Posts tagged 'WiMAX'

Apple iPhone 5 is here : CellStrat opinion

As if you have not heard enough about iPhone 5 already, here is more of it :)

Apple announced iPhone 5 on Sept 12th. The other big thing that happened that day was Quantitative Easing version 3 announcement by US Federal Reserve – one wonders, it was a synchronized announcement – just kidding.. Certainly, some market analysts have said that iPhone 5 may do more for US GDP growth than Fed’s QE3..amazing..

Well, intentional or not, both the announcements have a dramatic impacts – QE3 will accelerate the stock market rise around the world, fuel more inflation etc. Apple announcement will lead to Apple maintaining it’s hegemony in the smartphone ecosystem. I know, I know, some of you are on side of the table which is less than enamoured by the new iPhone 5. However, our take is that the ecosystem of Apple is much too strong and still underestimated by most. The vertical integration of iTunes, Macs, iPhones, iPads, licensed content in there, seamless charging via iTunes, cross-device synch capabilities are so intense and so transformational in the tech world, that few can match up with Apple prowess over the marketplace. Apple ran out of online inventory of iPhone 5 in one hour of opening the sales..validation enough of a huge pent-up demand out there.

Lack of NFC or some other popular features, now commonplace in other smartphones, will not deter iPhone 5 in creating breakthrough success once again for Apple sales. What most people fail to realize about Apple is that it does not usually toe the line created by others – it creates new models which, in many cases, become the benchmark over time. Coming back to NFC, Apple did bundle a feature called Passbook in the new iPhone 5 – a loyalty and coupon management feature – this is not payment enabled but it could evolve into a Digital Wallet. Many leaders like eBay, Square, Paypal are making do without NFC in Mobile Payments and quite successfully at that. It is likely that NFC may never become the mainstream mobile payment tech if Apple and others listed here do not push it.

As to what Apple iPhone 5 does pack, it has a laundry list of neat features :

LTE (4G capable), Thinner, Lighter, bigger screen (4 inch diagonally), all new Apple-designed A6 chip, better retina display, improved camera (although megapixels remain at 8 megs), enhanced HD video recording, 5 rows of icons on the screen, improved Siri assistant, new lightning connector, new Apple mapping app, better iCloud integration, 700,000 apps, new iOS 6 OS, Passbook loyalty feature, the list goes on and on.

To view all iPhone 5 features, click here.

As far as we can visualize, we still feel demand for iPhone 5 will be back-logged and people will go gaga over this device the world over. Apple mobile leadership is far from being threatened, not until they make major blunders or others truly can provide a neat vertically integrated ecosystem. So far, we see only Amazon as being anywhere close to providing the vertical ecosystem with Kindle platform. Samsung tried but it is missing many major components for creating a complete ecosystem, music partnerships to begin with, among other things. Google does not try as their focus is entirely different – to monetize via search engines on Android devices.

So – for now, it is Apple’s world to rule in the mobile arena, until somebody else “does an Apple” on them.

September 17th, 2012

Book Review : “India Inside : The Emerging Innovation Challenge to the West” by Nirmalya Kumar and Phanish Puranam

“India Inside : The Emerging Innovation Challenge to the West” is a new book authored by Nirmalya Kumar and Phanish Puranam, renowned professors at the elite London Business School. The book is published by Harvard Business Review Press and released in Nov 2011.

This book is about the “invisible” innovation which India today provides to a multitude of corporations and entities around the world. The book starts with questions like “Where are the Indian Googles, iPods and Viagras?” and “Can Indians innovate?”. Valid questions but which make slight of the fact that innovation is much more than consumer facing direct innovation. Indian ingenuity is enmeshed in so many products other multinationals make – likes of GE, Microsoft, IBM, AstraZeneca, Intel, Motorola and many others.

Globally Segmented Innovation :

As Western firms have outsourced large parts of the IT and research work to their Indian divisions and R&D labs, the skill profile of the Indian worker is increasing and firms are increasingly entrusting them with higher-end tasks. In this regard, the authors talk about the Skills Ladder concept – which says that when one creates an army of talent at the bottom of the product development pyramid, it is likely that innovation leaders emerge from this lot and remain in the geography where they are situated – as such, one can say that, thanks to Western outsourcing, a huge no of Indian engineers and innovators are being trained and are likely to boost the local innovation ecosystem via new entrepreneurial ventures or contributions to domestic economy.

In short, there is a talent shift to Asia from the Western hemisphere, which in turn will lead to accelerating growth and innovation in that part of the world.

Outsourced R&D :

For multinationals, Indian service providers like Wipro, Infosys, Tata and HCL are conducting outsourced R&D in labs all across India. Wipro pioneered the concept of outsourced R&D with it’s innovative Product Engineering Services division or PES starting way back in early 80s. Infosys products like Finacle and others like i-Flex have become global leaders in banking and finance. Outsourcing of R&D to India-based outfits creates talent pools in that part of the world and self-perpetuates further innovation and increased western investments.

Process Innovation – An Injection of Intelligence :

Indian call centers are often staffed with folks who are normally more qualified than a mundane call center job. This has caused the so called “injection of intelligence” into the mundane call center and BPO processes – processes which the Western world had written off as commoditized and boring. As a result, call center outsourcer 24/7 is injecting analytics-driven market intelligence into customer service calls and interactions – thereby increasing web / phone consumer loyalty and conversion rates. Higher qualified Indian talent is converting routine BPO processes into more strategic higher-value initiatives for western clients, thereby increasing ROI on outsourcing even more.

Management Innovation – The Global Delivery Model :

Infosys and other Indian IT firms have pioneered the global outsourcing and cost efficiencies which can be achieved in large projects. Saving costs and making the process faster, leaner and efficient is certainly innovation in it’s own right.

Visible Innovation – Frugal Engineering :

The emerging Asian middle class is known to demand and desire Western style products at cheaper cost. The Indian concept of “Jugaad” - or an ability to make do with less resources and still get things done, is now finding acceptance as a strategy in global Boardrooms. Tata Nano (and more recently Aakash tablet, I might add) are changing the debate of value vs cost. Developed markets are fascinated by Indian creations like Tata Nano and are studying such models closely to see how a quality mass market product can be developed at such a lower cost.

The authors also acknowledge the India’s innovation challenges eg slow bureaucracy, lack of infrastructure, lack of capital and population’s risk-averse nature. However, the Indian innovation train has started and few can turn the clock back now. As such, authors provide recommendations to both Indian and Western firms as to how to leverage or face the oncoming Indian innovation onslaught. We highly recommend this book to those who are interested in learning about the India’s growth and innovation story.

CellStrat Book Rating : **** (4 out of 5 stars)

December 1st, 2011

Reasons why hospitals should buy tablets for physicians

With 3G already in place and tablets taking over the world, buying physicians at your hospital an iPad may seem like an expensive way to solve workflow problems, but it has paid off in the west and so can pay off in Indian hospitals and other health care organisations the world over.

Here are a few of his reasons why:

Speed: To stay ahead of the competitive curve: If hospitals want to be counted among the top 10 healthcare institutions for the hi-tech worthiness. The technology would help in real-time data delivery instead of having prescriptions first on papers and then waiting for long to be transfered to systems.

Controlled development: Hospitals can keep a control on the systems used by them. They can have a  team that creates a mobile electronic health record, and other in-house apps to fulfill exact requirements of doctors.

Maintenance, device control: Having to support and maintain multiple platforms and unregulated apps are two of the headaches that can be avoided by purchasing the iPads outright. IT departments can have a set configuration for every machine, and be able to have standard remote wipe, log-ins, screen shut-down times and other security protocols. Updates and upgrades will also be far simpler to manage on devices.

Cost savings: While the $600-plus price tag for each device may seem hefty, it’s less than a PC or laptop. “The PC avoidance costs alone are enough to pay for [the iPads],”. And that’s significantly less than other medical instruments that physicians carry with them each day.

Two years back too, I had written a post on how wimax and mobile communications enabled ambulances are creating waves in Europe. Now all that is possible along with tablets integration in and our of ambulance vehicles and hospitals.

All of the above  doesn’t count the “hours per day” that physicians would be saving in documentation and administrative time and gues how many more lives could be saved or given treatment in time.

What are your thoughts on this?

August 18th, 2011

Does Mobile Web fit your Integrated Media Strategy ?

Mobile Apps and Web have taken the world by storm. Certainly, Apple deserves credit for orchestrating the Mobile Web experience when it created the iPhone and its App Store. In the process, Apple unleashed the creative energy of hundreds of thousands of Mobile developers worldwide. As of last count, Apple App Store counts 350,000 Apps in the store. With the launch of the iPad tablet, Apple popularized the Tablet computer category and now lot of developers are developing Apps for the Tablet version. Tablet has started what most refer to as the post-PC era. Certainly firms like Microsoft, HP and Intel are in lot of trouble as many consumers and businesses are going the Tablet way instead of upgrading or buying regular PCs and laptops. Now Apple is trying to bring the App experience with its launch of the MAC App Store.

Mobile Web is the latest and greatest Media channel today. It is a most apt media channel for a variety of reasons which we will explain a little later in this post.

Are the various Media firms and Brand Marketers prepared to adjust to this titanic shift of Mobile-based Media ? Do Mobile Apps and Web even belong in a firm’s Integrated Media portfolio ? We will attempt to answer these questions below.

Today media consists of various channels :

Media Channels

 How does Mobile Web fit in this scheme ? The schematic below elaborates the various Digital and Mobile Advertising formats :

Digital Media Channels 

 Consider this (taking Indian context here) :

  • There are 770 million Mobile Subscriptions today (out of a total population of 1.2 billion people) – granted only 550 million are Active Mobile Subscribers : still almost 45% of Indian population are active Mobile Subscribers
  • India has less than 10% internet penetration
  • Mobile is the first and only communications tool for most Rural and Semi-Urban Audience in India
  • Mobile is personal, has context, is location-aware and is always ON
  • Admittedly 90% of Indian mobile market is comprised of feature phones, leading to SMS as the dominant marketing channel in India. But the fastest growth rate is now seen in Smartphone uptake – with acceleration in sales of cheaper smartphones from the likes of MicroMax, Lava etc in addition to established Brands like Nokia, Samsung etc. Mobile Web is now proliferating throughout the Indian consumer class much more rapidly than the feature phone growth.
  • The 3G launches this year will only accelerate the move to Broadband Mobile Services (think Mobile Web with much superior user experience and faster speeds)
  • The post-PC era may have started with Tablets taking over the role of laptops and computers. Many leading businesses and business execs are using tablets for business travel instead of their laptops now.
  • Print Media and Book Publishers are rapidly shifting en masse to Mobile Apps and Mobile eReaders as the delivery channel.
  • People are increasingly consuming media, content and advertising on Mobile phones and tablets.

Given the above advantages – Mobile can be a top Media and Marketing Channel for any Agency or Marketer today in India, much better than the Internet at least.

Now how many Brands and Media Agencies in India have actually integrated Mobile in their portfolio ? Our research indicates that most Media Agencies and Brands in India are yet to include Mobile as a captive Media channel (more on this in our upcoming Research Report : “Mobile Apps Innovation Report for India“. Contact us for details). Though many firms have tried the SMS and VAS marketing route in India, the future now lies in capturing the Mobile Web and Mobile App Media market which is developing rapidly in India.

Our upcoming conference on Mobile Apps (April 29th) – the “Mobile Apps Conclave – Bangalore” will address the entire gamut of topics on Mobile Web and Mobile Apps. Do not forget to register – there are some early registration promotions going on right now.

March 7th, 2011

“2011 Analyst Outlook for Wireless” – Notes from Wireless Technology Forum, Atlanta

(from our Atlanta desk)

I attended the Wireless Technology Forum, Atlanta meeting on 18 Nov. The topic was “2011 Analyst Outlook” – an excellent one as we all are very curious to know what comes in 2011 in Wireless. Here are the notes from the meeting :

Speakers :-

There was an excellent lineup of speakers –

Keynote : “Prospects for LTE in 2011″ by Steven Leonard, Regional Director, Data Sales, Verizon Wireless

Panelists :

- Phil Hendrix, Principal Analyst, Institute for Mobile Markets Research (or IMMR)
– Jorge Fuenzalida,
Vice President, Strategy and Technology Group, inCode Telecom Group (now part of Ericsson)
- Jeremy Schneider,
Principal, Telecommunications, McKinsey & Company, Inc.
- Robert Prudhomme, Vice President, Client Services, Telecom Practice, The Nielsen Company

Moderator : Gerry Purdy, Principal Analyst, MobileTrax

Steven Leonard (Verizon Wireless) on LTE in 2011 :-

LTE offers 10 times faster speed compared to 3G networks. Verizon will have LTE in 38 markets by 2011. Verizon has the valuable 700 MHz spectrum which allows high speed and data accuracy in network transmission. LTE utilizes the MIMO technology. MIMO (Multiple Input, Multiple Output) is a technology that  increases in data throughput and link range without additional bandwidth or transmit power.

Another key aspect of 2011 is the growth of Tablets and accompanying data demands. 181% growth expected in Tablet usage in 2011 over this year. Verizon is the only carrier with contiguous 4G spectrum in USA (AT&T may disagree : )

Lte is 3.5 times faster than CDMA in how far signal will travel without diluting. It offers Latency near 30 ms where earlier it was 150 ms.

Verizon 4G leadership (per Steven) :-

    – Joint innovation lab
    – Open devl
    – Verizon developer community
    – LTE innovation center
    – M2M management center in partnership with Qualcomm

Note : M2M or Machine-to-Machine is the new wireless industry developing around putting wireless chips in home appliances, hospital equipment and other such non telecom functions).

Verizon Launch mkt this year – Athens and Atlanta are included

Wireless broadband features in LTE include :-

    1 Advanced applications :- like Entertainment and Music

    2 Innovative devices

    3 Location agnostic : Whereever you are availability

As per Steven, Verizon 4g network rollout will be completed in 2013 in the USA.

Phil Hendrix (IMMR) :-

Phil gave a presentation on Mobile Commerce, an area which is rapidly evolving. The most happening event in USA on Mobile Commerce has to do with NFC phone proliferation expected in 2011 with Google Nexus S and Apple iPhone – both NFC enabled phones coming out potentially as per reports.

As per Phil, Mobile Commerce has three perspectives :-
    – Consumers : mobile shopping
    – Brands : mobile advertising
    – Retailers : m-commerce

8 dimensions which together constitute mobile commerce:-
    – Mobile Shopping
    – Mobile Funds Transfer
    – Mobile Advertising
    – Mobile Rewards
    – Mobile Coupons
    – Mobile Booking
    – Mobile Offers
    – Mobile Payments

Today we are only in the initial stages of Mobile Commerce.

Certain trends are accelerating Mobile Commerce. These Accelerators include :-

    – Location-Based
    – Hyper Local sensitivity – what is around us
    – Social Media
    – Yield Management
    – Supply Chain integration
    – Big Data

Jorge Fuenzalida (inCode) :-

inCode Telecom Group, the telecom strategy consulting firm, has been acquired by Ericsson recently. inCode is famous for its “top 10 predictions” in wireless every year. Jorge said that these are not finalized for 2011 but offered a Sneak preview of the top 10 :-

Predictions :-
    1) Over the Top goes over the top (in other words, over the top video/OTT or IPTV accelerates and everything in video goes online)
             2009-Netflix becoming very popular – CPE based OTT
             2011-all content goes online eg Google TV or other such offerings
    2) Tablet rush – in 2011 it will overtake netbooks
    3) The new Gold Rush in 2011- wireless rural broadband – due to government stimulus

Well said, Jorge.

Jeremy Schneider (McKinsey) :-

Core wireless has matured. Revenue growth has slowed in voice and messaging

What is next then? Three predictions (since it is the day of 3 predictions from all analysts : ) :-

1) Data will grow much more than what most analysts are calling for. McKinsey thinks 17 times growth from 2009 to 2012 in mobile data
     McKinsey thinks that even this number is relatively conservative. They think it could be 25 times growth by 2012.
     Tablets, mobile video and broader consumer adoption of mobile browsing will drive mobile data growth.
2) Enterprise will outstrip Consumer in wireless (this is surprising as per me as consumer has been the bigger driver of smartphone data via apps so far)
     Enterprise mobility will enable employee mobility etc
     – 6 times higher willingness to pay in enterprise consider to consumer
     – big market. M2M sensors estimates keep rising on a daily basis
     – many verticals are ripe for innovation

     Healthcare is particularly exciting in the M2M arena.
     Healthcare will expand in 5 trillion dollars overall in 5 yrs. At current rates healthcare will be 30% of us GDP
           * Remote Monitoring
           * Remote Consultation
           * Medication Management
           * Health and Wellness

3) New directions in Application Architecture
     – Data growth needs efficient network
            * 30% time waiting on mobile browsing
     – Platform independent tech like HTML5, JIL (Java Intermediate Language), WAC (Wholesale Application Community – the operator consortium), SNs (?)
     – Delivered in the cloud (aha – Cloud Computing – we know it)
          * Consumer – Large portions of iPhone apps already on the Amazon Cloud or EC2
          * Enterprise – 40% savings by moving to cloud

Robert Prudhomme (Nielsen) :-

Growth has slowed in postpaid the USA. Prepaid is going well.

Only verizon and AT&T were able to get net adds in Pospaid this year. However, all of these came at the expense of T-Mobile or Sprint (no wonder, with 80%+ market penetration for wireless in USA, you can only get new customers by poaching from your competitors)

AT&T is doing well with its Connected Devices business, however a concern is that Standards and Business models around these new devices are not clear and their financial worth is not known.

The erstwhile prepaid kings, the carriers Cricket and Metro are suffering as the Big-4 wireless operators are getting most of the prepaid now.

Sprint is competing on pricing while it tries to retain its customers who are churning fast. The No 1 reason to win a customer now is promotion and pricing. This means price wars as are seen in $50 all you can eat plans from some carriers. Now, Sprint is even undercutting T-Mobile in pricing. (my conjecture is that the profit margin in $50 all you can eat plan is really next to nothing).

Of course wireless has lot of bright areas too on the premium side – mainly Record smartphone sales. On premium side, smartphone (driven by top smartphones like iPhone and Android phone) sales are driving fast growth.

Wireless Tablets remains an unpredictable play for the operators. This is depicted by the fact that only 1/10th of iPad tablets sold are activated on the AT&T network. Rest are using WiFi or exported out of the country. (But AT&T still scores as it has a respectable nationwide WiFi network – of course free public WiFi for broadband customers is a customer retention strategy by carriers like AT&T and not really a revenue generator).

Smartphones are driving increases in App adoption (finally a direct reference to Apps)
    – 59% smartphone owners download apps
    – 9% feature phone owners download apps

AT&T – 74% postpaid net adds in last quarter are iPhone customers (did I get it right – 74% ?).

Interesting stat from Nielsen : -950,000 netadds lost from AT&T if they lost iPhone exclusivity per Nielsen estimates. In other words, with the impending Verizon iPhone and potentially on other carriers too, AT&T might loose almost 1 million net adds per quarter. A significant number but one AT&T is already planning for most likely.

In France and other European countries, when iPhone exclusivity ended with one carrier, Apple doubled their share or more in some cases. So one can conclude that the Apple stock price may be trading at a discount if its market share is about to rise (now let me run and buy some Apple stock.. : )

Overall an excellent discussion on the 2011 Outlook for US wireless by some Industry heavyweights in the Analyst world. Congratulations to the team at Wireless Technology Forum (Atlanta) and especially to Gerry Purdy of MobileTrax for putting together this awesome event.

November 22nd, 2010

Google, MTNL to jointly bid for WiMAX spectrum

Google’s plans to bid for WiMAX spectrum and it seems Google is in talks with MTNL to jointly bid for the spectrum in India.

November 18th, 2009

3G hopes rise in India…

After much delay (which costed Indian Government loss of as much as $16B), government has finally fixed the 3G spectrum bid price to Rs. 3,500 crore (earlier it was fixed at Rs. 4,040 crore). Earlier, lot of comotion was created by operators over WiMAX spectrum pricing – WiMAX base price, earlier as suggested by DoT was Rs. 1,000 crore and operators wanted 3G base price to be in the same range. (WiMAX base price has now being increased to Rs. 1,750 crore (as per our sources)). A total of 5 players will be allowed to offer 3G services in every circle, of which one slot will be reserved for state-owned telcos BSNL & MTNL. 3G auction, as mentioned by government will be completed in 90 days and government is expecting Rs. 25,000 crore from these auction. So finally, things seem to move in some direction.

August 30th, 2009

Are we clear about CLEAR™?

CLEAR™ is the brand name for next generation mobile internet products and services offered by Clearwire. CLEAR™ is the fastest mobile internet around and it’s powered by WiMAX . WiMax is one of the 4G technologies (next-generation data networks), faster than 3G speeds which are gaining popularity by the day.

CLEAR™ provides super fast mobile internet. All you need is a card you can connect to your laptop (some laptops have it built-in) and you can access internet anywhere where there is CLEAR™ coverage. You can get speeds from 4 to 6 Mbps. According to the firm, currently it available in 3 cities (Portland, Atlanta and Las Vegas) with plans to expand rapidly. The service is provided by Clearwire (NASDAQ: CLWR) which has the backing of Intel Capital, Comcast, Sprint, Google, Time Warner Cable, Bright House Networks, and Samsung.

This will be a very interesting space to watch going forward as both AT&T and Verizon get ready to role out LTE (the other 4G technology). With high stakes in Clearwire, Sprint has started promoting the 4G network. Another partner, Comcast, has plans to promote CLEAR™ as part of its bundle. The space will get even more interesting when 4G capable mobile phones hit the market.

Finally, check out this video. This explains how a dual card can be used to access 3G or 4G speeds depending on the city and the coverage available.

August 12th, 2009

Highlights of 3G in India

1) Consensus on fixing base price of 3G airwaves at 4,040 Crores.

2) Ernst & Young’s Mr.Prashant Singhal say that with this pricing only 6 of the biggest Indian telecom players will be able to offer these services.

3) Hiked base price of 3G suggests that base price for WiMAX has also been hiked and doubled to Rs.2,020 Crores.

4) With this 3G pricing, telecom companies may restrict their services to metros and category A circles only.

June 21st, 2009

A Primer on LTE – link on wikipedia

Our post on “A Primer on LTE” is now referenced on wikipedia on the main LTE page :

http://en.wikipedia.org/wiki/Long_Term_Evolution

Let us know your feedback. Thanks for the excellent feedback on a similar post on “A Primer on WiMAX” and referenced on wikipedia on the main WiMAX page.

April 8th, 2009

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