Tuesday, May 15, 2012 4:15 AM UTC
By Associated Press
NEW YORK (AP) — Improvements in customer satisfaction at Sprint Nextel Corp. and AT&T Inc. have narrowed differences among the Big 4 wireless carriers to the point that they’re basically even in terms of pleasing their subscribers, according to a study released Tuesday.
The American Customer Satisfaction Index puts Sprint, AT&T, T-Mobile USA and Verizon Wireless within two points of each other on a 100-point scale of customer satisfaction.
That’s the smallest spread since the survey started looking at all four companies in 2005. It’s also within the margin of error at plus or minus three points.
Last year, AT&T clearly trailed the pack, while Sprint and Verizon led. That was a surprising development for Sprint, which was last as recently as four years ago. Sprint CEO Dan Hesse has made improvement in customer service central to his tenure.
AT&T recovered this year, with a three-point increase to 69. It shares that score with T-Mobile USA, the No. 4 carrier by size. Verizon and Sprint are at 70 and 71, respectively.
The survey was developed by the University of Michigan, but is now run by a private company, ACSI LLC. It surveyed about 6,000 households in the first quarter for the annual report.
For the phone companies, the satisfaction index has a limited relevance to actual customer loyalty, which the companies report quarterly. For instance, T-Mobile customers are far more likely to leave the carrier than AT&T’s are, even though they have the same score.
T-Mobile is the only company among the Big 4 that doesn’t sell the iPhone. That probably matters to customers. The ACSI for the first time published a score for Apple Inc. as a phone manufacturer. At 83 points, it handily outranks other manufacturers measured, including Samsung Electronics Co., HTC Corp. and Motorola Mobility Holdings Inc.
Thursday, May 10, 2012 5:45 PM UTC
By Associated Press
In this March 18, 2008 photo, a T-Mobile retail store is shown in Times Square in New York. U.S. consumers have had their fill of expensive, contract-based phone plans. Figures from T-Mobile USA on Thursday,May 10, 2012, added to earlier reports from other companies, indicate that the U.S. wireless industry lost subscribers from contract-based plans for the first time in the first quarter. Contract-based plans are the most lucrative ones for phone companies. The industry default over the past several decades, they account for the vast majority of revenue at the big phone companies. (AP Photo/Mark Lennihan)(Credit: AP)
NEW ORLEANS (AP) — U.S. consumers have had their fill of expensive, contract-based phone plans.
Figures from T-Mobile USA on Thursday, added to earlier reports from other companies, indicate that the U.S. wireless industry lost subscribers from contract-based plans for the first time in the first quarter. Contract-based plans are the most lucrative ones for phone companies. The industry default over the past several decades, they account for the vast majority of revenue at the big phone companies.
The seven largest U.S. phone companies, representing more than 95 percent of the market, lost a combined 52,000 subscribers from contract-based plans in the January to March period, according to a tally by the Associated Press. The companies have a combined 220 million devices on such plans, accounting for about two-thirds of the total number of devices.
Since nearly every adult, and many children and teenagers, already have phones, there’s little room for growth anymore. But subscribers are also flowing to cheaper, no-contract plans, which showed an increase of at least 2 million. That figure, however, is down from more than 5 million in the same quarter a year ago.
The industry is also adding millions of non-phone devices, like smart energy meters. These so-called “machine-to-machine” connections usually carry very low monthly fees, on the order of a few dollars per month.
For example, AT&T subscribers on contract-based plans pay an average of $64.46 per month, while other AT&T customers pay an average of $11.52 per month.
T-Mobile’s report comes on the last day of the U.S. cellphone industry’s annual trade show in New Orleans. At the show, companies talked about various ways of boosting their business outside phones. For instance, AT&T launched a home security and automation business, and the head of its wireless business, Ralph de la Vega, said the company is getting closer to launching family data plans, which would allow the sharing of one “bucket” of data among various devices and family members. That could encourage people who already have a smartphone to get a tablet with data service as well. Verizon Wireless has already announced that it is introducing such plans this summer.
The first quarter is a seasonally weak one for contract-based plans, and the industry is likely to show some subscriber additions for the whole of the year. But the gains will be spread unevenly over the phone companies. For the last year and half, the four nationwide phone companies have added or lost subscribers in order of size: Verizon Wireless, the largest, has gained the most, followed by AT&T Inc. Sprint Nextel Corp., No. 3 in size, has mostly lost subscribers, while No. 4 T-Mobile has done so consistently. That poses a conundrum for regulators who want to preserve vibrant competition in the industry.
AT&T launched a major bid to consolidate the industry last year by striking a deal to buy T-Mobile for $39 billion, but the project was scuttled by regulators who said it would reduce competition and raise prices for consumers. On Wednesday, Bloomberg News, citing anonymous sources, reported that T-Mobile was in talks to buy MetroPCS Communications Inc., the fifth-largest cellphone company in the U.S. However, the combination would be difficult to manage, since the companies have incompatible networks. Branding could pose a challenge too: T-Mobile wants to appeal to business customers, while MetroPCS sells almost exclusively to low-income, urban households. Acquisition talk surrounding MetroPCS surfaces from time to time, but no deals have resulted.
The AP’s tally of subscribers excludes some contract-based machine-to-machine connections reported by T-Mobile. The company also added 435,000 prepaying subscribers of all kinds in the quarter, which was the best result in more than two years for that category. T-Mobile credits its new prepaid monthly plans with fast “4G” data service for the increase.
Overall revenue at T-Mobile USA, a unit of Deutsche Telekom AG of Germany, fell 2 percent from a year ago.
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Tuesday, May 8, 2012 3:45 PM UTC
By Associated Press
NEW ORLEANS (AP) — The head of AT&T’s wireless business says he’s looking to introduce plans that share a data allowance among family members, similar to the way it sells family calling plans.
AT&T’s Ralph de la Vega says the company is working out the details of such plans, but has no firm launch date. Competitor Verizon Wireless has said it plans to introduce family plans this summer.
De la Vega said, “We’ll introduce them when we can.” He was speaking on the sidelines of the CTIA Wireless show in New Orleans, which opened Tuesday.
The plans could make data service more affordable in families where data-capable devices such as smartphones, tablets and laptops proliferate. Right now, each device needs a separate data plan.
CNET reported earlier on AT&T’s plans.
Tuesday, May 8, 2012 5:15 AM UTC
By Associated Press
NEW ORLEANS (AP) — T-Mobile USA on Tuesday said that Nokia Siemens Networks and LM Ericsson AB will supply the network equipment for its new wireless broadband network, a project worth $4 billion.
T-Mobile is commissioning a “4G LTE” network, the same technology used by Verizon Wireless and AT&T Inc. for their high-speed networks. It will use, in part, radio frequencies handed over by AT&T after the bigger company backed off its deal to buy T-Mobile due to opposition from federal regulators.
In addition to handing over spectrum licenses, AT&T gave T-Mobile $3 billion in cash, which will help finance the upgrade. T-Mobile plans to have the network live next year, covering 75 percent of the 25 largest cities.
Sweden’s Ericsson is one of the main suppliers for the LTE networks of Verizon Wireless, AT&T and Sprint Nextel Corp., along with Alcatel-Lucent SA of France.
For Nokia Siemens Networks, a joint venture of Finland’s Nokia Corp. and Siemens AG of Germany, the T-Mobile order represents a new chance to get into the U.S. market for network equipment. It got a $7 billion order from Harbinger Capital, a hedge fund, to build a network for its startup, LightSquared, but that project appears moribund because regulators concluded it would have interfered with GPS navigation.
T-Mobile USA is making the announcement on the first day of CTIA Wireless, the U.S. cellphone industry trade show, in New Orleans. The company is the fourth-largest wireless carrier in the U.S., with 33.2 million devices on its network. It’s a subsidiary of Deutsche Telekom AG of Germany.
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Monday, May 7, 2012 4:15 AM UTC
By Associated Press
FILE - In this Oct. 19, 2009 file photo, the AT&T logo is on display at a RadioShack store in Gloucester, Mass. AT&T Inc. will start selling home automation and security services nationwide, taking on incumbents led by Tyco International Ltd.s ADT. The installations and services will be sold in AT&T stores, starting with a trial this summer in Dallas and Atlanta. (AP Photo/Lisa Poole, File)(Credit: AP)
NEW YORK (AP) — AT&T Inc. will start selling home automation and security services nationwide, taking on incumbents led by Tyco International Ltd.’s ADT.
The installations and services will be sold in AT&T stores, starting with a trial this summer in Dallas and Atlanta.
Several of AT&T’s competitors, including cable TV company Comcast Corp. and phone company Verizon Communications Inc., have ventured into the home automation and security field. Dallas-based AT&T is showing more ambition with its stated goal of selling nationwide, rather than sticking to its landline service territory, as Verizon does.
Steven Winoker, an analyst at Sanford Bernstein, said about 23 percent of U.S. homes have security systems, so there’s plenty of room to grow. Even fewer have automation systems for controlling appliances, lights, heating and cooling.
The biggest player in the field is ADT, but it has only 25 percent of the market. Many smaller companies make up the rest, according to Winoker.
It’s a very profitable business, Winoker said, but it’s not big enough to significantly affect the earnings of a company of AT&T’s size even if it’s successful, given that it’s a relatively small market.
AT&T’s technology comes from Xanboo, a company it bought in late 2010. Its central control panel can connect wirelessly with cameras, thermostats, appliance controls, lights and sensors for doors, windows, smoke and carbon monoxide. Through the panel, home owners can then control their home from their cellphones.
It’s highly recommended that the control panel is connected to wired broadband, but it doesn’t have to be service through AT&T, said Glenn Lurie, AT&T’s president of emerging devices. As a backup, the panel can connect to AT&T’s wireless data network.
AT&T didn’t say what its services would cost.
AT&T made its announcement on the eve of the U.S. cellphone industry’s annual trade show, which starts Tuesday in New Orleans.
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Thursday, May 3, 2012 9:16 PM UTC
By Associated Press
NEW YORK (AP) — Samsung Electronics Co.’s latest Galaxy phone will have a high-definition touch screen that’s nearly twice the size of the iPhone, while being thinner and lighter than Apple’s phone.
The Galaxy line has emerged as the biggest competitor to the iPhone. Samsung said the Galaxy S III will go on sale in Europe on May 29 and in the U.S. this summer. The Korean company showed off the phone Thursday at an event in London.
Like previous Galaxy phones, the S III will run Google Inc.’s Android software. The processor, or “brains” of the device, will be upgraded to include four computing cores. The iPhone and most other high-end phones are “dual-core,” but there are some quad-core devices on sale already.
The added computing power will be put to use in the S III’s expanded voice-command features. When the phone screen is off, owners will be able to “wake” it up by saying “Hi, Galaxy.” They can then give further spoken commands. When Apple launched the iPhone 4S last year, it also made advances in voice recognition a central selling point.
Samsung will sell a pad that charges a phone placed on it, with no need to connect a cable. Palm Inc.’s last smartphone had a similar feature when released three years ago, but it never became popular.
Samsung said the phone will go on sale in 145 countries with 296 phone companies, making it the company’s biggest launch so far.
In the U.S., Japan and Korea, the phone will use fourth-generation, or 4G, networks for faster data downloads. Samsung didn’t say which carriers would sell it, but the previous Galaxy model was sold by all four national U.S. wireless carriers: Verizon, AT&T, Sprint and T-Mobile.
Samsung doesn’t release phone shipment figures, but most analysts believe its smartphones outsold Apple and its 35.1 million iPhones in the January-to-March period. Canaccord Genuity analyst Michael Walkley believes Apple and Samsung together accounted for virtually all the profits in the phone industry in the first three months of 2012, with three-quarters going to Apple by virtue of its singular focus on the high-priced iPhone.
Samsung and Apple have a complicated relationship. They’re rivals in the smartphone and tablet-computer markets and fight each other in court over patents. But Samsung is one of Apple’s largest suppliers of chips and displays, and Apple is one of Samsung’s largest clients.
The Galaxy series debuted in 2010. The screen size has increased with each version: The Galaxy S had a screen that measured 4 inches diagonally. It was followed by the S II, at 4.3 inches.
The S III screen has a 4.8-inch screen. Meanwhile, the iPhone screen has stayed the same size, at 3.5 inches, but the recent models pack more pixels into the screen, for a sharper display.
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