Thursday, November 8, 2007

Verizon Wireless donates phones to domestic violence victims

KINGSTON - Verizon Wireless donated 20 wireless phones to Family Domestic Violence Services today to celebrate the grand opening of the company's new store at 1200 Ulster Ave.

As part of the company's HopeLine program dedicated to combat and raise awareness about domestic violence, the phones will be distributed to victims of domestic violence in the area so they can call for help in an emergency or life-threatening situation. The phones can also help domestic violence survivors find employment, child care arrangements and housing.

Phone donations are accepted at all Verizon Wireless stores nationwide. For more information, visit www.verizonwireless.com/hopeline.

Wednesday, November 7, 2007

AT&T's third-quarter profit rises 41.5%

WASHINGTON (MarketWatch) -- AT&T Inc. on Tuesday said third-quarter earnings rose 41.5%, boosted by the acquisition of BellSouth and the addition of 2 million net wireless customers.

The San Antonio-based phone giant got a big lift from the iPhone. Since the mobile device went on sale June 29, 1.1 million customers have activated service with AT&T, the exclusive U.S. partner of Apple Inc.

More than 950,000 have signed up since the start of the third quarter.

AT&T, meanwhile, said net income totaled $3.06 billion, or 50 cents a share, compared with $2.17 billion, or 56 cents a share, a year ago. The company had fewer shares outstanding in the 2006 third quarter.

Much of the increase in earnings stemmed from the company's acquisition of BellSouth in December 2006.

Revenue rose almost 93% to $30.1 billion from $15.6 billion a year earlier, mostly due to wireless growth and the inclusion of BellSouth.

Adjusted for the acquisition, sales rose a much smaller 3.2% to 30.3 billion. AT&T said savings generated by the purchase of BellSouth are expected to surpass its original forecasts and top $3 billion in 2007.

As a result, the company also increased its annual target for "free cash flow after dividends" to a range of $6 billion to $7 billion from its prior estimate of $5 billion to $6 billion. Shares of AT&T a component of the Dow Jones industrial average, rose in early Tuesday trades, up 0.7% to $41.46.

Excluding acquisition-related expenses and other one-time costs, AT&T said it would have earned $4.3 billion, or 71 cents a share, compared with income of $2.4 billion, or 63 cents a share, a year ago.

The adjusted profit met Wall Street's forecast. The carrier was expected to earn 71 cents a share on revenue of $30.12 billion, according to the consensus of analysts surveyed by Thomson Financial.

Wireless revenue jumped 14.4% to $10.9 billion from a year earlier, with operating margin rising to 18% from 14.8% omitted merger-related costs. AT&T ended the third quarter with a nation-leading 65.7 million mobile customers.

The company also added 499,000 high-speed Internet customers to bring its total to 13.8 million, also the No. 1 market position in the U.S., and AT&T ended the quarter with 126,000 customers for its new U-Verse fiber-TV service.

Wireless growth
The large gain in wireless customers indicates the iPhone has given AT&T a big boost in its battle to fend off Verizon Wireless for the No. 1 position in the U.S. mobile market. Most analysts were expecting AT&T to add no more than 1.7 million mobile customers.

While AT&T has activated 1.1 million iPhone accounts, Apple said late Monday that it's sold 1.4 million devices. That means AT&T has as many as 300,000 iPhones in stock to sell ahead of the upcoming holiday season. During the quarter, AT&T said average monthly revenue per user rose 2% to $50.82, the result of higher usage of wireless-data services and Internet access.

Churn, or the percentage of customers who cancel service each month, rose slightly to 1.7% from 1.6% in the prior quarter. Among valuable post-paid subscribers, or those who sign up for annual plans and pay at the end of each month, churn edged up to 1.3% from a company low 1.2% in prior quarter.

AT&T said the higher sequential churn reflected "typical third-quarter seasonality." The company still trails Verizon Wireless, whose overall churn rate is close to 1%.

Verizon also generates more revenue from its wireless business than AT&T does. Verizon Wireless is jointly owned by Verizon Communications Inc. and Vodafone Group PLC AT&T believes the iPhone will improve customer loyalty and pull away customers from rivals such as Sprint Nextel Corp. Carriers are trying to differentiate themselves as the competition for customers intensifies.

Since most adult Americans now own mobile phones, subscriber growth will eventually taper off. Revenue expansion is more likely to stem from gains in market share and the introduction of new services such as mobile video.

Wireline business
In AT&T's more traditional phone business, often referred to as the landline or wireline market, results were mixed again. AT&T said revenue in its corporate-services unit fell 0.3% to $4.8 billion, although sales were up 1% from the prior quarter. In the consumer market, more local-phone customers disconnected service to continue a long-term trend. Subscribers switched to cable or Internet-phone service, or dropped wireline service entirely.

To win back customers, AT&T is adding video and other offerings. During the quarter, the carrier gained said it's approaching its goal of adding 10,000 customers each week for its fledging U-Verse service. AT&T plans to ramp up its TV service over the next few years to stem the loss of local-phone customers to cable companies that operate in its territory. Yet many investors and analysts question the company's technological approach and limited spending plan. Verizon is spending much more on an advanced fiber strategy.

Rumors persist that AT&T might buy one of the nation's two major satellite-television operators, EchoStar Communications Inc. or DirecTV. AT&T already sells their satellite services through prior marketing arrangements.

SOURCE

Vonage Sued Again, This Time by AT&T

The Internet phone company Vonage disclosed over the weekend that it had been sued, yet again, by a telecom giant for infringing patents, the Wall Street Journal reported. This time, AT&T says that Vonage is violating a patent which allows users to access an Internet phone system through a standard phone.

The suit was actually filed last Wednesday, but Vonage did not disclose it until issuing a regulatory filing late Friday.

Verizon’s suit against Vonage, which Vonage lost but is now appealing, led to a judge ruling that Vonage can no longer use certain technologies. Earlier this month, Vonage settled another suit, by Sprint, by agreeing to license over 100 Sprint patents for $80 million.

SOURCE

Cool New Cell Phones Released

Verizon customers sent and received 10 billion text messages during the month of July. That's one reason why Verizon is coming out with the text-friendly Voyager."It actually vibrates so you know what you touched is what you actually selected," a Verizon employee saidThe Voyager has a touch-sensitive screen on the outside. When you flip it open, a second screen appears on the inside where you can watch videos and surf the Internet.

Another hot phone for text messengers is called the Tilt from AT&T."The Tilt runs on Microsoft Office," Maurice Contreras of AT&T said. "You can integrate it with your corporate service. It will integrate with your Gmail, your Yahoo email, your personal e-mail addresses."

AT&T also offers the iPhone. More than 1 million have been sold since its summer debut."It's $399 but it's the ultimate phone," Contreras said. "It's the ultimate Internet device, just the ultimate mobile phone."AT&T's Video Share feature allows users to have videoconferences with other AT&T customers."I can be anywhere in the country and you would be able to see me and hear me as long as you had this feature on your AT&T phone," reported NBC 6's Joel Connable.

Sprint's newest Blackberry is perfect for people who need to take their office with them. It has e-mail, maps and a GPS system."I type in my mom's home address and it tells me exactly point-to-point directions," Emicel Ana of Sprint said.One of the smallest phones on the market is Verizon's Juke.It flips open like a switchblade knife and is made for people who like to download music. It also has a built-in 2 gigabyte memory for music.You can also track your kids with Verizon's family locater. A GPS is built in the phone so you always know where they are.

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Find your friends on a cell phone: Pelago introduces Whrrl

Whrrl is a new service that allows mobile phone users to chronicle every social activity in their lives -- writing reviews of movies or restaurants or uploading photos from concerts and sporting events. It then plots that information on a map and combines it with similar content from friends, creating a personal mobile city guide. It also provides the real-time locations of people as they wander from place to place in a city, tracking chosen friends as dots on a map.

Whrrl -- not to be confused with a competing service called Whirrl -- is the first offering from Pelago, a Seattle startup that scored $7.4 million from Kleiner Perkins Caufield & Byers, Amazon.com founder Jeff Bezos and Trilogy Equity Partners last year.

Led by Jeff Holden and Darren Erik Vengroff, both of whom previously held high-ranking positions at Amazon.com, Pelago is one of a number of companies trying to tap the emerging arena of location-based services. The idea is that mobile phone users will want to locate friends -- who may be at a nearby restaurant -- or at the very least get a review that a friend wrote of the restaurant from a few weeks ago. The service is also accessible on a PC.

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For businesses, the concept holds much promise -- potentially allowing them to target coupons or advertisements to people as they shop in a book store or buy a cup of coffee.

Of course, plotting the location of people on a mobile map in real time opens up dozens of potential privacy issues. That's especially the case since Pelago is targeting teenagers and those in their 20s. Eventually, the company wants to combine the power of GPS phones with a patent-pending technology it dubs "Passive Visitation" to automatically record the locations of users as they move around a city.

Holden, a former senior vice president at Amazon.com, said Whrrl was built so that location information doesn't get into the wrong hands. For example, users can set different privacy levels in order to allow or disallow specific people from seeing the location. They also can "cloak" themselves -- essentially switching off the location feature, Holden said.

Despite the potential privacy bottlenecks, Holden believes that people will find value in disclosing their locations to selected friends or family members.

And, he said, the ability to search for restaurant reviews or other information based on one's location is a compelling idea that hasn't been addressed by other players in the market.

"The real power of this thing is that you can combine social data with factual data that we have gathered," said Holden. "And so you can say: 'I want to see only the places that my foodie friends think are great restaurants and are within a half mile of here, have outdoor seating, and are open now.' That is a trivial query in our product." Such a query would take just four clicks, Vengroff added.

The search functionality allows users to quickly "mine tribal knowledge" from friends, which Holden says is a much more powerful recommendation than reading some anonymous review.

Of course, the concept will only work if people start using it. To attract users, Pelago has entered into a marketing agreement with American Eagle Outfitters in which customers of the retailer will be exposed to the Whrrl service through in-store and Web site promotions.

It also is working to create services so people can add reviews from their mobile devices to social networking sites such as Facebook and MySpace.

Other potential competitors include online city guides such as Yelp and Citysearch, both of which have mobile products, and Loopt, a two-year-old Silicon Valley startup that also allows users to find friends on a map on a mobile phone. Backed with $5 million from Sequoia Capital and New Enterprise Associates, Loopt's service is available on about two dozen Sprint phones for $2.99 per month.

Google also is moving into the arena with the purchase of Jaiku, a company that allows mobile phone users to create a running Web log of events, recommendations and other information. Jaiku describes its mobile product as "a live phonebook that displays the activity streams, availability, and location of your Jaiku contacts right in your phone contact list." Twitter, which also allows people to share small tidbits of information with friends, also is a potential threat.

Holden said he likes the concept of Jaiku and Twitter because they offer an "always-on connection to your network." But he said Whrrl is different because the content has more long-lasting value than the quick posts on Twitter and Jaiku.

"People post something and it is not that interesting like five minutes later, whereas in our world when you post something it is almost always in the context of some thing in the physical world," said Holden, adding that restaurant reviews or concert photos can be recycled for others to use.

Though it is launching today, Whrrl is not available to all mobile phone users. Only subscribers to AT&T, Sprint and T-Mobile -- on about eight to 10 phone models -- can download Whrrl. A portion of the service is free, though Pelago plans to charge less than $3 per month for the location-based service. Pelago, which plans to go out for more funding early next year, employs 34 people.

For more on location-based services on mobile devices, check out The New York Times today which reports on offerings from Loopt and Buddy Beacon. It also notes some of the privacy concerns, quoting an analyst who says there "is a Big Brother component" to the services.

SOURCE

Spammers go after cell-phone users, too

It’s hard enough coping with all that spam clogging our computers. Now it’s stalking us on our cell phones.

Spam has gone mobile. Increasingly, consumers answer their cell phones thinking it’s important. Instead, it turns out to be a telemarketer peddling time-share resorts, bogus lotteries or even porn.

While computer e-mail spam is just a pain, unsolicited text messages on your cell phone can be costly — 10 cents or more per message.

The problem is so new that federal agencies still are unsure how bad it is or how to combat it. But they say clearly that with millions of new cell-phone users and literally billions of text messages tapped out monthly, the annoyance is growing.

San Francisco-based Ferris Research, which tracks consumer messaging services, predicts U.S. cell-phone users will get 1.1 billion spam messages in 2007 — up from 800 million last year.

“As more and more people get cell phones, they are dealing with all sorts of products, services and consequences,” said Lisa Hone, an attorney with the Federal Trade Commission’s consumer protection bureau.

Wireless officials say they have learned from the experience of the computer industry and are taking aim at mobile spam. But the problem is that it’s a moving target.

“It is a constant and ever-changing threat,” said Joe Farren, a spokesman for CTIA-The Wireless Association, which represents the wireless industry. “As we develop new filters and firewalls, the spammers seek to develop new strategies as well. So it is an arms race of sorts.”

Illegal operators often use automatic dialers. Spammers sitting at a computer can zap millions of calls addressed to random cell-phone numbers. At the same time, cell-phone numbers are illegally bought and sold on Internet sites that are started up as fast as they are shut down.

In April, Verizon Wireless sued telemarketers it said “inundated” the company with 12,022,411 unsolicited commercial text messages. Verizon said in its lawsuit it was able to block all but 4,618.

Still, the barrage not only hit customers with “unwanted charges,” but also clogged Verizon’s networks, requiring the carrier to “dedicate equipment, software and personnel” to filter out the messages.

Spokeswoman Debra Lewis said the company was “using everything in our arsenal” to stop the spammers.

“We stop most of it, but some still goes through,” Lewis said, adding, “People aren’t expecting it, because a cell phone is a private number.”

Indeed, the expectation of privacy — cell phones are not part of any directory — is a big reason for the explosion in cell phones.

Today, more than 233 million cell phones are in use — more than double the number in 2000. Text messaging is the fastest-growing feature. Since last year, Verizon users more than doubled their text messaging from 12 billion to 28.4 billion.

Among young adults between 18 and 26, the preference for text messaging has made e-mail the equivalent of snail mail. Text messaging is used to play games, vote on TV reality show contestants, register political preferences and check news headlines, weather and movie times.

But it is also used by legitimate businesses to reach subscribers and by first responders to communicate in emergencies, pointed out Sprint spokeswoman Roni Singleton.

“It’s a service and a convenience and in some cases a vital communication tool,” Singleton said. “That is why it is so critical to make this a matter of priority.”

Sprint also sleuths for dishonest marketers and helps find ways for subscribers to block unwanted text senders, she said.

The phenomenon of cell-phone spam was not even contemplated when the federal do-not-call laws passed, and regulatory agencies have had to scramble to protect consumers.

In 2004, the Federal Communications Commission voted to ban all unauthorized text messages to mobile phones and pagers. The FCC also now applies the Telephone Consumer Protection Act — which prohibits autodialed and prerecorded calls to cell phones — to text messages. FCC guidelines now say text-based telemarketing solicitations sent to cell phones are covered by the national do-not-call rule.

While some states also are trying to erect regulatory barriers, experts say some legitimate businesses do not want too many hurdles in the way of legally cashing in on the potentially profitable cell-phone advertising market.

Google, Microsoft, Yahoo and AOL are just a few of the major online companies searching for ways to reach cell-phone users with mobile ads. Using global positioning technology, companies could deliver tantalizing pop-up ads to cell-phone users when they are within blocks of, say, a McDonald’s.

“It’s too lucrative an opportunity,” said Allan Keiter, founder and president of MyRatePlan, an online site that monitors cell-phone carriers.

Pop-up ads would be delivered only with a cell-phone user’s consent. Keiter predicted, however, that consumers could be enticed with the promise of cheaper cell service subsidized by commercials.

“Advertisers are champing at the bit,” he said.

SOURCE

Apple: A sixth of iPhones 'unlocked'

Apple has sold more than a million iPhones, but more than a sixth of them may never get hooked up to AT&T, the gadget's exclusive U.S. cell phone service provider.

About 250,000 of the nearly 1.4 million iPhones that Apple has sold thus far have gone to customers that don't have any intention of signing up for AT&T's service, Apple chief operating officer Tim Cook said Monday on a conference call with analysts and investors. That's a problem not only for AT&T, which doesn't get any monthly service fees from those customers, but for Apple, with which AT&T shares a portion of iPhone service revenue.

Since Apple launched the iPhone in June, hackers have published several strategies on the Internet that allow iPhone users to "unlock" their device from AT&T and link it up with alternate cell phone networks, such as T-Mobile's.

However, some of the iPhone's features - most notably "visual voice mail," which allows users to scan through their messages on their phone and pick and choose which ones to listen to - don't work with the hacks. And Apple's most recent software update on the phone reportedly made some of the unlocked phones unusable.

The number of unlocked iPhones jumped after Apple cut the price on the device last month by $200, Cook said. He did not say how or if Apple would respond to the high rate of unlocked devices.

Cook's comments came out as Apple reported its fiscal fourth quarter earnings. The company posted a profit of $904 million, or $1.01 a share, on sales of $6.22 billion, far exceeding analysts' estimates.

In recent trading on Tuesday, Apple's shares were up $11.52, or 6.6 percent, to $185.88.


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