as well as in Australia and Hong Kong, comprises of a wide range of value added services, such as unlimited instant messaging, Skype calls, web surfing and mobile TV via Slingbox streaming.” [Arthur D Little "The World is Becoming Flat," Technology & Media INSIGHT, 2008]
Whither Flat-Rate Plans?
Flat-rate plans have proven very popular with subscribers, and so they will be difficult for Operators to give up. I suspect that they will be slowly morphed and restricted to allow Operators to charge for some services, especially content and bandwidth-intensive services such as Mobile TV, or person-person video.
Data Revenue Doubling (over 5 years)
Now that the data services are becoming more popular, operators are striving for significant increases in ARPU-perhaps a doubling of average revenue per customer-as demonstrated by the excellent revenue/user of iPhone subscribers. Forecasts suggest that MNOs may see roughly a doubling in mobile data revenues over the next 5 years:
- “Global mobile data revenues will increase 77% from 2007 to 2012″ [Informa, 2008]
“The traffic boom will be driven by a dramatic increase in the use of advanced applications such as mobile browsing and video-for example mobile video traffic will grow more than thirty-fold by 2012, according to Mobile Networks Forecasts.” ["Mobile traffic boom to revive base station market, Mike Roberts, Informa, 7 July 2008] Annual data services will more than double from $148 billion dollars in 2007 to $347 billion dollars in 2013 [Informa Telecoms & Media, 2008]. - “Mobile data revenue will double by 2012″ [Pyramid, 2008]
“By our estimates, mobile data will account for 29% of the global mobile service revenue in 2012, up from 19% in 2007. Clearly, the mobile data opportunity is soaring: the 2007 mobile data revenue was more than double what it was in 2004, and we expect it to double again to US$300bn by 2012.” … and 20% of this is SMS in developed markets, 45% in Emerging markets. ["Mobile data revenue will double by 2012," Dan Locke, Analyst Insight, Pyramid, 4/2008]
Note that this increase in revenue is largely due to IP-based services, not SMS (see figure). “In 2012, in emerging markets, SMS will still comprise 45% of data ARPS in contrast to less than a quarter in developed markets.”
Operator Solution: Cut Costs
Rampant data use without commensurate compensation? Better cut the cost of the data use, right? That’s exactly what is happening. Operators are looking to reduce the cost of delivering each bit. This problem will not be solved with a single, silver bullet, but will require cost efficiencies in many areas, which is the topic of our next analysis: “Solutions for Expanding Data Usage.”
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