Water chiefs douse phone mast hopes Dec 14 2004

By Post Reporter

PEOPLE power has stopped a mobile phone company putting up a 23-metre mast close to homes.

Sutton and East Surrey Water, which owns the site chosen by T-Mobile, yielded to public anxiety about the structure and said it was not prepared to rent the land.

The site, near the ASDA supermarket, in Burgh Heath, is close to West Drive, Heathside Place and Chetwode Drive. Tattenham Residents' Association member Ken Beall leafleted the neighbourhood urging residents to write to Reigate and Banstead Council planners and the water firm.

While permission is not needed for masts of 15 metres or less, it is required for anything higher and T-Mobile was preparing to submit a planning application to the council.

Residents were concerned about its high visual impact in a residential area, inadequate screening, with the mast higher than trees, possible health risks to children and the possible effect on property prices.

A spokesman for Sutton and East Surrey Water reacted immediately when told about residents' concerns by The Post.

Within a few hours a decision was made to turn down TMobile's application for tenancy of the site.

Residents' Association councillor Bob Harper said: "Support from residents was brilliant but we need to stay alert as no doubt T-Mobile will be looking for alternative sites."

Post

Coltan, Gorillas and cellphones

What Is Coltan ?

Coltan, short for Columbite-tantalite is a metallic ore comprising Niobium and Tantalum, found mainly in the eastern regions of the Democratic Republic of Congo (formally Zaire). When refined, coltan becomes a heat resistant powder, metallic tantalum which has unique properties for storing electrical charge. Of the 525 tons of tantalum used in the USA in 1998, 60% was used in tantalum capacitors, with a predicted growth rate of 14% per annum (from Uganda Gold Mining Ltd web site).

It is therefore a vital component in the capacitors that control current flow in cell phone circuit boards.

Mining Coltan

Coltan is mined by hand in the Congo by groups of men digging basins in streams by scrapping off the surface mud. They then "slosh" the water around the crater, which causes the Coltan ore to settle to the bottom of the crater where it is retrieved by the miners. A team can "mine" one kilo of Coltan per day.

The tech boom caused the price of Coltan to rocket to as high as US$600 per kilogram at one point, compared to a previous value of US$65 per kilogram, although it has settled down to around US$100 per kilogram at the moment. A Coltan miner can earn as much as US$200 per month, compared to a typical salary of US$10 per month for the average Congolese worker.

80% of the world's known coltan supply is in the Democratic Republic of the Congo, which the UN says is subject to "highly organized and systematic exploitation."

Coltan financing war

A recent report by the UN has claimed that all the parties involved in the local civil war have been involved in the mining and sale of Coltan. One report suggested that the neighboring Rwandan army made US$250 million from selling Coltan in less than 18 months, despite there being no Coltan in Rwanda to mine. The military forces of Uganda and Burundi are also implicated in smuggling Coltan out of Congo for resale in Belgium.

A report to the United Nations security council has called for a moratorium on purchase and import of resources from the Democratic Republic of Congo, due to the ongoing civil war that has dragged in the surrounding countries.

Coltan and Gorillas

The main area where Coltan is mined, also contains the Kahuzi Biega National Park, home of the Mountain Gorilla. In Kahuzi Biega National Park the gorilla population has been cut nearly in half, from 258 to 130 as the ground is cleared to make mining easier. Not only has this reduced the available food for the Gorillas, the poverty caused by the displacement of the local populations by the miners has lead to Gorillas being killed and their meat being sold as "bush meat" to the miners and rebel armies that control the area. Within the Dem. Rep. of Congo as a whole, the U.N. Environment Program has reported that the number of eastern lowland gorillas in eight Dem. Rep. of Congo national parks has declined by 90% over the past 5 years, and only 3,000 now remain.

Due to the damage caused to the Gorilla population and their natural habitat, companies that use Coltan are now starting to demand that their Coltan only comes from legitimately mined sources and is not a byproduct of the war. American-based Kemet, the world's largest maker of tantalum capacitors, has asked its suppliers to certify that their coltan ore does not come from Dem. Rep. of Congo or from neighbouring countries. Such moves could lead to "Gorilla Safe " cellphones being marketed, much in the same way that Tuna meat is now sold as "Dolphin Safe".

Other sources

There are few alternative sources of Coltan apart from the Dem. Rep. of Congo, although the University of St Andrews geologist, Dr Adrian Finch recently reported that he has found Coltan inside extinct volcanoes in the remote North Motzfeldt region of Greenland. Dr Finch has now received a two year funding plan from the Carnegie Trust and Gino Watkins Fund to investigate the commercial viability of mining the volcanoes.

What to do ?

There is very little the "man on the street" can do to prevent Coltan exploitation as it is not a "visible" component of cellphones that can be differentiated when shopping, but continuing pressure on circuit board manufacturers has lead to many demanding that their Coltan supplies only come from legitimate sources. Similar pressure on other users of Coltan can also help to ensure that only legitimately mined and sold Coltan is used in circuit boards. At a government level, pressure on local politicians to drive awareness of the ongoing civil war in the Dem. Rep. of Congo and help to secure a resolution will help to prevent the extinction of the Mountain Gorilla.

The Tantalum-Niobium International Study Center (T.I.C.), the industry organisation representing producers, processors and consumers of tantalum and niobium around the world, said that it deplores the reported activities of illegal miners in the Kahuzi-Biega National Park and the Okapi Wildlife Reserve in the Democratic Republic of Congo.

It was agreed at the T.I.C. Executive Committee meeting in Brussels on April 3rd 2001 that the organisation would take a stand regarding the use and production of coltan mined in these World Heritage Sites.

National Public Radio - US based radio station did a story on this issue - audio of program on their site

Born Free Foundation - a report into Coltan mining commissioned by the Foundation.

Dian Fossey Gorilla Fund - fund to save Mountain Gorillas

from Cellular News

CDMA based Push to Talk launched in Australia

Australia's Telstra has launched Push To Talk (PTT) on CDMA. At the push of a button the caller can communicate with individuals or large groups of people at the same time. The launch of the new CDMA service widens the reach of the service to over 98 per cent of the population and follows Telstra's launch of a GSM service in June.

Telstra Business and Government Mobile Sales and Solutions Managing Director, Mr Murray Bergin, said Telstra introduced the CDMA service as a smarter way to help businesses connect to the service in more places.

"The feedback Telstra received when we launched our GSM service was very positive so it was important we were able to use our vast resources to make the service available to many more Australians," Mr Bergin said.

Telstra trialled PTT CDMA with metropolitan and regional businesses including Accor Asia Pacific and Yarra Ranges Council to fine-tune the service prior to launch.

Telecommunications Manager for Accor Asia Pacific, Kyle Stubbs, said Accor was impressed with the convenience and productivity benefits PTT could deliver.

"We have staff working in numerous locations and PTT can enhance productivity by enabling us to communicate with staff at a specific site or with specific groups of staff at the one time, regardless of their location," Ms Stubbs said.

"The single device also offers greater convenience. I shake my head every time I see a staff member who has a pager, walkie talkie and mobile on their belt."

from Cellular News
17-12-2004

Nextel commits to iDEN

Following the decision by Sprint to buy rival network, Nextel Motorola says that it has reached an agreement with Nextel to extend its iDEN infrastructure and iDEN subscriber supply agreements for a period of three years from January 1, 2005 through December 31, 2007.

Terms of the existing iDEN infrastructure supply agreement that are being extended includes those relating to base station equipment, core network equipment, plus software and hardware maintenance and support services necessary to expand, upgrade and support Nextel's nationwide iDEN based network. The extension of the iDEN subscriber supply agreement includes pricing and other terms relating to current and proposed new handset models for Nextel, including handset models to be marketed under Nextel's youth- lifestyle brand, Boost Mobile.

"Based on current projections, Motorola expects the value of its infrastructure and subscriber shipments to Nextel to be comparable to the average levels we've seen over the past two years," added Nemcek.

Motorola noted that more new models of iDEN handsets are expected to be introduced in the next 12 months, including new models that incorporate the new WiDEN data functionality that increases data rates up to four times faster than customary iDEN data rates.

Cellular News
17-12-2004

Vodafone extends Ferrari sponsorship

Vodafone has extended its sponsorship of the Ferrari Team for the next two calendar years, 2005 and 2006. Vodafone says that this is part of its ongoing strategy to align its brand with high profile sporting properties.

Commenting on the new agreement Peter Bamford, Vodafone's Chief Marketing Officer said, "We are very happy to continue our partnership with Ferrari, which has greatly enhanced our global brand profile and will enable us to continue to build Vodafone as one of the world's leading brands. We are looking forward to continuing our successful relationship, generating greater affinity for the Vodafone brand, and our products and services with our customers."

The agreement will continue to involve significant branding on both the cars and drivers' and pit crews' overalls and helmets.

Ferrari Team Principal Jean Todt added, "We are happy to extend our agreement with Vodafone for a further two years. Over the three year period which ends this year, our partnership with Vodafone has played a key role in our success and we are firm believers in this association between two brands that represent excellence in their respective areas of activity."

from Cellular News
17-12-2004

MMS revenues to double next year - report

The global Multimedia Messaging Service (MMS) market will reach US$42.5 billion in 2005 ? more than double the figure for 2004, according to new study from Juniper Research. Revenue growth will be driven mainly by messaging between mobile phone users, but also by services, such as sports updates, supplied by third parties to mobile users.

But the report also shows that MMS, having only recently passed the early adopter phase, has so far failed to deliver on promise for many users. In several markets, problems of compatibility and interoperability continue to dog the progress of MMS. Work continues amongst industry groups to establish international standards ? and to get suppliers to stick to them.

"MMS offers a new source of revenue for telecoms operators, and a range of other suppliers in the value chain," says report author, Terry Ernest-Jones. "There?s no doubt it has the potential to offer a leap in mobile phone usage - and appeal - but up to now MMS has also been a frustration for large numbers of users, even for basic functions such as exchanging photos between mobiles."

However, as the report shows, many of the compatibility and interoperability obstacles which have menaced MMS will be ironed out over the next two years, allowing a freer flow of multimedia messages, approaching the level of today?s SMS. The report also points out that a major advantage for MMS is that, following in the wake of SMS, it can slot into customers' existing mobile usage habits. The downside is that user expectations have been set to require the same standard of service, and smooth operation, as they get from SMS. Operators and suppliers aim to build the same confidence in MMS that exists today in SMS.

from Cellular News
17-12-2004

China TCL Corp Nov Mobile Phone Unit Sales Down 58% On-Year

SHANGHAI -(Dow Jones)- TCL Corp. (000100.SZ), one of China's largest consumer electronics companies, said its TCL-brand mobile phone unit sales fell 58% on year in November, its seventh straight month of on-year declines.

TCL sold 363,115 mobile phones in November, compared with 867,760 in the same month the previous year, a notice disclosing monthly sales figures dated Thursday and published Friday in the China Securities Journal shows.

The company said it sold 717,686 "TCL-Alcatel" mobile phones in November. TCL companies in April agreed to form a mobile phone joint venture with France's Alcatel SA (ALA).

Guangdong province-based TCL said its color television sales in mainland China fell to 861,012 units in November, from 874,923 units in November 2003. It sold 1.47 million color TVs overseas in November, compared with 442,738 in the same month last year.

The large on-year jump in color TV sales likely reflects contributions from a joint venture formed between TCL Corp.'s Hong Kong-listed unit TCL International Holdings Ltd. (1070.HK) and France's Thomson SA (TMS).

TCL Corp. said in the notice it began after August to include overseas color TV sales from the Thomson JV in its overseas color TV sales data.

In the July-September period, TCL reported a 69% on year decline in net profit to CNY34.2 million, while the company's core revenue rose 68% to CNY11.04 billion over the same period.

China's mobile phone market is highly competitive as foreign makers are renewing efforts to make up market share lost to domestic companies in the previous few years.

-By Jeff Meyer, Dow Jones Newswires; 8621 6218-3268; jeff.meyer@dowjones.com
Edited by David Riordan
Corrected December 16, 2004 21:43 ET (02:43 GMT)
(END) Dow Jones Newswires
17-12-2004

Telstra's CSL To Launch 3G Services In Hong Kong Next Week

SYDNEY -(Dow Jones)- Hong Kong mobiles company CSL Ltd. will launch third-generation mobile services next week and introduce one of Nokia's Corp.'s (NOK) newest handsets to the market.

CSL, a unit of Australia's Telstra Corp. (TLS) and one of Hong Kong's six mobile phone companies, said in a press conference invitation that it will Monday announce the network's commercial launch and the release of the Nokia 6630 handset - touted by its maker as the world's smallest 3G megapixel phone.

CSL will be the third of four 3G license holders in the fiercely competitive Hong Kong mobiles market to launch high-speed mobile services.

Earlier this month SmarTone Telecommunications Holdings (0315.HK) introduced its first 3G services by offering a high-speed wireless datacard aimed at the business market. Hutchison Whampoa (0013.HK) launched its Hong Kong 3G service in January.

-By Stephen Wright, Dow Jones Newswires;
61-2-8235-2950; stephen.wright@dowjones.com
-Edited by Melanie Botts
(END) Dow Jones Newswires
17-12-2004

i-mode arriving in Russia

TOKYO -(Dow Jones)- NTT DoCoMo Inc. (9437.TO) said Friday it has formed an exclusive strategic partnership with Mobile TeleSystems (MBT), the largest mobile phone operator in Russia and the Commonwealth of Independent States.

Under the partnership, MTS will provide NTT DoCoMo's i-mode Internet-capable mobile phone services in Russia and other CIS countries, it said.

"As a result of this agreement, i-mode will become available through 13 operations," DoCoMo said.

MTS plans to introduce the i-mode services in Russia before December 2005.

The two will also cooperate to introduce the services in other CIS markets in which MTS either maintains subsidiaries or manages operations, such as the Ukraine, Uzbekistan and Belarus, DoCoMo said.

Being the world's most popular mobile Internet platform since its launch in 1999 in Japan, i-mode has more than 45 million subscribers using over 6,100 official content sites in 10 countries and regions, DoCoMo said.

-By Tokyo Bureau, Dow Jones Newswires; 813-5255-2929, djnews.tokyo@dowjones.com
(END) Dow Jones Newswires
17-12-2004

Telekom Austria Acquires Call Option To Buy Mobiltel

VIENNA (Dow Jones)--Telekom Austria AG (TKA) Friday said it has acquired a call option to purchase Bulgaria's Mobiltel AD.

The call option gives Telekom Austria the right to purchase 100% of the share capital of Mobiltel for a total enterprise value, which includes debt, of up to EUR1.6 billion in late 2005. The call option is priced at up to EUR80 million which would be offset against the purchase price. It is payable in the first quarter of 2005, to be exercised in the third quarter of the same year.

Up to EUR150 million of the purchase price is contingent upon Mobiltel achieving certain operating and financial performance criteria in 2005 and will be payable in the second quarter of 2006.

Boris Nemsic, Chief Operating Officer of Wireless Telekom Austria and Chief Executive Officer of Mobilkom Austria, will be admitted as a nonvoting observer to management and supervisory board meetings of Mobiltel AG.

Once the call option is exercised, Telekom Austria intends to fund the acquisition mainly from its cash flow and in part through corporate bonds.

According to Stefano Colombo, Chief Financial Officer of Telekom Austria, the company does not intend to raise equity to finance the potential acquisition and will maintain its current share buyback program.

Telekom Austria AG last Monday said it plans to issue a corporate bond to finance part of the acquisition of Mobiltel AD.

-By Barbara Maya, Dow Jones Newswires; (+43 1) 513 69 22 11; barbara.maya@dowjones.com

(END) Dow Jones Newswires

17-12-2004

Rogers Wireless To Lend Up To C$1.4B To Parent Company

TORONTO (Dow Jones)--Rogers Wireless Communications Inc.'s (RCN) board has approved a loan of up to C$1.4 billion to parent Rogers Communications Inc. (RG).

The loan will be made from cash on hand resulting from a return of capital from Rogers Wireless Inc., a unit of Rogers Wireless Communications.

In a news release, the Rogers companies said Rogers Communications will use the proceeds from the loan, together with C$350 million from cash on hand, to permanently repay the C$1.75 billion bridge credit facility referred to below.

A special committee of independent directors of Rogers Wireless Communications concluded that making this loan is in the company's best interests and recommended that the board approve the making of the loan, they noted.

The loan will be advanced on Dec. 31, and will mature on Oct. 16, 2006. It must be repaid in whole or in part before the maturity date in certain circumstances including from the proceeds of any shareholder distributions by Rogers Wireless Communications to Rogers Communications or to its wholly-owned subsidiary, RWCI Acquisition Inc. The loan will be secured by a pledge of shares of Rogers Cable Inc. and of shares of RWCI Acquisition, which holds 48,594,172 Rogers Wireless Communications Class B restricted voting shares.

Rogers Wireless Communications previously disclosed that it was reviewing the various methods of transferring C$1.75 billion to its shareholders, so that Rogers Communications would have adequate funds to repay its C$1.75 billion bridge credit facility incurred to a group of financial institutions in connection with its acquisition of Rogers Wireless Communications Class B shares from AT&T Wireless Services Inc. Rogers Wireless Communications said a determination of the method of such a distribution, including the timing thereof, wouldn't take place until following completion by Rogers Communications of its offer to acquire all of the outstanding Rogers Wireless Communications Class B shares held by the public. That offer is scheduled to expire on Dec. 30.

Rogers Wireless Communications is continuing to review the various methods of effecting such a distribution, the companies said.

Rogers Communications is a diversified communications and media company.

Rogers Wireless Communications operates Canada's largest integrated wireless voice and data network. It's about 89% owned by Rogers Communications.

Company Web Site: http://www.rogers.com

-Carolyn King, Dow Jones Newswires; 416-306-2100
(END) Dow Jones Newswires
17-12-2004

France Tel Cuts Corp Fixed-To-Mobile Prices By Up To 25%

PARIS -(Dow Jones)- France Telecom SA (FTE) is to cut the price of fixed-line calls to mobile phones by up to 25% in January for its corporate clients, the company said Friday.

The new pricing anticipates a November decision by the French telecommunications watchdog to cutprices of calls to mobile phones by 36% within two years.

Company Web site: http://www.francetelecom.com

-By Paris Bureau, Dow Jones Newswires; +33 1 40 17 17 40, benoit.faucon@dowjones.com
17-12-2004

French Telecom Watchdog Pushes For MVNO Deals Regulation

PARIS -(Dow Jones)- The French telecommunications watchdog Friday said it wants to enforce regulation on mobile carriers to provide "reasonable" partnerships for third parties accessing their networks.

The contracts, called Mobile Virtual Network Operators, or MVNO, allow companies who don't own their own network to sell mobile services using the infrastructure of mobile carriers.

In France, France Telecom SA's (FTE) mobile unit has already signed such a partnership with the Carphone Warehouse PLC (CPW.LN). SFR, the cellular subsidiary of Vivendi Universal SA (V), has also stroke a deal with Debitel, which is controlled by Permira LLC (PR.YY).

But the watchdog, Autorite de Regulation des Telecommunications, says the deals need regulatory intervention to be satisfying.

Company Web site: http://www.francetelecom.com

-By Benoit Faucon, Dow Jones Newswires; +33 1 40 17 17 40, benoit.faucon@dowjones.com
(END) Dow Jones Newswires

17-12-2004

American Tower 3Q Loss $55.9M On $48M Pretax Charge

BOSTON (Dow Jones)--American Tower Corp.'s (AMT) third-quarter loss fell slightly, missing internal and Wall Street's forecasts, as a pretax charge to retire debt hurt the bottom line.

In a press release Thursday, the maker of wireless communication hubs reported a loss of $55.9 million, or 25 cents a share, after a loss of $52.9 million, or 25 cents a share, a year earlier.

The loss included a pretax charge of $48 million for the early retirement of long-term debt. The company expects debt refinancing to reduce interest payments by $50 million a year.

American Tower had expected a loss between 10 cents and 14 cents a share for the quarter, while analysts expected, on average, a loss of 15 cents a share, according to Thomson First Call.

American Tower's quarterly operating earnings rose 15% to $115.7 million from $100.9 million last year.

Quarterly revenue rose 6.6% to $199.2 million from $186.9 million, paced by an 11% gain to $174.9 million in revenue in the tower rental and management unit.

from Cellular News

BellSouth Sells Latin Amer Operations To Telefonica Moviles

ATLANTA -(Dow Jones)- BellSouth Corp. (BLS) completed the $2.5 billion sale of its stake in wireless operations in five Latin American countries to Telefonica Moviles SA (TEM) and as a result, BellSouth will book a fourth-quarter gain of $385 million or 21 cents a share..

Communications company BellSouth sold its ownership interests in wireless operations in Colombia, Nicaragua, Peru, Uruguay and Venezuela.

Some 29 analysts surveyed by Thomson First Call expect the communications giant to earn, on average, 45 cents a share in the fourth quarter, down from 51 cents a share a year ago.

Telefonica Moviles is a Spanish wireless communications company based in Madrid. It is the wireless affiliate of Spanish telecommunications operator Telefonica SA (TEF), also of Madrid.

(MORE) Dow Jones Newswires

Eight Groups Enter Competition For Israel's Bezeq

TEL AVIV (Dow Jones)--Eight groups of investors said Thursday they have formally entered the race to buy control of state-owned Bezeq The Israel Telecommunication Corp (BEZQ.TV).

The potential bidders are private equity firm Apax Partners & Co. Ltd. (APX.YY); Saban Capital Group, the private investment firm of media mogul Haim Saban; Russian media magnate Vladimir Gusinsky coupled with Maariv Holdings Ltd., the parent company of a large Israeli newspaper; Packard Bell founder Benny Alagem; an investment arm of the Rothschild Bank together with Israel's Polar Investments Ltd; the Markstone investment fund; Israeli businessman David Azrieli; and Israeli investment company IDB Holding Corp. Ltd. (IDBH.TV).

All of the bidders have already indicated they would compete for Bezeq.

Thursday was the deadline for prospective buyers to express interest in acquiring a controlling 30% stake in the carrier adn an option for an additional 10.66%. The state hopes to sell control in early 2005. Candidates had to submit information forms and a 10-million-shekel guarantee ($1=ILS4.4760) Thursday as a first step to start due diligence on the company.

Representatives of the groups told Dow Jones Newswires Thursday that the forms and guarantees had been sent.

Israel's Government Companies Authority wouldn't confirm any details about the candidates. The authority does't plan to release information on the groups until Friday.

Industry sources have said the number of bidders is an important factor in pricing the company.

The state holds a 46.38% stake in Bezeq. On completion of the sale, and after the allocation of a 4.71% stake to Bezeq employees, the state's holding will fall to 1.01%, assuming the option is exercised.

-By Shoshanna Solomon, Dow Jones Newswires; 972-2-537-6985; shoshanna.solomon@dowjones.com
(END) Dow Jones Newswires

Verizon Posts Flat 3Q Net; Wireless Revenue Rose 23%

NEW YORK -- Verizon Communication Inc. (VZ) posted flat third-quarter net income, as operating revenue increased 6.7% on double-digit gains in wireless service.

The telecommunications company Thursday reported net income of $1.79 billion, or 64 cents a share, compared with $1.79 billion, or 64 cents a share, a year earlier.

Verizon recorded pension-settlement expense of $20 million, or a penny a share, in the latest quarter and $81 million, or three cents a share, in the third quarter of 2003. Excluding these expenses, which are part of normal operations under generally accepted accounting principles, Verizon said it earned 65 cents a share for the latest quarter, down from 67 cents a share the year before.

Total operating revenue rose to $18.21 billion from $17.06 billion. Strong results from Verizon's wireless group helped offset a decline in revenue from the domestic telecom business.

Domestic revenue from Verizon Wireless, a joint venture of Verizon Communications and Britain's Vodafone Group PLC (VOD), rose 23% to $7.31 billion.

The total number of wireless customers grew 17% from the year-earlier quarter, to 42.1 million. Churn, or the rate at which customers leave a service, dropped to 1.5% per month from 1.9%.

Revenue from Verizon's domestic telecom business, which includes local telephone service as well as long distance and broadband, fell 2.1% to $9.65 billion.

Revenue from local telephone services fell 4.1% to $4.63 billion while long-distance revenue rose 8.7% to $1.09 billion. Data revenue, including broadband service, climbed 12% to $2 billion, and represented 21% of domestic telecom's total operating revenue, up from 18% in the third quarter of 2003.

"We are steadily building momentum and accelerating our transformation into an industry-leading wireless and broadband company," Chairman and Chief Executive Ivan Seidenberg said in a statement.

Text messages contributed to wireless data revenue. Verizon said 2.6 billion text messages were sent during the quarter.

Verizon's information services segment had revenue of $900 million, down 4.2%. Verizon said the decline was primarily due to lower revenue from domestic print advertising. Verizon last month announced the sale of Verizon Information Services Canada, its Canadian directories business, to private equity firm Bain Capital for $1.54 billion. Verizon expects the deal to be completed by the end of the year.

-Judy Bocklage; Dow Jones Newswires; 609-520-7811
(END) Dow Jones Newswires

Nokia Gets T-Mobile Contract For Push To Talk Solution

STOCKHOLM -(Dow Jones)- Finnish telecommunication equipment maker Nokia Corp. (NOK) Thursday said it has received a contract from T-Mobile International AG (TMO.YY) for its Push to talk over Cellular network solution.

Nokia said its PoC end-to-end network solution will be launched by T-Mobile International for Europe's first commercial PoC service.

No financial details were disclosed.

The service will be commercially available in Germany in fourth quarter and will be introduced to other T-Mobile markets soon.

Nokia said its carrier grade PoC solution has a variety of features, including a smooth network software upgrade path to the upcoming Open Mobile Alliance standard for PoC

(END) Dow Jones Newswires

KPN: No Plans To Amend German I-Mode Deal With DoCoMo

AMSTERDAM -(Dow Jones)- Royal KPN NV (KPN) has been in talks with Japanese mobile operator NTT DoCoMo Inc. (9437.TO) regarding the terms of KPN's license to offer NTT DoCoMo's mobile Internet service i-mode in Germany, a KPN spokesman said Thursday.

"We're in regular discussions with NTT DoCoMo about i-mode, and this topic has been raised by them," KPN spokesman Marinus Potman said, reacting to speculation that NTT DoCoMo aims to change the contract with KPN, to clear the way for U.K. mobile phone company, mmO2 PLC, to adopt i-mode as well.

Under the terms of the contract, KPN holds the exclusive rights to operate the i-mode brand in its markets, meaning that mmO2, which also operates a German mobile operator, can't strike a deal with NTT DoCoMo in the German market.

KPN, based in The Hague, is the incumbent Dutch telecommunications firm that provides mobile phone services in Germany, the Netherlands and Belgium, as well as fixed-line services in the Netherlands.

(MORE) Dow Jones Newswires

MMS handset sales rising in the UK

MMS handset sales rising in the UK The UK's Mobile Data Association (MDA) has published the quarterly figures for the total number of GPRS and MMS devices being used by customers in the UK as of 30th June 2004.? The quarterly figures from UK GSM network operators O2, Orange, T-Mobile and Vodafone show a rapid increase for both GPRS and MMS devices on the previous quarter.

From a total active customer base of over 52 million, GPRS active devices topped 24 million as of 30th June 2004, an increase of 45% on the previous quarter.? This figure represents a 46% penetration rate for GPRS devices for the total UK market. This trend is expected to continue with current estimates of over 50% of mobile customers using internet capable handsets.

MMS active capable devices reached 15 million as at 30th June 2004, with a penetration rate of 29% for the total UK market. June's figures show an increase on the previous quarter of 36 %.? With an ever-increasing number of MMS capable handsets and a growing range of compelling services to suit every customer need, MMS and GPRS capability has stimulated adoption and usage of new multimedia services and represents a key "stepping stone" to 3G.

The MDA announces GPRS and MMS active devices figures quarterly during 2004.

from Cellular News

Taiwan operator orders number portability platform

Tekelec has announced a contract with Far EasTone (FET), Taiwan's second-largest mobile operator, to provide mobile number portability (MNP) for its GSM network. The purchase agreement includes the Tekelec G-Port MNP solution and EAGLE 5 Signaling Applications System (SAS), which are currently being installed in the operator's network.

Tekelec's MNP solution, deployed from its EAGLE service platform, will simplify FET's network infrastructure to support future expansion and cost-effective maintenance. The MNP solution integrates advanced database management and signaling functions directly into the Tekelec EAGLE 5 SAS to provide fully scalable transaction rates, holding up to 96 million ported or pooled numbers. The unique, integrated approach delivers increased throughput capacity and minimizes signaling system 7 (SS7) message generation.

"This agreement illustrates Tekelec's number portability expertise and leadership in providing flexible and reliable signaling network solutions to operators worldwide," added Fred Lax, Tekelec's president and CEO. With our market-leading MNP solution, FET can grow its existing network and offer potential subscribers the freedom of choice by eliminating the hassles and costs associated with changing operators. We are excited to work with FET to fulfill its vision of providing the most advanced mobile and data transmission services to its customers."

from Cellular News

3G network launched in Brazil

Brazil's VIVO and Lucent Technologies have announced the commercial launch of a 3G CDMA2000 1xEV-DO network in the in Sao Paulo and Rio de Janeiro regions. This Lucent-supplied network enables VIVO to provide mobile high-speed data services to businesses and consumers at speeds of up to 2.4 Megabits per second - 40 times faster than a typical dial-up connection.

"Our commercial CDMA2000 1xEV-DO network enables us to offer extremely fast mobile services that match or exceed the speed, security and quality of similar services offered over wireline connections," said Javier Rodriguez, vice president of technology and networks for VIVO.

VIVO's business customers in the Sao Paulo and Rio de Janeiro regions will be able to access the high-speed 1xEV-DO network by equipping their laptops and personal digital assistants with 1x-EV-DO PC cards.

"VIVO's commercial launch of 1xEV-DO services targeted at businesses demonstrates the pent-up demand among this user segment for advanced, high-speed mobile data services that can increase productivity and improve business processes," said Wagner Ferreira, president of Lucent Technologies Brazil. "As the market leader in CDMA2000, we know that CDMA2000 1xEV-DO can deliver extremely fast data and video services today, while laying the foundation for voice over IP and other blended, lifestyle-enhancing services in the future."

from Cellular News

Andrew sells mobile antenna division

Andrew Corporation says that it is exiting its automotive and mobile antenna product lines and selling the mobile antenna product line to PCTEL, Inc., for US$10 million in cash. Under a definitive agreement, PCTEL, based in Chicago, will purchase Andrew's mobile antenna product line including global positioning satellite (GPS), consumer and professional antenna products. The transaction is expected to close within the next 30 days.

Additionally, Andrew will discontinue service and manufacturing for its automotive antenna product line. Existing automotive antenna customers will be transitioned to alternative suppliers.

Andrew expects to record a US$7.1 million pre-tax loss in its fiscal fourth quarter related to exiting the automotive and mobile antenna product lines. Combined sales for the automotive and mobile antenna product lines were US$29 million in fiscal 2004.

from Cellular News

Mobile gaming to reach US$1 billion this year

According to a new report by media research consultancy Screen Digest, the global mobile gaming download market will be a billion-dollar industry by the end of this year. However - the lion's share of this market will originate from Japan and Korea - last year these two markets accounted for almost 80% of the global market. Screen Digest forecasts that the global market will be worth US$6.4 billion by 2010.

The report concludes that operators in Europe and North America should experiment with different pricing models in order to realise the full potential of their wireless gaming markets. In Japan, the world's most successful mobile gaming download market by some distance, a flat-rate pricing model has prevailed from the outset.

Screen Digest believes that the key to igniting the market is to make the proposition as simple as possible for the user. This means moving away from the current complex structure of tariffs that charge customers for each game download and then add further charges for data airtime. Instead, operators should look to remove these kinds of hurdles and move towards flat-rate pricing models.

"We think that mobile operators in Europe have not yet got the strategies right to exploit this market to its full potential", states Screen Digest Chief Analyst Ben Keen. "Operators should consider flat-rate data pricing and subscription models to drive take-up of these services and we believe that there are some major European players who are prepared to do so."

The report found that there are 49 different games services offered in Europe compared to only nine major services in North America. However, American mobile users have a larger number of games made available to them than their European counterparts (203 games on average - more than twice the European offer). Indeed, Screen Digest forecasts that the North American market will grow faster than that in Europe.

However, game download rates per enabled handset are dramatically higher in Korea than in Europe or North America. Mobile games ARPUs (average revenues per user) for games-enabled handsets were four times higher in Japan and Korea than in Western Europe and America last year.

Tim Green, a games industry analyst and lead author of the new report states: "It's barely two years since the first games download services were established in Europe, but now availability is almost ubiquitous and some operators offer more than 200 titles to their subscribers. As the networks make their payment models more flexible and games developers apply more creativity to their designs, I'm sure we will see significant growth in the future."

from Cellular News

Sprint,Nextel Form Wireless Concern Valued At $70 Billion

OVERLAND PARK, Kan. -(Dow Jones)- Sprint Corp. (FON) and Nextel Communications Inc. (NXTL) confirmed an agreement to merge, creating the No. 3 U.S. cellular company with a combined equity value of $70 billion.

The merger of equals will create a new company, Sprint Nextel, serving more than 35 million wireless subscribers. The company also will count an additional 5 million customers through affiliates and partners, the companies said in a release Wednesday.

The deal, which values Sprint and Nextel equally, was approved unanimously by both boards. The new company also plans to spin off to shareholders Sprint's local telecommunications business following the close, expected in the second half of 2005, pending regulatory and shareholder approval.

The shareholders of Sprint and Nextel will each own approximately 50% of the new company after the merger.

Sprint shares will remain outstanding while Nextel shares will be converted into new company shares. Nextel holders will also receive some cash, with a total value equal to 1.3 shares of Sprint Nextel common stock.

The exact stock and cash allocation will be set at closing to ease the spin-off of the local telecommunications business.

Sprint capped the total cash payment to Nextel shareholders at $2.8 billion. If the stock and cash allocation were calculated today, Sprint estimated that Nextel shareholders would receive about 1.28 Sprint Nextel shares and about 50 cents in cash for each Nextel share.

Based on a Tuesday closing price of $25.10 a share for Sprint and $29.99 a share for Nextel, the deal values Nextel shares at $32.63 - a premium of about 9%. This formula would create an approximate 51% to 49% split, simplifying the spinoff of Sprint's local telephone business.

Total pro forma revenue for the four quarters ended September 30 for Sprint Nextel was about $40 billion, which includes some $6 billion in revenue generated by the local telecommunications business.

Sprint and Nextel expect to reduce costs by about $12 billion through the combination of assets and reduction of expenses.

The Wall Street Journal reported Wednesday that a big part of the reason Nextel wants a deal is that it needs to switch to a new network technology to keep pace with other carriers in offering higher-speed data services, such as Internet browsing. Nextel is the smallest of the national cellular operators in the U.S.

Sprint Chief Executive Gary Forsee will lead the merged company as president and chief executive while Nextel Chief Executive Timothy Donahue will serve as chairman.

The companies have tried to blend their management teams in the merger of equals, though Sprint technically is buying Nextel. Nextel's current chief financial officer, Paul Saleh, would continue in his position at the combined company. Sprint's president and chief operating officer, Len Lauer, will be chief operating officer at the new company.

The Sprint Nextel Board will consist of 12 directors, six from each company, including two co-lead independent directors, one from Sprint and one from Nextel.

Following the close of the merger, Sprint Nextel is planning a tax-free spin off Sprint's local telecommunications business to Sprint Nextel shareholders.

The local telecommunications business will have its own management team and board of directors, consisting of an equal number from Sprint and Nextel. The local telecommunications business, which has 7.7 million local access lines in 18 states and had revenues of more than $6 billion over the past four quarters, will be the largest independent local telephone company in the United States. The local phone service company will maintain a commercial relationship with Sprint Nextel for mobile and long-distance network services and will receive certain transitional services, including corporate support, the company said.

The companies said there is a clear path to integrate the technology and networks of Nextel and Sprint. The new company will gradually migrate Nextel services, including Nextel's popular push-to-talk service, to Sprint's CDMA EV-DO network.

(MORE) Dow Jones Newswires

Nextel-Sprint Deal Won't Affect FCC Spectrum Swap -Powell

WASHINGTON -(Dow Jones)- The planned merger between Nextel Communications Inc. (NXTL) and Sprint Corp. (FON) won't affect the proposed spectrum swap deal between Nextel and the Federal Communications Commission that was reached during the summer.

In a multi-billion-dollar deal, Nextel would exit from parts of the spectrum that were causing interference with public safety agencies. In return, Nextel would receive a prized slice of spectrum that could lead to new, improved wireless services.

The spectrum obligations "will be transferred over" FCC Chairman Michael Powell said Wednesday. "The game doesn't change just because the players change," he said.

Sprint, of Overland Park, Kan., and Nextel, based in Reston, Va., plan to merge to become Sprint Nextel, the nation's third-largest wireless carrier, with more than 35 million subscribers, plus another 5 million customers through affiliates.

Asked about the broader issues that the Sprint-Nextel merger could raise, Powell said, "Whenever we consolidate the market to one fewer, we're going to take a very hard look at that."

But he added that the planned merger doesn't present the same wireless and land-line issues that Cingular Wireless LLC's purchase of AT&T Wireless did earlier this year. Cingular is a joint venture of Baby Bells SBC Communications Inc. (SBC) and BellSouth Corp. (BLS).

-By Brian Blackstone, Dow Jones Newswires; 202-828-3397; brian.blackstone@dowjones.com

(END) Dow Jones Newswires

Alcatel To Supply 3G Equip To Orange Netherlands

PARIS -(Dow Jones)- Alcatel SA (ALA) said Wednesday it was selected as a third generation mobile supplier for the Dutch unit of Orange SA for an undisclosed amount.

It also said it integrated its 3G mobile solutions into the network of Orange in France. Orange is 100%-controlled by French telecommunications carrier France Telecom SA (FTE).

Company Web site: http://www.alcatel.com
(END) Dow Jones Newswires

SingTel To Sell 3G Phones From Thursday; M1 To Trial Network

SINGAPORE -(Dow Jones)- Singapore Telecommunications Ltd. (T48.SG) will begin selling high-speech third generation mobile phones from Thursday, becoming Southeast Asia's first telecom company to sell the new technology, the company said in a statement Wednesday.

Rival MobileOne Ltd. (M16.SG), in a separate statement, said it will begin selling 3G data wireless cards from Friday. It will also start testing 3G mobile phones from Thursday before an expected launch in the first quarter.

SingTel, Southeast Asia's largest telecom company, will sell four models of 3G-ready mobile phones after several months of trials.

The phones are Motorola Inc.'s (MOT) A1000 and E1000 models, Sony Ericsson's Z1010, and LG's U8100. They will cost under S$1000 if a subscriber signs up for two years, SingTel said.

Third-generation wireless technology allows users to make video calls and send data at speeds considerably higher than the current technology allows.

Some nine out of 10 people in Singapore own a mobile phone with SingTel the leading provider followed by M1. StarHub Ltd. (T54.SG) is also testing 3G products.

-By Hasan Jafri, Dow Jones Newswires; 65-6415-4151;
hasan.jafri@dowjones.com
(END) Dow Jones Newswires

Nokia Launches Tool For N-Gage Arena Tournaments

HELSINKI -(Dow Jones)- Nokia Corp. (NOK) said Wednesday that it has launched a tool to make creating N-Gage Arena Tournaments quick and easy with a minimal investment.

The Global Arena Tournament Tool enables operators and retailers the possibility to create their own branded N-Gage Arena tournaments with a wide range of Arena enabled N-Gage games.

The first competition using the Global Arena Tournament Tool will start Wednesday with Finnish mobile network operator DNA and using Codemaster's acclaimed Colin McRae Rally 2005.

The Global Arena Tournament Tool enables operators or retailers to run their own branded N-Gage Arena tournaments.

(END) Dow Jones Newswires

Vodafone denies Verizon takeover talks

There are rumours that Verizon Wireless is considering a hostile bid for the rival network, Sprint. While The Wall Street Journal reported that Vodafone, a 45% shareholder in Verizon Wireless has approved the takeover bid, a Reuters report later in the day had a Vodafone spokesperson denying this.

"There have not been any discussions, and we are not in discussions, with Verizon about any offer for Sprint," a company spokesman told Reuters.

Sprint is itself nearing a merger with rival Nextel so the move could be preemptive by Verizon to prevent the merger.

A merger of SprintPCS and Verizon Wireless would make sense as both companies operate CDMA networks while Nextel operates an iDEN system that is incompatible with the CDMA system. However, Nextel has been reported to be considering migrating its network to a CDMA base to take advantage of the cheaper infrastructure and wider roaming services that would become available.

A successful takeover would create a company with some 65 million customers - overtaking the recently merged AT&T Wireless/Cingular which has some 47 million subscribers.

The move would however result in Vodafone facing either a significant reduction in its shareholding in Verizon Wireless or a potential US$40 billion contribution to the takeover in order to maintain its holding.

Nextel Director: Merger Isn't Absolutely Necessary

NEW YORK (Dow Jones)--Keith Bane, a member of Nextel Communications Inc.'s (NXTL) board since 1995 and a former Motorola Inc. (MOT) executive, would neither confirm nor deny Tuesday that Sprint Corp. (FON) and Nextel plan to merge.

But Bane, who lives outside Chicago and spoke to Dow Jones Newswires by telephone, said it isn't absolutely necessary for Nextel to join with another company.

Nextel has "a competitive, sustaining advantage with push-to-talk," Bane said, referring to the walkie-talkie feature on Nextel phones that has made its wireless service a hit with construction crews, IT departments and other large groups.

Capturing such business clients was the cornerstone of the strategy Bane said he helped Morgan O'Brien, Nextel's founder and vice chairman, develop while Bane was with Motorola. Motorola created iDEN, the wireless technology that drives Nextel's network.

"We deliberately chose a strategy that was not a consumer-market strategy," Bane said. The result: Nextel now collects the most monthly revenue per customer of any U.S. wireless carrier.

Bane sees public safety and homeland security as untapped markets. "We have an opportunity to set the de facto standard," he said. "There's a lot of opportunity" if Nextel were to remain independent.

Chances are, however, that Nextel is about to link up with Sprint. The Wall Street Journal and other publications say the two companies will announce a deal Wednesday. Sprint is the third-largest wireless operator in the U.S. A combined Sprint-Nextel would still be No. 3, but would substantially narrow the gap with No. 1 Cingular Wireless and No. 2 Verizon Wireless.

"If your strategy is to really serve the consumer market, the bigger (a carrier is) the greater leverage you have in terms of purchasing, distribution, marketing," Bane said. "In the traditional Nextel market, that's not as critical."

Besides Bane, other Nextel board members couldn't be reached Tuesday.

Regarding the rest of Nextel's board, Bane said "we feel we have some good opportunities in the future. It would obviously be a different set of opportunities if there were a combination with someone else."

Although iDEN delivers rock-solid walkie-talkie service, it doesn't support high-speed data transfers. Nextel, therefore, needs a network-upgrade strategy, Bane said. Nextel has considered shifting from iDEN to one of two other technologies: CDMA and Flash-OFDM.

Combining with Sprint would solve Nextel's high-bandwidth needs. Sprint's network runs CDMA, and Sprint is already working to enable fast connections.

But Bane suggested that Nextel's iDEN-based push-to-talk service still has legs.

Qualcomm Inc. (QCOM), which makes chips for cellphones and owns patents for the CDMA technology used on Sprint's and Verizon Wireless' networks, has developed a push-to-talk system for CDMA. However, Bane believes Qualcomm's system remains inferior to Nextel's Motorola-developed technology.

"Push-to-talk on CDMA is a long ways away," Bane said, "and so Nextel and iDEN will be dominant in that particular feature for a long time."

-By Nick Baker, Dow Jones Newswires; 201-938-2020; nick.baker@dowjones.com
(END) Dow Jones Newswires

Russia's Mobile TeleSystems Sells Own Brand Handsets

MOSCOW (Dow Jones)--Russia's largest mobile phone operator OAO Mobile TeleSystems (MBT) Wednesday became the first Russian operator to sell mobile phone handsets under its own brand.

MTS started to sell two models with retail prices of around $60 and $80 on the Russian market.

The company said it is targeting the mass market segment, which makes up the bulk of new sales.

The handsets are produced by ZAO Sitronics, which has the same core shareholder as MTS, a company called AFK Sistema (AFK.YY).

Another aim of selling the private label handsets is to minimize so-called churn rate, the amount of subscribers that leave the provider.

Company Web site: http://www.mts.ru

-By Anna Ivanova-Galitsina, Dow Jones Newswires; 007 095 974 8055; anna.galitsina@dowjones.com
(END) Dow Jones Newswires

Argentina Consumer Watchdog Agency Blocks CTI Movil Ads

BUENOS AIRES -(Dow Jones)- Argentina's consumer advocate agency has issued a ruling prohibiting cellular phone provider CTI Movil from continuing with two promotions the government watchdog has deemed false advertising.

The wireless company, which is a unit of Mexican mobile phone giant America Movil S.A. (AMX), has until Monday of next week to appeal the ruling, said Leonardo Lepiscobo, an adviser to Patricia Vaca Narvaja, Argentina's sub-secretary for consumer defense.

Last week, the government agency ordered CTI Movil to stop running advertisements related to its GSM network coverage and to end a Christmas promotion for a particular handset.

CTI Movil's entrance and rapid advance into Argentina's cellular phone market, which includes three other major providers, has sparked aggressive promotional campaigns by all the companies over the last year. Officials at wireless companies such as Telecom Argentina S.A.'s (TEO) Personal unit say they expect advertising expenses to keep rising in the quarters ahead as competition heats up.

CTI Movil's customer base has doubled to 2.6 million subscribers since October 2003, when it was first acquired by America Movil.

"This measure against CTI is basically related to the general explosion of publicity from all the companies," said Lepiscobo, who drafted the ruling. "After the development of GSM technology, there's been huge effort in winning market share and that's started a publicity war between the companies."

The last few months also have seen an increase in consumer complaints about the four cellular companies, Lepiscobo said. Data released Tuesday by the government agency show that in November the four wireless providers accounted for 13.5% of the 7,305 complaints called in on the watchdog's toll-free line. The biggest offender was CTI Movil, which racked up 531 disgruntled calls during the month.

CTI Movil officials couldn't immediately be reached for comment.

As of Wednesday afternoon, information about the two promotions in question could still be found on the CTI Movil Web site. The first campaign deals with the company's GSM network, which the provider says has national coverage.

General Director Carlos Zenteno said at a CTI Movil press event last month that the company's coverage is more than 70% of the country and growing, with a $250 million network expansion slated for 2005.

Lepiscobo said the company's advertising would lead consumers to believe that its coverage is 100% of Argentina, when in fact many users have encountered signal problems in parts of the country.

The second promotion involves not charging a 50-Argentine-peso ($1=ARS2.98) activation fee for a particular handset. The company's advertising shows ARS50 being subtracted from ARS149, the price of the handset, to produce a final price of ARS99. Lepiscobo said the actual transaction is structured so that consumers still pay ARS149 for the phone.

As for the remaining three wireless providers, Lepiscobo said his agency is analyzing a number of advertising campaigns across the sector but hasn't yet decided whether to issue similar rulings.

We're going to monitor all the new promotions very carefully, he said.

Besides CTI Movil and Telecom Personal, the other two cellular phone companies are Unifon, a unit of Telefonica Moviles S.A. (TEM), the mobile subsidiary of Spain's Telefonica S.A. (TEF); and Movicom BellSouth, controlled by BellSouth Corp. (BLS).

-By Wailin Wong, Dow Jones Newswires; 5411-4311-3125; wailin.wong@dowjones.com
(END) Dow Jones Newswires

Investment Bankers Are Winners In US Wireless Deals

NEW YORK (Dow Jones)--Investment bankers in the telecommunications sector are having a good year.

The $35 billion merger of Sprint Corp. (FON) and Nextel Communications Inc. (NXTL) announced Wednesday is just the second-largest deal in the sector over the last few months.

It is topped by October's $41 billion merger between Cingular Wireless LLC and AT&T Wireless Services Inc. -- the largest ever merger in the U.S. wireless industry.

And many of the bankers advising were involved in both deals and are likely to be reaping nice fees for the work.

Lehman Brothers Holdings Inc. (LEH) and Citigroup Global Markets advised Sprint and were also part of the team advising Cingular and its owners SBC Communications Inc. (SBC) and BellSouth Corp. (BLS) on Cingular's purchase of AT&T.

And both Goldman Sachs Group Inc. (GS) and JP Morgan Chase & Co. (JPM), which together with Merrill Lynch & Co. (MER) advised target company AT&T on the earlier deal, are acting for Nextel along with Lazard LLC (LZD.YY).

Bankers' fees vary depending on the size of the deal and how many banks are involved, but a large chunk will be the success fee -- only payable if the transaction comes off.

The success fee can be anything up to 90% of the total fees paid, according to an analyst at research firm Dealogic. And whether the success fee is a proportion of the transaction value or fixed will depend on the individual contract, the analyst added.

The balance of the total money earned by the bankers is typically paid up front at an earlier stage in the process.

Where joint mandates are involved, as in these cases, fees may vary depending on whether the mandate was equal or led by one adviser.

Goldman Sachs and Lazard declined to comment on fees, and none of the other bankers involved were immediately available to comment.

-By Marietta Cauchi, Dow Jones Newswires; 201 938 2129; marietta.cauchi@dowjones.com
(END) Dow Jones Newswires

FCC Approves Rules To Spur Airborne Wireless Use

WASHINGTON (Dow Jones)--The Federal Communications Commission on Wednesday approved rules to spur wireless communications use in airplanes by freeing up spectrum for broadband use.

The agency also initiated a study into the easing of 13-year-old rules that prohibit the use of cell phones on airplanes.

The move will free up 4 megahertz of spectrum for wireless broadband use on airplanes and allow competitive bidding for the spectrum. It also outlined three different configurations for the 4 megahertz band.

"Many of us would enjoy the ability to check e-mails with a broadband connection," said FCC Commissioner Kathleen Abernathy, a Republican.

However, Commissioner Michael Copps, a Democrat, said he was worried the rules could create a monopoly for airborne broadband connection by allowing one company to buy up a significant share of the spectrum.

-By Brian Blackstone, Dow Jones Newswires; 202-828-3397; brian.blackstone@dowjones.com
(END) Dow Jones Newswires

Mobile gaming to reach US$1 billion this year

According to a new report by media research consultancy Screen Digest, the global mobile gaming download market will be a billion-dollar industry by the end of this year. However - the lion's share of this market will originate from Japan and Korea - last year these two markets accounted for almost 80% of the global market. Screen Digest forecasts that the global market will be worth US$6.4 billion by 2010.

The report concludes that operators in Europe and North America should experiment with different pricing models in order to realise the full potential of their wireless gaming markets. In Japan, the world's most successful mobile gaming download market by some distance, a flat-rate pricing model has prevailed from the outset.

Screen Digest believes that the key to igniting the market is to make the proposition as simple as possible for the user. This means moving away from the current complex structure of tariffs that charge customers for each game download and then add further charges for data airtime. Instead, operators should look to remove these kinds of hurdles and move towards flat-rate pricing models.

"We think that mobile operators in Europe have not yet got the strategies right to exploit this market to its full potential", states Screen Digest Chief Analyst Ben Keen. "Operators should consider flat-rate data pricing and subscription models to drive take-up of these services and we believe that there are some major European players who are prepared to do so."

The report found that there are 49 different games services offered in Europe compared to only nine major services in North America. However, American mobile users have a larger number of games made available to them than their European counterparts (203 games on average - more than twice the European offer). Indeed, Screen Digest forecasts that the North American market will grow faster than that in Europe.

However, game download rates per enabled handset are dramatically higher in Korea than in Europe or North America. Mobile games ARPUs (average revenues per user) for games-enabled handsets were four times higher in Japan and Korea than in Western Europe and America last year.

Tim Green, a games industry analyst and lead author of the new report states: "It's barely two years since the first games download services were established in Europe, but now availability is almost ubiquitous and some operators offer more than 200 titles to their subscribers. As the networks make their payment models more flexible and games developers apply more creativity to their designs, I'm sure we will see significant growth in the future."

from Cellular News

Associated Press
AOL Tells Customers to Find New Carrier
Friday November 12, 10:45 am ET
AOL Tells Broadband Subscribers in 9 States They Must Find New Broadband Carrier by Jan. 17

DULLES, Va. (AP) -- America Online, which earlier this year stopped signing up new broadband customers, is telling existing broadband subscribers in nine Southern states that they must find a new broadband carrier by Jan. 17.

Those customers who do not switch to a new broadband carrier by that date will have their accounts revert to AOL's traditional dialup service, said AOL spokeswoman Anne Bentley.

The company has been e-mailing its customers in those nine states that they can switch to high-speed broadband service offered by BellSouth Corp. for a special promotional rate.

Most of AOL's 23 million subscribers receive standard dialup service for $24 a month. The company will not disclose how many customers still receive the $54 monthly broadband service, which Bentley acknowledged is relatively expensive compared to other broadband pricing packages now available to consumers.

Bentley said she expects AOL will phase out existing broadband customers in the rest of the country in a similar manner over the next year.

The affected states are Florida, Kentucky, Georgia, Louisiana, Alabama, Mississippi, Tennessee, North Carolina and South Carolina.

America Online is a unit of Time Warner Inc.

from Yahoo Biz

 

By 2000 it is estimated there will be 80 million cellular telephone users in the United States. Many of these telephones are intended for use while away from the home or office. Consequently, cellular phones are frequently used in motor vehicles for both convenience and safety purposes, and in many cases are used while driving. Both law enforcement and consumer safety groups support the safety benefits of having communication in a vehicle. Cellular phone use can assist in effective emergency response (911 access) to crashes, bad road conditions and other traffic hazards such as congestion or drunk drivers, and provide security to drivers, especially those driving alone.

Research on cellular phone use while driving is limited and fairly inconclusive; however, NHTSA's Fatal Analysis Reporting System (FARS) and the National Automotive Sampling System (NASS) data show trends that suggest cellular phone use is a growing factor in crashes. In another recent controlled study, three tasks associated with cellular phone use: placing calls, simple conversations and complex conversation led to increases in time to respond to highway traffic conditions (sic).(2) Distraction from phone use, leading to driver inattention, is considered to put drivers at greater risk for traffic crashes.(1) Until there are more conclusive quantitative data regarding cellular phone use while driving.

What Managed Care Ogranizations Can Do

Seventy-two percent of cellular telephone calls are for business purposes; however, personal use is on the rise as adults--and teens--try to balance busy schedules. Managed care organizations can encourage safe use, and safe driving, for employees and plan members by promoting simple messages on the use of wireless phones while driving. These messages can be integrated into worksite wellness initiatives, community outreach and in-house training programs, for home health personnel, non-emergency care drivers and purchaser and/or physician relations representatives who may use wireless phone as a primary form of communication on the job. Managed care organizations might also develop an internal policy about cellular phone use while driving on the job--which can be integrated into a broader safe driving policy.

Resources

• National Highway Traffic Safety Administration
• United States Department of Transportation
• Cellular Telecommunications Industry Association: Car Phone Safety User's Guide
• National Safety Council: Use a Car Phone Safely Fact Sheet

References

1. An Investigation of the Safety Implications of Wireless Communications in Vehicles, USDOT, 1999.

from America's National Health Plans