Posts Tagged ‘GigaOm’

Prepaid Wireless Providers in Q2 2009

Tuesday, September 8th, 2009

It won’t be long before the prepaid wireless providers are reporting their Q3 2009 numbers. Before that happens, I better get these Q2 2009 numbers posted. A BIG thanks to Stacey Higginbotham over at GigaOm for doing the grunt work and compiling this data and making it available for all of us to consume.

From these numbers it is evident that Verizon remains on-top (both postpaid and prepaid) in total number of subscribers and it shouldn’t be a shock to anyone after looking at these statistics on why Sprint bought up Virgin Mobile when they did.

What does surprise me is that MetroPCS, even after adding 206,000 new subscribers last quarter and taking some big strides to promote their services & roll out a number of new products and marketing campaigns, has seen their stock prices continue to drop this quarter. Since the beginning of Q3, we have watched their stock price decrease from $12.63 (Jul. 1st) to $8.25 (Sep. 8th).

It’ll be interesting to see how the rest of Q3 2009 plays out for MetroPCS and the other prepaid mobile providers. I have a strong suspicion that we will see these providers focus on data and become much more aggressive with their international calling plans.

Brian Kirk
VP Business Development
NetworkIP

Leap Wireless (Cricket), reported Aug. 6
Wireless Service Revenue: $541.6 million
Wireless Operating Income: n/a
Wireless Data Revenue: n/a
Net Prepaid Subscriber Additions: 203,000
Total Subscribers: 4.5 million
Prepaid Churn: 4.4%
Prepaid ARPU: $41.91

MetroPCS, reported Aug. 6
Wireless Service Revenue: $859.6 million
Wireless Operating Income: $111 million
Wireless Data Revenue: n/a
Net Prepaid Subscriber Additions: 206,000
Total Subscribers: 6.3 million
Prepaid Churn: 5.8%
Prepaid ARPU: $40.52

T-Mobile, reported Aug. 6
Wireless Service Revenue: $5.34 billion
Wireless Operating Income: $425 million
Wireless Data Revenue: n/a
Net Prepaid Subscriber Additions: 268,000
Total Subscribers: 33.5 million
Blended Churn: 3.1%
Postpaid ARPU: $48

Sprint, reported Jul. 29
Wireless Revenue: $7 billion
Wireless Operating Loss: $314 million
Wireless Data Revenue: n/a
Net Prepaid Subscriber Additions: 777,000
Net Postpaid Subscriber Additions: 991,000
Total Subscribers: 48.8 million
Postpaid Churn: 2.05%
Prepaid Churn: 6.38%
Postpaid ARPU: $56
Prepaid ARPU: $34

Verizon, reported Jul. 27
Wireless Revenue: $15.5 billion
Wireless Operating Income: $4.46 billion
Wireless Data Revenue: $3.9 billion
Net Prepaid & Postpaid Subscriber Additions: 1.1 million
Total Subscribers: 87.7 million
Postpaid Churn: 1.01%
Postpaid ARPU: $51.10

AT&T, reported Jul. 23
Wireless Revenue: $13.25 billion
Wireless Operating Income: $3.2 billion
Wireless Data Revenue: $3.4 billion
Net Postpaid Subscriber Additions: 1.2 million
Net Prepaid Subscriber Additions: 200,000
Blended Churn: 1.49%

Remaining Optimistic About CTIA ‘09

Wednesday, April 1st, 2009

The annual CTIA conference kicked off in Las Vegas earlier today. Due to a conflict I was unable to make it for opening day, however, I’ll be on the conference floor both Thursday and Friday of this week.

According to today’s press releases about the show’s attendance more than 1,000 folks have registered to attend this event. Of the many wireless/mobile conferences in the U.S., I highly recommend you check out CTIA in the future if you have never attended before.

I first went to CTIA in 2007 when we were in our early stages of developing our Text-to-Talk products. My focus when attending CTIA that first time was to meet with all the major Short Messaging Service Center (SMSC) providers like Click-a-Tell, Sybase 365, VeriSign, etc. in order to establish SMS Points of Presence in the different countries we were targeting for these products.

While at the 2007 CTIA conference, I couldn’t help but be distracted by what was then a plethora of new mobile technologies. I’m referring to smart phones, mobile TV, voice-mail to text services, GPS, etc. Now, only two years later, we have 3G technologies, 4G and LTE networks are being engineered, and the end-all be-all game changer the Apple iPhone now exists and in my opinion is the ultimate Unified Communication tool for the consumer.

Given the poor economic climate we are currently in, the telecom industry has been no stranger to numerous layoffs, cutbacks, and even some Chapter 11s. So, as I prepare for CTIA tomorrow I’m trying to remain optimistic about the new technologies and services that the mobile operators and MVNOs will unveil. I suspect this industry to be focused more on providing value and savings to the consumer versus new and innovative services. In recent months numerous MVNOs have begun offering unlimited calling plans and they are in a fast paced race to gain market share. Reducing customer churn is also high on the priority list for all mobile operators and MVNOs right now.

In late February ‘09, Stacey Higginbotham of GigaOM assembled a Wireless Scorecard based on Q4 ’08 statistics from AT&T, T-Mobile, Sprint, and Verizon. Based on Stacey’s breakdown she concludes that cheap rate plans win and that the iPhone is helping to keep AT&T running strong. To note, these numbers were released just prior to Sprint and T-Mobile releasing their $50 unlimited prepaid plans so this year’s Q1 numbers should answer whether those plans proved successful or not.

Tomorrow I’ll have a better since of what’s happening and how the carriers are responding. I remain optimistic and look forward to CTIA ’09 along with the other 1,000 attendees that I’ll be sharing the conference floor with.

Brian Kirk
VP Business Development
NetworkIP

NetworkIP & Jaduka Attending Mobilize 2008

Thursday, September 18th, 2008

Early this morning Trevor Baca, VP of Software Engineering, Karthik Srinivasan, Director of Systems Engineering, & I jumped on planes headed for San Francisco to attend tomorrow’s Mobilize conference. This is the inaugural year for the Mobilize conference & with GigaOM behind this one it is sure to be a success & last for many years to come. This is an exciting time to be in the mobile space & we expect tomorrow’s conference will be just as stimulating & productive as it promotes to be.

The conference has pulled together thought leaders from Google, Nortel, Cisco, Motorolla, Sprint & many others involved in the mobile industry to cover topics that we’ve all been asking & that will enable us all to make informed decisions in this new market. The Mobilize conference also includes a launch pad session so companies like Cumulux, Fonemesh, Fonolo, Fusion Garage, Heysan, LuckyCal, MotionDSP, Pinch Media, placethings, Skyfire Labs, TuneWiki & Zecter can present their new mobile products.

Over the past few months we’ve been talking about how faster mobile data speeds (3G, 4G, & LTE) & open mobile operating systems (Apple, Symbian, & Google’s Android) are making this an exciting & opportunistic market for businesses & application engineers to develop new & innovative applications for the mobile space. As more companies & application engineers enter this space & find themselves supporting mobile consumers & mobile products they are realizing the need for faster, more robust, & more reliable transaction processing services. These companies & application engineers obviously understand the value of transaction processing services; however, they haven’t the time, the money, or the resources to develop them on their own. Their focus is where it should be; on their mobile products & services. So they rely on us & our proven experience in the transaction processing space to ensure their accounts & products are properly managed.

Our transaction processing services allow companies to manage all of their mobile consumer accounts & mobile products via simple API interfaces without having to invest any costs or resources to build a network, deploy hardware, ensure security standards, & manage complex databases. We do the heavy lifting so these companies & application engineers can focus on their existing mobile products, new mobile products, & most importantly their customers.

Brian Kirk
VP Business Development
NetworkIP & Jaduka