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25.12.2014
It’s amazing to think it’s been just six years and seven versions since the iPhone launched in June, 2007.
A lot has changed in those six years, and perhaps one of the most significant changes has been wireless carrier consolidation.
The latest we’ve seen on this front is T-Mobile and MetroPCS’ union and SoftBank’s pending acquisition of Sprint, which is set to be approved.
In 2003, an operator market share chart for the US wireless market looked kind of like an erratically sliced pizza.
With T-Mobile and MetroPCS’ union now complete, the share of market held by the Big Four now is about 93 percent.
Smartphones, in the form of BlackBerries or Palm OS-based devices, certainly predated the iPhone in the U.S.
Sprint and T-Mobile, which are less capitalized than AT&T or Verizon, have been very candid about the subsidy burden. Given that SoftBank’s proposed acquisition of Sprint is set to move forward, consolidation is now extending beyond national boundaries. More: MobileBeat 2016 is focused on the paradigm shift from apps to AI, messaging, and chatbots. Market figures and interviews with analysts suggest it wona€™t, but they also show that todaya€™s complex mobile industry may need new ways to define success. At first glance, it looks like a deal that will extend AT&Ta€™s subscriber lead over Verizon Wireless. There are many different ways of measuring a carriera€™s size, and counting up accounts, retail or not, may not be the most meaningful anymore. While phones are typically associated with a particular customer who regularly pays for service, other devices and uses of mobile networks cana€™t be defined so easily.
For example, users of Amazon Kindle e-readers get access to AT&Ta€™s network without ever paying a monthly bill because the cost of the service is built into the hardware price. Still, those alternative connections are one possible measure of a service providera€™s successa€”or failure. In 2011, Verizona€™s adjusted results for a€?wholesale and other connectionsa€? declined 77.5 percent from the previous year. Despite Verizona€™s apparent setbacks in some businesses, analysts estimate the company would still beat AT&T if both companies put everything on the table. Neither company calls itself the largest carrier in advertising today, instead promoting the size and speed of their networks. These days, simply adding up subscribers, accounts, connections, or any such figures into one number is an outdated way to gauge a service providera€™s strength, said Phil Marshall of Tolaga Research.
Marshall thinks the industry will change to another way of gauging the relative size of carriers.
Yet another way to look at size is in terms of spectrum, the licensed frequencies over which mobile traffic flows.
Sprint only has about 55 million customers, but following its recent acquisition of Clearwire, Sprint has an average of approximately 200MHz of spectrum licenses in the top 100 U.S.
Amazon Shop buttons are programmatically attached to all reviews, regardless of products' final review scores. Of the multitude of features our cell phones have, text messaging is the most popular, with 57% of cell phone users saying they text regularly. In terms of US smartphone operating systems (OS) market share, Blackberry has the largest at 35%, followed by iPhone at 28%, Windows Mobile at 15% and Android with 13%.
Vanguard is currently powering and securing 4 out of 5 of the selected phones in Verizon and Sprint stores nationwide.
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Additionally, Vital offers a through-fixture, flush mount display option, flat and angled merchandising and cord-hiding features. Additionally, Vision offers self-centering product placement technology, along with a light weight (yet maximum strength) mechanical cord reel for optimal anti-theft security. With its rich array of features that thrive on the increasingly proliferated Android platform and the reliability of the Verizon network, is this launch the equivalent of a one-two punch while the iPhone 4 staggers against the ropes? The Google – Verizon squabble over Google’s proposed bidding for valuable wireless spectrum that left Verizon feeling bitter a few years ago, seems to be in the rear view mirror for both parties. While no one would challenge the fact that Apple has done remarkable things for the Smartphone category, is it reasonable to suggest that the growth of the popularity of Android phones should have Apple hearing footsteps? Vanguard Products Group today announced solution branding updates, along with the availability of two new product lines. Volt™ – Sleek, cord reel based solution for displaying, powering and protecting a variety of CE products like smartphones, cameras, camcorders, iPods, GPS devices, eReaders and more.
To learn more about Vanguard’s retail security solutions and devices, call 1-877-477-4874 or submit a request. The April-May 2010 issue of Creative magazine features a new modular phone display LG is deploying at independent AT&T and Verizon locations throughout the country.


Developed by AMD Industries, Inc., the high profile display features interactive video messaging and live phone display and security solutions from Vanguard. By now, many of us has learned that the demand for the newest iPhone, the iPhone 4,  far exceeded the expectations of even the staunchest Apple devotees.  After reading the reviews and press releases detailing the product, it’s easy to understand why! Looking back to what now seems to be the dawn of time, we strain to remember when a mobile device did one thing and one thing only: complete a phone call. As our nation’s first product manager for TDMA digital cellular service, I recall how excited I was when we launched ground breaking features marking a new era in cellular service.  Are you ready? Nowadays, it’s all about the Apps, baby, thanks to the evolving Smartphone platforms and the robust networks developed by the carriers.  I guess that helps to explain why Garmin has yet again introduced a mobile phone.
This low-cost display, power and security solution can be used to secure a wide range of mobile phones and other devices.
Vanguard recently deployed a custom version of this solution in over 1,000 Sprint stores, with the launch of their highly successful, new HTC EVO 4G phone. Vital now sets the stage as one of the lowest priced power alarm security solutions on the market today. We backtrack past 2007, all the way back to the halcyon, Nokia candy bar-characterized days of 2003. As of December 2012, the top 3 carriers had about 80% share, and the top 4 (in order, AT&T, Verizon, Sprint and T-Mobile) had 90% share. With T-Mobile and MetroPCS’ union now complete, the share of market held by the Big 4 now is about 93%. Smartphones, in the form of BlackBerries or Palm OS-based devices, certainly predated the iPhone in the US market.
In the early years of cell phone use (1995-2000) there was little demand and incumbent operators simply controlled all mobile traffic.
The next five years saw an explosion in fully liberalized markets (markets where market operators are granted their own international gateway licenses) as the general public became interested in mobile communication. Then, in this same context, the continental market structure remained unchanged for the next five years, with 50% of markets fully liberalized and the other 50% split between partial deregulation and monopoly. Together, the three companies combine for nearly 80 percent of the market share in Russia, and while Apple does not pull in huge revenue from the country yet, reports indicated that the country and its 180 million subscribers will expand to become the 7th largest marketplace in the world by 2018. The largest of the three, MTS, dropped the iPhone at the end of 2012 and jumped to Microsoft Windows Phones, blaming subsidies and market costs as the biggest part of its decision to Bloomberg. Fortune‘s Philip Elmer-Dewitt believes another reason that the iPhone is being abandoned is that strict government regulations from a federal agency called Roskomnadzor keeps subsidies in check, and it does not allow buyers subsidized pricing options, such as an iPhone 5 for $199 instead of its full price.
In regards to price, the iPhone also sold for roughly $918 in Russia, $269 more than the $649 price tag in America.
The iPhone can still be purchased through Svyaznoy, a privately owned chain started by billionaire Maxim Nogotkov.
Losing the three largest providers and nearly a percentage point of its market share does not spell out a good future for the phone in Russia. Ron has been living it up in Japan for the last five years, and he has no intention of leaving this technical wonderland any time soon. And with Verizon allegedly looking north towards acquisitions in Canada, it looks like operator consolidation will start to extend across borders.
Sprint, T-Mobile, and Nextel were all clustered together between 12 and 16 million subscribers, and the top 3 carriers (Verizon, AT&T, and Cingular) had a combined market share of 43 percent.
This is compelling for smartphone makers, and it helps larger operators get magnet handsets earlier.
Those operators with the wherewithal to front the immense capital required to activate several million smartphone subscribers in one quarter have been rewarded.
Sprint’s Dan Hesse, keynoting the Open Mobile Summit in 2010, acknowledged that “bright shiny devices” had become the marquee element in subscriber acquisition, and with regards to smartphone subsidies, commented “something’s got to give.” T-Mobile’s recent move to “no contract” is a direct result of subscriber acquisition costs due to smartphone subsidies.
One of the potential synergies cited in a SoftBank-Sprint union is additional scale for handset procurement. Operator consolidation means consolidation of potential customers for both of these categories, potentially offset by larger potential orders with a larger operator. Leap has approximately 5 million customers, and AT&T plans eventually to migrate them from Leapa€™s CDMA network to its own GSM-based technology. The figure Verizon gives is lower, but it leaves out several types of customers that could make up the difference and then some. Some other carriers include reseller connections and connected devices, such as e-readers and machine-to-machine connections in their numbers,a€? Verizon spokeswoman Robin Nicol said in an email message.
Likewise, remote sensors in vehicles and buildings connect to a network but dona€™t represent a big monthly payment or, possibly, any recurring revenue at all. Verizon stopped reporting machine-to-machine and other connections after 2011 because they were falling, analyst Roger Entner of Recon Analytics said. Beginning in the first quarter of 2012, those connections were not included in the companya€™s quarterly or annual reports. At press time, Verizon had not responded to a question about why it stopped reporting non-retail connections.
And Verizon will remain in the lead even after AT&T absorbs Leapa€™s accounts, they said.


Do you count that the same as a voice subscriber thata€™s spending $50 a month?a€? Marshall said. By that measure, both of the big carriers lose out to Sprint, which is usually ranked as the third-largest operator.
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Checking email and surfing the web are tied for the second most popular (23% each) activities US residents use their phones for. That being the case, another question arises: Does Verizon really need to offer the iPhone when their relationship with Google is apparently so strong? As a result, we believe it will make referencing our solutions much easier to potential and existing customers,” said Michael la Villa, General Manager.
And with it comes a new view into the breadth and depth of solutions we offer,” he continued. They also added newly available display pedestal and sensor options to their Vibe™ and Volt™ lines, as well as two new product line extensions to the suite of security solutions.
All estimates of total market size come from CTIA data; individual operator subscriber levels come from operator investor filings. Sprint, T-Mobile and Nextel were all clustered together between 12 and 16M subscribers, and the top 3 carriers (Verizon, AT&T and Cingular) had a combined market share of 53%.
Those with cell phones either had them through the government or could afford the high costs. Perhaps the monopolized markets still experience little demand for widespread mobile use, but that is unlikely the whole story. Apple claims that $140 goes to Russian VAT (value-added tax) and $129 goes to the exchange rate.
It is not yet known how Apple plans to regain its footing in the country, though we know it has plans for its own Apple Store and that at least one third party store still sells the iPhone. The top four (Verizon, AT&T, Cingular, and Sprint) had a combined market share of 63 percent. There were about 275 million connections, and the four major carriers of AT&T, Verizon, Sprint, and T-Mobile had 90 percent market share.
In essence, the subscriber has received an interest-free loan of $300-$500, depending on the operator’s handset acquisition cost. Note the dip in AT&T Mobility’s operating margins with each holiday quarter, which reflects the large number of smartphone activations in that quarter. Note that T-Mobile’s “no contract” plans still have a contract, and one that makes the payback of the handset subsidy quite transparent. Early termination fees have long been an unloved part of wireless service, and they are a reflection of this subsidy. To get marquee, magnet handsets that drive consumer traffic into stores, this scale is imperative. Thus, operator consolidation has not necessarily led to diminished channels for developers.
So will AT&Ta€™s recently proposed multibillion-dollar acquisition of Leap Wireless change the balance? That changed with the arrival of the Obama administration, which, among other things, blocked AT&T from acquiring T-Mobile USA.
AT&T didna€™t acquire Leap primarily for its 5 million budget-conscious subscribers, but for assets that will help it build a stronger LTE network, according to Marshall. Ita€™s an asset carriers can keep using to accommodate more users or higher data use, Recona€™s Entner said. Because the buttons are attached programmatically, they should not be interpreted as editorial endorsements. As Verizon launches the Motorola made and Android powered Droid X today, one has to wonder if Apple is hearing footsteps.
There were about 275M connections, and the 4 major carriers of AT&T, Verizon, Sprint and T-Mobile had 90% market share.
Instead, the governments probably have not taken adequate steps to control the telecoms industry (ie. Regardless, the inflated pricing does not look good on the grand scale, especially when put next to the other upcoming phones in the area. As of March 2013, 1 percent of operating margin for AT&T translates to about $166 million dollars. In the US, wireless phones are generally sold through your carrier, bundled with a service contract, most likely of two years. The 13.5 percent swing seen in the chart below between Q4-2012 and Q1-2013 thus translates to about $2 billion, mainly in holiday subscriber sign-up costs. In essence, the subscriber has received an interest-free loan of $300-$500, depending on the operator’s handset acquisition cost.



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