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Posts Tagged ‘t mobile’

UK: T-Mobile and Orange agree on a joint venture, merging their UK operations

[MarketWatch] A deal has been struck to merge the U.K. mobile phone operations of Deutsche Telekom and France Telecom, according to published reports.

T-Mobile UK, the unit of Deutsche Telekom, will be merged into the operations of Orange in the U.K., multiple reports said, citing people familiar with the matter.

France Telecom, which holds Orange, fought off rival interest from Vodafone Group and Telefonica.

The deal will be announced Tuesday morning before the market opens, the report added.

Deutsche Telekom shares underperformed the broader market after the reports, up just 0.1%. A joint venture would remove the possibility that Deutsche Telekom would sell the division.

France Telecom rose 1.9% in Paris trade.

The U.K. market is a fiercely competitive one, led by Telefonica’s O2 that includes Vodafone, Orange, T-Mobile and 3 from Hutchison Whampoa.

Deutsche Telekom wrote down the value of T-Mobile U.K. in the first quarter, and that division’s operating profit fell 13.5% in the second quarter. See full story.

T-Mobile U.K. has been widely considered on the block since Deutsche Telekom CEO Rene Obermann in May stressed the need for consolidation in Europe and said that “nothing was unthinkable” regarding the business

U.K. deal reached for T-Mobile: report

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USA: FCC is begining to tackle the problems of the wireless industry

[network world] With word that the Federal Communications Commission will next week begin to take a broad look at the wireless industry and how it is regulated, one wonders: What took so long?

The Government Accountability Office pretty much wondered the same thing in June with a report on the FCC’s handing of the wireless industry. That report, which was none-too-popular at the FCC, said the agency needed to reexamine its handling of a number of growing problems. The key areas of concern from the GAO report:

Billing: Complexity of wireless billing statements leads to lack of consumer understanding. Bills contain unexpected charges and errors.

Terms of service contract: Consumers are subject to fees for canceling their service before the end of their contract term (early termination fees), regardless of their reason for wanting to terminate service, and effectively locking consumers into their contracts. Consumers are not given enough time to try out their service before having to commit to the contract. Carriers extend contracts when consumers request service changes.

Explanation of service: Key aspects of service, such as rates and coverage, are not clearly explained to consumers at the point of sale (when they sign up for the service).

Call quality: Consumers experience dropped or blocked calls as well as noise on calls that makes hearing calls difficult. Consumers experience poor coverage, which in rural areas may be the result of lack of infrastructure and in urban areas stems from lack of capacity to manage the volume of calls at peak times.

Customer service: Consumers experience problems such as long waits, ineffective assistance, and insufficient resolution to problems.

Some other interesting facts from the GAO survey/report:

GAO estimates about 21% of wireless phone users who contacted their carriers’ customer service were dissatisfied with how their carriers addressed their concerns; FCC’s efforts to handle complaints are an important means by which consumers may be able to get assistance in resolving their problems. However, the results of the GAO’s survey of 1,143 randomly selected consumers, suggested that most consumers would not complain to FCC if they have a problem that their carrier did not resolve. Specifically, the GAO said that of 13% of wireless phone users would complain to FCC if they had such a problem and that 34% do not know where they could complain.
In response to the areas of consumer concern noted above, wireless carriers have taken a number of actions in recent years. For example, officials from the four major carriers, Verizon Wireless, AT&T, Sprint Nextel, and T-Mobile, reported taking actions such as prorating their early termination fees, offering service options without contracts, and providing Web-based tools consumers can use to research a carrier’s coverage area, among other efforts. In addition, according to CTIA–The Wireless Association, the wireless industry spent an average of $24 billion annually between 2001 and 2007 on infrastructure and equipment to improve call quality and coverage.

The GAO estimates that about 19% of wireless users wanted to switch carriers since the beginning of 2008 but did not do so. Then 42% of these wireless phone users who wanted to switch but did not because of the early termination fee.
The GAO plans to complete a full report in the fall and expects to make more recommendations then.

FCC will have tough time reining-in burgeoning wireless industry
see also GAO Report

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USA: teenagers having a cellphone has risen from 45% in 2004 to 71% in 2008

[Pew Internet] Teenagers have previously lagged behind adults in their ownership of cell phones, but several years of survey data collected by the Pew Internet & American Life Project show that those ages 12-17 are closing the gap in cell phone ownership. The Project first began surveying teenagers about their mobile phones in its 2004 Teens and Parents project when a survey showed that 45% of teens had a cell phone. Since that time, mobile phone use has climbed steadily among teens ages 12 to 17 – to 63% in fall of 2006 to 71% in early 2008.

In comparison, 77% of all adults (and 88% of parents) had a cell phone or other mobile device at a similar point in 2008. Cell phone ownership among adults has since risen to 85%, based on the results of our most recent tracking survey of adults conducted in April 2009. The Project is currently conducting a survey of teens and their parents and will be releasing the new figures in early 2010.

We went back to our databanks in light of the intriguing findings about adult mobile phone use in two of our recent reports, and to help lay the ground work for our current project on youth and mobile phones. This memo is the result of our data mining.

Teens and Mobile Phones Over the Past Five Years: Pew Internet Looks Back

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Mobile: Advertising revenues are escaping the recession, with significant growth

[teleclick] Mobile advertising revenues will buck a downward trend in the wider advertising industry and grow significantly over the next five years, according to a recent report by Juniper Research.

Constrained advertising budgets in the wake of the global economic crisis are forcing companies to think creatively about marketing and aim for greater engagement with consumers, which will increase interest in mobile ad channels, Juniper predicts.

Researchers were careful to put this trend into context, however, noting that mobile advertising will still be a fairly minor part of the overall ad market, accounting for some 1.5% of global spending by 2014. Even major brands that are already investing in mobile ad space remain cautious about cutting spending on other forms of advertising.

“These investments still form only a small proportion of a brand’s total advertising budget,” explained Juniper analyst and report author, Dr. Windsor Holden. “Regardless of mobile’s advantages — its personal nature, the facility for highly targeted advertising — advertisers will not commit more budget until they perceive that the audience for their advertisements has reached a critical mass.”

Mobile Advertising Expected to Buck Downward Trend in Ad Industry

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USA: Ranking of pre-paid mobile customer satisfaction gives top place to NET10, TracFone and Boost Mobile

[PRNewswire] Prepaid carrier NET10 ranks highest in overall customer satisfaction among non-contract wireless users, according to the J.D. Power and Associates 2009 U.S. Wireless Prepaid Customer Satisfaction Index Study(SM) released today.

NET10, included in the study for the first time this year, achieves a score of 774 on a 1,000-point scale and performs particularly well in three of the six factors that drive overall satisfaction: performance and reliability; cost of service; and account management. Also ranking at or above the industry average in rank order are TracFone, Boost Mobile, Virgin Mobile, Alltel and T-Mobile.

“NET10 differentiates itself from other companies by simplifying the wireless experience with straightforward pricing, virtually no roaming charges and robust nationwide network coverage,” said Kirk Parsons, senior director of wireless services at J.D. Power and Associates. “Users find they don’t have to worry about restrictive calling areas and can maintain their account without hassle.”

The study finds that product offerings in the prepaid segment have changed dramatically during the past year, with many wireless carriers increasing their offerings of monthly plans–some of which mimic traditional contract plans, while others offer unlimited calling and texting. More than 40 percent of non-contract plans are monthly plans, compared with less than 30 percent in 2008.

In addition, overall satisfaction among users of pay-as-you-go plans (756, on average) is considerably higher compared with users of monthly plans (742, on average), driven by satisfaction with the performance and reliability and account management factors.

The study also finds several demographic differences that distinguish pay-as-you-go users from users of monthly prepaid service. The average pay-as-you-go user is older, more likely to be retired and has fewer wireless phones in their household. The average monthly prepaid plan user more closely resembles the average contract plan user–desiring a large network, mid-range feature phones and messaging, but without the commitment or penalties of a contract. Two-thirds of monthly plan users report that they have switched service from their former contracted service carrier.

“As the non-contract wireless market continues to evolve, users need to be sure to explore all of the alternatives available to them in order to determine the appropriate plan that suits their needs,” said Parsons. “With this increased breadth of options, wireless users can find a plan that optimizes their wireless experience and meets their budget without requiring them to sign a contract.”

The study also finds the following key non-contract wireless usage patterns:

* Pay-as-you-go users spend an average of $35 for each airtime purchase, a decrease of $5 from 2008.
* Monthly non-contract users spend an average of $25 less per month than do those with contracts. Monthly non-contract users report spending $56 per month compared with an average monthly service cost of $81 for contract users.
* Non-contract users report using 320 minutes per month–a notable increase from 233 minutes in 2008. Pay-as-you-go users report using an average of just 145 minutes, while monthly non-contract users report an average of 573 minutes per month.
*During the past 12 months, 16 percent of non-contract users have switched carriers. *More than half (51%) of these users previously had contract service.
*Switching intent within the next year remains steady at 12 percent, compared with 13 percent in 2008. Among users intending to switch, 24 percent intend to switch to contract service.

The 2009 U.S. Wireless Prepaid Customer Satisfaction Index Study, now in its fourth year, measures customer satisfaction with current non-contract wireless service across six key factors. In order of importance, they are: performance and reliability (28%); cost of service (19%); account management (17%); initial activation (15%); offerings and promotions (12%); and customer service (9%). The study is based on responses from 4,229 wireless users who currently subscribe to non-contract service plans. Findings are based on a continuous fielding period between January and June 2009.

Customer Satisfaction Index Rankings (Based on a 1,000-point scale)

J.D. Power.com Power Circle
—————————
Provider Index Score Ratings For Consumers
——– ———– ———————

NET10 774 5
TracFone 773 5
Boost Mobile 771 5

Virgin Mobile 755 4

Alltel 751 3
T-Mobile To Go 750 3
Industry Average 750 3

Verizon Wireless 741 2
AT&T GoPhone 735 2
Cricket 732 2
MetroPCS 730 2

J.D. Power and Associates Reports: NET10 Ranks Highest in Customer Satisfaction Among Non-Contract Wireless Users

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