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June 17, 2015
Verizon CFO Fran Shammo, while speaking at a Wall Street Journal conference Monday, made it
very clear that the company has no intention of acquiring Dish Networks.
Shammo also added that Verizon will keep media assets like the Huffington Post and Tech
Crunch, which the company acquired in its $4.4 billion acquisition of AOL, but he was very
clear about his company's intentions when it comes to Dish-- Niet!
Overall, multiple reports have surfaced in the past few weeks that Dish is crafting a deal
to acquire T-Mobile.
Just last week, the Wall Street Journal reported that Dish and T-Mobile are looking at a
deal that would still leave T-Mobile parent company Deutsche Telekom with a large minority
stake in the new company, and that Dish is already talking to banks to secure funding for a $15
billion offer as well.
And yet some have questioned whether Verizon might be interested in acquiring Dish for its massive
inventory of wireless spectrum.
Shammo denied that Verizon has any interested in Dish's spectrum, telling the Journal that
if Verizon had wanted more spectrum it could have easily acquired it at auction.
This wouldn't be the first time Shammo has put to rest claims that Verizon would go to any
length for more wireless spectrum.
Speaking at an investor conference back in March, Shammo said that in the past, spectrum cost
less than it did to add capacity using technology.
“This spectrum auction flipped that balance on its head. We can build additional capacity for a
third of what this spectrum is going to cost,” Shammo said at the time, noting that the FCC’s bidding
rules need to be revised to account for companies like Dish, which took home huge amounts of wireless
spectrum at a discount while driving up prices for others.
In other mobile news
In a way, Apple is really hoping that time will repeat itself with its new Watch the way the
iPhone did when it first came out.
While its original iPhone turned heads when it first debuted in 2007, it didn't become a world-beating
smartphone until 2008, when Apple launched its App Store and made it very simple for anyone to download
apps and programs on their iPhones.
Steve Jobs' venerable iPhone went from a slick-looking smartphone that could make calls, play music
and videos, and browse the Web to a device that could do virtually anything developers could imagine.
Now Apple has the same ambitions that a radical transformation will occur with its Apple Watch, which
will get access to native applications that can fully take advantage of the wearable device and its
numerous capabilities with the next version of its Watch OS software.
"For us, this is a huge moment," said Apple CEO Tim Cook during the company's annual developer conference
on Monday. "This is how we felt when we launched the App Store in 2008."
By empowering app developers to create more robust applications, Apple is creating the foundation
for making the Watch more than just a simple, traditional watch.
One of the early knocks on Apple Watch is that it hasn't been able to do anything useful enough
to justify the cost-- it typically ranges between $349 and up to a staggering $17,000.
But like the App Store transformed the iPhone, the rise of native apps on the new Watch could
really foster the next killer app-- something innovative and useful that will have you running out
to buy the wearable device.
"Opening up native apps and access to the Watch hardware and software features to developers will
make a huge difference," said Jan Dawson, an analyst at Jackdaw Research.
"Third-party apps are key to mainstream adoption of the Apple Watch and what Apple announced
this week will finally make really compelling third-party apps possible," he added.
And Apple Watch's success could also have ripple effects on the broader market as well. While a
a whole slew of technology companies ranging from Samsung to LG have barged into the wearables,
few have really taken off.
Google's platform for wearables (Android Wear) has struggled since its very launch, with market
research firm Canalys reporting vendors collectively shipped only 720,000 units last year out of a
total 4.6 million wearables.
For its part, Motorola's Moto 360 is widely believed to be at the top of the Android pack, at least
Several wireless industry analysts believe that Apple's smartwatch will change things around. Forrester
Research also expects Apple to sell more smartwatches this year than any of its rivals have cumulatively
sold, including fitness companies like Fitbit.
Meanwhile, Apple Watch could provide a lift in awareness and interest that could drive sales for
the rest of the category.
Market researcher Strategy Analytics forecast in March that Apple will ship about 15.4 million
Apple Watch units this year, giving the company about 54.8 percent of the global smartwatch market.
All other smartwatch makers combined will ship just 12.7 million units in 2015, according to
Strategy Analytics believes the Apple Watch will ignite the wearables segment, saying that total
worldwide smartwatch shipments will jump 511 percent, from 4.6 million in 2014 to 28.1 million this
In other mobile news
The U.S. Competitive Carriers Association (CCA), which represents smaller regional and rural
wireless carriers, is petitioning the Copyright Office to support the legal unlocking of mobile
The idea was originally planned in January but it only was finally approved in mid-April.
The issue is near and dear to the hearts of CCA's carrier members, as customers looking to leave
the larger mobile carriers often need to have their devices unlocked in order to switch to another
The CCA said it strongly supports an exemption that would allow U.S. consumers to unlock all
of their devices that connect to a wireless network.
"Because this proceeding is forward-looking, an exemption should allow consumers the ability
to unlock any relevant wireless device, and not be subservient to the will of any single mobile
carrier or manufacturer," wrote Michael Lazarus, managing member of Telecommunications Law Professionals
PLLC on behalf of the CCA.
"Additionally, and as directed by Congress, the exemption should not limit who may provide
assistance to unlock a wireless device, and therefore should allow an agent of the consumer,
whether it be another person or a wireless provider, to perform the unlocking procedure, just
as a locksmith may unlock an individual’s car or home when they do not have the necessary key.”
In January of 2013, the Copyright Office had made unlocking a cell phone illegal in some circumstances.
The decision was taken to help reduce large-scale phone trafficking but left a chance that consumers
could still face some penalties for unlocking their devices.
The fines could range from a minimum of $2,500 to $25,000, and up to five years in federal jail.
At the time, more than 100,000 consumers signed a petition imploring President Barack Obama to
make unlocking legal again. The FCC agreed to investigate the matter further, and in July of last year
Congress unanimously approved a new bill that made it legal to unlock phones.
The Copyright Office is in the process of reviewing its present rules and could move to revise
those rules soon.
In a statement, CCA President Steven Berry said that the decision to extend the unlocking exemption
should be an easy one for the Copyright Office.
"Congress further demonstrated its support for the unlocking scenario by passing a bill that the
President signed last year," Berry wrote.
"There has been near universal support for the exemption, and unlocking clearly benefits U.S. consumers
and competitive wireless carriers, especially smaller carriers who still have trouble accessing the
latest devices. I encourage the Copyright Office to recommend to the Librarian of Congress adoption
of the unlocking exemptions proposed by CCA,” he added.
In other mobile news
AT&T announced today the completion of its Nextel Mexico acquisition, including the company’s wireless
spectrum licenses, network assets, retail stores and all of its subscribers in Mexico. Valued at $1.875 billion after about $427 million of various adjustments, the transaction
will merge Nextel Mexico with Iusacell, another Mexico wireless carrier that AT&T acquired for
$2.5 billion earlier in 2015.
With the combined presence in Mexico, AT&T intends to create a “North American mobile service
area” capable of covering more than 400 million customers in the United States and Mexico.
AT&T named Thaddeus Arroyo, CEO of AT&T Mexico, in charge of the combined company.
The North American mobile service segment has already begun to materialize partially as
AT&T has added unlimited calls to Mexico to many of its consumer plans.
AT&T’s decision to move into the Mexican wireless market happens today, just as dominant
incumbent carrier America Movil has been divesting its wireless assets in accordance with new
Part of those regulations included AT&T selling its stake in the company for $5.57 billion
to Carlos Slim.
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Source: Verizon Wireless.
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