AT&T Orders 8 Million Windows Phone 7 Devices - What Does It Mean for the Future of Microsoft and AT&T?

The mobile industry is abuzz with the news about AT&T placing an order for 8 million Windows Phone 7 devices. The news comes from Michael Gartenberg, who is a well known name in the mobile industry. This news has surprised many for two reasons.

1. AT&T still remains the exclusive iPhone carrier in the U.S. The unprecedented success of the iPhone has helped AT&T increase its subscriber base significantly. In such a case, a shift towards Microsoft is seen by many as a shift away from Apple.

2. Microsoft is not a very big name in the mobile phone domain today, which is ruled by two of its greatest rivals – Google and Apple. So, many believe that AT&T will not gain much from a partnership with Microsoft.

On the surface, it looks like AT&T is taking a big risk by ordering such a huge number of Windows Mobile 7 devices. However, if you take a closer look, you will realize that it is not as risky as it seems.

First, there are rumors that the exclusive deal between AT&T and Apple might end soon. Industry insiders say that a Verizon version and a T-Mobile version of the iPhone might be in the offing, which would effectively end AT&T’s stint as the exclusive iPhone carrier in the country. If these rumors are indeed true, it makes sense for AT&T to look for an alternative since the iPhone will be no longer unique to its network.

Microsoft, due to various reasons, is still struggling to compete with Apple and Google and is desperately trying to become a dominant force in the mobile phone domain for ages. It is betting big on Windows Phone 7, which is expected to be loaded with highly advanced features. If Windows Phone 7 becomes a success, AT&T will be able to retain its position as a prominent carrier in the country and Microsoft will be able to gain a much needed foothold in the mobile phone market. So, whichever way you look at it, it is certainly an interesting move by AT&T. Will it pay off? Let us wait and watch.

Categories: All things mobile phones, Microsoft.

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Google Upbeat About The Future of Mobile Advertising

Depression or boom, good economy or bad economy, if there is one thing that you can bank on, it’s the performance of Google. The internet giant disclosed its first quarter results recently and the numbers were nothing short of incredible. The company saw a 35% rise in net profits ($1.9bn) and a 23% rise in total revenues ($6.7bn).

The lion’s share of Google’s revenues comes from online advertising, which is not very surprising. The company generated $4.4bn from ads on its own sites and $2bn from ads on third party sites. An interesting thing mentioned in the first quarter results was the success of mobile advertising.

Google considers mobile the ‘third axis’ and has asked its developers to focus on mobile advertising and technology. Eric Schmidt, in fact, has gone on record to say that the company encourages its developers to think ‘mobile first’.

Google is benefiting a lot from the growth of smartphones that can access the internet. The company also says that the launch of new products like the Nexus One has boosted the revenues considerably this year. Though no one knows the exact sales figures of Nexus One, it is said to be one of the top selling smartphones on the market today.

Google has been selling the unlocked version of Nexus One for $529 and the locked version, which comes with a T Mobile contract, for $179. Already, the phone works with AT&T Mobility and T Mobile USA’s 3G networks and other major operators like Verizon Wireless and Sprint Nextel are expected to support the device soon.

Google’s mobile operating system Android is also expanding its presence on the market rapidly. As of now, the OS is on 34 devices from 12 different mobile manufacturers. The company says that more than 60,000 Android devices are getting activated every day, which is quite a big number. The Android market now has more than 38,000 mobile applications and the number is growing by the day thanks to mobile app developers all over the world who are religiously working to come up with new, innovative apps.

The Google story can be summed up in just one sentence – so far, so good. Right now, more than anything else, the company seems to be focused on expanding its presence on the mobile market. While it is good news for mobile users, it is not so for Google’s competitors.

Categories: Cell Phone Advertising, Google.

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The Future of QR Codes in America

A lot has been said about QR codes and the role they can play in mobile advertising. QR codes make it easier to store a lot of information which can be decoded at a high speed, publishers can reach mobile users effectively by placing QR codes in their print ads, the demand for QR codes in advertising will increase thanks to the surge in high end phone sales, and so on and so forth. In fact, Microsoft has even developed its own 2D barcode technology called Microsoft Tag. Yet, there is a big question that needs to be answered.

Why are QR codes not as popular in the U.S. as they are in Japan and in other parts of Asia?

The concept of using quick response codes in mobile advertising is very popular in Japan. It is so popular that a large number of mobile phones in Japan come preloaded with the application required to scan 2D barcodes. Some of you might remember that I have blogged about QR codes and their role in mobile advertising often on this blog. You can check it out here, here, and here.

Still, when it comes to the U.S., these codes are not nearly as popular as they are in Japan. The reason, according to me, is that business owners and advertisers in the U.S. have yet to realize the enormous potential of the combination of quick response codes and mobile advertising.

Think about it – a restaurant owner can place a quick response code in a print ad and ask the customers to scan the barcode to get that day’s menu or a discount coupon. It is not just limited to restaurant or fast food owners. Movie studios can benefit from it, retailers can benefit from it, small business owners can benefit from it – the possibilities are endless.

I have always said that mobile advertising has a bright future. Even going by the most pessimistic predictions, it can be certainly said that mobile phone advertising will be one of the most sought after advertising media in about a decade from now. If that happens, QR codes will certainly become hugely popular. As the number of high end phone users steadily increases in the U.S., advertisers will certainly look for new, innovative ways to reach the end user. When they do so, they just cannot afford to overlook QR codes.

Already, we have seen glimpses of the potential of the combination of quick response codes and mobile phones. Continental has tried it, AT&T has tried it, and Green Day has tried it. Whether the response met their expectations or not is always debatable. But one thing is for sure – QR codes are here to stay. The sooner it becomes popular, the better it will be for everyone – businesses, advertisers, and the end user.

Categories: Cell Phone Advertising, All things mobile phones, Mobile Web.

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Fox to bring Free TV to Mobile Phones

How does the idea of mobile TV - watching your favorite television shows right on your mobile phone sound to you? That too in digital quality? The combination of sharp pictures, bright colors, and excellent sound quality does sound good, particularly when available on a mobile phone screen, right? It seems we do not have to wait long – Fox Television is working hard to bring free digital quality TV right to your mobile phone – for free.

That is right folks – free TV – right on your mobile devices. I hope you know that major players like Verizon and AT&T already have their own mobile TV services and emerging players like MobiTV are becoming quite popular as well. However, the mobile television service offered by Fox TV differs in three aspects.

1. It offers digital TV services – the picture quality and the sound quality will be far better than what you currently see on mobile phones.

2. It is free of cost. You do not have to pay a penny to watch TV on your mobile devices. This is a huge difference maker as both Verizon and AT&T have a monthly charge for their mobile TV services.

3. You will be able to watch it not just on mobile phones, but on various mobile devices including laptops, PDAs, and portable game systems.

What broadcasters plan to do is simple – they are planning to introduce a small DTV receiver, like a computer chip, which can be attached to or embedded into your mobile phone, laptop, PDA, or portable game system. With this micro DTV receiver, you will be able to watch TV on the go.

The biggest challenge, however, is to overcome the shortcomings of DTV services that are available today. As of now, watching something on the DTV set can be a really frustrating experience because the signal is too weak and it goes off even with the slightest movement. In other words, it is next to impossible to watch anything on the portable digital TVs available today when you are on the move. Broadcasters say that the signal for mobile digital TV will be strengthened significantly so that people will be able to watch TV without any hassles whatsoever.

Though this service is expected to be completely free of cost, broadcasters are thinking of creating a revenue stream with the help of ads. If done well, they have the potential to reach millions of people through their most personal device – their mobile phone.

If things go well, you will be able to watch Fox 5 live on your mobile phone within a few months from now. So, as of now, let us wait a little and see what these guys come up with.

Categories: Cell Phone Advertising, All things mobile phones, Mobile TV.

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Is MobiTV a Success Story in the Making?

While the current economic crisis has affected a lot of companies, some companies still continue to enjoy huge growth. MobiTV, the pioneer in mobile entertainment, has had a phenomenal growth so far and the bad economy does not seem to have affected it at all. The company recently released its growth and revenue details and I have to say I was pretty impressed to see the figures.

1. The company recently reached the 5 million subscriber mark which is a considerable achievement. Interestingly, it managed to add more than a million subscribers in just five months.

2. Its growth chart has been really impressive. It started offering live TV to mobile phones way back in 2003 – a time when mobile TV was considered a longshot. In 2005, it had just around 500,000 subscribers. Now, it has crossed the 5 million mark.

3. The annual revenue, which was around $20 million in 2005, has now more than tripled and the company expects a substantial profit in the first quarter of 2009.

4. Recently, it has added popular shows like Desperate Housewives and ABC News to its long list of products. Also, its live coverage of the presidential debates got a huge positive response from a record number of mobile users.

5. A few months back, MobiTV came up with an application called Mobi4Biz which provides customized business news packages to viewers. The package includes features like live TV and a special video on demand facility wherein customers can get content from CNBC, Bloomberg, Fox Business, and TheStreet.com. This application, as of now, is only available on Blackberry Bold. Depending on this app’s success, the company has plans to come up with a replica of this application next year for sports fans and children as well.

6. MobiTV has joined hands with more than 20 carrier networks including some big names like AT&T, Sprint, and Alltel and is available on more than 350 handsets. It offers a wide range of content including live TV, video on demand, digital music services, and premium programs. The revenue generated is split evenly between MobiTV, content providers, and mobile operators.

As you can see, MobiTV is a success story in every which way. However, its founders are wary of the fact that mobile TV is fast becoming hugely competitive and they constantly strive to keep their standards really high. Last year, we saw both AT&T and Verizon joining hands with Qualcomm MediaFlo to launch their own mobile TV service – named AT&T Mobile TV and Verizon VCast respectively. This apart, local TV stations are also planning to enter the mobile world by offering live TV to mobile phones through standard TV signals. So, it is not going to be a smooth ride for MobiTV for sure.

Categories: All things mobile phones, Mobile TV.

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