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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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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Microsoft Bing goes Mobile

As you know, Microsoft has been promoting its new search engine Bing aggressively for the past few weeks. As an important part of that promotion campaign, it has made Bing the official search engine of Verizon Wireless phones.

Microsoft signed a five-year deal with Verizon a few months back in an attempt to promote its new search engine to mobile users. According to the deal, Bing will be the default search engine of Verizon phones. Users will be able to check out the search engine from Verizon’s portal or through browsers like Opera. Also, it has been announced that a lot of high end phones from Verizon will come preloaded with Bing later this year.

So far, the response for this move has been quite good. According to the mobile media division of Microsoft, Bing handled nearly 19 million queries in the first 20 days which is a pretty good figure.

Interestingly, Microsoft has signed a deal with Hyatt as well. According to this deal, Microsoft will put ads on Verizon phones, upon clicking which the users will be directed to the hotel chain’s website. Verizon users will be able to book rooms, sign up for the hotel’s loyalty program, and check in through their mobile phones.

Rumor has it that Microsoft paid nearly $600 million for the deal with Verizon. Considering how hard Microsoft has been trying to compete with Yahoo and Google, two companies that have a very strong presence in the mobile industry, this comes as no surprise to me. It will be interesting to see how Bing copes with Yahoo Search and Google.

Categories: All things mobile phones, Microsoft, Mobile Web.

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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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Verizon Wireless to charge companies for text messages

Verizon Wireless has announced that it will charge its partners 3 cents per text message sent to its subscribers, a move that has surprised a lot of people. For nearly five years, Verizon has not charged its partner companies that regularly send plenty of text messages, most of which are promotional in manner, to its millions of subscribers. Come November 1st, it will all change.

From now on, companies that have partnered with Verizon have to pay 3 cents for each text message they send through Verizon’s network. Companies offering text message alerts, interactive SMS polls, and SMS search will have to pay this amount from the first of November. However, Verizon has made it clear that this charge applies only to standard and premium programs and not to the free-to-end-user kind of programs.

While 3 cents per text message might not look that big an amount now, it could form a significant source of income for Verizon in the long run. This is the first time the company has reassessed its charges ever since it started partnering with other companies in 2003.

Now the important question is – will other carriers follow suit? After all, if a network carrier wants to charge for the text messages sent through its network, there is not much its partners can do. Especially, with SMS advertising becoming more popular than ever, they cannot afford to lose a highly targeted advertising medium. So, the companies will most probably try to come to terms with these changes in the industry. It will be interesting to see the reaction of other carriers in the coming days.

Categories: All things mobile phones.

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