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If you believe Cable Operators are not thinking about Mobile Networks and what kind of synergies could bring them increased cash-flow in the future, then you've probably missed the obvious signs laid out since 2008. ... Starting with their investment in Clearwire in 2008, companies like Comcast, Time Warner Cable and Bright House have upped their anti in wireless and mobile strategies.
The mobile phone market is growing exponentially and will continue to evolve for years to come. Why has the Cable Industry not moved into the lucrative mobile phone market? It could definitely be a revenue bonanza, as it currently is for telecom companies. ... Verizon and AT&T's revenues, as a percentage of stock price by division, attributes mobile phone service up to 40-42% of total revenues.
In the wake of the unprecedented boom in mobile broadband, pressure is building around the world for governments and regulators to act quickly and decisively to the frantic demand for more spectrum. The telcos are leading the charge, but the broadcasters are lobbying for their case equally vigorously. The broadcasters do not necessarily need all the spectrum they currently have, but they view mobile broadband and telcos as competitors to their monopoly on video entertainment, so they will do everything to keep them out of that market for as long as possible.
There has been considerable discussion over the last few years about the spectacular growth in mobile communications. Within a rather short period of time around five billion people have been connected, and growth continues unabated... The 2G and 3G networks and other telecommunications infrastructure such as satellites, fixed wireless technologies and fixed networks, linked to smart phones and other smart devices, can be used to provide basic internet services. However, it is important to acknowledge the affordability of these services.
The fact that businesses around the world are knocking on the doors of their governments asking for spectrum is a clear indication that this telco real estate market is hotting up. The reason for this is not too hard to guess -- the enormous growth in the demand for mobile broadband. There is a large amount of pent-up demand as the mobile operators didn't want to open up this market while they were in the middle of adding new customers to their mobile voice services.
Mobile operators are counting on Long Term Evolution (LTE) technology to handle surging demand for mobile data access. But LTE developers made some poor choices, cutting spectral efficiency and thus driving up operator costs. LTE was envisioned as an all IP system, but the RF allocations follow the voice-centric approach of earlier generations. While LTE standards allow for either Frequency Division Duplexing (FDD) or Time Division Duplexing (TDD), all initial LTE equipment uses FDD. FDD requires two separate blocks of spectrum...
The tremendous demand for, and profitability of mobile telephony supports legislative and regulatory efforts to refarm spectrum with an eye toward reallocating as much as possible for wireless telephony and data services. But there is a downside that no one seems to acknowledge. In light of past FCC practice and the behavior of incumbent wireless carriers I expect two anticompetitive outcomes to occur with the onset of any more spectrum.
Until only recently, has it been remotely plausible to consider such different companies joining forces. I've written about Skype often, and for the most part, they've been a threat for incumbents of all stripes. To hear about this from Verizon during such a public event makes it very clear that the sands are shifting once more, and yet again, VoIP is the culprit.
Verizon Wireless' decision to allow their subscribers to access Skype raises a question about strategy. Is Verizon leveraging Skype access as an inducement for subscribers to upgrade to smartphones and commit to $30 a month data plans, has the company acknowledged that its future marketplace success lies in data and not voice services, and how will the company prevent a substantial reduction in plain old voice subscriptions priced above the $30 data plan benchmark?
Sure the iPhone has problems, but John Stankey of AT&T thinks restoring a $2B capex cut will fix them. It may take a little more money than that, but Glen Campbell of Merrill Lynch has confirmed he's on track. In a 50 page report that's one of the best I've read in years, Merrill destroyed the common belief that wireless has a significant spectrum shortage.
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