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- Two Major Wireless Companies Set Records-Verizon Business Introduces New Offerings -BellSouth and Birch Telecom Sign Agreement -Apple and the Mobile Market -Tello - New Ideas - Veteran Backers -CallVision Becomes VeriSign Subsidiary - Michigan Governor Seeks Criminal Laws for Unauthorized Sale of Phone Records-New Telecom Bill Recommends Five Percent Flat Tax - Indiana Telecom Law Gets Proposed Overhaul
- Tele-JurisdictionThe Authority on Local, Interstate, InterLATA and More
-December -November -October -September -August -July -June -May -April -March
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Cingular Wireless, the
largest wireless carrier in the United
States, claimed a record 1.8 million net
subscribers in the fourth quarter of 2005,
more than doubling the number reported in
the third quarter. The company ended the
year with 54.1 million subscribers, about
five million more than it had at the end of
2004. More than 800 high-end enterprise
service contracts were reported in the
quarter. And, the company dropped its churn
rate by 23 percent this year from last year,
the highest reduction among carriers, (www.techweb.com/wire/ebiz/174403064)
turning out its best ever 2.1 percent for
overall churn.
Verizon Wireless reported a
record 2 million net subscribers, up 20.5
percent from its 2004 fourth quarter. The
company ended the year with 51.3 million
total customers, up 17.2 percent from 2004
and a record-low quarterly churn of 1.2
percent and 1.3 percent for the year.
For the first-time ever, US
businesses of all sizes will spend more on
wireless voice services than on wireline
according to a report by In-Stat. This
would mark an important milestone in the
telecom industry. "The transformation of
telecom spending continues unabated," says
Bryan Van Dussen, In-Stat analyst. "The
relentless march toward IP-based networks,
the unequivocal adoption of mobile
solutions, and the pervasiveness of
broadband have changed the face of business
networks forever."
Mid-sized firms accounted for
12.4% or $24 billion of total US business
telecom spending in 2005 and are expected to
reach $33 billion by 2009. Small business
spending on Internet access was $4.4 billion
in 2005 and forecast to grow to $8.2 billion
by 2009.
The Enterprise Mobility
solutions suite, based on the former MCI remote access
suite, enables business and government customers to
utilize Verizon Wireless' Broadband service throughout
181 major US metropolitan areas. Verizon Business
customers are able to connect to company networks
without the use of a phone jack, modem or designated
hotspot. Customers insert the Wireless Broadband Access/National
Access PC card into their laptop and via the Enterprise
Mobility platform are assured end-to-end security
protection for corporate data.
Verizon is also
offering broadband wireless access for business
continuity and disaster recovery with its IP VPN
Broadband and Secure Gateway -- Retail & Remote Office
Wireless Backup Services. The Verizon Wireless network
incorporates extensive redundancies and backup systems
providing customers with additional protection against
last mile-related outages by bypassing local landline
facilities. The Secure Gateway Services allow customers
to securely connect private and public IP networks
ensuring delivery of customer traffic from origination
to termination. With broadband wireless backup options,
customers can leverage a wireless approach to business
continuity should their primary landline connection
become unavailable.
The Enterprise Mobility
suite is currently available to Verizon Business
customers while the new backup solutions are expected to
debut in February 2006.
BellSouth and Birch Telecom Sign Agreement
"The new
BellSouth-Birch agreement is a major milestone for the
future of the telecommunications industry", said Rex
Adams, president of BellSouth Interconnection Services.
"Entering into an agreement with a major national
telecom provider the likes of Birch Telecom demonstrates
the significant progress we as an industry are making
toward building market-based relationships."
Mike Cassity, Birch
president and CEO said, "We are excited about completing
negotiations with BellSouth and strengthening our future
in the Southeast. This agreement further exemplifies
Birch's long-term commitment to its customers and the
delivery of world-class customer service to small and
medium-sized businesses throughout the region."
Apple and the Mobile Market
While Apple has made no
comment on its plans, the American Technology Research
analysts Shaw Wu and Albert Lin have offered their
thoughts. "We believe this is further indication of
AAPL's strategic direction to extend its iPod + iTunes
and Mac franchises into new business areas including
smart phones, value-added mobile content services, and
the broader consumer electronics space."
The trademark
applications disclose little information as to whether
or not Apple will enter the mobile market; but they do
mention mobile phone service and the ability to download
music over mobile phone networks. However, Wu and Lin
say, "We believe 'Mobile Me' could also be related to
location profiles that could be stored in dongle-type
keychain devices or perhaps a future iPod or cell phone
that would carry user profiles, including bookmarks,
cookies and preferences that would allow people to carry
their personalized computing experience wherever they
go. We believe this information could be transferred
through USB and/or Bluetooth to the host client."
The communications
package will be offered in two versions: Tello Basic,
for individuals, and Tello Enterprise, designed for
businesses. Tello Basic is a free service that allows
users to create contact lists and then connect with
others also on the service, sending instant messages
across different networks. Tello Enterprise is designed
to assist businesses in connecting partners' and
customers' internal and external IM systems, voice
networks and collaboration software.
Windows PCs and RIM
Blackberrys are serviced by Tello Connect. Tello
Connect works as a mediator for different communications
networks and provides the ability for users to contact
each other despite subscribing to different services.
The company founders
combine high profile veterans of the telecom and
computer industries. Jeff Pulver, Pulver.com founder
and Vonage Co-Founder, John Scully, former CEO of Apple
and Pepsi, Craig McCaw, cellular pioneer who founded the
company that later became AT&T Wireless, and Michael
Price, telecom investment banker whose worked on deals
such as the sale of AT&T Wireless to Cingular and the
sale of AT&T's remaining business to former SBC. The
company's Chief Executive, Doug Renert, spent eight
years at Oracle and was Vice President of Applications
Development.
CallVision Becomes VeriSign
Subsidiary
It is expected that
VeriSign will integrate the applications from CallVision
with its Commerce Suite, which offers payment and
billing services for wireless and wireline carriers.
CallVision clients such as T-Mobile, Bell Canada,
TelstraClear and AAPT (Australia) use its applications
to transform billing data into vital sources of business
intelligence to increase satisfaction and retention.
This is done by consolidating billing data from multiple
systems, products, geographies, languages and currencies
into a single electronic analysis and bill payment view
and creating one view of multiple accounts. The company
distributes and markets its services through direct
sales and channel partners such as global system
integrators and major BSS/OSS vendors.
"By developing highly
regarded customer self-care and consolidated e-billing
and analysis applications for Tier 1 and global
carriers, CallVision has realized solid growth and
established itself as a world-class provider of
customer-centric solutions. We are pleased to be joining
VeriSign to help one of the industry's most trusted
brands deliver new services to a broader, diversified
audience," said Derek Edwards, CEO of CallVision.
The deal is set to
close by April 1, 2006.
Michigan Governor Seeks Criminal
Laws for Unauthorized Sale of Phone Records
Granholm is not the
only one concerned with the sale and release of phone
records. In early January the FCC and several state
attorneys general called for action against the selling
of private records and have initiated investigations
into several websites offering to sell phone records for
around $100. The Electronic Privacy Information Center
has filed a list of 40 websites that offer phone records
for sale with the FCC.
"Unauthorized use of
phone records violates a person's privacy and creates
serious threats to public safety," Granholm said. "The
state of Michigan must send a clear message that the
private, personal information of Michigan consumers is
not a commodity and is not for sale."
Granholm's proposal
would:
prohibit a
telecommunications service provider from releasing
or selling customer information without the consent
of the customer;
make it a crime
to obtain customer information from a
telecommunications service provider by providing
false information or false pretenses;
criminalize the
unauthorized sale or release by brokers of
telecommunications service account records,
identifying information, or personal data relating
to Michigan residents or businesses; and
require
telecommunications service providers to maintain
appropriate measures to safeguard consumer privacy
and notify consumers of any security breaches or
unauthorized release of information.
The proposal has been
submitted to the Michigan Legislative Service Bureau for
review.
New Telecom Bill Recommends Five
Percent Flat Tax
The state would collect
the taxed funds and then reimburse the cities and
counties for their shares of revenue -- about $425
million -- lost by the elimination of the local taxes.
Customers would see a
reduction in taxes on landline and wireless phone
services in most Roanoke and New River valley
localities, according to data collected by the Virginia
Telecommunications Industry Association. However,
satellite television subscribers in these areas would
see a slight increase in their overall tax bill if the
levy were passed into law.
There is some
opposition on the bill from several rural legislators
concerned that their satellite subscribing constituents
would bare the burden, and especially from the satellite
TV industry, but for the most part it has passed
preliminary voting with flying colors. A final vote on
the bill is expected shortly.
Indiana Telecom Law Gets Proposed
Overhaul
The proposal for reform
includes sections borrowed from legislative actions in
other states and consists of eight major components
including pricing flexibility, infrastructure incentives
and franchising. If the bill is accepted it is estimated
that it will create 20,000 jobs and $7 billion in new
spending for the state, as well as an increase in tax
revenue.
To learn more about Indiana's Proposed Telecom Reform
please visit Senator Brandt Hershman
website at
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