T-Mobile CEO: MetroPCS deal is no Sprint-Nextel repeat - CNET [awgadget.blogspot.com]
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T-Mobile execs explain how MetroPCS will improve their spectrum position by 40 percent in some markets. And they deflect criticism that the deal smacks of Sprint's failed attempt to merge with Nextel.
The planned merger between nationwide carrier T-Mobile USA and prepaid provider MetroPCS is not a repeat of the failed merger between Sprint and Nextel back in 2005, T-Mobile CEO John Legere said during a conference call with the press today.
A MetroPCS store.
(Credit: Greg Sandoval/CNET )This deal, he said, is about gaining more spectrum in an effort to challenge bigger competitors like AT&T and Verizon Wireless.
"This is not a Sprint/Nextel do-over," Legere said. "This deal is not about simply surviving. It's about driving growth. When we add MetroPCS to the aggressive challenger strategy (of T-Mobile) it will accelerate things. This is not about filling in holes."
T-Mobile and MetroPCS both need more wireless spectrum to build out their next-generation wireless 4G LTE networks. And as luck would have it, the companies each own complimentary slices of the same spectrum, that when combined could provide the newly formed T-Mobile an opportunity to build a faster and higher capacity LTE network in many large cities that surpasses even the network of Verizon Wireless, which is today's LTE leader.
On Wednesday, T-Mobile's parent company, Deutsche Telekom, announced plans to buy a majority stake in MetroPCS and combine the company with T-Mobile to create a new publicly traded company that will be branded T-Mobile. When talk of the merger first surfaced months ago, and as those rumors grew louder this week, many pundits and experts said it was crazy and foolish for T-Mobile, a GSM carrier, to combine with MetroPCS, a carrier that uses a different technology known as CDMA.
This is the same scenario that played out in 2005 when Sprint, a CDMA provider, bought Nextel, which was using a technology called iDEN. Over the past seven years, Sprint has seen a mass exodus of Nextel customers. And the company is still trying to recover from the damage inflicted by the merger and network integration nightmare.
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But Legere said the situation between T-Mobile and MetroPCS is entirely different. Both companies are already well on their own separate paths toward migrating their current networks to LTE. Legere explained during the call how combining these companies now as they are each refarming or repurposing their existing spectrum to support LTE will mean that they can combine forces to build a network with much more capacity.
Legere emphasized that the focus for the new company is rolling out LTE and not supporting older network technologies, which could cause integration issues.
"The big difference between this merger and the Sprint-Nextel merger is that Nextel's customers saw a loss of functionality," he said. "MetroPCS customers will see more functionality. This isn't about smashing two networks together."
According to Legere and the other executives on the call, the companies will repurpose the MetroPCS spectrum for LTE and retire the old CDMA network by the end of 2015. This will mean that MetroPCS customers will have to get new handsets, but Legere said the majority of MetroPCS's customers buy new handsets every year, which will make this transition easier. As customers upgrade and the spectrum used for CDMA is converted to LTE, customers will gain access to that network as well as to T-Mobile's HSPA+ and LTE network.
An aggressive T-Mobile strategy
The real benefit of this deal is the large amount of complimentary AWS spectrum it will provide to T-Mobile. After its merger with AT&T fell apart at the end of 2011, T-Mobile got spectrum from AT&T as part of its break-up fee. The company plans to use that spectrum, as well as some of its existing spectrum that it's repurposing, to build its LTE network. The company also struck a deal earlier this summer with Verizon Wireless to get even more AWS spectrum. Verizon was facing regulatory difficulties as it tried to close a deal to acquire AWS spectrum from a consortium of cable companies called SpectrumCo.
The MetroPCS deal will now give T-Mobile roughly 50 MHz of wireless spectrum in the AWS band in major cities, such as New York, Los Angeles, Dallas, and San Francisco. This will allow the company to build a 20MHz by 20MHz network, which means it will have 20MHz for download as well as 20MHz for upload. Experts say that this much spectrum is ideal for an LTE deployment because it gives substantial capacity. What this means for consumers is that T-Mobile's LTE network will be faster and will be able to handle more usage.
As a result, Legere said the company will continue to lead the way and differentiate itself from other national carriers by offering unlimited data services. Both AT&T and Verizon Wireless have gotten rid of unlimited data for new customers. But MetroPCS and T-Mobile have each continued to offer unlimited services with some restrictions. Legere didn't elaborate on these plans, but with the increased capacity, it's possibe that T-Mobile may be able to offer unlimited with fewer limits or restrictions.
"T-Mobile is moving toward network capabilities that will be superior to others in the industry," Legere said. "This is a place where T-Mobile has never been. And MetroPCS customers will get to take advantage of this too."
The way the migration will work for MetroPCS customers is that the old CDMA network will disappear as customers migrate to devices that support LTE for use on the AWS spectrum, as well as support for T-Mobile's HSPA+ and GSM technology, which will use the PCS spectrum. Keeping HSPA+ and GSM will allow MetroPCS devices to be able to roam onto networks in other countries, where CDMA has not been used and where LTE is not yet deployed.
A culture of innovation
What will also likely help smooth the transition as these companies merge is the fact that MetroPCS is a very innovative company, which is used to pushing technology to its limits.
The company was the first to launch an LTE service in 2010. But because of its spectrum constraints the company was only able to build a network in 3MHz channels. This greatly affected performance, but the fact that the company was willing to take this aggressive step shows it's willing to take risks and make changes to challenge competitors. MetroPCS also recently introduced voice over LTE, which allows customers to make voice calls over the LTE data network. This is a major difference from other LTE providers, such as Verizon Wireless, which still use older 2G/3G networks to carry voice calls.
The fact that MetroPCS has already worked on voice over LTE technology means that when it completes its transition with T-Mobile to LTE, it will be ready to also deliver voice calls, without having to keep its legacy CDMA network fully intact as a voice network.
While the deal will enhance T-Mobile's and MetroPCS's spectrum positions it will not expand either network into new markets. And it's clear that T-Mobile will likely be looking for spectrum elsewhere to either grow its footprint or increase capacity in markets not covered by MetroPCS.
Leap Wireless, owner of the Cricket brand, is another prepaid service provider that runs a business similar to MetroPCS. Leap operates in different markets than MetroPCS and could be considered as a takeover candidate by other carriers. But it's unlikely that T-Mobile or any other carrier would look to Leap right now as a potential acquisition target.
Unlike MetroPCS, which has a fairly consistent swath of spectrum and was already migrating toward LTE, Leap owns a hodge-podge of spectrum. It has done a series of spectrum swaps with Verizon and AT&T in an attempt to harmonize its spectrum position, but experts say the company is still at least six months away from having a consistent spectrum plan.
The Federal Communications Commission is also putting more lower frequency spectrum on the market. The newly formed T-Mobile will likely be bidding in this auction, which is tentatively scheduled for 2014, to get its hands on lower frequency spectrum. Lower frequency spectrum from TV broadcasters could help T-Mobile expand its footprint into new markets, especially in suburban and rural markets.
The deal between Deutsche Telekom and MetroPCS must still get regulatory approval. But the deal is likely to be approved by the FCC. The agency noted in its criticism of the T-Mobile deal with AT&T that it wished for the company to remain a competitor in the wireless market. And without more spectrum, T-Mobile's survival is questionable at best. This deal and the deals that are likely to follow in the future will help T-Mobile truly compete against bigger players, such as AT&T and Verizon.
"If anyone had a question about our future, T-Mobile is here to stay," Legere said. "We are here to win, and create the leading value carrier in the U.S. So if you had any doubts and were waiting to see what happens, you should come over now where you belong."
Find More T-Mobile CEO: MetroPCS deal is no Sprint-Nextel repeat - CNET Topics Question by Katie I: Who is the model on HGTV's "The Property Shop"? What's the name of the pre-madonna model looking for a condo on the show "The Property Shop"? Best answer for Who is the model on HGTV's "The Property Shop"?:
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Summary: The FTC announced a crackdown on a massive international computer tech support scam that allegedly swindled tens of thousands of consumers in six countries.
Regulators from five countries joined together in an operation to crack down on a series of companies orchestrating one of the most widespread Internet scams of the decade.
The U.S. Federal Trade Commission (FTC) and other international regulatory authorities today said they shut down a global criminal network that bilked tens of thousands of consumers by pretending to be tech support providers.
FTC Chairman Jon Leibowitz, speaking during a press conference with a Microsoft executive and regulators from Australia and Canada, said 14 companies and 17 individuals were targeted in the investigation. In the course of the crackdown, U.S. authorities already have frozen $ 188,000 in assets, but Leibowitz said that would increase over time thanks to international efforts.
Global phone support scam
Scammers would use remote desktop tools to access the victim's computer.
Read more:Â Phone scammers target PC users with phony virus reports
"These so-called tech support scams are the latest variation of scareware," Leibowitz said.Â
English-speaking consumers in the United States, Canada, Australia, Ireland, New Zealand, and the U.K. were targeted in the global scam. Most of the scammers were based in India, but some also came from the U.S. and U.K.
The scam involved cold callers who claimed to work for major technology companies, such as Microsoft or Google, and who told consumers they had viruses on their PCs. The callers would attempt to dupe users into giving them remote access to their computers, locking the user out while attempting to "fix" the malware that the scammer claimed was on the machine.
In some cases, ads were placed on Google to lure in unwitting consumers when they searched for their PC's tech support phone number. And many of the people called were on do-not-call registries.
Windows PC users were targeted seemingly indiscriminately and charged between $ 49 to $ 450 to remove the non-existent malware that the supposed tech company representative claimed was on the PC.
Leibowitz said the frozen assets could be distributed to victims once they are identified, but he warned it's rare to "get 100 percent back in restitution." The FTC said that more importantly, it should be able to stop the scams going forward.
It is thought there could be upwards of tens of thousands of victims worldwide in total across six countries, and the FTC warned that the figure could be "significantly higher."
The scammers attempted to avoid detection by using virtual offices, including more than 80 different domain names and 130 different phone numbers. Officials said many of the scammers from India were using U.S. carriers, and the carriers agreed to block the numbers.Â
A U.S. District Court for judge, at the request of the FTC, ordered a stop to six alleged tech-support scams pending further hearings. A further 17 individual defendants were also targeted by the FTC in six legal filings with the U.S. District Court for the Southern District of New York.
The FTC charged the suspects with the Federal Trade Commission Act, which bars unfair and deceptive commercial practices, and were also charged with illegally calling numbers on the Do Not Call Registry.
More than 10,000 complaints were drawn from Australian citizens to the country's regulator as early as 2009. Once the scam began to spread around the world, the Australia Communication and Media Authority contacted U.S. authorities with intelligence on the scammers, which had by then received 2,400 complaints. The FTC said "hundreds of thousands of U.S. consumers" could have been affected.
Canada had also received "thousands and thousands" of complaints, but Andrea Rosen, chief compliance and enforcement officer at the Canadian Radio-Television and Telecommunications Commission, said it was difficult to identify exactly how many. In Australia, it was estimated that the scammers made about $ 85 from each successful scam.
The FTC is working with the Indian authorities, but did not disclose confidential details due to the ongoing investigations.
Leibowitz thanked U.K.'s Serious Organised Crime Agency and the Canadian Radio-Television and Telecommunications Commission (CRTC) for their "invaluable assistance" to the FTC.
Canada's Rosen said "we make a difference by working together," highlighting how the agencies and regulators collaborated across borders to investigate the scams.
The FTC also acknowledged investigative assistance it received from Microsoft, as well as from other technology companies.
Frank Torres, Microsoft's director of consumer affairs and senior policy counsel, said at the press conference that Microsoft will continue to work with the agencies as other scams emerge. He noted that Microsoft will never cold call customers and ask for their credit cards to charge them for services they don't need.
"It's like playing a game of whack-a-mole, really, for cyber criminals to find ways to deceive people," Torres said.
This article, co-authored by Shara Tibken, was originally published on CNET. Â
About Zack Whittaker
Zack Whittaker writes for ZDNet and CNET. He is based in London.
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Intel Corp. (INTC)’s delayed delivery of software that conserves computer battery life is holding up development of some tablets running the latest version of Microsoft Corp. (MSFT)’s Windows operating system, a person with knowledge of the matter said.
Microsoft hasn’t yet approved any tablets featuring an Intel processor code-named Clover Trail because the chipmaker hasn’t produced necessary power-management software, said the person, who asked not to be named since the process is private.
The delay, following remarks by Intel Chief Executive Officer Paul Otellini, who told employees in Taiwan that Windows 8 needs improvement, underscores how the Wintel alliance that has dominated the personal computer industry for three decades is struggling to respond to the threat of Apple Inc. (AAPL)’s iPad. At stake is the chance to make up for lackluster PC buying by capturing users who are flocking to mobile devices, snappy applications and elegant design.
“The PC channel is in chaos right now,†said Alex Gauna, an analyst at JMP Securities LLC in San Francisco. “They don’t know what to do. They don’t know what to design for, they don’t know what the consumers are going to buy. Tablets have stolen their growth trajectory, plus the macro situation, plus Wintel has made a mess of their ecosystem.â€
PC makers, including Hewlett-Packard Co. (HPQ), Dell Inc. (DELL) and Lenovo Group Ltd. (992), are counting on the new version of Windows to help them compete in the $ 63.2 billion tablet market dominated by Apple.
Fighting Apple
Any software development delay gives manufacturers less time to get their tablets ready for the year-end holiday shopping season, undermining attempts to erode Apple’s 70 percent share of tablets.
Tablets featuring Clover Trail are the ones designed by Intel to most closely compete with the iPad. The industry can ill afford a slowdown in getting them into stores with the next iPad due to be released in March or April, said Wes Miller, an analyst at Directions on Microsoft, based in Kirkland, Washington.
“It’s bad news for Microsoft and Intel because it’s not going to present the best light on either one and it will hurt the perception of Windows 8,†Miller said.
While Windows is fundamentally sound, the operating system lacks a wide range of robust applications and PC makers haven’t had enough time to work out kinks with so-called drivers, which connect software to such hardware as printers, according to Directions on Microsoft.
ARM Threat
Microsoft has certified some 800 machines with the new software, said Mark Martin, a spokesman for Redmond, Washington- based Microsoft. That includes tablets running low-power chips with technology from ARM Holdings Plc (ARM) on a version of the software called RT. The recent entrant to the Windows family compounds threats to Intel.
“Microsoft has worked closely with Intel and our hardware partners,†Martin said in a statement. “We look forward to the new Atom-based offerings from Intel to complement the already strong Windows 8 and Windows RT ecosystem.â€
Tablets and laptops convertible into tablets built on Clover Trail will be available Oct. 26, said Jon Carvill, a spokesman for Santa Clara, California-based Intel.
“We’re excited about the opportunity for Windows 8 tablets with a broad range of†Intel chips, Carvill said. “We’ve collaborated very closely with Microsoft in extensive testing and validation†for chips, he said.
Intel rose less than one percent to $ 22.76 at the close in New York. The stock has declined 6.2 percent this year, while the Standard & Poor’s 500 Index has gained 15 percent. Microsoft fell 0.9 percent to $ 29.49. The stock is up 14 percent this year.
China, Brazil
Intel held an event last week showcasing Clover Trail-based tablets from Acer Inc. (2353), Asustek Computer Inc. (2357), Dell, Fujitsu Ltd. (6702), Hewlett-Packard, Lenovo and Samsung Electronics Co. (005930) The new devices, many of which featured detachable keyboards, have weeks of standby time and are capable of playing high-definition video for 10 hours.
Still, any delays caused by unfinished software or untested hardware in tablets, laptops and desktops would be harmful to an industry already seeing demand faltering in China and Brazil, countries that until recently could be counted on to compensate for weakness in the U.S. and Europe.
The refresh of the software that runs more than 90 percent of all personal computers typically leads PC makers to stock up on parts in anticipation of a surge in orders. Microprocessor shipments have risen an average 6.7 percent in the quarter before new Windows PCs go on sale, according to Mercury Research, while PC sales gained by more than 15 percent in each of the past two release quarters, researcher IDC said.
Sales Decline
This time around, Intel is on pace for a sequential decline in third-quarter sales for the first time in two decades. Western Digital Corp. (WDC) trimmed its forecast for disk drives, and analysts at IDC said the PC market will expand less than 1 percent this year -- the worst performance since it shrank in 2001.
“It’s a tough environment right now,†said Dean McCarron, an analyst at Cave Creek, Arizona-based Mercury Research, who has been tracking PC-industry data for two decades.
According to McCarron, computer-processor industry sales have posted as steep a decline only twice before in 20 years: in 2000, amid the bursting of the dot-com bubble, and in the fourth quarter of 2008, after the financial meltdown. He estimates that 8 million fewer PC processors will ship last quarter than the previous period, which means fewer PCs built.
Chip orders are an important indicator of how confident manufacturers are of what will happen when the new PC models go on sale.
Touch Screen
While consumers no longer stand in line outside stores to get the latest version of Microsoft’s operating system, as they did when Windows 95 went on sale in August of that year, even versions like Vista -- which was panned by reviewers -- can help the industry. PC sales jumped 15.3 percent from a year earlier in the quarter Windows Vista debuted. Its replacement, Windows 7, prompted a 15.2 percent increase, according to IDC.
In answer to the surging popularity of handheld devices led by the iPad, Microsoft has given Windows 8 a touch-screen interface. It has also opened up Windows to chip technology other than Intel’s, and is plotting a move into the hardware market itself with a line of tablets, dubbed Surface.
All that may be cold comfort for Intel and other traditional PC component makers, because in many cases tablets rely on parts better made by competing suppliers.
Meanwhile, tablet shipments have more than tripled in 2011 and will jump 67 percent this year, according to an estimate by JPMorgan Chase & Co.
Lateness Hurts
“It’s obvious that tablets are taking sales from notebooks,†said Chris Danely, an analyst at JPMorgan in San Francisco. “We’re all buying tablets.â€
With a growing list of Windows 8-based designs to choose from -- notebooks, tablets, laptops with touch screens, touch- screen desktops, laptops with detachable screens that become tablets -- PC makers have avoided snapping up their usual stockpiles of parts until demand is more clear, according to CJ Muse, an analyst at Barclays Plc.
“Folks are sitting on their hands in terms of what they’re building and they’re planning on air-shipping whatever starts to sell,†said Muse. “There’s just too much uncertainty.â€
Still, the main obstacle isn’t lack of enthusiasm about Windows 8. The underlying challenge is that Microsoft and Intel were too late with products aimed at fending off tablets, said Doug Freedman, an analyst at RBC Capital Markets.
Intel began pushing Ultrabooks, slim-line laptops that start up instantly, last year. The devices haven’t come down in price fast enough to woo buyers, and Windows 8’s planned arrival Oct. 26 has given Apple and other tablet makers too much of a head start.
“They’re six to nine months late,†Freedman said. “They haven’t put their best foot forward against the tablet.â€
To contact the reporters on this story: Ian King in San Francisco at ianking@bloomberg.net; Dina Bass in Seattle at dbass2@bloomberg.net
To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net
Intel Software Snag Said to Hamper Windows Apple Response
David Paul Morris/Bloomberg
Intel held an event last week showcasing Clover Trail-based tablets from Acer Inc., Asustek Computer Inc. , Dell, Fujitsu Ltd., Hewlett-Packard, Lenovo and Samsung Electronics Co. The new devices, many of which featured detachable keyboards, have weeks of standby time and are capable of playing high-definition video for 10 hours.
Intel held an event last week showcasing Clover Trail-based tablets from Acer Inc., Asustek Computer Inc. , Dell, Fujitsu Ltd., Hewlett-Packard, Lenovo and Samsung Electronics Co. The new devices, many of which featured detachable keyboards, have weeks of standby time and are capable of playing high-definition video for 10 hours. Photographer: David Paul Morris/Bloomberg
Related Microsoft-Intel Alliance Weakens, Tablet Challenge Looms - Bloomberg Topics Question by Leni: If a person decides to "open shop" and become self employed, should she vote? Democrat or Republican this next Presidential election? (Assuming customers will only be in the state, not interstate.) Best answer for If a person decides to "open shop" and become self employed, should she vote?:
Answer by Patrick
republican
Answer by Stephen
democrat
Answer by Rowdy Yayhoot
Neither, they all eat out of the same trough, go independent.
Answer by Anna P
Many Republican-proposed laws are for the benefit of large business, not small business. There are many factors to consider in deciding how to vote.
Answer by Cessna 421
My customers are National and International! Vote for lower taxes! They eat my lunch but I pay them!
Answer by Annabelle Lee
Business owners should vote for whomever they think will be best for the country and for themselves.
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