The effort marks the Internet company’s first full-fledged effort to design and market consumer electronics devices under the Google brand, and represents a sharp shift in strategy. Google has up to now mainly focused on developing the Android software that powers devices such as smartphones and tablets and allowing other companies to build and brand the hardware that uses it.

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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’s also a much wider loss than in the prior quarter.

“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. “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.”

The company added more than 1.6 million customers overall during the quarter, including both prepaid, wholesale and contract customers.

Sprint also added two more cities — Baltimore and its hometown of Kansas City — to the roster of launch markets for the company’s LTE service, which will begin around midyear. It will also launch service in Houston, Dallas, San Antonio and Atlanta at that time.

Its results, as well as the forecast for the coming quarter, were ahead of what many analysts were expecting.

“We are raising our revenue and earnings guidance as our broad licensing partnerships and extensive chipset roadmap, led by our integrated Snapdragon processors, position us well for strong growth in fiscal 2012,” CEO Paul Jacobs said in a statement.

The results contrast with those from rival Nvidia, which last week cut its forecast for the quarter, blaming a slowdown in shipments of its Tegra 2 mobile processor, as well as PC market sluggishness.

As for Qualcomm, I’ll be at the San Diego-based company on Thursday looking at some of their technology and meeting with executives.

In case you missed it, last week a battle started brewing between Eye-Fi, maker of wireless memory cards, and the SD Association, which represents more than a thousand companies that set industry standards and promote SD (Secure Digital) standards acceptance.

The argument stemmed from this: At the Consumer Electronics Show earlier this month, the SD Association announced plans for a new Wireless LAN SD standard, formally named the iSDIO specification, for full-sized and micro SD/SDHC/SDXC cards. The SD Association said this will enable consumers to send pictures, videos and other content more easily from existing digital cameras to online cloud services and other SD devices in home networks.

Eye-Fi, which has been baking wireless technology into SD memory cards for several years — many consumers are familiar with the Eye-Fi cards, which bring Wi-Fi capabilities to cameras — says that this new set of standards violates the company’s intellectual property.

While both parties have declined to provide details as to which technical specifications are in question, Eye-Fi CEO Yuval Koren has put up a blog post staking Eye-Fi’s claim in the matter.

Eye-Fi is also miffed that the SD Association went ahead and put out a public statement on the new set of specifications. Eye-Fi says the statement suggests the new standards have already been adopted, when, in fact, they were submitted for approval on Nov. 28, 2011, and the 60-day IP review process is still underway. Eye-Fi told AllThingsD that normally there’s no public disclosure during this stage, because it’s not yet a ratified standard.

The SD Association, meanwhile, told AllThingsD that it routinely announces new standards during IP review, and didn’t change its practices for this announcement.

The SD Association IP review period is set to close in two days.

So, with that out of the way: How might all of this impact consumers?

To start: It’s generally agreed upon that more options for consumers are a good thing. The SD Association is presenting more options, and it says it’s doing so to respond to market demand, as wireless accessibility becomes more important.

But Eye-Fi argues that, in this case, more options will create more fragmentation.

While the actual documents that detail the new iSDIO standard haven’t been made public yet, the SD Association has confirmed that the proposed specifications would set standards for cards that fall under two types of devices: Type W and Type D. “W” stands for Web, and that kind of SD card would support peer-to-peer wireless functions. The home network interface would be designated by a “D” symbol, and would support home network communication functions. A wireless LAN SD memory card could provide both of the wireless types, and would carry both symbols.

Eye-Fi’s Koren told us that in Eye-Fi’s view, the SD Association has the potential to confuse and set back the camera industry just as the industry moves forward with sharing. “In the name of standardization, what seems to be happening is more in the way of fragmentation more than anything else,” Koren said. He also questioned whether compatibility issues could arise as a result of the two different device types.

Kevin Schader, the SD Association’s director of communications, issued a statement, saying, “Products made using SD standards will work together, as they have for the past 12 years.”

It’s important to keep in mind that this flap is coming at a time when consumer adoption of smartphones is surging, and many consumers are using their smartphones for photo-taking — and for immediate sharing. Meanwhile, more consumer electronics makers are introducing cameras that have a variety of Wi-Fi capabilities, cloud services and apps for sharing built directly into the cameras — eliminating the need for additional, external Wi-Fi cards.

Eye-Fi already works with 10 top camera manufacturers and dozens of photo sites; it also licenses its technology to SanDisk, the world’s largest provider of flash memory. Koren points to Kodak’s new wireless camera, announced at CES, as an example of a camera maker that’s introducing more wireless sharing capabilities while still relying on Eye-Fi cards.

In some ways, Koren said, Eye-Fi’s platform has been similar to smartphones in that it is driven by operating systems, and that makes Eye-Fi technology more adaptable to changes than Wi-Fi technology that is built into cameras. As Wi-Fi standards advance and change, Koren argued, it’s easier for consumers to put in a new card — the way they might update a phone’s operating system — than it is to invest in entirely new hardware, or in this case, a new camera.

So what’s the next step? The SD Association’s IP review process is set to wrap up on Jan. 27 — this Friday. Either the SD Association will vote to adopt the new iSDIO standards, or it will narrow the scope of the specifications or rewrite them in some way.

Eye-Fi, which is a member of the SD Association, says it hopes the association comes to the right decision. Which, in Eye-Fi’s eyes, would mean no new set of iSDIO standards — and less of a chance for competition that could possibly encroach on Eye-Fi’s intellectual property.

“I think for the SD Association to proceed with this, whether implicitly or explicitly, their members or anyone adopting the specifications would be made aware of the fact that there are some essential IP claims wrapped up in that standard,” Koren said. “And they’d be operating at their own risk.”

(Photo courtesy of bfishadow/Flickr)

AT&T said it would turn over the airwaves, or spectrum, along with $3 billion in cash to T-Mobile parent Deutsche Telekom AG after pulling out of the deal as opposition mounted from the FCC, Justice Department, state attorneys general and rival carriers.

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The crunch will come from a variety of corners, from wireless cameras for filming close-ups, walkie-talkies for coordinating volunteers and, of course, millions of spectators looking to upload their photos and videos to gloat to non-ticket-holding relatives.

“The event presents a unique logistical challenge never faced before by the U.K., with a need to assign up to 20,000 wireless frequencies to be used for the Games in London, more than double the number usually assigned in a year,” Britain’s Ofcom said in a statement.

Ofcom, the agency responsible for managing the British airwaves, said it has been working for six years on a plan. To get the needed spectrum, Ofcom says it will temporarily borrow some spectrum held by the government, use some frequencies made available by the digital-TV switchover, and offer up airwaves that are in the process of being auctioned off but not yet in use. Unlicensed spectrum will also be tapped, it said.

To handle all these airwaves and avoid interference, Ofcom said it has built a state-of-the art airwave management system, and has also been doing tests during high-profile events, such as last year’s royal wedding.

A final test will come at the Queen’s Diamond Jubilee in early June, with the Games themselves starting July 27.

“Ready and prepared for this challenge, Ofcom recognises that there is no room for complacency,” Ofcom COO Jill Ainscough said in a statement. “We are working behind the scenes to make this capacity available, to ensure that this demand is met.”

This year, much of the focus is going to be on the company’s just-launched LTE network and all of the devices that the company plans to have running on it soon.

On Thursday, AT&T announced that it has added service in several more cities, including three of the biggest markets: Los Angeles, New York and the San Francisco Bay Area. In all, the carrier is now in 26 spots, though its network remains far smaller than the LTE footprint of Verizon Wireless.

The company has announced several LTE devices, but a bunch more are expected to be shown later on Monday. The most closely watched of these will be a new Nokia device running Microsoft’s Windows Phone, though we’re also expecting to hear from AT&T about other gadgets, including Samsung’s 5-inch Galaxy Note and Sony’s PlayStation Vita.

AT&T’s act runs from 9 am to 11 am PT. We’ll spare you a full recitation of the script and instead just offer the Playbill summary, along with insight on the performance and maybe a little inside info about the cast.

Earlier:
8:48 am: The good news: AT&T is passing out 5-Hour Energy bottles, more than enough for its keynote. The bad news: No power outlets. Many in the press row are fretting their laptops won’t have enough juice to make it through.

8:50 am: To keep everyone entertained, AT&T has been posting a set of “Would you rather” questions. My favorite one so far was, “Would you rather telecommute using a 14.4Kbps modem or commute two hours each way carpooling with the Kardashians?”

Modem all the way, personally.

Other questions include, “Would you rather use a cellphone from the 1980s or a pager from the 1990s?” and, “Would you rather only be able to text during the day and make calls at night or only be able to make calls during the day and text at night?”

It’s entertaining, but I’m not sure making people choose between two painful options is the branding message you need, AT&T.

8:55 am: OK, we should be getting started in a few minutes. Going to save laptop juice.

By the way, sponsors of AT&T’s developer summit include the expected array of partners — Samsung, HTC, Microsoft — as well as Nokia.

Somehow they managed to get RIM to pay twice, as both QNX and BlackBerry are sponsors.

9:03 am: We must be getting close. AT&T just put a slide on the big screen with its SEC-appeasing “safe harbor” warning. Basically, if things change, you can’t say they didn’t warn you.

9:08 am: AT&T Mobility CEO Ralph de la Vega takes the stage. Overview so far, no news yet.

Expect the new devices toward the end.

9:12 am: Handoff to head marketing guy David Christopher, who is taking a stroll down memory lane, going back 16 years to when the company launched its developer program. I’ll let you know when we get back to the present.

9:13 am: AT&T is announcing a few new programs for developers, including some new programming interfaces to tie into its network.

Lots of carriers are doing this and there are benefits to developers that want to do the extra work. The downside is that developers already have to support multiple operating systems and HTML5. For many, writing to each carrier’s developer tools is too much extra work.

Among the new APIs, though, is carrier billing for payment — that appeals because it helps developers actually get paid.

9:20 am: AT&T is bringing an interesting developer out — Viva Vision chief and former NFL player Joe Tafoya.

Tafoya is showing an app his firm built for Dallas Mavericks player Jason “Jet” Terry. Incidentally, Terry went to high school with our own Tricia Duryee, who is helping out with this live blog, via Webcast.

9:25 am: Some stats on AT&T’s TV product, U-Verse. It’s up to 3.6 million customers, as of last year’s third quarter.

9:31 am: Lots of talk about partners and stuff. Apparently developers have to pay a $99 registration fee and can get unlimited access to the programming interfaces this year.

I’m ready for that energy drink.

Anyway, now up is Chief Technology Officer John Donovan.

He’s talking about the company’s 4G strategy, which includes both its HSPA+ network as well as the LTE network it is just building out now.

“AT&T delivers the best possible blended speed,” Donovan said, noting this is paying off for iPhone 4S users, since that phone supports HSPA+ but not any other 4G network.

He’s talking about the company’s network investments including 80,000 new antennas and 150,000 network improvements.

He’s suggesting the network is going to become like oxygen. Personally, I’m happy that I am able to get oxygen on my own, without having to pay AT&T or rely on them (or anyone else) to deliver it. But that could be just me.

And, as Tricia points out, wireless connectivity is inherently more limited than oxygen molecules, which are abundant, even if increasingly in the shape of carbon dioxide.

9:39 am: AT&T also has a cloud strategy, with droplets and other features that I am a little cloudy on. Got distracted by the clouds on the PowerPoint slide, which look like fluffy little pillows to me.

Donovan promises the ability to pay hourly or monthly for its cloud services and pledges more news on this front this year.

Now he’s talking more about programming interfaces. Developers do care about this stuff, but pretty sure they are all here or watching the Webcast. So I will spare you most of the details.

Donovan said the company expects to see 10 billion calls to its interfaces this year, more than double what it saw in 2011.

9:47 am: Pretty sure we will get some new devices at some point.

But sadly that point is not now.

9:52 am: Promising sign — now up is Senior VP Jeff Bradley who heads AT&T’s device business.

First up, though, are the winners of a developer conference …

Still a bit away from the device news. AT&T is talking about a technology for developers designed to allow their apps to be more power and bandwidth efficient.

10:08 am: Zynga and Pandora talking about how that tech helps their apps be smarter about when and how to connect to the network.

The tool also works across other devices and networks, Zynga noted.

And, Bradley said, it will be made available as open source code later this year.

10:11 am: And, just ahead of the device news, AT&T is talking about AppCenter — its new tool for app discovery. It’s more of a magazine pointing to existing app stores and mobile Web sites than yet another marketplace.

10:12 am: Back on stage are David Christopher and John Donovan. They are talking about three apps created in last night’s hackathon.

It’s similar to what AT&T does at its foundries, but this time live. The winner gets backstage passes to AT&T’s concert with Nickelback as well as the opportunity to be featured in an AT&T ad.

First up is Action X-Ray, which lets you share your extreme sports injuries with friends. It’s really good for targeted ads. Say, if you have a head injury, you get an ad for a helmet.

Next is HopiChest, a health-tracking app for kids to enter stats about their exercise and health habits and tweet it to their friends.

Finally is Sleepbot, which is a mobile and web app designed to help users get a better night’s sleep and compare one’s sleep with others who are tracking their Zzzzzs.

Now the audience is being asked to vote by text message for a winner.

10:19 am: AT&T isn’t the only carrier making news at CES today, by the way. Verizon has just announced the Verizon Jetpack, a new hotspot from ZTE and a new phone from LG.

10:22 am: AT&T is ready to start with its device news as well, with emerging devices head Glenn Lurie on stage. First up is gaming and Sony’s PlayStation Vita.

AT&T has already said it will have the wirelessly connected game console (an announcement made almost a year ago). It will debut next month.

Now it is sharing the fine print.

Sony’s SVP Kuni Suzuki is out, but decides to talk first about Sony’s Tablet P, a dual-screen clamshell device that folds out into a tablet-size screen. Sony announced the device last year and said it would come to AT&T, but again, we’ve been waiting on final details like price and availability.

10:30 am: Now he’s showing off the PS Vita, which is already on sale in Japan, Hong Kong and Taiwan.

He’s showing pictures of the long lines that accompanied the launch. However, after a strong initial burst, sales trailed off.

The Vita is coming to the U.S. on Feb. 22, by the way.

Data plans for the Vita will be similar to the iPad, AT&T announced. For $15 a month, gamers will get 250 MB of data and for $25 a month, they will get 2GB.

However, since the Vita is a designated gaming device, it will be interesting to see if consumers will be willing to pay just as much for wireless connectivity.

The device itself will cost $299.

10:34 am: OK, back to de la Vega for more devices. But first, the results of that developer live pitch. And the winner is…

Action X-Ray, the one that lets you share your injuries with friends.

10:40 am: Device time, starting with six new Android devices, all with LTE.

Sony Xperia Ion, an exclusive to AT&T, will pack a 12 megapixel camera and a 4.6-inch screen. Planned for second quarter (with Sony branding now that it has bought out Ericsson).

Samsung Galaxy S II Skyrocket HD adds a bigger 4.6-inch Super AMOLED screen to the current Skyrocket model as well as a removable battery. Also, as widely leaked, AT&T is getting the Galaxy Note, a 5-inch cross between phone and tablet.

W.P. Hong, Samsung’s head of global product strategy, comes out to explain why we actually need such a thing.

It’s coming to the U.S. exclusively with AT&T and comes in blue and white. U.S. head Kevin Packingham is brought out to add to the Galaxy Note pitch.

He touts the pressure-sensitive pen capability, 5.3-inch screen and other features.

“And yes, it does make phone calls,” Packingham said.

De la Vega says AT&T also wants to bring LTE to the masses and is doing so with a lower-end LTE phone and tablet from Pantech as well as entry-level phone from Samsung.

10:50 am: De la Vega said the Pantech phone will be available for under $50, with a bundle coming that offers the tablet and phone for $249 (as long as you sign up for contracts for both, of course.)

The tablet, the Element, is also waterproof, notes Pantech marketing chief S. Jay Yim, who is now on stage.

Yim ends his talk by dipping the tablet in water, with de la Vega handing him a towel to dry off himself — and the tablet.

The Samsung Exhilarate, an eco-friendly budget LTE phone, will also be priced at less than $50, AT&T said.

10:57 am: OK, Windows Phone time, with de la Vega saying it sees a lot of promise in the platform. AT&T has been the biggest backer of the technology.

AT&T will be first with LTE Windows Phones. And, out comes CEO Steve Ballmer.

“The devices are blindingly fast,” Ballmer said, promising more details will come throughout the day. (Think Nokia event at 3 pm.)

Ballmer draws a contrast between Windows Phone and its app-centric rivals and says that others’ approach puts distance between a user and what they want to do.

“That doesn’t mean we don’t love apps,” Ballmer insists. Microsoft’s approach lets apps work together more easily, he said.

Ballmer notes that the company now has 50,000 apps in its marketplace, with 300 more coming each day.

As for Windows and Windows Phone getting more similar, Ballmer said, “We’ll continue to move in the direction of sharing more technology.”

Ballmer’s also sneaking in a quick pitch for Windows 8.

There have been 3 million downloads of the developer preview version of Windows 8, released at the Build conference last fall, Ballmer said.

Beta coming in February, Ballmer reminds developers.

And, he wraps up with his now-familiar chant of “developers, developers, developers.”

11:08 am: On to Windows Phone devices. Nokia is coming, but first up is HTC.

HTC CEO Peter Chou comes on stage to show that company’s first LTE-capable Windows Phone.

He shows off HTC Titan II, with its whopping 16 megapixel camera.

“I’ve tested it,” Chou said. “It’s blazing fast on the AT&T network.”

The press conference is running over and it’s fingernail biting time in the press row as our laptop batteries all dip into the red.

11:15 am: Chou is cracking up Ballmer and de la Vega. Maybe if he keeps it up there won’t be any time for Nokia.

11:16 am: Nope, here’s Nokia CEO Stephen Elop.

De la Vega said AT&T is betting on Nokia and on Elop. “We have bet on this person because I think he is the right person for this job.”

Elop starts out with his now-familiar line about the battle of devices turning into a war of ecosystems.

He also repeats his assertion that Lumia 710 and Lumia 800 were “the first real Windows Phones,” a phrase that is now doubt giving Chou fits backstage.

Elop promises first 4G LTE phone will be with AT&T.

But he also says that Nokia will share “more details” later this afternoon at its press conference.

And with that, the presentation is over.

MORE CES NEWS:

• Complete coverage
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• What Kind of Web Video Plans Does Sony Have? (Video)
• Fujitsu Seeking Way Into Crowded U.S. Smartphone Market
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• Microsoft Beefing Up CeBit Presence Even as It Pulls Back on CES
• Inside the CES Lost & Found
• FCC Chairman Has New Tablet, but Same Script: More Spectrum!
• Verizon Wireless: We Want to Connect Five Devices for Every Subscriber
• Ultrabooks From HP and Lenovo That Are (Kinda, Sorta) Different
• Walt and Katie Take a Tour of CES (Video)
• Schmidt-Storm Alert: The Google Chairman Didn’t Like Your Question
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• Intel Shows Just How It Plans to Get Into Phones (Video)
• Motorola CEO: We’re Going to Release Fewer Phones This Year
• Kinect Helps Keep Aging Xbox at the Top of Its Game
• More From T-Mobile CEO: On Pricing, LTE and That Ever-Elusive iPhone
• Exclusive: New Boss Acknowledges Windows Phone Still Has “Awareness Problem”
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• Interview: T-Mobile CEO Says No Second AT&T Deal Out There
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• BlueStacks Bringing Android Apps to Windows 8
• Why the Future of TV Won’t Be Here Soon
• Nvidia’s Tegra 3 Tries to Save Battery in All Sorts of Different Ways
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• Nokia Unveils That LTE Windows Phone It’s Been Dying to Share
• Steve Ballmer Gives Ralph De La Vega a Very … Vigorous Greeting (Video)
• Interview: AT&T’s De La Vega on LTE, Tablets and Life After T-Mobile
• AT&T’s De La Vega: Shared Data Plans Still in the Works
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The wireless company said on its Web site earlier today that the fee will go toward costs incurred by processing individual online or phone payments — in other words, actual customer service representatives handling telephone transactions.

Verizon did not immediately respond to a request for comment, or to an inquiry about how many of its customers currently pay their bills online or over the phone.

One fed-up user has already launched a fledgling petition drive aimed at getting Verizon to reverse course.

Sprint does not currently charge its customers to pay bills online, though it notes, as other wireless providers do, that if you pay through your bank, you could incur charges from that financial institution. AT&T also doesn’t charge customers for monthly online bill payments, nor does T-Mobile, though T-Mobile notes that certain types of accounts, such as T-Mobile Monthly4G (prepaid) and certain business and government accounts, aren’t eligible for paperless payment. T-Mobile customers are actually encouraged to make online payments, as they’re charged a $5 processing fee for payments made over the phone through a customer service representative.

(Image courtesy of EMay78/Flickr)

Networks that use the GSM standard are vulnerable because of the way in which they handle commands, German researcher Karsten Nohl told AllThingsD on Monday. GSM networks are common throughout the world and are used in the U.S. by AT&T and T-Mobile USA

Nohl’s studies were reported earlier by the New York Times.

Nohl, who is presenting his research in Germany on Tuesday, studied 11 countries and was able to hack into both voice and text conversations, using a seven-year-old Motorola phone along with widely available decryption software, according to the Times report.

At the heart of the vulnerability is the fact that network commands are sent in the simplest of computer code, basically amounting to a message like “I have a call for you.” A range of options for randomizing the data can easily improve the security, but Nohl said that the carriers have varied widely in how well they implement protection.

Each GSM command is exactly 23 bytes long. In most cases, Nohl said, that leaves room for carriers to send random data that makes the messages harder to intercept. However, some messages use the full 23 bytes, requiring a more sophisticated workaround to make things secure.

In Morocco, for example, one carrier sends messages with no attempt at encryption whatsoever.

“That doesn’t happen in Europe,” Nohl said. “However, we are still very far away from reasonable protection.”

It’s also hard to guess which networks are best-protected without studying them.

“It’s pretty unpredictable which network will be configured how,” Nohl said. While Vodafone did pretty well on its British network, its German subsidiary has a less secure network.

Nohl said the vulnerability is limited to the oldest 2G variant of the GSM networks, but since all GSM phones support the 2G network, that leaves all such phones vulnerable.

Although Nohl’s research focused on European countries, along with Morocco and Thailand, carriers elsewhere could be vulnerable unless they use better encryption than their European counterparts. Representatives for AT&T and T-Mobile USA were not immediately available for comment.

Nohl told AllThingsD that he will release a tool on Tuesday for people to check the vulnerability in their area. Nohl hopes volunteers will help quickly fill in the gaps, showing globally how vulnerable or not various networks are.

This time it’s GoGo Inc., maker of GoGo Inflight Internet service, which you’ve probably used at some point if you’ve ever accessed Wi-Fi during a flight.

The company is filing for an initial public offering that could raise as much as $100 million.

GoGo’s S-1 doesn’t say how many shares it plans to sell or at what price. But it does plan to trade under the stock symbol — you guessed it — GOGO.

There are currently 1,177 commercial airplanes offering Internet access through GoGo: That’s about 85 percent of North America’s Internet-enabled commercial aircraft.

According to the filing, GoGo’s consolidated revenue increased to $113.8 million from $60.1 million, a year-over-year increase of 89.3 percent in the nine-month period ending in September. Despite increasing revenue, the company still lost $25.8 million in the first nine months of 2011.

A large portion of GoGo’s revenue comes from its customers in the business aviation market, for which it provides both broadband connectivity and satellite-based communications systems. GoGo’s business aviation arm has sold approximately 6,000 ATG and satellite-based communications systems for private planes and has signed agreements with all of the largest fractional jet operators, according to the filing.

On the the commercial side, the company cites the emergence of the “connected lifestyle” for consumers, coupled with the projected growth of the worldwide travel market, as evidence of demand for its in-flight product. In 2010, there were approximately 2.7 billion scheduled passengers on commercial aircraft worldwide, with 630 million in the U.S. According to the International Air Transport Association (IATA), the number of passengers worldwide is expected to grow to nearly 3 billion by 2012.

GoGo plans to expand internationally and to penetrate even more of the business aviation market, with the number of business jets in the North American and global business markets expected to grow by 8.3 percent and 16.7 percent, respectively, by 2015.

One of Gogo’s biggest risks is its dependence on partnerships with North American airline fleets for about half of its consolidated revenue. Approximately 45 percent of its commercial airline revenue — generated within a nine-month period ending September 30, 2011 — was acquired through Delta Air Lines; approximately 18 percent came via GoGo’s partnership with American Airlines, whose parent company, AMR Corp., recently filed for bankruptcy.

The company also cites as risks the increasing demand for in-flight WiFi, and the possible incapacity to meet that demand, as well as the need to keep up with rapidly advancing technologies in network infrastructure.

Low on the risk list, though still worth noting, is that in June of 2006, Gogo purchased at auction a $31 million, exclusive 10-year license for three megahertz, air-to-ground spectrum, outbidding at the time JetBlue LiveTV LLC and a company called Space Data Spectrum Holdings. GoGo expects to renew that license, but the FCC could, in the future, decide to auction additional spectrum for ATG use that is not currently designated for that purpose.

Illinois-based GoGo Inc. was originally incorporated in Texas in June of 1991 as Aircell Inc., and later became Aircell Holdings Inc. On June 15 of this year, Aircell Holdings Inc. officially changed its name to Gogo Inc.

Morgan Stanley, J.P. Morgan, UBS, Allen & Company, Evercore Partners and William Blair & Company are listed as the underwriters on the IPO filing.

Lest it remain a gray area to you, here are some answers to the most common questions:

What is this “white space,” anyway?

White space refers to the range of spectrum available in between the signals used by television stations. By allowing companies to build wireless devices in this area, the Federal Communications Commission is paving the way for new kinds of wireless devices.

What kinds of devices and services could run there?

Unlicensed spectrum opens the door to all kinds of uses, but the use most commonly talked about is to provide fixed and wireless broadband Internet services. It could also prove a good technology for moving video and other bulky data types around the home.

What advantage does white space technology have over today’s Wi-Fi?

Because the white space is in the lower frequencies, devices running in those frequencies could carry signals over longer distances and work better through walls and in other indoor environments.

Why hasn’t anyone used them before?

Although the FCC voted to go ahead with plans to allow devices in the white space as far back as 2008, it has taken until now to approve the first devices and address concerns about potential interference.

What are the concerns?

The biggest concerns have come from the TV industry, which had questions about interference with its signals and equipment; and from performers, broadcasters and others that use wireless microphones that operate in a similar frequency. Even Dolly Parton expressed some concerns early on.

How are these concerns being addressed?

The FCC is creating a way for those who are using wireless microphones to register them. Also, devices that want to access the white space range have to check in with a database to see what spaces are free in their particular area. In addition to approving the first device on Thursday, the FCC also approved the first such database.

“Interference issues won’t go away, but I think it is proven that the industry can use this kind of a model,” said wireless industry analyst Chetan Sharma.

How big a market could this be?

Microsoft, a big backer of opening up the spectrum, commissioned a study in 2009 that found that availability of white-space technology could increase just the Wi-Fi-like device market by $3.9 billion to $7.3 billion per year.

So, will this solve all of those worries about spectrum that Verizon and AT&T talk about?

Not directly. The White Space spectrum is unlicensed, meaning any approved device and service can run there. However, it could pave the way for phones and tablets to someday take advantage of white-space capacity on occasion, as is done with Wi-Fi today.

Sharma said to expect the first devices to use white spaces to be noncellular devices. By late 2012 or early the following year, though, we could start to see cellular phones and tablets that have the ability to use white-space services, where available. The big challenge there is it is yet another type of radio that would have to be built into phones — adding cost and complexity.

(Image credit: iStockphoto | gaiamoments)

LightSquared aims to build a 4G network, and to offer that network to other companies on a wholesale basis. Among the hurdles it faces are complaints that such a network will interfere with millions of GPS systems already on the market. In a petition filed on Tuesday, LightSquared reiterated its position that the problem is that GPS systems “look into” the spectrum that has been licensed to LightSquared.

“The one inescapable conclusion from two rounds of independent testing is that the incompatibility problem is not caused by LightSquared’s network,” LightSquared Executive Vice President Jeff Carlisle said in a statement. “It is clear that GPS devices are purposefully designed to look into LightSquared’s licensed spectrum, and given this evidence, we believe decision-makers should consider LightSquared’s legal rights as the licensee.”

Even though it is asking the FCC to rule that it is the proper licensee of the spectrum in question, LightSquared said it still wants to work with the GPS industry to minimize potential problems. LightSquared has maintained that navigation-system makers can design systems that filter out any potential interference from devices that would run on its network.

“While we ask the FCC today to confirm our legal rights, LightSquared remains fully committed to cooperate with all parties — the GPS industry, GPS users, and the federal government — to ensure that LightSquared’s network is deployed in a way that is compatible with GPS users,” said Carlisle. “LightSquared has always recognized the critical importance of the GPS system, and we firmly believe that GPS devices can peacefully co-exist adjacent to our network.”

The GPS issue isn’t the only one facing the company. Reuters reported this week that LightSquared also faces a potential cash crunch. A company representative did not confirm or deny the authenticity of the data in the Reuters report, but told AllThingsD that LightSquared has enough cash for the next several quarters.

AllThingsD tech-reviewer kingpin Walt Mossberg also showed off his favorite fun gadgets at the annual Churchill Club event in Silicon Valley earlier this week.

Among his picks: Tangle-resistant ear buds; an Apple iPhone beer-bottle opener and consumption tabulator; a wireless USB drive; and the latest Ultrabooks to compete with the MacBook Air.

Here’s the video of his presentation:

Sprint CEO Dan Hesse

Sprint and the league didn’t disclose the size of the deal, though I am told it is fair to say that it is “in the millions” of dollars. Sprint replaces T-Mobile USA, which had been the league’s partner from 2005 until the end of last season.

As part of the pact, Sprint will offer its subscribers a new Sprint NBA Mobile app that will offer in-game and post-game video highlights, radio broadcasts of every game (including home and away radio broadcasts) as well as the usual assortment of news, scores and stats. Sprint says the app should be ready for Android by the time the delayed season tips off later this month. An iPhone version should be available at some point, though it may not have the exact same features.

Sprint subscribers who want even more basketball can get a 20 percent discount on the NBA’s mobile “League Pass,” which offers up to 40 out-of-market games per week.

Preliminary data from recent government and industry tests of LightSquared’s network suggest that the start-up hasn’t solved concerns that its network would knock out a large number of personal or military GPS devices, the report said, according to the aide.

LightSquared, a startup funded largely by hedge fund Harbinger Capital Partners, wants to build a national wireless broadband network and offer wholesale Internet access to companies including Leap Wireless International Inc. and Best Buy Co.

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Ahead of the dinner, Anderson stopped by my office to let me have a peek at his 10 predictions, and we talked them over a bit. All 10 are below, along with some comments from Anderson that emerged from our conversation.

Before diving into the predictions, Anderson tells me there is a grand theme that unifies them all: “Integrating everything.”

What does that mean? “It means a whole lot of stuff that needs to be integrated. We don’t need anything new at all. There’s so much work that needs to be done with the existing tool sets. Steve Jobs didn’t really invent anything at all. But he was great at integrating things into a product. There’s a lot more of that work to do. We have to do it in the phone world and the TV world and the health care world. We have lots of devices and lots of chips and lots of operating systems and lots of content. The bigger question is, how do human beings use it all efficiently?”

As an example, he cites the collaboration between Nuance, the speech software company, and IBM, bringing the Watson computer of “Jeopardy” fame into the area of health care. “For the first time, the idea of evidence-based medicine won’t just be in a magazine article,” Anderson says. “A doctor will be able to pick up his phone and describe four symptoms, and find out what the likely diagnosis is, what the indications are. It’s fantastic.”

So here are those 10 predictions, with additional comments from Anderson:

1. TV becomes the new center of gravity in the tech universe. All the other devices find their niches in the TV galaxy. Microsoft’s attempt to integrate Kinect into TV is a strong if qualified success. Smart phone-TV integration software becomes a new category. Pad-TV integration becomes common.

“Apple will hustle to launch the next version of Apple TV, and it will be a roaring success and be seen as Tim Cook’s first great product success. But what it really will be is Steve’s last product.”

2. 2012 will see tectonic shifts in phone markets. “Nokia will fail to come back, which is pretty clear to everyone except the people in Finland.” Samsung, Anderson says, will retain its spot as the new global leader in mobile phones by volume, and will keep this crown despite the debut of Microsoft’s Windows Phone 7.

Meanwhile, Anderson says, Google will lose control over the Android operating system, mainly because unlicensed versions of Android will multiply in type and in installed base, especially in Asian countries. “It’s already a balkanized environment. Now Google loses control of the technology entirely. China is already running an unlicensed version of Android, and I think there will be more of that.”

Finally, the smartphone will finally emerge as the dominant category of wireless phone. “Why would you have anything else? And why would sellers of content and services want you to?” he says. “It doesn’t matter if you’re in a rich country or a poor country. This stuff is cheap.”

3. Clouds are for consumers, and for start-ups. Even as a large number of big companies move pilot projects onto external clouds, it will become clear that the real trend is for enterprise to stay away from clouds in all key areas, for reasons of both security and reliability.

“The cloud guys hate this because they want to sell to enterprises,” Anderson says. “But the security issues are becoming really intense. If you’re a CIO, it’s a terrible environment, and you’re a target, for sure, especially if you’re a company with a lot of intellectual property. I’m not implying that things like SAAS (software as a service) aren’t a big trend. But no one is going to put their valuable IP on the cloud.”

4. Security splits the tech world in two, finally getting attention from CEOs. Companies with real IP start to realize they have to “go big or go home” with their security response, and their spending on protecting their “crown jewels” rises dramatically.

5. Siri stuns the world. Siri, on Apple’s iPhone 4S, has sounded the arrival of Internet personal assistants, and the world will spend this year marveling at what Siri and its rivals can and cannot do — and what they can learn to do.

“I think we’ll see a bunch of these things,” Anderson says. “Siri will get much better. It will learn how you learn. We’ve never seen people have long-term relationships with machines before, but it will be a long-term relationship, and she will remember everything, but make good use of it. She will know you learn better by seeing than hearing, or that it takes three times to tell you something. All those things that you have to program today should be learnable. None of that has been done yet. That creates a real friendship. And I think we’re going to start seeing personal assistants not just for everyday life, but for professions like medicine or car repair. Instead of just having Siri be everything, there will be many Siris for different contexts.”

6. We enter the amazing world of Dave and HAL, as voice recognition comes of age. From hospital to car, mobile to home, Kinect to Siri, exercise to play, work to entertainment, remote control to direct action, from Microsoft to Apple, from Tellme to Nuance — the time has come for computers and humans to talk to each other. With lots of funny stories, big bloopers and amazing breakthroughs, humanity at the end of 2012 will be talking to machines in a normal voice, and it will not seem unusual, nor be the cause of unending frustration.

“The voice-recognition part is almost trivial,” Anderson says. “The important part is context-sensitive understanding. It used to be that all the researchers at Carnegie Mellon used to think that all you needed was more computing horsepower to do better at voice. It turned out that was wrong. It was right for a little while, but the real problem is context. And so, if you can build up that database where you can search it contextually for what to expect, that is where you get all the mileage.”

7. E-readers prosper, but pads continue to dominate what Anderson calls the “carry-along” market. Pads and tablets will come down in price and get closer to prices of e-readers. Meanwhile, Anderson says, Amazon’s Fire will move upmarket and evolve into a full-fledged tablet.

“If you look at the specs on the Fire, it’s a tablet, but it’s hobbled,” Anderson says. “So I think that this is part of the whole strategy: Come in and sell at a low price, and then later unveil a more complete tablet. Apple will stay ahead, though. A lot of people are asking me if Amazon will catch Apple, and the answer is no. The way it’s configured right now, there’s no way the Fire will catch up with the iPad.”

8. The consumption world explodes. Get ready for new devices, new content, new bundles, new connection techniques, new distribution channels, new aggregators, new tablets, new phones, new players, new self-published authors, new garage bands, new consumption models riding on social networks. There is nothing but high energy in the content consumer market. People are now ready to spend subscription money, and the publisher response will be huge. “It’s going to be a huge melee of stuff,” Anderson says. “We’ll invent more stuff to consume, and it will be very hard to figure out who the players are from week to week, and how they’re doing. They may not even know themselves.”

9. Governments and corporations focus on intellectual property as though it were their most prized asset. It is. This new global understanding leads to a reevaluation regarding giving critical IP away for nothing versus protecting it. The age of what Anderson calls “IP naïveté” is over, and the question of proper IP valuation is here.

What is IP naïveté? “When Jeff Immelt stood on the steps of the White House the day after he was named jobs czar, and handed the plans for GE’s most important jet-engine project to Hu Jintao in order to get the permission to be allowed to bid on maybe selling engines to China — that’s IP naïveté,” Anderson says. “Thinking that’s not going to come back and show up for sale in Houston from some Chinese company in about six months is IP naïveté.”

During 2012, he says, companies and countries will start valuing their intellectual property not for its replacement value, but for figures that are magnitudes larger. State-sponsored IP theft will shift from being considered a nuisance and more along the lines of an act of aggression.

10. Amazon gets it all. Between outdoing Wal-Mart online, to beating the booksellers and delivering groceries, and making new inroads in video streaming, Amazon will prove that one company can indeed have it all. Strong Kindle and Fire sales will only be icing on the cake.

I know, you were probably thinking the old wired PJs were just fine. It turns out these are baby jammies, designed to assure nervous parents that their little ones are sleeping snug as a bug.

The babywear, from Virginia-based Exmovere, contains a snap-on transmitter that measures everything from a baby’s heart rate and skin temperature to her movement and moisture levels. The data is then zipped over to a PC, tablet or smartphone running special software that interprets the data to alert parents when the little one needs attention. (Hint, babies also come with a built-in mechanism for alerting parents. It’s called “crying.”)

The e-Js come in four sizes, covering tykes from birth to 12 months. I guess after that, it’s time to get them an iPad.

View This Poll

Once again, the magazine has found that, when it comes to the national wireless carriers, consumers are most satisfied with Verizon and least so with AT&T.

Potentially more interesting was that the annual survey found that three smaller carriers — U.S. Cellular, Credo and Consumer Cellular — all scored higher than any of the Big 4 wireless providers. Several prepaid brands, including TracFone and Straight Talk, also scored higher than the big brands.

“Our survey indicates that subscribers to prepaid and smaller standard-service providers are happiest overall with their cell-phone service,” Consumer Reports electronics editor Paul Reynolds said in a blog posting. “However, these carriers aren’t for everyone. Some are only regional, and prepaid carriers tend to offer few or no smart phones.The major carriers are still leading options for many consumers, and we found they ranged widely in how well they satisfied their customers.”

Also notable was the fact that the national carriers achieved higher scores for their prepaid service than they did among their traditional contract-based customers.

The magazine also called out new “value” pricing plans from T-Mobile which allow even contract customers to get their phones unsubsidized in exchange for a lower fee. Though the plans are a bit hard to wrap one’s head around, they can be money savers over time.

Update: AT&T said it will use the survey as a learning opportunity, but stressed the investments the company has been making.

“While we’ll of course evaluate and learn from the Consumer Reports survey, we made significant progress in our network in 2011 including a 25 percent improvement 3G dropped call performance, 48,000 network improvements (more capacity, new cell sites, faster data speeds, and better connections), and many billions of dollars in capital investment to continue to improve our network,” the company said in a statement to AllThingsD. AT&T also contends that its service would benefit further if it were allowed to buy T-Mobile, a deal that has been opposed by U.S. regulators.

But here’s the upshot: The cable guys, who had been noodling with the idea of getting into the wireless business, are going to let Verizon handle it instead. And Verizon, which has already committed a ton of money to get into the cable TV and broadband business, won’t spend any more.

Call it a virtual merger, or detente, or whatever you like — it’s both sides agreeing to work together by staying out of each other’s way. [UPDATE: Comcast doesn't love with my characterization of the deal. See below]

None of the players involved wants to come out and say that, perhaps with antitrust regulators in mind. And the agreements won’t explicitly prevent any of the companies from competing with each other.

Verizon’s FiOS, for instance, is already available to about 15 percent of Comcast’s TV/broadband subscribers, and Verizon won’t stop selling it there. But Verizon stopped expanding its FiOS footprint last year, after spending $23 billion. And while Verizon hasn’t said it won’t start up again, this tie-up makes it very unlikely.

Comcast, meanwhile, is sort of in the wireless business now. But only a handful of its subscribers — perhaps 30,000 to 40,000 — use its Xfinity Internet2go service. So it’s easy to stop marketing that immediately, and transition that group to Verizon’s services in the near-term.

Meanwhile the companies all agree to co-market each other’s services. And the cable guys have essentially given themselves an option to get back into the wireless business four years from now, where they could rent out Verizon’s spectrum and become “mobile virtual network operators.” But that seems more like an escape hatch/leverage, not a road map.

The deal seems like it has obvious upsides for both companies, but we’re very likely to hear consumer watchdogs tell us that the tie-up stifles competition for crucial communication services. Which is why Comcast is making sure to argue that the deal will “provide more choice, great new innovative products, and better experiences to consumers and small and medium-sized businesses.” It will be interesting to see what Washington thinks of this, especially in light of its AT&T/T-Mobile stance.

UPDATE: Comcast wants to get some of its points across. Fair enough. The following comes from PR rep Jen Khoury:

·SpectrumCo is selling, and Verizon Wireless is buying, 122 spectrum licenses. This helps Verizon Wireless by putting them ahead of the curve on meeting their future spectrum needs as they roll out 4G LTE

·The sales agreements are customary in the wireless industry – similar to DirecTV and AT&T’s agreement to market and sell each other’s services, and they don’t require regulatory approval.

·We’ll be like each other’s Best Buy – each selling the other’s products and services, essentially for a commission.

·Neither Comcast nor Verizon Wireless is acquiring an ownership interest in the other company, and the operations of the two companies will remain independent, and no customers are being transferred.

(Image credit: Shutterstock/Viroel Sima)

The agreement soothes investor fears Sprint was seeking to distance itself from its 4G provider as the carrier planned its own new high-speed network on the LTE technology favored by AT&T Inc. and Verizon Wireless. Sprint will pay $926 million for unlimited use of Clearwire’s WiMax 4G network through 2013, giving Clearwire a needed cash infusion.

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In an interview, Doug Bergeron explained to AllThingsD the reasoning behind the spending spree, saying that the company is undertaking a major transformation that requires selling software and services — not just hardware.

Only two weeks ago, VeriFone agreed to acquire Point, a major retail payment provider in Europe, for $817 million (not including $230 million in debt). Two weeks before that, it picked up Global Bay, a smaller company that helps retailers connect their e-commerce assets to physical stores through the use of iPads. Terms of the deal were not disclosed.

Additionally, a year ago, it agreed to buy payment security provider Hypercom in an all-stock transaction valued at about $485 million, including debt.

The three acquisitions easily push the company’s investment above $1 billion. A bet of this kind represents a substantial risk, but Bergeron believes the decision to turn into a services company was a no-brainer, even calling it “obvious.”

The San Jose company, which has about 3,000 employees globally, has a history of growing through acquisitions stretching back to 2005, so maybe it can pull it off. In its fiscal 2012, the publicly-held company is projecting it will make a profit of up to $2.50 a share on revenues of up to $1.72 billion before the Point merger is taken into account.

Earlier this year, VeriFone appeared on the defensive, after Bergeron attacked San Francisco-based Square for not providing encryption in its mobile card readers. Since then, Square has promised to add another layer of protection, although the rollout is still pending.

VeriFone now seems to be on the offensive, having figured out what role it will inhabit as mobile payments come increasingly into play. And despite Bergeron’s earlier outcry about Square, he says the company will play “the role of Switzerland,” and will be neutral about which technology will win.

In particular, VeriFone wants to be the software developer that makes all the new innovations — including Google Wallet, PayPal, ISIS, the carrier-led initiative and others – work with a retailer’s existing systems. Since retailers have limited resources for technology, he believes this will be an important role.

Here are excerpts from my interview with Bergeron, who is not modest in calculating the opportunity in front of VeriFone.

What was the thought process behind the acquisitions?

Broadly speaking, VeriFone has a very impressive market share at the point of sale, and now worldwide with Point. We see the most signficant dynamic shift taking place is the new complexity that’s hitting the point of sale as a result of all the innovation that’s taking place.

It means transforming VeriFone from a focus on the best in products to both products and services. We will be delivering payments as a service. Retailers want to take advantage of Google Wallet and the iPad, and brick-and-mortar stores want to connect with online stores through multichannel integration. But these retailers don’t have 100 people on staff capable of integrating. They can either be left behind and not participate, or they can reach out to a partner to co-manage the increasing complexity at the point of sale.

Global Bay is providing software for tablets that basically allows for integration with inventory systems and e-commerce solutions and other types of services that the market is going to demand. At the end of the day, the retailers don’t want to lose a sale, and if they have someone ready to buy something, like women’s apparel or jewelry or apparel of any type or home repairs, where there’s a dialogue in the store with the customer, they want to upsell or make sure they leave with more than they would otherwise.

Otherwise, it’s hard to compete with Amazon, which has massive distribution centers across the country. But if small or large retailers can leverage their corporate distribution centers, then they have an advantage over Amazon. They have the touch factor with the person [in the store]. It’s a new age that has arrived for multichannel retail, where brick-and-mortar meets e-commerce. That’s what Global Bay is doing so well.

So you are evolving from a hardware company to a services company?

I’m going to edit your question.

We don’t produce hardware. It’s manufactured by third partners, and our product comes out of a $130 million R&D budget, of which $110 million is software.

For VeriFone, 90 to 95 percent of revenue has been product, but over the past two years, we’ve stepped up our services business with encryption and content at the point of sale.

In the fourth quarter, the quarter we are about to report on, we are projecting that services will be 22 percent of our business, and that’s on top of the total business growing dramatically. By the end of 2015, we think we can get it to 50 percent.

With the Point acquisition, which is all services — or close to it, at 88 percent — we’ll now be in the low-30s percentage.

I’m pretty sure, but for the most simple requirements, we’ll say [to the retailer], here’s the products, here’s all the boxes, and then check all the boxes for things you want, like Google Wallet, encryption; or do you want to support gift cards, or multichannel sales through the Global Bay capability?

You have a good perspective on the wide range of mobile payments that are rolling out. How many of these technologies will make it?

What I don’t know is what are the next types of innovations coming out of the Valley or other places.

Everything looks good on YouTube, or in a standalone trial, but if you have to roll it out to thousands of stores — and 50 lanes in each store — whatever new that’s out there has to coexist with the old stuff.

Who’s going to do that and the integration, and who’s going to manage the software updates? It certainly can’t be the two guys in IT, because they don’t have the resources.

How slowly will these rollouts occur? When you put it that way, it seems impossible for retailers to adopt it very quickly.

I think things move deliberately, not slowly.

That’s a bit of a wake-up call to those who come out of the online world and think they can put some code up in the cloud and it works. But when you talk to Costco, Macy’s or McDonald’s, which are all our accounts, they are innovative. They’ve rolled out pin debit or cash back, but it goes through a process of quality assurance, and they have labs where they test all this stuff, and then methodically move it out.

National retailers will have to get on board. They are the ones that move mindshare. They want the same experience in every store in every city in every state, and to mass deploy that, it takes a fair amount of planning.

How many new providers will make it?

There’s no question there will be a few, but it’s not limitless.

There’s a limit to the amount of change and chaos that the important retailers are willing to deal with at any given time. I’m describing a situation why VeriFone is so important. They [the retailers] love the meetings with PayPal and Google and ISIS, but all of this stuff has to coexist together.

In a lot of ways, we are playing the role of Switzerland. We are supportive and encouraging of all the innovation. We are the systems-agnostic guys that are operating on behalf of the retailers.

But all of these things would require software. The things that Google is trying to accomplish integrates with back-office systems at the SKU level. If it was just throwing hardware at the problem, it’s one thing, but it’s software.

You’ve talked about the importance of Global Bay, but now let’s talk a little more about the Point. Why was that acquisition important?

The data is out there. It’s a company that has grown fivefold over the last eight years, and is precisely located in the geographies in Europe that are A) healthy, and B) prone to be the first movers of mobile payments.

That’s where the Point lives and breathes. They have massive market share using VeriFone solutions, and more than half a million merchants in Northern Europe and the U.K. are using them to manage services that are largely around keeping EMV, which stands for Europay, MasterCard and Visa, up to date. EMV uses chip technology instead of swipe technology like we do here in the U.S.

They took out all the complexity of managing EMV and provided them [retailers] a monthly managed service. It’s precisely that framework and model that will allow us to turn the lights on for PayPal and Google Wallet and other services. The Point has been very much ahead of the pack, rolling out NFC capabilities before retailers have asked for it. This can be very exciting for Google and others, because it can enable a rapid deployment capability for any of them.

Are you going to make any more acquisitions? 

We are busy integrating right now. I don’t think you’ll see anything sizable for quite some time. For the most part, we are done with Hypercom, and waiting to do integration in January for the Point. For the most part, it will be independent. I think we have a lot of tools in the shed to help to find a new VeriFone.

The Kirkland, Wash., company had $698 million in cash and short-term investments on Sept. 30, and can afford to make the $237 million payment due Dec. 1. But it also needs to raise lots of money if it is to remain in business after the next 12 months.

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This essentially confirms what everyone has suspected for a while — that Amazon expects to lose a little money up front on the $199 Fire, in hope of selling in volume. It also hopes to make more money on sales of the digital media and physical goods consumers may order from Amazon on the device.

Andrew Rassweiler, the IHS iSuppli analyst who supervised the teardown, said the analysis is still under way, and that the firm may reduce its final estimate slightly. Update: It’s done: The final figure is $201.70.

That Amazon’s model with the Kindle Fire is essentially the opposite of rival Apple’s has been understood for some time. Apple’s iTunes store runs at or slightly above the break-even point, and encourages the sale of higher-margin hardware like the iPad, iPhone and iPod. The teardown study gives both a rough idea of how much Amazon can realistically expect to lose on the Fire, and also the extent to which it took steps to minimize those losses.

There are several examples of where Amazon clearly intended to minimize its hardware costs, Rassweiler says. For one thing, most tablets contain 8 gigabytes gigabits of DRAM memory. The Fire contains only four. It also contains only 8GB of flash memory used for storing content, where the iPad starts at 16GB and goes up to 64GB. Amazon also skipped other features, like a camera and Bluetooth connectivity, and more expensive wireless chips.

“All the choices have been made here to minimize the hardware cost,” Rassweiler says. “We expected to see a certain wireless module that’s commonly been seen in other tablets, and we were surprised that it wasn’t there. There was a cheaper one with fewer features that saved them a few bucks.” The chips were combined into a module manufactured by a previously unknown company called Jorjin, he says.

The box contents are also minimal. The box the Kindle Fire ships in is the same box it comes in when sold by third-party retailers like Best Buy. And the only accessories inside are a wall charger and a cord. Rassweiler says iSuppli initially expected the box contents to cost more than $5; instead, the cost is closer to $2 or $3. “Amazon’s approach was to take out everything they didn’t need,” he says.

But, as is always the rule with consumer electronics, prices come down. That $25 worth of TI chips will cost about $12 in the near future, meaning that Amazon will in time be able to sell the same device, but at a much lower cost to build. Of course, if it’s successful, consumers will want one that’s a little more fabulous, perhaps with a bigger screen, perhaps.

Inside the Fire, chipmaker Texas Instruments appeared to be the big winner, supplying numerous chips that combined for about $25, about 12 percent of the total materials cost. One TI chip, the OMAP4430, is the main applications processor in the Fire. It has previously been seen in the Droid Bionic, the LG Optimus and Research In Motion’s PlayBook. TI also supplied chips that help manage audio, power and Wi-Fi.

It’s a victory for TI, which appears to have beat out Qualcomm, who supplied Hewlett-Packard with the applications chip in its now-abandoned TouchPad tablet, as well as Nvidia and Broadcom, who have been competing for business with other tablet outfits.

South Korea’s LG Electronics supplied the display. LG has a relationship with E Ink Holdings, the company that has supplied the displays on Kindles, and also Barnes & Noble’s Nook, since the beginning. LG is also thought to supply displays for the iPad to Apple.

Along with the display are touchscreen components. Rassweiler says the touchscreen controller chip is from a previously unknown supplier known as Ilitek. The appearance of lesser-known suppliers for these components is increasingly common, Rassweiler says. A surge in demand for touch devices has brought forth a bumper crop of new companies supplying the components that make them work.

Amazon declined to comment directly on iSuppli’s findings, but CFO Thomas Szkutak said in an Oct. 25 conference call with analysts that the company is counting on the device to serve as a platform for the sale of content; Szkutak emphasized the “lifetime value” of the device.

It may just work. Amazon is said to be seeing higher-than-expected demand for the Fire, and is reported to have ordered another million units from its manufacturing partner, Taiwan’s Quanta Computer. Still, it will take many more than that to make a dent in iPad sales.

Amazon shares fell by more than 4 percent today. The shares are down from a recent peak, after the company disclosed an earnings miss on Oct. 25.

Click to see a bigger version of the exploded view, courtesy of iSuppli, below:

The cable company said that it will stop selling cellular service as of today and will discontinue service to current customers as of March, though it promised to help them transition to other providers. Cox has been reselling 3G service from Sprint to customers in about half of its service areas.

Existing customers will get a $150 credit on their bill for each line of wireless service and keep their phone as well as any deals they had for bundling their phone and cable services.

“Cox is working to make this transition as seamless and easy as possible for our customers,” Executive VP Len Barlik said in a statement.

In making the decision, Cox cited several reasons, including the rapid shift to 4G and its inability to land “iconic devices.”