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	<title>AllThingsD &#187; churn</title>
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		<title>Sprint Posts Wide Loss, Big Gain in Revenue and Customers, Thanks, in Part, to the iPhone</title>
		<link>http://allthingsd.com/20120208/sprint-posts-wide-loss-big-gain-in-revenue-and-customers-thanks-to-the-iphone/</link>
		<comments>http://allthingsd.com/20120208/sprint-posts-wide-loss-big-gain-in-revenue-and-customers-thanks-to-the-iphone/#comments</comments>
		<pubDate>Wed, 08 Feb 2012 12:33:48 +0000</pubDate>
		<dc:creator>Ina Fried</dc:creator>
				<category><![CDATA[General]]></category>
		<category><![CDATA[Mobile]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[churn]]></category>
		<category><![CDATA[Dan Hesse]]></category>
		<category><![CDATA[iPhone]]></category>
		<category><![CDATA[Sprint]]></category>
		<category><![CDATA[Sprint earnings]]></category>
		<category><![CDATA[Sprint Nextel]]></category>
		<category><![CDATA[wireless]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=172448</guid>
		<description><![CDATA[Sprint said it added 1.6 million customers in the quarter, including 500,000 Sprint-brand contract customers.]]></description>
			<content:encoded><![CDATA[<p>Sprint on Wednesday posted a large net loss amid various charges, but also saw it boost overall sales, as it added more than half a million contract customers to the Sprint brand.</p>
<p><a href="http://allthingsd.com/files/2012/01/Sprint-Hesse.png"><img src="http://allthingsd.com/files/2012/01/Sprint-Hesse-380x253.png" alt="" title="Sprint Hesse" width="380" height="253" class="alignright size-Medium380 wp-image-161117" /></a></p>
<p>For the three months ended Dec. 31, Sprint lost $1.3 billion, or 43 cents per share, on revenue of $8.7 billion. That compares to a loss of $929 million, or 31 cents per share, on revenue of $8.3 billion for the same quarter a year earlier. It&#8217;s also a much wider loss than <a href="http://allthingsd.com/20111026/sprint-posts-loss-but-adds-new-customers-ahead-of-iphone-hitting-market/">in the prior quarter</a>.</p>
<p>&#8220;Our strong fourth quarter performance illustrates the power of matching iconic devices like the iPhone with our simple, unlimited plans and industry-leading customer experience,” CEO Dan Hesse said in a statement. &#8220;During the past year, Sprint added more than 5 million net new customers and grew wireless service revenue by more than 5 percent, including 17 percent for the Sprint platform. This momentum gives us confidence as we execute our Network Vision upgrade and 4G LTE roll-out.&#8221;</p>
<p>The company added more than 1.6 million customers overall during the quarter, including both prepaid, wholesale and contract customers.</p>
<p>Sprint also added two more cities &#8212; Baltimore and its hometown of Kansas City &#8212; to the roster of launch markets for the company&#8217;s LTE service, which will begin around midyear. It will <a href="http://allthingsd.com/20120105/sprint-announces-first-lte-cities-and-perhaps-prematurely-its-first-lte-phone/">also launch service in Houston, Dallas, San Antonio and Atlanta</a> at that time.</p>
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		<title>Zynga Makes Big Claims With IPO Only a Week Away</title>
		<link>http://allthingsd.com/20111209/zynga-makes-big-claims-with-ipo-only-a-week-away/</link>
		<comments>http://allthingsd.com/20111209/zynga-makes-big-claims-with-ipo-only-a-week-away/#comments</comments>
		<pubDate>Fri, 09 Dec 2011 22:03:29 +0000</pubDate>
		<dc:creator>Tricia Duryee</dc:creator>
				<category><![CDATA[Commerce]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[Alec Baldwin]]></category>
		<category><![CDATA[BusinessWeek]]></category>
		<category><![CDATA[churn]]></category>
		<category><![CDATA[CityVille]]></category>
		<category><![CDATA[Facebook]]></category>
		<category><![CDATA[Farmville]]></category>
		<category><![CDATA[free-to-play]]></category>
		<category><![CDATA[Google]]></category>
		<category><![CDATA[Harvard]]></category>
		<category><![CDATA[IPO]]></category>
		<category><![CDATA[IPOVille]]></category>
		<category><![CDATA[Mafia Wars]]></category>
		<category><![CDATA[mark Pincus]]></category>
		<category><![CDATA[MAU]]></category>
		<category><![CDATA[mobile games]]></category>
		<category><![CDATA[monthly active users]]></category>
		<category><![CDATA[paying users]]></category>
		<category><![CDATA[retention]]></category>
		<category><![CDATA[Reuters]]></category>
		<category><![CDATA[revenues]]></category>
		<category><![CDATA[social gaming]]></category>
		<category><![CDATA[valuation]]></category>
		<category><![CDATA[virtual goods]]></category>
		<category><![CDATA[Wharton]]></category>
		<category><![CDATA[Words With Friends]]></category>
		<category><![CDATA[ZNGA]]></category>
		<category><![CDATA[Zynga]]></category>
		<category><![CDATA[Zynga Poker]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=152453</guid>
		<description><![CDATA[How about doubling the number of paying gamers? Done!]]></description>
			<content:encoded><![CDATA[<p>Zynga is making some pretty big promises during its roadshow as it attempts to woo investors ahead of next week&#8217;s public offering.</p>
<p><img class="alignright size-medium wp-image-149728" title="Zynga-IPO-Ville" src="http://allthingsd.com/files/2011/12/Zynga-IPO-Ville-380x285.png" alt="" width="380" height="285" />The San Francisco social games company is looking to raise as much as $1.15 billion, which would make it the largest IPO from a U.S. Internet company since Google raised $1.7 billion in 2004.</p>
<p>Shares will likely be sold on Thursday, with the company trading under the ticker ZNGA for the first time on Friday. In the meantime, the company is trying to jockey for the best price and the most shares sold.</p>
<p>At a luncheon yesterday with potential investors, CEO Mark Pincus made one of his boldest predictions yet when it comes to how well its games will monetize.</p>
<p>Currently, Zynga has about 227 million monthly active users who play games for free on Facebook, such as FarmVille, CityVille, Zynga Poker and Mafia Wars. But only a small fraction &#8212; around 3 percent &#8212; pay for additional features, such as decorative items for a farm or new clothes for an avatar.</p>
<p>&#8220;We could see that doubling,&#8221; said Pincus, <a href="http://www.reuters.com/article/2011/12/08/us-zynga-ipo-idUSTRE7B724U20111208">according to Reuters</a>.</p>
<p><img class="alignleft size-medium wp-image-148435" title="0119_mark-pincus_280x340" src="http://allthingsd.com/files/2011/11/0119_mark-pincus_280x340-234x285.png" alt="" width="234" height="285" />Doubling? That&#8217;s sure to whet investors&#8217; appetites.</p>
<p>But it&#8217;s hard to know how the company will accomplish that.</p>
<p>To be sure, Zynga is about to enter one of its biggest growth periods yet and anticipates launching several new games over the next few months.</p>
<p>On one level, more games will likely translate to more players. But will it translate to more players willing to pay?</p>
<p>That seems like a leap of faith.</p>
<p>However, based on documents filed with the Securities &amp; Exchange Commission, we have gleaned that some of Zynga&#8217;s growth prospects are guaranteed thanks to the company&#8217;s close &#8211; <a href="http://allthingsd.com/20110718/zynga-and-facebooks-relationship-disclosed-its-complicated/">albeit complicated</a> &#8211; relationship with Facebook.</p>
<p>As one of the conditions of its partnerships, Facebook is obligated to help Zynga meet certain growth targets. In return, Zynga has committed to offering Facebook a number of exclusive game titles.</p>
<p>The specific details of the relationship were redacted in the document, so it&#8217;s not clear how aggressive those growth targets are over the five-year life of the contract.</p>
<p>Zynga also has close ties with Google, which has recently launched its own games network. Zynga has already launched several titles there, including CityVille. Following the offering, <a href="http://allthingsd.com/20111202/zyngas-valuation-withers-30-percent-since-february/">Google will own 3.8 percent of the company</a>.</p>
<p>Also during yesterday&#8217;s lunch, Zynga&#8217;s executives were grilled about player retention and churn rates and its growth prospects for mobile.</p>
<p>Among several responses, Pincus joked about <a href="http://allthingsd.com/20111206/dont-put-a-flight-attendant-between-alec-baldwin-and-words-with-friends/">how Alec Baldwin was recently kicked off a flight</a> after getting caught playing Words With Friends while still at the gate.</p>
<p>It seemed investors were not as interested in hearing about recent negative reports that Pincus&#8217;s hard-charging personality has made it an unfavorable working environment or that some employees were asked to give up their stock options.</p>
<p>Plus, it&#8217;s a crowd that Pincus should be comfortable speaking in front of. This will be the second company the Wharton and Harvard Business School grad has taken public.</p>
<p>The company will continue to have meetings today and into next week. So far, reports indicate that the conversations are going well.</p>
<p>Zynga has apparently already received enough orders to cover all the shares being sold in its initial public offering, <a href="http://www.businessweek.com/news/2011-12-09/zynga-said-to-get-enough-orders-to-cover-all-shares-in-ipo.html">reports BusinessWeek</a>, which talked to two people with knowledge of the situation. Zynga plans to sell 100 million shares for $8.50 to $10 apiece, which would value the company at as much as $7 billion.</p>
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		<title>Few AT&amp;T iPhone Users Fleeing to Verizon, Sprint</title>
		<link>http://allthingsd.com/20111116/few-att-iphone-users-fleeing-to-verizon-sprint/</link>
		<comments>http://allthingsd.com/20111116/few-att-iphone-users-fleeing-to-verizon-sprint/#comments</comments>
		<pubDate>Wed, 16 Nov 2011 15:42:10 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[Mobile]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[Apple]]></category>
		<category><![CDATA[AT&T]]></category>
		<category><![CDATA[carrier]]></category>
		<category><![CDATA[churn]]></category>
		<category><![CDATA[Glenn Lurie]]></category>
		<category><![CDATA[iPhone]]></category>
		<category><![CDATA[Sprint]]></category>
		<category><![CDATA[Verizon]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=144795</guid>
		<description><![CDATA[Though you might assume otherwise, the iPhone's debut on rival networks Verizon and Sprint hasn't really fazed AT&#038;T.]]></description>
			<content:encoded><![CDATA[<p><img src="http://allthingsd.com/files/2011/11/Python_RUN_AWAY-380x249.png" alt="" title="Python_RUN_AWAY" width="380" height="249" class="alignright size-medium wp-image-144918" />Though you might assume otherwise, the iPhone&#8217;s debut on rival networks Verizon and Sprint hasn&#8217;t really fazed AT&#038;T. In fact, the carrier doesn&#8217;t seem to miss the iPhone exclusivity it once had at all. Nor does it have reason to, according to Glenn Lurie, the company’s president of emerging devices. </p>
<p>Lurie says that total churn &#8212; the number of customers who cancel service &#8212; has remained largely unchanged since Apple inked its deals with Verizon and Sprint. &#8220;Churn has not moved at all,&#8221; <a href="http://www.marketwatch.com/story/att-churn-unaffected-after-rivals-got-the-iphone-2011-11-16">Lurie claims</a>.  </p>
<p>In other words, iPhone users are sticking with AT&#038;T, though they now have two more carrier options, and few good reasons for that loyalty. Remember, <a href="http://allthingsd.com/20090821/iphone-owners-would-like-to-replace-battery-att/">it wasn&#8217;t so long ago that iPhone users&#8217; biggest complaint was AT&#038;T</a>.</p>
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		<title>Sprint Shares Fall as Company Inks Deal With LightSquared, Loss Widens</title>
		<link>http://allthingsd.com/20110728/sprint-inks-deal-with-lightsquared-as-loss-widens/</link>
		<comments>http://allthingsd.com/20110728/sprint-inks-deal-with-lightsquared-as-loss-widens/#comments</comments>
		<pubDate>Thu, 28 Jul 2011 13:35:57 +0000</pubDate>
		<dc:creator>Ina Fried</dc:creator>
				<category><![CDATA[Mobile]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[4G]]></category>
		<category><![CDATA[4G LTE]]></category>
		<category><![CDATA[churn]]></category>
		<category><![CDATA[earnings]]></category>
		<category><![CDATA[featured post]]></category>
		<category><![CDATA[Lightsquared]]></category>
		<category><![CDATA[postpaid]]></category>
		<category><![CDATA[prepaid]]></category>
		<category><![CDATA[smartphones]]></category>
		<category><![CDATA[Sprint]]></category>
		<category><![CDATA[Sprint earnings]]></category>

		<guid isPermaLink="false">http://allthingsd.com/?p=103678</guid>
		<description><![CDATA[Sprint on Thursday announced a long-anticipated pact with aspiring 4G wholesale network provider LightSquared. Shares tumbled more than 10 percent in premarket trading.]]></description>
			<content:encoded><![CDATA[<p>Sprint on Thursday announced a long-anticipated pact with aspiring 4G wholesale network provider LightSquared, and said it gained more than a million customers last quarter, though its loss for the period widened from a year ago.</p>
<p>The company said it lost $847 million, or 28 cents per share, on revenue of $8.3 billion for the three months ended June 30. That compared to a net loss of $760 million, or 25 cents per share, on revenue of $8 billion in the year-ago quarter.</p>
<p><img src="http://allthingsd.com/files/2011/07/Sprint-logo.png" alt="" title="Sprint logo" width="152" height="72" class="alignright size-full wp-image-103695" /></p>
<p>Shares of Sprint were trading lower in premarket trading, changing hands recently at $4.53, down 63 cents or more than 12 percent.</p>
<p>On the customer side, much of Sprint&#8217;s gains were via wholesale and prepaid customers, with the company reporting a loss of about 101,000 net postpaid subscribers during the quarter. Though still losing postpaid customers, Sprint cut the rate by more than half from what it was posted in the second quarter of 2010. The company said its postpaid churn rate for the quarter was a best-ever 1.75 percent, smaller than the 1.85 percent from a year ago, and 1.81 percent <a href="http://allthingsd.com/20110428/sprint-ceo-you-try-fighting-the-iphone-on-two-carriers/">in the first quarter of this year</a>. The lower churn came as nine percent of Sprint&#8217;s core postpaid customers upgraded their phones during the quarter.</p>
<p>The company reaffirmed its full-year forecast issued in April, saying it expects to add postpaid subscribers for the full year and to add more wireless customers overall this year than it added last year. Capital expenses excluding interest should be about $3 billion, and the company said it expects positive cash flow for the second through fourth quarters and for 2011 as a whole.</p>
<p>As for the LightSquared deal, it&#8217;s a 15-year agreement that has each making a number of commitments and giving Sprint additional options when it comes to offering high-speed wireless services to customers. LightSquared will pay Sprint about $9 billion in cash for providing 3G roaming, spectrum hosting and network services, and will give Sprint $4.5 billion in credit for use on LightSquared&#8217;s forthcoming satellite and LTE networks.</p>
<p>Sprint has the option of using up to 50 percent of LightSquared&#8217;s expected 4G capacity in the so-called &#8220;L band.&#8221;</p>
<p>With the agreement, LightSquared said it expects to have its first 4G LTE services available in the second half of 2012. Sprint said it will talk more about its 4G plans at an Oct. 7 investor day event.</p>
<p>Dan Hays, a partner at management consulting firm PRTM, said the deal should benefit both companies, as LightSquared can host its 4G network within Sprint&#8217;s next-generation cell sites.</p>
<p>&#8220;For Sprint, this will defray a significant portion of its planned capital investment and deliver increased cash flow while providing an opportunity to tap into LightSquared&#8217;s competitive 4G technology,&#8221; Hays said in a statement. &#8220;For LightSquared, this deal will dramatically reduce the cost and time required to deploy its nationwide, mobile broadband network to hundreds of millions of Americans.&#8221;</p>
<p>Hays also said the 3G roaming piece of the deal should help LightSquared, as it allows the company to offer partners nationwide service from the outset.</p>
<p>LightSquared still faces significant financial and regulatory challenges in building its network, including concerns that it poses interference with GPS systems. LightSquared has said it has a plan that should significantly reduce such interference.</p>
<p><img src="http://allthingsd.com/files/2011/07/Sprint-revenue-growth-q2-2011-chart-640x480.png" alt="" title="Sprint revenue growth q2 2011 chart" width="640" height="480" class="alignright size-large wp-image-103688" /></p>
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		<title>TiVo Shares Sink as It Dials Back Expectations</title>
		<link>http://allthingsd.com/20110301/tivo-shares-sink-as-it-dials-back-expectations/</link>
		<comments>http://allthingsd.com/20110301/tivo-shares-sink-as-it-dials-back-expectations/#comments</comments>
		<pubDate>Tue, 01 Mar 2011 23:29:42 +0000</pubDate>
		<dc:creator>Voices</dc:creator>
				<category><![CDATA[Media]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[Voices]]></category>
		<category><![CDATA[analysts]]></category>
		<category><![CDATA[churn]]></category>
		<category><![CDATA[digital]]></category>
		<category><![CDATA[DVR]]></category>
		<category><![CDATA[earnings]]></category>
		<category><![CDATA[frontpage]]></category>
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		<category><![CDATA[loss]]></category>
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		<category><![CDATA[television]]></category>
		<category><![CDATA[TiVo]]></category>
		<category><![CDATA[trading]]></category>

		<guid isPermaLink="false">http://voices.allthingsd.com/?p=37142</guid>
		<description><![CDATA[Shares in DVR pioneer TiVo moved lower in after-hours trading today after the company posted a loss of $0.30 cents per share--two cents worse than analysts were expecting--and offered a disappointing picture of the current quarter. The fast-forward version: Service and technology revenue, down; subscription rate, down; churn, up; expenses, up; legal fees, substantial.]]></description>
			<content:encoded><![CDATA[<p>Shares in DVR pioneer TiVo <a href="http://www.marketwatch.com/investing/stock/TIVO">moved lower</a> in after-hours trading today after <a href="http://blogs.barrons.com/techtraderdaily/2011/03/01/tivo-off-4-on-q4-miss-q1-view/">the company posted a loss of $0.30 cents per share</a>&#8211;two cents worse than analysts were expecting&#8211;and offered a disappointing picture of the current quarter. The fast-forward version: Service and technology revenue, down; subscription rate, down; churn, up; expenses, up; legal fees, substantial.</p>
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		<title>T-Mobile's Turnaround Has Yet to Reach Right Direction as Customers Defect</title>
		<link>http://allthingsd.com/20110225/t-mobiles-turnaround-has-yet-to-reach-right-direction-as-customers-defect/</link>
		<comments>http://allthingsd.com/20110225/t-mobiles-turnaround-has-yet-to-reach-right-direction-as-customers-defect/#comments</comments>
		<pubDate>Fri, 25 Feb 2011 16:05:51 +0000</pubDate>
		<dc:creator>Ina Fried</dc:creator>
				<category><![CDATA[Mobile]]></category>
		<category><![CDATA[News]]></category>
		<category><![CDATA[Android]]></category>
		<category><![CDATA[Apple]]></category>
		<category><![CDATA[AT&T]]></category>
		<category><![CDATA[churn]]></category>
		<category><![CDATA[iPhone]]></category>
		<category><![CDATA[Phillip Humm]]></category>
		<category><![CDATA[smartphones]]></category>
		<category><![CDATA[Sprint]]></category>
		<category><![CDATA[T-Mobile]]></category>
		<category><![CDATA[T-Mobile USA]]></category>
		<category><![CDATA[Verizon]]></category>
		<category><![CDATA[Verizon Wireless]]></category>

		<guid isPermaLink="false">http://mobilized.allthingsd.com/?p=4364</guid>
		<description><![CDATA[T-Mobile lost customers in the quarter, indicating that progress on improving its No. 4 position in the U.S. may have stalled.

The company did see the slightest of upticks in revenue from a year earlier as the company benefitted from the shift to smartphones.]]></description>
			<content:encoded><![CDATA[<p><img src="http://mobilized.allthingsd.com/files/2010/12/tmobile-just-motorcycle-150x150.png" alt="" title="tmobile just motorcycle" width="150" height="150" class="alignright size-thumbnail wp-image-1329" />T-Mobile USA, which has been talking up its plans to improve on its No. 4 position in the U.S., has actually been losing ground in recent months, according to its fourth quarter results.</p>
<p>During the period, the company lost more than 300,000 contract customers and some 23,000 customers overall.</p>
<p>&#8220;High contract churn and significant contract customer losses in the fourth quarter of 2010 indicate that we still have a fair amount of work ahead of us and that any turnaround will take time,&#8221; CEO Phillip Humm. &#8220;With the ongoing implementation of our challenger strategy we are laying the foundation for improved performance going forward.&#8221;</p>
<p>The company did see its revenue increase slightly as the company continues to get more dollars per customer as the shift to smartphones continues. Service revenue for the fourth quarter was $4.69 billion compared to $4.65 billion a year earlier, though it dipped from $4.71 billion in the third quarter.</p>
<p>In both ads and executive comments, T-Mobile has been <a href="http://mobilized.allthingsd.com/20110112/t-mobile-to-verizon-congrats-on-the-iphone-now-well-make-fun-of-you-too/">talking tough vis a vis its rivals</a>. However, like Sprint, it is showing up to the fight without an iPhone on its side.</p>
<p>Last month, Humm told <strong>Mobilized</strong> that the carrier <a href="http://mobilized.allthingsd.com/20110131/interview-t-mobile-ceo-phillip-humm-embraces-role-as-challenger-to-verizon-sprint-and-att/?mod=ATD_search">was going back to its roots</a>, pitching itself as the best value on the market.</p>
<p>Lacking a next-generation network, the company is also trying to keep pace by introducing ever faster versions of its HSPA-plus network, with <a href="http://mobilized.allthingsd.com/20110106/t-mobile-wants-you-to-know-it-is-speeding-up-its-network-too/?mod=ATD_search">plans to further increase the speed of that network this year</a>. Longer term, the company needs additional spectrum to build an LTE network like those being built by Verizon and AT&#038;T.</p>
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		<title>Sprint Now Gaining Subscribers Instead of Losing Them</title>
		<link>http://allthingsd.com/20110210/sprint-manages-first-subscriber-gain-since-2007/</link>
		<comments>http://allthingsd.com/20110210/sprint-manages-first-subscriber-gain-since-2007/#comments</comments>
		<pubDate>Thu, 10 Feb 2011 14:45:26 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
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		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/?p=57532</guid>
		<description><![CDATA[Good news for long-suffering Sprint Nextel investors: Customer retention has finally improved to the point where the carrier is able to report actual gains in postpaid subscribers, rather than losses.]]></description>
			<content:encoded><![CDATA[<p><a href="http://digitaldaily.allthingsd.com/files/2011/02/sprint.png"><img src="http://digitaldaily.allthingsd.com/files/2011/02/sprint-380x291.png" alt="" title="sprint" width="380" height="291" class="aligncenter size-Medium380 wp-image-57535" /></a>Good news for long-suffering Sprint Nextel investors: Customer retention has finally improved to the point where the carrier is able to report actual gains in postpaid subscribers, rather than losses.</p>
<p>Posting <a href="http://newsroom.sprint.com/article_display.cfm?article_id=1796">fourth-quarter earnings this morning</a>, Sprint said it added 1.1 million total wireless subscribers, 58,000 of them two-year contract customers. Quite a milestone for a company that hasn&#8217;t seen a gain in postpaid subscribers in 13 quarters and a sign that Sprint may finally be turning a corner. Another good sign: Postpaid churn fell to 1.86 percent from 2.11 percent in the third quarter, and prepaid churn fell to 4.93 percent from 5.32 percent. And another: For the quarter, Sprint added almost 1.1 million wireless subscribers, its best showing in nearly five years.</p>
<p>All welcome news, even if Sprint is still losing money. The company reported a fourth-quarter loss of $929 million, or 31 cents a share, on revenue of $8.3 billion, up from $7.9 billion a year ago. Analysts polled by Thomson Reuters most recently forecast a loss of 30 cents a share on $8.15 billion in revenue. Said Bernstein analyst Craig Moffett, &#8220;Sprint CEO Dan Hesse might be forgiven for the temptation to hang a &#8220;Mission Accomplished&#8221; banner on the aircraft carrier that is Sprint. To his credit, he expressly declined to do so. Still, the company has at last achieved post-paid and total subscriber growth, customer service levels have improved, churn rates have been brought under control, and revenues were up.&#8221;</p>
<p>At $4.41, Sprint shares are up 1.15 percent in early trading as I write this.</p>
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		<title>90 Percent of AT&amp;T iPhone Subs Still Under Contract</title>
		<link>http://allthingsd.com/20110128/90-percent-of-att-iphone-subs-still-under-contract/</link>
		<comments>http://allthingsd.com/20110128/90-percent-of-att-iphone-subs-still-under-contract/#comments</comments>
		<pubDate>Fri, 28 Jan 2011 12:00:07 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[Mobile]]></category>
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		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/?p=56643</guid>
		<description><![CDATA[A metric worth mulling as AT&#038;T’s previously monogamous relationship with Apple shifts into polyamory: 90 percent of the carrier’s iPhone users are still under contract.]]></description>
			<content:encoded><![CDATA[<p><img src="http://digitaldaily.allthingsd.com/files/2010/09/AAPLTT-150x150.jpg" alt="" title="AAPLTT" width="150" height="150" class="alignright size-thumbnail wp-image-48950" />A metric worth mulling as AT&#038;T&#8217;s previously monogamous relationship with Apple shifts into polyamory: 90 percent of the carrier&#8217;s iPhone users are still under contract.</p>
<p>That&#8217;s according to Susquehanna analyst Jeffrey Fidacaro (and AT&#038;T, which confirmed that percentage to me), who doesn&#8217;t see the launch of the iPhone on Verizon as <a href="http://digitaldaily.allthingsd.com/20100525/att-verizon-iphone/">a catastrophic event</a> for AT&#038;T at all.  He thinks the carrier stands to lose two million iPhone users at most to Verizon&#8211;hardly a mass exodus.</p>
<p>AT&#038;T&#8217;s decision last year to accelerate upgrade eligibility for iPhone customers, making it easier for them to get the iPhone 4 when Apple released it, is proving a wise move indeed. What better deterrent to switching networks than the <a href="http://digitaldaily.allthingsd.com/20100521/att-jacks-smartphone-early-termination-fee-to-325/">carrier&#8217;s $325 early termination fee</a>?</p>
<p>In all likelihood, iPhone subscriber churn will be no worse at AT&#038;T than it has been at other carriers that have lost iPhone exclusivity. As Matthew Key, CEO of Telefónica Europe, <a href="http://docs.google.com/viewer?a=v&amp;q=cache:bLlDG0Jxbc4J:www.telefonica.com/en/shareholders_investors/pdf/rdos09t4-transcript.pdf+%22very+comfortable+with+our+iPhone+volumes%22&amp;hl=en&amp;gl=us&amp;pid=bl&amp;srcid=ADGEESj_tG1l6TMK0hm1ambPQiCPnGqxSCUg93y-12xZjjCLEPslrZQe8qk94t_YtgbZO8ykQWy_iHekEmFumEwXb6FCMG96LzVyV1hdvDLwlN9o_dyQ9zvPn3k-VnuJdU2xzqbKDuRI&amp;sig=AHIEtbS8sJwEhZerqeylMStRkGCRbeQhmA">said during a February 2010 earnings call</a>, “Ever since Vodafone has started selling the iPhone in January, we see absolutely no evidence of people leaving us, churning on the iPhone going back to Orange or Vodafone, so [we are] very comfortable with our iPhone volumes. We continue to out-trade the market and no sign of churn whatsoever.”</p>
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		<item>
		<title>Lacking an iPhone, Scrappy T-Mobile Promises to Stay Aggressive in 2011</title>
		<link>http://allthingsd.com/20110120/lacking-an-iphone-scrappy-t-mobile-promises-to-stay-aggressive-in-2011/</link>
		<comments>http://allthingsd.com/20110120/lacking-an-iphone-scrappy-t-mobile-promises-to-stay-aggressive-in-2011/#comments</comments>
		<pubDate>Thu, 20 Jan 2011 18:52:52 +0000</pubDate>
		<dc:creator>Ina Fried</dc:creator>
				<category><![CDATA[Mobile]]></category>
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		<guid isPermaLink="false">http://mobilized.allthingsd.com/?p=2762</guid>
		<description><![CDATA[Okay, call it a comeback. The perennial fourth-place U.S. carrier says it hopes to start growing again soon, possibly this year, and hopes to boost its revenue by $3 billion by 2014.

At an investor event in New York on Thursday, T-Mobile said it also hopes to cut costs and reduce subscriber churn, while at the same time offering the best deal on wireless data costs.]]></description>
			<content:encoded><![CDATA[<p>With shades of Avis&#8217;s old &#8220;We try harder&#8221; campaign, No. 4 U.S. carrier T-Mobile said on Thursday it will claw its way up in the market with aggressive pricing and new product launches.<br />
<img src="http://mobilized.allthingsd.com/files/2011/01/avisbuttoncolor-275x252.gif" alt="" title="avisbuttoncolor" width="200" height="183" class="alignright size-medium wp-image-2770" /><br />
At a meeting with investors in New York, the company said it aims to cut the rate of customer churn and return to growth as early as this year. Among its financial goals are to increase U.S. revenue by $3 billion by 2014 while at the same time shaving a further $1 billion in costs.</p>
<p> &#8220;T-Mobile is ideally positioned to grow in the expanding U.S. market with the mobile Internet, if possible to a disproportionately large extent,&#8221; T-Mobile Group CEO Rene Obermann said in a statement issued by parent company Deutsche Telekom. &#8220;Philipp Humm and his team have a broad-based strategy to put T-Mobile USA back on course for growth.&#8221;</p>
<p>Among its plans are to offer the most competitive data rates while also <a href="http://mobilized.allthingsd.com/20110106/t-mobile-wants-you-to-know-it-is-speeding-up-its-network-too/">introducing a faster version of its HSPA+ network</a>, the one T-Mobile bills as America&#8217;s largest 4G network. Lacking an iPhone to offer, T-Mobile has been <a href="http://mobilized.allthingsd.com/20101223/t-mobiles-ces-plans-lots-of-android-some-tablets-and-a-faster-network/">running a pointed ad campaign poking fun at AT&#038;T</a> and, <a href="http://mobilized.allthingsd.com/20110112/t-mobile-to-verizon-congrats-on-the-iphone-now-well-make-fun-of-you-too/">more recently, also at Verizon</a>.</p>
<p>T-Mobile also hopes to boost its fortunes by increasing sales efforts to businesses and allowing other carriers&#8211;so-called MVNOs&#8211;to sell services on its network.</p>
<p>The company reiterated its plans to eventually move to a Long-Term Evolution network (the same technology being adopted by Verizon and AT&#038;T). However T-Mobile said this will &#8220;probably not be for a few years.&#8221;</p>
<p>While T-Mobile spoke to the business and technical hurdles associated with moving too quickly to LTE, it also acknowledged the other big stumbling block&#8211;it lacks enough spectrum to do so.</p>
<p>&#8220;Deutsche Telekom is exploring various options to acquire additional spectrum and reduce the gap regarding economies of scale compared with its larger competitors, including partnering with other companies,&#8221; T-Mobile said.</p>
<p>T-Mobile also announced the Samsung Galaxy S 4G and said it would bring back the Sidekick brand with a 4G, Android-based device to be introduced in the spring.</p>
]]></content:encoded>
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		<title>Sprint: Collateral Damage in the Verizon-AT&amp;T iPhone War</title>
		<link>http://allthingsd.com/20110113/sprint-collateral-damage-in-the-verizon-att-iphone-war/</link>
		<comments>http://allthingsd.com/20110113/sprint-collateral-damage-in-the-verizon-att-iphone-war/#comments</comments>
		<pubDate>Thu, 13 Jan 2011 20:30:36 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[Mobile]]></category>
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		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/?p=55731</guid>
		<description><![CDATA[So much for Sprint’s tentative comeback. The company’s no longer hemorrhaging subscribers and money--at least not as badly as it was. But that could change now that Apple has added Verizon as a second iPhone carrier in the States.]]></description>
			<content:encoded><![CDATA[<p><img src="http://digitaldaily.allthingsd.com/files/2009/10/ackroyd_juliachild_pre.jpg" alt="ackroyd_juliachild_pre" title="ackroyd_juliachild_pre" width="200" height="253" class="alignright size-full wp-image-27709" />So much for <a href="http://digitaldaily.allthingsd.com/20100728/sprint-gains-subs-loses-money/">Sprint&#8217;s tentative comeback</a>.  The company&#8217;s no longer <a href="http://digitaldaily.allthingsd.com/20090219/sprint-paring-losses-almost-as-quickly-as-subscriber-base/">hemorrhaging subscribers and money like Dan Aykroyd’s exsanguinating Julia Child</a>, as I once joked&#8211;at least not as badly as it was. But that could change now that Apple has added Verizon as a second iPhone carrier in the States.</p>
<p>Not only will the  Verizon iPhone likely  draw new wireless subscribers away from Sprint (and T-Mobile, for that matter), it will boost its churn rate as well. Compounding that effect will be AT&#038;T&#8217;s reaction to its loss of iPhone exclusivity and its efforts to hold on to subscribers it fears might defect to Verizon.  As Bernstein Research analyst Craig Moffet noted today, AT&#038;T&#8217;s not going to stand idly by as Verizon woos away its customers.</p>
<p>&#8220;Already in 2Q and 3Q 2010, AT&#038;T partially pre-empted Verizon&#8217;s iPhone introduction by upgrading a massive number of its iPhone subscribers, so as to lock them into new 2-year contracts,&#8221; Moffet observed in a note to clients today. &#8220;This amounts to a massive re-subsidization of existing subscribers, sacrificing margins for subscriber retention. When the actual iPhone introduction at Verizon occurs, AT&#038;T is likely to react further, with more aggressive phone subsidies, incremental advertising, the introduction of other compelling devices, and possibly with price cuts.&#8221;</p>
<p>And when it does, Sprint&#8217;s share of industry gross additions will inevitably  decline.</p>
<p>There&#8217;s a wild card here, though: <a href="http://digitaldaily.allthingsd.com/20110112/perhaps-david-blaine-will-make-sprints-subscriber-losses-disappear/">The special event that Sprint has planned for February</a>. If what the company shows off there truly is the industry first it&#8217;s promising (and let&#8217;s be clear: It&#8217;s almost certainly not going to be another CDMA iPhone), perhaps it will indeed make the &#8220;impossible possible&#8221;&#8211;helping Sprint limit subscriber churn in the face of the Verizon iPhone.</p>
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		<title>Cost-Cutting Costs Weigh on Verizon</title>
		<link>http://allthingsd.com/20100723/layoffs-cost-verizon/</link>
		<comments>http://allthingsd.com/20100723/layoffs-cost-verizon/#comments</comments>
		<pubDate>Fri, 23 Jul 2010 14:33:40 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[Mobile]]></category>
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		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/?p=45444</guid>
		<description><![CDATA[The buyouts Verizon has offered some 11,000 employees have cost the company dearly. Posting second-quarter earnings Friday morning, Verizon said it lost $198 million, or 7 cents a share, largely as a result of--you guessed it--one-time costs related to workforce reductions.]]></description>
			<content:encoded><![CDATA[<p><img src="http://digitaldaily.allthingsd.com/files/2010/07/EARNINGS_bob-cratchett.jpg" alt="" title="EARNINGS_bob-cratchett" width="200" height="150" class="alignright size-full wp-image-44704" />The buyouts Verizon (VZ) has offered some 11,000 employees have cost the company dearly. Posting <a href="http://newscenter.verizon.com/press-releases/verizon/2010/Verizon-Reports-Strong-Wireless-FiOS-Customer-Growth-Increased-Enterprise-Revenues-Strong-Cash-Flow-in-2Q.html">second-quarter earnings</a> Friday morning, Verizon said it lost $198 million, or 7 cents a share, largely as a result of&#8211;you guessed it&#8211;one-time costs related to workforce reductions.</p>
<p>Unfortunate news, particularly since that loss compares to a profit of $1.48 billion, or 52 cents a share, a year earlier. That said, excluding one-time items, Verizon earned 58 cents a share, which was better than the 56 cents analysts had been looking for.</p>
<p>And the company’s wireless business is booming. Verizon Wireless added a better-than-expected 1.4 million net customers, with about 665,000 of them opting for annual contracts. Those customers are spending more each month&#8211;$51.56, up 0.9 percent from the previous quarter. They’re also canceling service far less often. Subscriber churn fell to .94 percent&#8211;the lowest it’s been in nearly two years.</p>
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		<title>Liveblogging Microsoft Bing&#039;s Search Summit 2010: There Will Be Donuts (and Also Cream Puffs!)</title>
		<link>http://allthingsd.com/20100713/liveblogging-microsoft-bings-search-summit-2010-there-will-be-donuts-also-cream-puffs/</link>
		<comments>http://allthingsd.com/20100713/liveblogging-microsoft-bings-search-summit-2010-there-will-be-donuts-also-cream-puffs/#comments</comments>
		<pubDate>Tue, 13 Jul 2010 17:41:01 +0000</pubDate>
		<dc:creator>Kara Swisher</dc:creator>
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		<guid isPermaLink="false">http://kara.allthingsd.com/?p=30544</guid>
		<description><![CDATA[After BoomTown complained at December's search summit held by Bing about the lack of the finest pastry known to man--namely, donuts!--minions were dispatched by top Microsoft geek general Satya Nadella to fix the dire situation.

And, happily, at Search Summit 2010, there on the lovely snack table were a small pile of them--which looked like Krispy Kreme to me.

There were lacking the key sprinkles feature, but carb crisis averted and back to search news!]]></description>
			<content:encoded><![CDATA[<p><img src="http://kara.allthingsd.com/files/2010/07/krispy_kreme_glazed_doughnut1-275x275.jpg" alt="" title="krispy_kreme_glazed_doughnut1" width="275" height="275" class="alignright size-medium wp-image-30546" /></p>
<p>After BoomTown complained at <a href="http://kara.allthingsd.com/20091202/liveblogging-bing-new-features-demo-no-donuts/">December&#8217;s search summit</a> held by Bing about the lack of the finest pastry known to man&#8211;namely, <em>donuts</em>!&#8211;minions were dispatched by top Microsoft geek general Satya Nadella to fix the dire situation.</p>
<p>And, happily, at Search Summit 2010, there on the lovely snack table were a small pile of them&#8211;which looked like Krispy Kreme to me.</p>
<p>There were lacking the key sprinkles feature, but carb crisis averted!</p>
<p>Speaking of features, top Bing execs were on hand in San Francisco to show off all the work they have been doing over the last year in the software giant&#8217;s efforts to topple mean old Google (GOOG) via an innovative offering.</p>
<p>Even the plain-speaking Nadella acknowledged in his opening it was still a bit of a children&#8217;s crusade, since Bing had barely broken into double digits in search market share and Google was hovering around 70 percent.</p>
<p>But the most <a href="http://kara.allthingsd.com/20100713/search-share-still-tricky-to-grok-but-googles-down-while-yahoo-and-bing-show-some-legs/">recent report released this week by comScore</a> (SCOR) showed continued promise, so Microsoft (MSFT) presses on its long and pricey road!</p>
<p>Here&#8217;s my liveblog of this morning&#8217;s event at the software giant&#8217;s San Francisco office:</p>
<p><strong>10 am PT:</strong> Nadella opened with the donuts news. Nice move.</p>
<p>Then, it was onto some promising stats of growth, which have surely been promising, despite the high price tag (Microsoft&#8217;s online division lost $700 million in the last quarter, to give you an idea of the sticker shock).</p>
<p>Still, as search exec Brian MacDonald said, as he was presenting all the many new features&#8211;such as cards&#8211;added over the last year: &#8220;We&#8217;re in it to win it.&#8221;</p>
<p>At the end of his presentation, in a slide title &#8220;Future,&#8221; he said reporters could not take pictures or video. Sure, hop us up on sugar and then tell us something interesting and bar us from taking snaps!</p>
<p>But MacDonald clicked through the images so fast, it was hard to tell what Bing would be up to. Essentially, it looks like a more blocky, image-heavy design, with more differing fonts and contextual info.</p>
<p><strong>10:40 am PT:</strong> A smart search geek Harry Shum was then on with a lecture about search intent and all kinds of insider tweakery that made me confused, since I do not understand terms such as &#8220;page-level dialog.&#8221; There is also apparently &#8220;session-level dialog.&#8221;</p>
<p>Harry knows what it all means, which is pretty much all that counts.</p>
<p><img src="http://kara.allthingsd.com/files/2010/07/Big-brother-is-watching-you.jpg-204x300.jpg" alt="" title="Big brother is watching you.jpg" width="204" height="300" class="alignleft size-medium wp-image-30576" /></p>
<p>My take: It has to do with some sort of digital conversation Bing search dudes are having with the users that users have no idea is actually going on.</p>
<p>Simply put: They&#8217;re <em>watching</em> you.</p>
<p><strong>11 am PT:</strong> Next search guy talked about search intent and such.</p>
<p>That means adding features such as a link to search history or instant weather on the opening page. It&#8217;s the little touches that count.</p>
<p>In fact, they do, as Bing tries to differentiate itself from what Google offers, via a series of neat tricks and clever design.</p>
<p>That includes, for example, easy access to lyrics and song classifiers, when searching in music.</p>
<p>Lady Gaga&#8217;s &#8220;Poker Face&#8221; was used as an example, since Lady Gaga seems to be the go-to gal on seeming cool these days.</p>
<p>(But is it time to check Bing search trends to see if she is peaked?)</p>
<p><strong>11:19 am:</strong> Next, top Online Services Division exec Erik Jorgensen came on to discuss mobile and mapping. He compared himself with &#8220;Edward Scissorhands&#8221; when talking about how hard it is to have a good experience on a small device.</p>
<p>&#8220;Type less, do more,&#8221; is the internal mantra at Bing, he said. Coincidentally, my mantra is type more, do <em>less</em>.</p>
<p>Jorgensen showed off Bing mobile stats: 23 million users, 160 percent growth and four million downloads of its iPhone app. Yes, it has come to this&#8211;Microsoft using Apple (AAPL) to tout its success.</p>
<p>Then it was onto mapping, which is a pretty good arena for Bing. Stats: 41 percent growth in U.S. unique users, 43 percent rise in searches using enhanced maps, a huge boost in map apps.</p>
<p><strong>11:29 am:</strong> Bing Maps guru Blaise Aguera y Arcas&#8211;who has the single most sexy name in all of geekdom&#8211;said the focus is now on social location.</p>
<p>As in Foursquare!</p>
<p>In fact, he showed off a map in which Foursquare check-ins pour in and pop up in a bit of a freaky way, as in: You can stalk in real-time.</p>
<p>Then it was onto cool mapping eye-candy, which I always fall for since the whole zoom-in-zoom-out thing is mesmerizing. Aguera y Arcas showed off clickable geographic names and embedded maps within maps from, in this case, a zoo or a museum.</p>
<p><strong>11:50 am:</strong> Q&#038;A Time!</p>
<p>The first question is about gaming. It&#8217;s hot said Nadella, and Bing wants to provide discovery and search more than games themselves.</p>
<p>I asked a question about the status of the Yahoo (YHOO) search partnership deal, <a href="http://kara.allthingsd.com/20100701/digitals-deadliest-catch-part-1-the-microhoo-search-integration-teams-nelson-and-morrissey-speak/">which is in process</a>. It is a <em>very</em> complex process, in fact.</p>
<p>And, though they were supposed to be in tandem, Nadella said that algorithm would move faster than advertising technology handover.</p>
<p>&#8220;If there were a drop of of advertisers [due to the new deal], that would be problematic,&#8221; he said.</p>
<p>Yes, which segued into the next obvious topic: When would Bing make some dough?</p>
<p>Thus. I asked about the high costs of competing in the search space, which Nadella said would continue, including distribution deals and in the aggressive marketing of Bing.</p>
<p>&#8220;For sure, we had to ante up,&#8221; he said. &#8220;But the product has to be able to stand on its own&#8230;ultimately, the product has to carry the day.&#8221;</p>
<p>More questions about distribution, social search, churn, product differentiation and whether Bing is growing from a more passive user to building a &#8220;fan base.&#8221;</p>
<p>BoomTown brainstorm: If they handed out delicious donuts with each search, I&#8217;d leave Google in a New York minute.</p>
<p>But, like a skunk at a garden party, I asked another question about when Bing is going to break even.</p>
<p>Nadella was too smart to answer this digital hot potato.</p>
<p>&#8220;It&#8217;s a big market where money can we made, and we are making progress,&#8221; he said, saying I should ask his bosses about specifics.</p>
<p>I shall!</p>
<p>In this vein, someone then asked a question about whether Bing would ever become a verb as Google has become.</p>
<p><img src="http://kara.allthingsd.com/files/2010/07/451617182_4e64530312_o-251x300.jpg" alt="" title="451617182_4e64530312_o" width="251" height="300" class="alignright size-medium wp-image-30587" /></p>
<p>Shum joked that in the future six letters would be too many for people to say, so things were looking up for four-letter search brands!</p>
<p>More questions included whether Google was tweaked by Bing yet (yep!), and whether Bing should try to win in an international market to show some muscle (U.S. is still top focus).</p>
<p>Finally, it was &#8220;time to deploy the cream puffs,&#8221; said a Microsoft PR honcho.</p>
<p>Long past time, I&#8217;d say.</p>
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		<title>Analyst: Nine Million iPhones on Verizon in 2011</title>
		<link>http://allthingsd.com/20100622/analyst-9-million-iphones-on-verizon-in-2011/</link>
		<comments>http://allthingsd.com/20100622/analyst-9-million-iphones-on-verizon-in-2011/#comments</comments>
		<pubDate>Tue, 22 Jun 2010 14:52:58 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[Mobile]]></category>
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		<category><![CDATA[2011]]></category>
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		<category><![CDATA[James Ratcliffe]]></category>
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		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/?p=43193</guid>
		<description><![CDATA[Amid long-running and persistent rumors of a Verizon iPhone, one analyst has bravely stepped forward to put a date on the device’s market debut. Barclays Capital analyst James Ratcliffe says we’ll see it in early 2011, and he’s sure enough in his prediction that he’s building it into his forecasts for AT&#38;T and Verizon.]]></description>
			<content:encoded><![CDATA[<p><img src="http://digitaldaily.allthingsd.com/files/2009/04/jobs_canyouhearmenow-250x205jpg-150x150.jpg" alt="jobs_canyouhearmenow-250x205jpg" width="150" height="150" class="alignright size-thumbnail wp-image-16537" /><br />
Amid long-running and persistent rumors of a Verizon iPhone, one analyst has bravely stepped forward to put a date on the device’s market debut. Barclays Capital analyst James Ratcliffe says we’ll see it in early 2011, and he’s sure enough in his prediction that he’s building it into his forecasts for AT&#038;T (T) and Verizon (VZ). </p>
<p>Says Ratcliffe: &#8220;Channel checks by our communications equipment and semiconductor research partners give us greater confidence that Verizon will get an iPhone in early 2011, and we are now incorporating that belief into our models for AT&#038;T and Verizon.&#8221;</p>
<p>Interestingly, Ratcliffe doesn’t see the end of AT&#038;T’s iPhone-exclusivity deal with Apple (AAPL) heralding a subscriber exodus at the carrier. While he acknowledges that perception issues with AT&#038;T’s network quality will inevitably drive some customers to flee to Verizon, he believes that many will stay put. </p>
<p>All told, the analyst expects approximately 500,000 to one million &#8220;switchers,&#8221; a relatively small portion of the nine million iPhones he says Verizon will activate in 2011 (<em>click on charts below to enlarge</em>).</p>
<p>&#8220;We don&#8217;t believe that the addition of a Verizon iPhone will be a seismic event in the wireless competitive environment, although we do expect it to result in a modest spike in AT&#038;T churn, as customers who love their iPhones but have become unhappy with AT&#038;T&#8217;s network take advantage of the alternative,&#8221; Ratcliffe writes.</p>
<p>&#8220;Overall, however, we believe that smartphone customers are relatively sticky, particularly given that (a) 70% of AT&#038;T postpaid customers are on family plans (which would necessitate a group switch), (b) switching cost for customers currently in contract would be $375-525 per handset, (c) approximately 40% of handsets are covered under corporate discount arrangements, many of which may not have VZ equivalents, (d) for many, if not most iPhone customers, the service quality being delivered on the AT&#038;T network is in reality comparable to what they&#8217;d receive on Verizon&#8217;s network, and (e) switching will likely result in accepting a bandwidth-capped data offering, since (we believe) that Verizon is likely to launch tiered bandwidth pricing prior to the launch of an iPhone.&#8221;</p>
<p><a href="http://digitaldaily.allthingsd.com/files/2010/06/barclays_VZ_iphone.jpg"><img src="http://digitaldaily.allthingsd.com/files/2010/06/barclays_VZ_iphone-243x300.jpg" alt="" title="barclays_VZ_iphone" width="243" height="300" class="aligncenter size-medium wp-image-43195" /></a></p>
<p>So, while the expiration of AT&#038;T’s iPhone-exclusivity deal certainly won’t be good news for the carrier, it’s not going to be a disaster. Ratcliffe figures the carrier will still activate six million iPhones in 2011, which is quite a bit fewer than the 10 million he says it will activate this year, but a sizable number nonetheless.</p>
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		<title>Attention, Wal-Mart Shoppers: iPhone 3GS Clearance Sale in Aisle Nine</title>
		<link>http://allthingsd.com/20100525/attention-walmart-shoppers-iphone-3gs-clearance-sale-in-aisle-nine/</link>
		<comments>http://allthingsd.com/20100525/attention-walmart-shoppers-iphone-3gs-clearance-sale-in-aisle-nine/#comments</comments>
		<pubDate>Tue, 25 May 2010 11:58:58 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[Mobile]]></category>
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		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/?p=41351</guid>
		<description><![CDATA[With two weeks to go before Apple’s annual Worldwide Developers Conference and the presumed debut of the company’s next-generation iPhone, Wal-Mart is dropping the price of the entry-level iPhone 3GS by more than half.]]></description>
			<content:encoded><![CDATA[<p><img src="http://digitaldaily.allthingsd.com/files/2008/11/steve_walmartthumb-150x150.jpg" alt="" width="150" height="150" class="alignright size-thumbnail wp-image-8664" /><br />
With two weeks to go before Apple&#8217;s annual <a href="http://digitaldaily.allthingsd.com/20100524/steve-jobs-to-keynote-apples-wwdc-conference/">Worldwide Developers Conference</a> and the presumed debut of the company’s next-generation iPhone, <a href="http://money.cnn.com/2010/05/24/technology/Walmart_iPhone_price_cut/">Wal-Mart is dropping the price of the entry-level  iPhone 3GS </a> by more than half. </p>
<p>This morning, the retailer <a href="http://www.walmart.com/catalog/catalog.gsp?cat=1045939">cut the price of iPhone 3GS devices with 16 gigabytes of memory from $197 to $97</a> with a two-year service contract. Wal-Mart claims the reduction is simply part of its  &#8220;ongoing aggressive savings announcements.&#8221; But coming as it does amid speculation about the launch of a new iPhone (and <a href="http://www.boygeniusreport.com/2010/05/24/apple-discontinuing-apple-iphone-3g-8gb/">rumors of the discontinuation of the 8GB iPhone 3G</a>), it is being interpreted as a move to clear out inventory before that device arrives at market.</p>
<p>Meanwhile, <a href="http://store.apple.com/us/browse/home/shop_iphone/family/iphone?mco=OTY2ODA2OQ">Apple</a> (AAPL) and <a href="http://www.wireless.att.com/cell-phone-service/packages/iphone-packages.jsp?source=ICipK1ipc00jtlpo">AT&#038;T</a> (T) continue to sell the 16GB iPhone 3GS at its original price, though I can’t imagine that this will continue much longer. When Apple introduced the iPhone 3GS in June 2009, AT&#038;T slashed the price of the entry-level 8GB iPhone 3G to $99. </p>
<p>The company is expected to do the same thing this year with the low-end 3GS. And, as it did last year, that price cut will likely spur adoption of the device among the lower tiers of AT&#038;T’s customer base. As <a href="http://www.btigresearch.com">BTIG Research analyst Walter Piecyk</a> observed in a note to clients this morning: </p>
<blockquote class="memo"><p>
We estimate that last years price cut of the iPhone 3G to $99 stimulated more than 3 million phone sales to existing AT&#038;T customers that helped the company further penetrate the family plan with higher ARPU, lower churn customers. We believe the impact could be even larger this year for AT&#038;T given its the broad market acceptance of the iPhone, the halo impact of the iPad and the installed base of iPhones that will need to be upgraded to a 3GS phone in order to benefit from Apple’s latest upgrade to its iPhone OS 4.0.  </blockquote class="memo">
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		<title>Wall Street Loves Netflix on the iPad. Maybe a Bit Too Much.</title>
		<link>http://allthingsd.com/20100407/wall-street-loves-netflix-on-the-ipad-maybe-a-bit-too-much/</link>
		<comments>http://allthingsd.com/20100407/wall-street-loves-netflix-on-the-ipad-maybe-a-bit-too-much/#comments</comments>
		<pubDate>Wed, 07 Apr 2010 11:50:35 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
				<category><![CDATA[Media]]></category>
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		<guid isPermaLink="false">http://mediamemo.allthingsd.com/?p=18280</guid>
		<description><![CDATA[Netflix may have the iPad's buzziest app. But that may not mean much for the video rental company's subscriber count.]]></description>
			<content:encoded><![CDATA[<p><a href="http://mediamemo.allthingsd.com/files/2010/04/reed-hastings.jpg"><img class="alignright size-medium wp-image-18283" title="reed hastings" src="http://mediamemo.allthingsd.com/files/2010/04/reed-hastings-275x182.jpg" alt="" width="250" height="165" /></a>On Monday, Wall Street investors decided that the <a href="http://online.wsj.com/article/SB10001424052702304017404575166382281783988.html?ru=yahoo&amp;mod=yahoo_hs">clear winner</a> from last weekend&#8217;s iPad launch was&#8230;Netflix. And they&#8217;ve been buying CEO Reed Hastings&#8217;s stock ever since, pushing it up nearly $10.</p>
<p>Perhaps it&#8217;s time to rethink that one, argues Barclays Capital&#8217;s Douglas Anmuth. The analyst has downgraded Netflix (NFLX) for primarily technical reasons, but along the way, he makes a good point about the company&#8217;s well-received app for Apple&#8217;s (AAPL) new gadget: It&#8217;s pretty awesome, but it may not generate many subscriptions for the movie rental service.</p>
<p>Why? Because Anmuth thinks just about everyone who has an iPad already has a Netflix subscription.</p>
<blockquote class="memo"><p>We view the new iPad app positively as it should help increase the value of a Netflix subscription and result in more loyalty and less churn, but we do not view it as a major driver of subscriber growth, especially given that many iPad purchasers are likely already Netflix subscribers. The large install base of the iPhone (48 million globally) could be more material with the pending app, but we believe consumers would generally prefer to view content on a bigger screen.</p></blockquote>
<p>Time for some crowd-sourced opinion polling: Anyone out there who has an iPad and the Netflix app? Anyone who has bought a subscription because of the app? Anyone out there waiting to subscribe until the app comes to the iPhone?</p>
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		<title>AT&amp;T Ranked Last in Consumer Reports' Best Cellphone Service Survey</title>
		<link>http://allthingsd.com/20091201/att-ranked-last-in-consumer-reports-best-cell-phone-service-survey/</link>
		<comments>http://allthingsd.com/20091201/att-ranked-last-in-consumer-reports-best-cell-phone-service-survey/#comments</comments>
		<pubDate>Tue, 01 Dec 2009 15:15:29 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
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		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/?p=29974</guid>
		<description><![CDATA[The annual survey of wireless customer satisfaction from Consumer Reports hits the streets this week and it doesn’t have much good to say about AT&#38;T. In a canvass of more than 50,000 readers spanning 26 U.S. cities, the organization found the carrier had the lowest customer-satisfaction rating in 19 cities surveyed.]]></description>
			<content:encoded><![CDATA[<p>The <a href="http://www.consumerreports.org/cro/electronics-computers/phones-mobile-devices/cell-phones-services/cell-phone-service-buying-advice/guide-to-cell-phone-carriers/cell-phone-service-ratings/cell-phone-service-ratings.htm">annual survey of wireless customer satisfaction from Consumer Reports</a> hits the streets this week and it doesn’t have much good to say about AT&#038;T. In a canvass of more than 50,000 readers spanning 26 U.S. cities, the organization found the carrier had the lowest customer-satisfaction rating in 19 cities surveyed; Verizon ranked highest.  </p>
<p><a href="http://digitaldaily.allthingsd.com/files/2009/12/crBIG.jpg" rel="lightbox"><img src="http://digitaldaily.allthingsd.com/files/2009/12/cr.jpg" alt="cr" title="cr" width="350" height="192" class="aligncenter size-full wp-image-29983" /></a></p>
<p>To hear that AT&#038;T (T) ranked dead last in customer satisfaction in high-profile markets like New York and San Francisco isn’t all that surprising. New Yorkers  <a href="http://gizmodo.com/5370493/apple-genius-bar-iphones-30-call-drop-is-normal-in-new-york">often carp about dropped AT&#038;T calls</a>, and <a href="http://digitaldaily.allthingsd.com/20090821/iphone-owners-would-like-to-replace-battery-att/">complaints</a> about lousy service in the Bay Area are legion.<br />
<img src="http://digitaldaily.allthingsd.com/files/2009/12/cr2.jpg" alt="cr2" title="cr2" width="350" height="132" class="aligncenter size-full wp-image-30017" /></p>
<p>But to find that the carrier placed last in 17 other cities as well suggests that AT&#038;T’s shortcomings are more widespread than the carrier would have us believe and not simply the product of a high concentration of iPhones in the country’s larger cities. </p>
<p>As Pali analyst Walter Piecyk wrote in an investor note this morning,  &#8220;We believe it has been an elitist investor view that only a few high profile AT&#038;T markets are having problems on the theory that only &#8216;tech savvy&#8217; residents of coastal cities would find enough use in the iPhone to impact the quality of AT&#038;T’s network.&#8221;</p>
<p>It certainly would appear that way. With low marks for several key indicators of customer satisfaction&#8211;including service availability, circuit capacity, dropped-call frequency and voice service&#8211;across 73 percent of the markets Consumer Reports surveyed, it’s pretty clear that AT&#038;T has become overextended by the popularity of the iPhone. Which is bad news for the carrier and, of course, for iPhone owners as well. </p>
<p>As Consumer reports notes, &#8220;Apple’s iPhones are the top smart phones in our Ratings&#8211;actually, among the best of all phones we tested, period&#8211;but their exclusive carrier, AT&#038;T, was middling at best in satisfaction&#8230;.If you’re readying to buy Apple’s phone, prepare for possible disappointment with its service and expect to love the phone anyway. Despite the network problems, a staggering 98 percent of iPhone users in our cell-phone-buying survey were satisfied enough to say they would definitely or probably buy the phone again. Only 79 percent of respondents who bought other cell phones said the same.&#8221;</p>
<p>Verizon (VZ), which has been <a href="http://digitaldaily.allthingsd.com/20091109/verizon-banishes-iphone-to-island-of-misfit-toys/">mercilessly slamming AT&#038;T’s service in a recent ad campaign</a>, is going to have a field day with this. And somehow, I don’t think a hurriedly cobbled together <a href="http://digitaldaily.allthingsd.com/20091118/att-awarded-hug-and-a-box-of-tissues-in-verizon-ad-case/">Luke Wilson ad</a> will undo the damage.</p>
<p><strong>UPDATE:</strong> Reached for comment, AT&#038;T had this to say about Consumer Reports&#8217; findings, which, the company stressed, were based on anecdotal feedback from a self-selected group of subscribers: &#8220;We appreciate and value all customer feedback. We learn from it and it helps us serve our customers better. Without question the surest indication of customer satisfaction is churn, or turnover. For the last quarter, our postpaid churn was just 1.17 percent.&#8221;</p>
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		<title>Sirius Breaks Even</title>
		<link>http://allthingsd.com/20091105/sirius-breaks-even/</link>
		<comments>http://allthingsd.com/20091105/sirius-breaks-even/#comments</comments>
		<pubDate>Thu, 05 Nov 2009 13:12:37 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[Media]]></category>
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		<category><![CDATA[adjusted income]]></category>
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		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/?p=28257</guid>
		<description><![CDATA[Sirius XM Radio’s financial position is improving. Sadly, the same cannot be said for its subscribership. Reporting earnings this morning, the company broke even in its third quarter. Good news, but it was tempered with a bit of bad. Because Sirius’s subscriber growth is slowing.]]></description>
			<content:encoded><![CDATA[<p><img src="http://digitaldaily.allthingsd.com/files/2009/11/sirius-150x150.png" alt="sirius-150x150" title="sirius-150x150" width="150" height="150" class="alignright size-full wp-image-28263" />Sirius XM Radio’s financial position is improving. Sadly, the same cannot be said for its subscribership. Reporting third-quarter earnings this morning, the company posted a loss of $149.1 million, or four cents a share on revenue that rose to $629.6 million from $612.8 million. Quite a bit better than its year-earlier loss of $4.88 billion, or $1.93 a share. </p>
<p>Absent one-time charges, the company broke even for the quarter. Analysts had been expecting a two-cent loss on revenue of $609 million. </p>
<p>Good news, but it was tempered with a bit of bad. Because Sirius&#8217;s (SIRI) subscriber growth is slowing. The company ended the quarter with 18.5 million total subscribers. That&#8217;s up 103,000 from the second quarter, but down 2.1 percent from a year earlier.  </p>
<p>&#8220;We are very pleased with what we accomplished during the third quarter, especially when considering the macroeconomic issues affecting consumers and the auto industry,&#8221; Sirius CEO Mel Karmazin said in a statement. </p>
<p>&#8220;We managed to grow revenue, grow ARPU, reduce operating costs, increase adjusted income from operations significantly, and refinance higher cost debt,&#8221; Karmazin added. &#8220;We look forward to continuing this performance. We grew subscribers and improved churn in the quarter, and we are well positioned to take advantage of an economic rebound. We expect to grow subscribers, revenue, and cash flow next year regardless of the magnitude of any recovery.&#8221;</p>
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		<title>There! Pause It There&#8211;The Expression on Randall Stephenson’s Face Is Priceless.</title>
		<link>http://allthingsd.com/20090826/there-pause-it-there-%e2%80%94-the-expression-on-randall-stephenson%e2%80%99s-face-is-priceless/</link>
		<comments>http://allthingsd.com/20090826/there-pause-it-there-%e2%80%94-the-expression-on-randall-stephenson%e2%80%99s-face-is-priceless/#comments</comments>
		<pubDate>Wed, 26 Aug 2009 22:43:57 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[Media]]></category>
		<category><![CDATA[Mobile]]></category>
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		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/?p=23761</guid>
		<description><![CDATA[AT&#38;T and Verizon have run afoul of TiVo’s video patents. Reporting a second-quarter loss and projected results below Wall Street expectations Wednesday, the digital video recorder pioneer said it is suing the two telecoms for infringing on its patents for technology that allows DVRs to simultaneously store and play back programs, pause live television and deliver other features.]]></description>
			<content:encoded><![CDATA[<p><img src="http://digitaldaily.allthingsd.com/files/2009/08/tivoguy.jpg" alt="tivoguy" title="tivoguy" width="150" height="150" class="alignright size-full wp-image-23763" />AT&#038;T and Verizon have run afoul of TiVo’s video patents. Reporting a <a href="http://investor.tivo.com/phoenix.zhtml?c=106292&amp;p=irol-newsArticle&amp;ID=1324788&amp;highlight=">second-quarter loss</a> and projected results below Wall Street expectations Wednesday, the digital video recorder pioneer said it is <a href="http://investor.tivo.com/phoenix.zhtml?c=106292&amp;p=irol-newsArticle&amp;ID=1324787&amp;highlight=">suing the two telecoms</a> for infringing on its patents for technology that allows DVRs to <a href="http://patft1.uspto.gov/netacgi/nph-Parser?Sect1=PTO1&amp;Sect2=HITOFF&amp;d=PALL&amp;p=1&amp;u=%2Fnetahtml%2FPTO%2Fsrchnum.htm&amp;r=1&amp;f=G&amp;l=50&amp;s1=6,233,389.PN.&amp;OS=PN/6,233,389&amp;RS=PN/6,233,389">simultaneously store and play back programs</a>, <a href="http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&#038;Sect2=HITOFF&#038;p=1&#038;u=%2Fnetahtml%2FPTO%2Fsearch-bool.html&#038;r=1&#038;f=G&#038;l=50&#038;co1=AND&#038;d=PTXT&#038;s1=7,529,465.PN.&#038;OS=PN/7,529,465&#038;RS=PN/7,529,465">pause live television</a> and deliver <a href="http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO2&amp;Sect2=HITOFF&amp;p=1&amp;u=%2Fnetahtml%2FPTO%2Fsearch-bool.html&amp;r=1&amp;f=G&amp;l=50&amp;co1=AND&amp;d=PTXT&amp;s1=7,493,015.PN.&amp;OS=PN/7,493,015&amp;RS=PN/7,493,015">other features</a>.</p>
<p>TiVo’s (TIVO) complaint seeks both damages for past infringement and a permanent injunction&#8211;similar to the one it won against satellite provider Dish Network (DISH)&#8211;that would force AT&#038;T (T) and Verizon (VZ) to shut down their DVR services.</p>
<p>&#8220;Attempts were made to reach a commercial arrangement,&#8221; TiVo CEO Tom Rogers said during an earnings call today. &#8220;They were not reached. We believe we are being caused irreparable harm and that harm increases everyday this doesn’t cease. We have found ourselves in a similar situation with AT&#038;T and Verizon. We need to stop their continued unauthorized use of our intellectual property.&#8221;</p>
<p>And, God willing, corral them into that commercial arrangement to which Rogers refers. After all, the company lost 146,000 subscribers in its second quarter. It desperately needs to do something to win new ones and lower its churn.</p>
<p>[<em>Image credit: <a href="http://flickr.com/photos/nweinberg/52858852/">Flickr/montevino</a></em>]</p>
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		<title>So How&#039;s That iPhone App Working Out for You, Sirius?</title>
		<link>http://allthingsd.com/20090807/so-how%e2%80%99s-that-iphone-app-working-out-for-you-sirius/</link>
		<comments>http://allthingsd.com/20090807/so-how%e2%80%99s-that-iphone-app-working-out-for-you-sirius/#comments</comments>
		<pubDate>Fri, 07 Aug 2009 10:00:43 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[Media]]></category>
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		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/?p=23008</guid>
		<description><![CDATA[Though it was eagerly anticipated by the industry and Sirius subscribers, the satellite radio provider never expected that much from its new iPhone app. During a call with analysts Thursday, CEO Mel Karmazin said the app was intended more as a means of tempering subscriber churn than a means of driving new subscriptions.]]></description>
			<content:encoded><![CDATA[<p><img src="http://digitaldaily.allthingsd.com/files/2009/08/sirius1-250x149.jpg" alt="sirius1" title="sirius1" width="250" height="149" class="alignright size-medium wp-image-23009" />Though it was eagerly anticipated by the industry and Sirius subscribers, the satellite radio provider never expected that much from its new iPhone App.</p>
<p>During a call with analysts Thursday to discuss <a href="http://digitaldaily.allthingsd.com/20090806/sirius-investors-losing-cash-on-clunker/">second-quarter earnings</a>, Sirius CEO Mel Karmazin said the app, which is currently <a href="http://itunes.apple.com/WebObjects/MZStore.woa/wa/viewTop?id=25212&amp;popId=27">the iTune App Store’s fourth most popular app in the music category</a> and <a href="http://itunes.apple.com/WebObjects/MZStore.woa/wa/viewTop?id=25204&amp;popId=27">the 88th most popular overall</a>, was intended more as a means of tempering subscriber churn than a means of driving new subscriptions.</p>
<p>&#8220;&#8230;unlike an awful lot of applications on the iPhone&#8230;we’re not offering free service,&#8221; <a href="http://seekingalpha.com/article/154293-sirius-xm-radio-q2-2009-earnings-call-transcript">Karmazin said</a>. &#8220;What we are offering is the free download and a week’s trial, so this was never designed that we believe we were going to get a significant number of new subscribers. We are seeing an increase in the number of subscribers who are signing up for the $2.99 fee, to be able to stream the product in addition to having it, so a satellite radio subscriber who also has an iPhone is now able to do that with an incremental $2.99.&#8221;</p>
<p>So the app is bringing in some new revenue. How much isn’t clear though, since Sirius doesn’t break iPhone app numbers (subscribers or revenue) out. Karmazin admits, however, that it’s not much. &#8220;You should not consider them to be a very significant number related to our number of subscribers,&#8221; he said, adding, &#8220;It’s the right thing for us to do, we continue to believe in it, we’ll continue to do more of these things.&#8221;</p>
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		<title>So How's That iPhone App Working Out for You, Sirius?</title>
		<link>http://allthingsd.com/20090807/so-how%e2%80%99s-that-iphone-app-working-out-for-you-sirius-2/</link>
		<comments>http://allthingsd.com/20090807/so-how%e2%80%99s-that-iphone-app-working-out-for-you-sirius-2/#comments</comments>
		<pubDate>Fri, 07 Aug 2009 10:00:43 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[Media]]></category>
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		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/?p=23008</guid>
		<description><![CDATA[Though it was eagerly anticipated by the industry and Sirius subscribers, the satellite radio provider never expected that much from its new iPhone app. During a call with analysts Thursday, CEO Mel Karmazin said the app was intended more as a means of tempering subscriber churn than a means of driving new subscriptions.]]></description>
			<content:encoded><![CDATA[<p><img src="http://digitaldaily.allthingsd.com/files/2009/08/sirius1-250x149.jpg" alt="sirius1" title="sirius1" width="250" height="149" class="alignright size-medium wp-image-23009" />Though it was eagerly anticipated by the industry and Sirius subscribers, the satellite radio provider never expected that much from its new iPhone App. </p>
<p>During a call with analysts Thursday to discuss <a href="http://digitaldaily.allthingsd.com/20090806/sirius-investors-losing-cash-on-clunker/">second-quarter earnings</a>, Sirius CEO Mel Karmazin said the app, which is currently <a href="http://itunes.apple.com/WebObjects/MZStore.woa/wa/viewTop?id=25212&amp;popId=27">the iTune App Store’s fourth most popular app in the music category</a> and <a href="http://itunes.apple.com/WebObjects/MZStore.woa/wa/viewTop?id=25204&amp;popId=27">the 88th most popular overall</a>, was intended more as a means of tempering subscriber churn than a means of driving new subscriptions. </p>
<p>&#8220;&#8230;unlike an awful lot of applications on the iPhone&#8230;we’re not offering free service,&#8221; <a href="http://seekingalpha.com/article/154293-sirius-xm-radio-q2-2009-earnings-call-transcript">Karmazin said</a>. &#8220;What we are offering is the free download and a week’s trial, so this was never designed that we believe we were going to get a significant number of new subscribers. We are seeing an increase in the number of subscribers who are signing up for the $2.99 fee, to be able to stream the product in addition to having it, so a satellite radio subscriber who also has an iPhone is now able to do that with an incremental $2.99.&#8221;</p>
<p>So the app is bringing in some new revenue. How much isn’t clear though, since Sirius doesn’t break iPhone app numbers (subscribers or revenue) out. Karmazin admits, however, that it’s not much. &#8220;You should not consider them to be a very significant number related to our number of subscribers,&#8221; he said, adding, &#8220;It’s the right thing for us to do, we continue to believe in it, we’ll continue to do more of these things.&#8221;</p>
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		<title>Metro PCS Down 30 Percent on Weak Subscriber Numbers</title>
		<link>http://allthingsd.com/20090806/metro-pcs-down-30-percent-on-weak-subscriber-numbers/</link>
		<comments>http://allthingsd.com/20090806/metro-pcs-down-30-percent-on-weak-subscriber-numbers/#comments</comments>
		<pubDate>Thu, 06 Aug 2009 20:02:57 +0000</pubDate>
		<dc:creator>Tiernan Ray</dc:creator>
				<category><![CDATA[Mobile]]></category>
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		<category><![CDATA[Barrons]]></category>
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		<guid isPermaLink="false">http://voices.allthingsd.com/?p=14157</guid>
		<description><![CDATA[Shares of pre-paid cellular operator Metro PCS, which offers phone plans in the $30 to $50 neighborhood, are plunging today, after the company missed Q2 EPS estimates by quite a bit on revenue that was in line. The company’s churn, or rate of customer defections, jumped.]]></description>
			<content:encoded><![CDATA[<p>Shares of pre-paid cellular operator Metro PCS (PCS), which offers phone plans in the $30 to $50 neighborhood, are plunging today, falling $3.74, or 30 percent, to $8.95, after the company missed Q2 EPS estimates by quite a bit on revenue that was in line. The company’s churn, or rate of customer defections, jumped.</p>
<p>Q2 revenue rose 27 percent, the company said, to $859.6 million, in line with the average $861.7 million estimate, while profit per share of 7 cents was half what analysts were looking for. The company reiterated an outlook for net subscriber additions this year of 1.4 million to 1.7 million.</p>
<p><a href="http://blogs.barrons.com/techtraderdaily/2009/08/06/metro-pcs-down-30-on-weak-subscriber-numbers/">Read the rest of this post on the original site</a></p>
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		<title>Sprint: Fewer Dropped Calls, Callers</title>
		<link>http://allthingsd.com/20090729/sprint-fewer-dropped-calls-callers/</link>
		<comments>http://allthingsd.com/20090729/sprint-fewer-dropped-calls-callers/#comments</comments>
		<pubDate>Wed, 29 Jul 2009 13:24:01 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[Mobile]]></category>
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		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/?p=22343</guid>
		<description><![CDATA[The Palm Pre has proven a far better curative for the handset maker than for Sprint, its exclusive carrier. Certainly, the Pre doesn’t appear to have done much to reverse Sprint’s decline. Reporting second-quarter earnings this morning, Sprint posted a loss of $384 million, or 13 cents a share as customers defected to rival carriers.]]></description>
			<content:encoded><![CDATA[<p><img src="http://digitaldaily.allthingsd.com/files/2009/07/ackroyd_juliachild_pre.jpg" alt="ackroyd_juliachild_pre" title="ackroyd_juliachild_pre" width="200" height="253" class="alignright size-full wp-image-22360" />The Palm Pre has proven <a href="http://digitaldaily.allthingsd.com/20090624/pre-makes-palm-a-new-man-in-only-minutes-a-day/">a far better curative for the handset maker</a> than for Sprint, its exclusive carrier. Certainly, the Pre doesn’t appear to have done much to reverse Sprint’s decline.</p>
<p>Reporting second-quarter earnings this morning <a href="http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MjMxNTkzNnxDaGlsZElEPTM0NTU4MXxUeXBlPTI=&amp;t=1">(release</a>, <a href="http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MjMxNTkzNnxDaGlsZElEPTM0NTU4OXxUeXBlPTI=&amp;t=1">investor presentation)</a>, Sprint (S) posted a loss of $384 million, or 13 cents a share as customers defected to rival carriers. Revenue tumbled 10 percent to $8.14 billion.</p>
<p>Analysts surveyed by Thomson Reuters expected a loss of two cents on revenue of $8.13 billion.</p>
<p>A nasty miss, and one made worse by the loss of 991,000 subscribers in the crucial postpaid category. This after the troubled wireless carrier <a href="http://digitaldaily.allthingsd.com/20090504/sprint-tourniquet-please-redux/">lost more than one million postpaids in the first quarter of 2009</a> and<a href="http://digitaldaily.allthingsd.com/20090219/sprint-paring-losses-almost-as-quickly-as-subscriber-base/"> 1.27 million in the quarter prior to that</a>. Sprint&#8217;s total subscriber count today: 48.8 million. As I said earlier this year, Sprint is hemorrhaging subscribers like Dan Ackroyd’s exsanguinating Julia Child.</p>
<p>And the Pre hasn’t done much to stanch the bleeding, though CEO Dan Hesse says Palm&#8217;s (PALM) smartphone has helped some. &#8220;In the second quarter, we made further progress on our efforts to enhance financial stability, improve the customer experience and reinvigorate the brand,&#8221; he said in a statement. &#8220;The widespread visibility surrounding our record-breaking June launch of the Palm Pre handset gave us an unprecedented opportunity to showcase these improvements to customers as ‘a new Sprint.&#8217;&#8221;</p>
<p>Indeed. Too bad so few people seem to be interested in them.</p>
<p><strong>UPDATE:</strong><br />
During a conference call with analysts, Hesse suffered a barrage of questions about the Pre, its sales and how Sprint is faring against the iPhone 3GS. He declined to provide sales figures for the Pre and said only that its introduction has helped stave off customer churn. &#8220;I don’t want you to think there’s no impact from the iPhone,&#8221; he said. &#8220;It’s a successful device, but we’ve mitigated the impact with a strong device lineup.&#8221;</p>
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		<title>Microsoft Misses</title>
		<link>http://allthingsd.com/20090723/microsoft-misses/</link>
		<comments>http://allthingsd.com/20090723/microsoft-misses/#comments</comments>
		<pubDate>Thu, 23 Jul 2009 20:30:12 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[Mobile]]></category>
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		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/?p=22034</guid>
		<description><![CDATA[[ See post to watch video ]]]></description>
			<content:encoded><![CDATA[<p><div class="video-wsj"><object width="640" height="360"><param name="movie" value="http://s.wsj.net/media/swf/microPlayer.swf"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><param name="flashvars" value="videoGUID=5C605D31-8015-44DB-AA75-875225EF3F00&playerid=4001&plyMediaEnabled=1&configURL=http://m.wsj.net/video-players/&autoStart=false" base="http://s.wsj.net/media/swf/"name="microflashPlayer"></param><embed src="http://s.wsj.net/media/swf/microPlayer.swf" bgcolor="#FFFFFF" flashVars="videoGUID={5C605D31-8015-44DB-AA75-875225EF3F00}&playerid=4001&plyMediaEnabled=1&configURL=http://m.wsj.net/video-players/&autoStart=false" base="http://s.wsj.net/media/swf/" name="microflashPlayer" width="640" height="360" seamlesstabbing="false" type="application/x-shockwave-flash" swLiveConnect="true" pluginspage="http://www.macromedia.com/shockwave/download/index.cgi?P1_Prod_Version=ShockwaveFlash"></embed><br />[ See post to watch video ]</div></object></p>
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		<title>D7 Video: AT&amp;T CEO Randall Stephenson Onstage With Walt Mossberg</title>
		<link>http://allthingsd.com/20090527/d7-video-att-ceo-randall-stephenson-onstage-with-walt-mossberg/</link>
		<comments>http://allthingsd.com/20090527/d7-video-att-ceo-randall-stephenson-onstage-with-walt-mossberg/#comments</comments>
		<pubDate>Wed, 27 May 2009 15:27:08 +0000</pubDate>
		<dc:creator>Beth Callaghan</dc:creator>
				<category><![CDATA[Conferences]]></category>
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		<guid isPermaLink="false">http://d7.allthingsd.com/?p=821</guid>
		<description><![CDATA[Walt Mossberg jumped into his discussion with Randall Stephenson by citing poll data showing that some folks might not be interested in buying an Apple iPhone because of AT&#38;T. Stephenson notes that AT&#38;T is improving network quality and reducing churn, and in an informal poll of the audience, a surprising number of D7 conference-goers indicate they're satisfied with AT&#38;T service.]]></description>
			<content:encoded><![CDATA[<p>Walt Mossberg jumped into his discussion with Randall Stephenson by citing poll data showing that some folks might not be interested in buying an Apple (AAPL) iPhone simply because they want to avoid AT&amp;T (T). Stephenson notes that AT&amp;T is improving network quality and reducing churn, and in an informal poll of the audience, a surprising number of of <strong>D7</strong> conference-goers indicate they&#8217;re satisfied with AT&amp;T service.</p>
<p><div class="video-wsj"><object width="640" height="360"><param name="movie" value="http://s.wsj.net/media/swf/microPlayer.swf"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><param name="flashvars" value="videoGUID=A15B3F7A-61C8-400E-9A19-CDFE90719064&playerid=4001&plyMediaEnabled=1&configURL=http://m.wsj.net/video-players/&autoStart=false" base="http://s.wsj.net/media/swf/"name="microflashPlayer"></param><embed src="http://s.wsj.net/media/swf/microPlayer.swf" bgcolor="#FFFFFF" flashVars="videoGUID={A15B3F7A-61C8-400E-9A19-CDFE90719064}&playerid=4001&plyMediaEnabled=1&configURL=http://m.wsj.net/video-players/&autoStart=false" base="http://s.wsj.net/media/swf/" name="microflashPlayer" width="640" height="360" seamlesstabbing="false" type="application/x-shockwave-flash" swLiveConnect="true" pluginspage="http://www.macromedia.com/shockwave/download/index.cgi?P1_Prod_Version=ShockwaveFlash"></embed><br />[ See post to watch video ]</div></object></p>
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		<title>AT&amp;T CEO Randall Stephenson: "Wireless Is the Priority of This Business"</title>
		<link>http://allthingsd.com/20090527/randall-stephenson/</link>
		<comments>http://allthingsd.com/20090527/randall-stephenson/#comments</comments>
		<pubDate>Wed, 27 May 2009 15:17:09 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[Conferences]]></category>
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		<guid isPermaLink="false">http://d7.allthingsd.com/?p=223</guid>
		<description><![CDATA[Randall Stephenson is just two years into his tenure as CEO of AT&#38;T, but faces challenges that have been decades in the making. Among them: remaking AT&#38;T amid the steady decline of its landline business, future-proofing its business as our appetites for bandwidth grow, competing with the likes of Comcast in the cable TV market and fending off the proponents of Net neutrality who don't care much for the idea of a two-tiered Internet. Beyond this there is the issue of continuing to build out AT&#38;T's wireless business, which if not iPhone-dependent, is certainly nursing a hell of a habit.]]></description>
			<content:encoded><![CDATA[<p><img class="photo alignright" src="http://photos.allthingsd.com/photos/547582450_r2b4w-S.jpg" alt="Randall Stephenson" width="250" height="167" /></p>
<p>Randall Stephenson is just two years into his tenure as CEO of AT&amp;T (T) but he faces challenges that have been decades in the making. Among them: remaking AT&amp;T amid the steady decline of its landline business, future-proofing its business as our appetites for bandwidth grow, competing with the likes of Comcast (CMCSA) in the cable TV market and fending off the proponents of Net neutrality, who don&#8217;t care much for the idea of a two-tiered Internet.</p>
<p>Beyond this there is the issue of continuing to build out AT&amp;T&#8217;s wireless business, which&#8211;if not iPhone-dependent&#8211;is certainly nursing a hell of a habit. In its fourth-quarter <a href="http://digitaldaily.allthingsd.com/20090128/att-earnings-thank-god-for-vitamin-i/">AT&amp;T added 2.1 million wireless subscribers</a>. 1.9 million of them were iPhone accounts. Astonishing. But AT&amp;T&#8217;s exclusive deal to peddle the Apple iPhone in the U.S. expires next year. The company is obviously eager for an extension. But what is it willing to do to get it?</p>
<p>Incidentally, we had <a href="http://www.att.com/gen/press-room?pid=4800&amp;cdvn=news&amp;newsarticleid=26835">a fairly big announcement from AT&amp;T this morning</a>. The company said it is upgrading to High Speed Packet Access 7.2 technology. That means considerably faster mobile broadband speeds. The upgrade is slated to begin later this year, with completion expected in 2011.</p>
<p><span id="more-5470"></span></p>
<h4 class="subhed">Session Highlights</h4>
<p><div class="video-wsj"><object width="640" height="360"><param name="movie" value="http://s.wsj.net/media/swf/microPlayer.swf"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><param name="flashvars" value="videoGUID=A15B3F7A-61C8-400E-9A19-CDFE90719064&playerid=4001&plyMediaEnabled=1&configURL=http://m.wsj.net/video-players/&autoStart=false" base="http://s.wsj.net/media/swf/"name="microflashPlayer"></param><embed src="http://s.wsj.net/media/swf/microPlayer.swf" bgcolor="#FFFFFF" flashVars="videoGUID={A15B3F7A-61C8-400E-9A19-CDFE90719064}&playerid=4001&plyMediaEnabled=1&configURL=http://m.wsj.net/video-players/&autoStart=false" base="http://s.wsj.net/media/swf/" name="microflashPlayer" width="640" height="360" seamlesstabbing="false" type="application/x-shockwave-flash" swLiveConnect="true" pluginspage="http://www.macromedia.com/shockwave/download/index.cgi?P1_Prod_Version=ShockwaveFlash"></embed><br />[ See post to watch video ]</div></object></p>
<h4 class="subhed">Live Blog</h4>
<ul>
<li>After some brief introductory remarks from Wall Street Journal Managing Editor Robert Thomson, who jokes about implementing an 18-second delay for expletive-fond Yahoo CEO Carol Bartz, and a welcome song from Jill Sobule, Walt welcomes Randall Stephenson to the stage and the second day of D7 begins.</li>
<li>For a first question, Walt, referring to poll data, asks Stephenson why some folks might not be interested in buying an Apple iPhone because of AT&amp;T.  Stephenson notes that AT&amp;T is improving network quality and reducing churn.</li>
<li>Walt says he gets frequent reader mail complaining about AT&amp;T service coverage. Stephenson says the company is way down the road in terms of the level of data traffic on the networks. Behavior changes radically. He says AT&amp;T is a year ahead of other carriers in terms of network management, managing the volume and behavioral changes from adoption of new devices.</li>
<li>Walt: Let&#8217;s talk for a moment about the iPhone. It&#8217;s a data-intensive device. You weren&#8217;t ready when you first launched the iPhone 3G. What happened? Stephenson says the company wasn&#8217;t quite ready. &#8220;But we&#8217;re improving.&#8221;</li>
<li>Walt asks the audience how many people use AT&amp;T. Many hands raised. How many had it before the iPhone? A fair bit. How many are satisfied with the service? Also a fair bit. Clearly, AT&amp;T&#8217;s service must be getting better.</li>
<li>The level of data volumes we are seeing on our networks is changing customer behavior dramatically, says Stephenson. This is challenging, but the company is addressing it.</li>
</ul>
<p><img class="photo aligncenter" src="http://d.smugmug.com/photos/547582434_GfgYw-S.jpg" alt="Randall Stephenson of AT&amp;T" width="167" height="250" /></p>
<ul>
<li>Walt: If we project out farther past the iPhone, are the mobile networks we have going to be able to handle these new data-intensive devices? Stephenson: The answer is clearly no. That&#8217;s why we&#8217;re buying more spectrum and moving toward LTE. What&#8217;s so good about LTE? Speed levels of 20 megs plus, for one, says Stephenson, who admits that real-world performance will be somewhat less than that.</li>
<li>Stephenson says AT&amp;T is more than doubling the theoretical speed of the network. Does this mean the speed of our handsets will also double, asks Walt. Not on current handsets. But on future ones, which will all be backward-compatible.</li>
<li>When you upgrade the network to 7.2 will it have any negative impact on the network as data demands grow, asks Walt. Stephenson says no. &#8220;It&#8217;s all network management&#8230;.We&#8217;ll have a whole new capacity.&#8221;</li>
<li>Walt: In a world where both you and Verizon (VZ) go to LTE, will I be able to take my handset and switch to Verizon&#8217;s network? Stephenson says the LTE standard is consistent and should permit that.</li>
<li>The conversation shifts to Wi-Fi. Walt asks about AT&amp;T&#8217;s Wayport efforts. &#8220;When we look at the world today and the world of the future, the fixed-line bandwidth requirements are not slowing. Then you move to the wireless broadband world, where bandwidth requirements are not slowing either. You need a bridge between the two.&#8221; That bridge is WiFi, adds Stephenson, noting that the company sees extraordinary WiFi usage among it smartphone users.</li>
<li>Stephenson talks for a moment about automatic authentication and says AT&amp;T is working to implement it. &#8220;The current system is kludgey. People want it seamless.&#8221;</li>
<li>Walt asks about the company&#8217;s broadband business. Stephenson says it&#8217;s doing well. Notes that it is doing nearly as well as Verizon&#8217;s FIOS business.</li>
</ul>
<p><img class="photo aligncenter" src="http://photos.allthingsd.com/photos/547582476_aDZMB-S.jpg" alt="Randall Stephenson" width="250" height="167" /></p>
<ul>
<li>Walt asks how the economy is affecting AT&amp;T&#8217;s various businesses and the advance of the company&#8217;s capital spending plans. Stephenson says the board business has obviously been affected. Business is slowing especially in enterprise and the consumer phone business. Interestingly enough, people are more apt to disconnect the home phones than they are broadband. So AT&amp;T continues to aggressively invest in mobile apps and in wireless infrastructure. He notes that the company is really pushing hard to build out its U-verse network. &#8220;I&#8217;ve been through a few of these recessions in my 20 years in this business, and it will turn. So you must continue to invest and prepare for the day when it does.&#8221;</li>
<li>What about competitors? What are they doing? In wireless, says Stephenson, competitors also investing. A lot of capital is coming into the wireless business. In broadband, cable guys have not slowed down. Telecom structurally in a good place. Regulatory structure continues to bring in capital.</li>
<li>Back to the issue of the iPhone. Was it worth it to sign the deal with Apple (AAPL)? How has it worked out? &#8220;It&#8217;s worked out terrific. We have no complaints.&#8221; He notes that the company incurred dilution, but has benefited by getting the premier customer in the space&#8211;one with high data usage and low churn. &#8220;I&#8217;m very pleased with the deal.&#8221;</li>
<li>Walt asks if the company has suffered from the iPhone&#8217;s fixed data charges. It&#8217;s not a variable charge. How does that offset the dilution that AT&amp;T has to pay? We made a bet, says Stephenson, that the industry was heading toward smartphones, and that was a good bet. Now we&#8217;re seeing dramatic uptakes in usage, so the pricing model must change. And it will change. The market will dictate that change more than anything else. But right now the economics of the iPhone are very good for us.</li>
<li>Walt: Have you ever called Steve Jobs and just asked him to put a keyboard on the iPhone? Stephenson chuckles. No. &#8220;If Steve wants to put a keyboard on the iPhone, I&#8217;m sure he will.&#8221;</li>
<li>Walt: Are all these new operating systems arriving at market problematic for AT&amp;T? The iPhone, Palm&#8217;s (PALM) WebOS, Android? Would it be easier if there were fewer platforms? Stephenson: Do I want to see fewer platforms? Yes, it&#8217;s better for my business. Will I see fewer platforms? I don&#8217;t think so. So we need to take advantage of it and use it as an opportunity.</li>
</ul>
<p><img class="photo aligncenter" src="http://d.smugmug.com/photos/547667894_PqCo8-S.jpg" alt="Randall Stephenson and Walt Mossberg on-stage at D7" width="250" height="167" /></p>
<ul>
<li>What about the Palm Pre? &#8220;Would I like to see the Pre on our network some day? Of course I would,&#8221; says Stephenson. &#8220;We obviously talk to all the handset manufacturers. We want a broad selection of devices in the lineup. That&#8217;s important. Devices right now are what&#8217;s driving the customer adoption as much as anything.&#8221;</li>
<li>Stephenson says he&#8217;s seeing dramatic uptakes in data usage. Pricing models will change over time, he says. How it changes will depend who you are. He notes that costs are variable in wireless&#8211;every new bit has a direct cost tied to it, unlike wireline business. AT&amp;T margins are 40 percent-plus in Q1 on wireless business.</li>
<li>Walt: Can you foresee a day when you&#8217;re not running retail stores? Why do you want to run stores when you&#8217;re really a network company? Stephenson says distribution is changing. But a retail presence is always going to very important, and I always want to have a part of that.</li>
<li>Moving on to the Q&amp;A: How do you transform wireline customers into wireless and broadband customers? Integration is very important, says Stephenson. If you already have AT&amp;T Wireless, it&#8217;s a natural step to add broadband and even wireline if it&#8217;s offered as a bundle.</li>
<li>Why can&#8217;t we have data roaming on LTE from the beginning and avoid the mistakes of the 3G networks? Stephenson says the LTE network will have similar roaming agreements as those on the current networks. &#8220;It&#8217;s in all our best interests.&#8221; The industry always evolves to a point where broader coverage is needed and these agreements become necessary. You&#8217;ll see that with LTE as well.</li>
<li>Question about SlingBox on 3G network being rejected: Who decided that? Stephenson says that terms of service agreement for the customer do not allow customers to move live stream video over the wireless platform. Not like the fixed line side. If you start congesting network with data, voice quality goes down. We have to maintain some quality, so it&#8217;s not allowed under terms of service.</li>
<li>Responding to a question on warrantlessly providing data about customers to the government, Stephenson says AT&amp;T will act within the law in all regards to customer information and privacy. “We will comply with the law, absolutely,” he says.</li>
</ul>
<p><em><strong>A note about our coverage:</strong> This liveblog is not an official transcript of the conversation that occurred onstage. Rather, it is a compilation of quotes, paraphrased statements and ad-lib observations written and posted to the Web as quickly as we were able. It was not intended as a transcript and should not be interpreted as one.</em></p>
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