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January 27, 2016
While AT&T and Sprint were both very busy with earnings calls yesterday, without making a sound, T-Mobile upgraded its
'Simply Prepaid' data plans to include more bandwidth capacity.
The upgraded plans now include 2 more gigabytes of data on the bottom two plans and an extra five GB of data
for users on the higher-end plan.
Under the new arrangement, prepaid users can now get 3 GB of high speed data for $40 per month, 5 GB of
high speed data for $50 a month or 10 GB of high speed data for $60 a month.
All three plans still come with unlimited talk and text just as before. Simply Prepaid offerings
formerly only included 1 GB of data for $40 per month, 3 GB of data for $50 per month or 5 GB of data
for $60 / month.
The data increase on T-Mobile's packages comes just after the one year anniversary of the introduction of
the Simply Prepaid plans and alongside a new family of prepaid similar offers from Sprint's subsidiary Boost
Boost is now offering multi-line prepaid options for U.S. families, including a plan for two lines with
unlimited talk, text and data plus 5 GB of high-speed data per line for $70 per month, three lines for $90
per month or four lines for $100 a month with unlimited talk, text and data plus 1.5 GB of high-speed data
In other mobile and wireless news
Earlier this morning, Phoenix Tower International (PTI) announced that it has closed a deal
to acquire more than 600 wireless tower sites from U.S. wireless carrier T-Mobile.
According to Phoenix Tower, the transaction includes the exclusive right to manage and operate
the sites via PTI’s local U.S. subsidiaries.
Though the exact terms of the deal weren't disclosed, Phoenix Tower simultaneously announced
the closing of a five-year credit facility with Toronto Dominion (TD) Securities used to finance
the acquisition and provide funds for new tower development and the acquisition of further mobile
infrastructure assets in the United States.
"The closing of this credit facility with Toronto Dominion was crucial to the acquisition of the
sites with T-Mobile,” said Phoenix Tower CEO Dagan Kasavana.
“TD's facility provides additional financing for development and acquisition opportunities in
the United States where we want to continue to build momentum after our deal with T-Mobile. TD is
a market leader in tower financing and we are excited to work with them in our continued expansion
in the United States,” added Kasavana.
The news comes amid reports that T-Mobile is looking to raise $10 billion, as it prepares for a
showdown with Verizon and AT&T in the upcoming incentive auction.
Two weeks ago, the wireless carrier announced a $2 billion debt sale as a way to secure funds the
company admitted could be used for the acquisition of additional mobile spectrum.
The sale of T-Mobile’s wireless towers echoes previous sales from AT&T and Verizon ahead of the
AWS-3 spectrum auction that will take place soon.
In December 2013, AT&T pulled together $4.83 billion for the auction in a deal to lease the
rights to approximately 9,000 of its towers to Crown Castle.
AT&T also sold 600 of its towers to Crown Castle outright as part of the deal. In September 2014,
Verizon Wireless announced that it too was considering the sale of its towers.
In March of this year, the mobile carrier closed a $5 billion deal to lease or sell 11,448 cell
sites to American Tower.
The AWS-3 auction saw AT&T and Verizon spend a combined $28 billion, more than half of the $41
billion in total revenue.
Though Verizon admitted recently that the 600 MHz spectrum up for grabs is not its top priority,
T-Mobile has repeatedly expressed the sentiment that it will take the opportunity to scoop up as much
wireless spectrum as it can.
“T-Mobile is definitely ready and sees this spectrum auction as a unique and important opportunity,” said
T-Mobile CEO John Legere. “T-Mobile is going to go hard in this low-band spectrum auction and put that
spectrum to good use for our customers.”
Legere’s comments were supported by CFO Braxton Carter, who said in October the carrier will “buy anything
that's humanly possible within our power.”
In other mobile and wireless news
Don't look now but there's a mini war going on right now between ISPs and the Federal Communications Commission.
To be sure, the FCC's Annual Broadband Report will be published shortly and last week, FCC chairman
Tom Wheeler put out a factsheet about its main finding-- that broadband is not being deployed in a reasonable
and timely fashion to all Americans.
The report will be discussed at the FCC's next meeting on January 28 and Wheeler noted in his summary
that the regulator is required to "take immediate action" if it makes that finding.
Unsurprisingly, the ISPs are not happy at all and US Telecom has rushed out a response. "It would seem
that the FCC's report should carry the headline 'our policies have failed,'" the industry body complains,
"since it concludes that six years after adoption of the national broadband plan, the commission's actions
haven't produced even so much as a 'reasonable' level of broadband deployment."
It takes issue with the main finding. "No one actually believes that deployment in the United States
is unreasonable. Unfortunately, this annual process has become a cynical exercise, one that eschews dispassionate
analysis, and is patently intended to reach a predetermined conclusion that will justify a continuing
expansion of the FCC's own regulatory reach."
The rollout of broadband in the U.S. has been a source of tension for more than ten years already. The truth
is that compared with many other nations, the provision of internet access is far behind, both in terms of speed
and reach. It is also significantly more expensive than in comparable nations.
Wheeler also lists the factors that led to the conclusion that broadband is not being deployed "in a reasonable
and timely fashion," and they include:
34 million Americans don't have access to the FCC's benchmark speed of 25 Mbps on downloads and 3 Mbps on uploads,
a benchmark it upped this time last year.
39 percent of the rural population does not have access to fixed broadband, something he says is a
persistent urban-rural digital divide.
41 percent of schools have not met the FCC's goal of 100 Mbps per 1,000 students/staff.
Just 9 percent of schools have fiber connections capable of meeting the FCC's long-term goal of 1
Gbps per 1,000 students.
The U.S. is still far behind other countries, ranking 16th out of 34 developed nations.
Ever since Wheeler pushed net neutrality rules through in 2015 and against the very strong wishes of the telcos, the
regulator has been butting heads with those it oversees, somewhat of a change in what has traditionally been
quite a cozy relationship.
But this report should not have come as much of a surprise to the industry. When the FCC changed the
benchmark speed from 4 Mbps to 25 Mbps a year ago, Wheeler was quite open about the fact that he felt
bandwidth speeds had not kept up with user demands.
An accompanying report at the time argued that rural areas of America were underserved, with 53 percent
of the rural population falling short of the newly proposed minimum speed.
It also estimated that about 55 million people, or 17 percent of the population, lacked access to the so-called 25/3
standard in the United States.
The FCC has crystal clear authority to act when it feels not enough is being done under the one piece of
modern telecommunications legislation: the 1996 Telecommunications Act.
Wheeler clearly signalled his intentions twelve months ago and again last week, and in that time, ISPs
have responded by getting broadband to an additional 14 percent of the rural population and to an additional
21 million American citizens.
Wheeler added that's not enough-- the ISPs will beg to differ. Later this month, we will find out
what the FCC proposes to do about it. But you can expect a lot more fighting on both fronts. The ISPs
are only getting warmed up.
In other mobile and broadband news
Apple today reported what it called a record breaking time for its App Store during the Holidays. The numbers
surpassed its expectations by a wide margin.
Apple said in a statement that in the 2 weeks ending January 3rd, Apple device users spent over $1.1
billion on mobile apps and in-app purchases.
This is setting back-to-back weekly records for both site traffic and purchases, and it took a few industry
analysts by surprise.
The first day of 2016 also marked the biggest day in App Store history with customers spending over
$144 million for that day alone.
It broke the previous single-day record set just a week earlier on Christmas Day 2015. That too surpised
a few observers.
Philip Schiller, Apple’s senior vice president of the company's worldwide marketing division said Apple
customers spent about $20.26 billion on the App Store in all of 2015.
“We're grateful to all the app developers who have created the most innovative and exciting apps in
the world for our customers. We can't wait for what's to come in 2016," Schiller asserted.
Globally, the App Store has brought in nearly $40 billion for app developers since 2008, with about
35.6 percent generated in the last year alone.
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