Broadcom Settles SEC Suit, Reports Strong Quarter
By Teresa von Fuchs
Without admitting or denying guilt of backdating stock option grants, Broadcom has agreed to pay $12 million to settle the charges brought against it by the U.S. Securities and Exchange Commission (SEC). The SEC charged that the chipmaker misrepresented the dates on which stock options were granted to executives and employees from June 1998 to May 2003. The SEC also said that as a result of the backdating “scheme,” Broadcom had to restate its financial results in January 2007 to report an additional $2.22 billion in compensation expenses.
“The backdating scheme at Broadcom went on for five years, involved dozens of option grants, and resulted in the largest accounting restatement to date arising from stock option backdating,” said Linda Chatman Thomsen, director of the SEC's Division of Enforcement, in a statement.
The chipmaker said it was pleased that the investigation is over. In a statement, Broadcom spokesman Bill Blanning said: “This is a major step in the process of closing this chapter as we remain focused on the company's business today and for the future.”
In more company news, Broadcom reported a 22% rise in profit for Q1 2008. Net income was up to $74.3 million, or 14 cents a share, from $61 million, or 10 cents a share for the same quarter last year, and sales rose 15% to $1.03 billion.
The company attributed some of its positive growth to higher demand from fixed-line telecom as well as patent royalty payments from Verizon Wireless.
Sony Ericsson Posts Profit Drop
By Teresa von Fuchs
In less positive quarterly reporting, handset joint venture Sony Ericsson reported a 48% drop in Q1 profit, citing slower sales, higher R&D costs and a component shortage as factors affecting its results.
Net income for the quarter dropped from $403.9 million for the first quarter last year to $212.7 million for this year. Sales fell to $4.29 billion from $4.66 billion a year earlier.
The company said it still expects the global handset market to grow by about 10% this year, due mostly to emerging markets.
In a statement, CEO Dick Komiyama said: “Sony Ericsson continues to invest in expanding its product portfolio to appeal to a wider variety of consumers in both new and existing markets.”
Martin Garner, principal associate analyst for mobile at global advisory and consulting firm, Ovum, commented on the report: “This has been a tough quarter for Sony Ericsson and it has experienced the slowdown that the market dreads earlier than any other vendor…Roughly half of the drop in profits came from a shortfall in handset sales, with the other half being accounted for by a rise in R&D expenditure.”
Garner went on to say that the handset venture’s strategy is good, but it needs to flawlessly execute it.
The joint venture said it shipped 22.3 million handsets during the quarter, at an average selling price of $192.50, down from $213 a year earlier.
In handset news, the company introduced two new HSDPA phones into its lineup: the Z780, aimed at markets outside of Europe and the compact G502 following in the company’s classic style.
“These two phones are quite distinct, yet both have the potential to introduce more users to the world of Web on your mobile,” said Martin Winkler, director of global marketing and head of multimedia Web at Sony Ericsson, in a statement.
Both handsets will be available in select markets during the second quarter.
LG Announces European Availability of its LG-KF700
By Teresa von Fuchs
LG has announced the European availability of its HSDPA-enabled LG-KF700. According to the company, the new multimedia phone “combines three input methods to create an amazingly intuitive user interface and provides instant access to features.” Input methods include a 3-inch touchscreen, alphanumeric keypad and Shortcut Dial.
“LG has already established itself as a leader in phones with touch technology with Chocolate, the Prada Phone by LG and Viewty, and the LG-KF700 continues this legacy,” said Skott Ahn, president and CEO of LG Mobile Communications, in a statement. “We realize that touchscreens are a wonderful advancement, but they are not the solution for every problem or every user. We looked beyond just touch when designing the LG-KF700 and studied how people actually use their phones. The LG-KF700’s three separate input methods provide unmatched convenience and mean that users don’t have to give up anything to gain a touchscreen.”
Along with its innovative input methods and HSDPA, the handset includes an MP3 player, MPEG4 video player, 3-megapixel camera and Bluetooth.
On availability, the company did not give specifics, just that it “is now available in Europe and will become available in other markets in the following months.”
AT&T Brings BlackBerry Solutions to Small Businesses
By Wireless Week Staff
AT&T and Research In Motion have announced a new productivity tool for small businesses, BlackBerry Professional Software designed specifically for AT&T's small business customers. The software provides small and midsize companies with a secure wireless communication and collaboration solution, that supports up to 30 wireless users.
“BlackBerry Professional Software will allow our small business customers to more easily afford and implement BlackBerry service so that they have many of the controls and security features and the productivity benefits of staying connected that large business customers enjoy,” said Michael Woodward, vice president of AT&T’s Business Voice/Data and Wireless Products, in a statement.
The solution comes with the full suite of advanced security features and IT policies that come with the BlackBerry Enterprise Server software, such as end-to-end encryption to protect communications and information, but with simplified installation and administration. Changes to control settings can be pushed to any user’s smartphone over-the-air.
Small business customers, should their organization grow beyond 30 users, can upgrade to the BlackBerry Enterprise Server, and the BlackBerry Professional Software Client Access Licenses (CALs) can be used with the BlackBerry Enterprise Server.
BlackBerry Professional Software packages start at $499 for a 5-user, out-of-the-box solution. Additional user licensees can be purchased individually.
Tellme Brings Voice to the Phone
By Teresa von Fuchs
In more BlackBerry news, Microsoft subsidiary Tellme has launched an application for smartphones that lets users speak a query into their handsets to get results such as driving directions or weather info.
According to Tellme, users simply hold down the “talk” button on their handsets, say a keyword and the results appear on the phone's screen. Initially, the voice-enabled app will only be available on BlackBerrys, but the company says it plans to roll it out to future versions of Helio handsets, Windows-based smartphones and even Apple’s iPhone.
“Tellme believes in the power of voice to transform how people use devices,” said Mike McCue, founder and general manager of Tellme, in a statement. “As opposed to Web-search services, Tellme focuses on specific tasks where the request leads to a specific answer – like a movie show time, weather info or driving directions.”
Tellme claims that while new user interfaces such as touchscreens make accessing information and services on handsets much easier, in a company-led task completion comparison, it took 29 touches vs. 29 keystrokes vs. two voice requests to find Amici's Pizza in Mountain View, Calif. The company also claims “the ability to speak a request…provides a more natural, intuitive process for viewing and navigating results.”
Report: Mobile Media Revenue to Double in Five Years
By Teresa von Fuchs
According to the latest from research firm Analysys, revenue from mobile media and entertainment (MME) services in the United States will more than double during the next five years. MME services, not including messaging, mobile browsing and data charges, generated $3.1 billion in revenue in 2007; Analysys Research forecasts that revenue will grow to $6.6 billion by 2012. The research firm predicts that the strongest growth will not occur until after 2010.
Key trends that are driving market growth, according to Analysys, include: improvements to service accessibility, mobile Web browsing platforms will improve and facilitate access to off-deck content, and presentation of off-deck content will become more streamlined and user friendly; and a wider array of content will become available, driven in part by higher-generation network and device penetration.
“As 3G, 3.5G and Qualcomm's MediaFLO network coverage increases, a greater range of services will become available to a wider audience, and off-deck content markets (both operator-billed and non-operator-billed) will develop,” said Katrina Bond, co-author of the report, in a statement. “Non-operator-billed revenue from MME content and services will increase significantly during 2007-2012, and will account for $1.3 billion, or nearly 20%, of MME revenue by 2012.”
By 2012, Analysys Research forecasts that MME services will account for 12.3% of non-voice service revenue in the United States, and mobile TV and VoD services will experience the highest growth rate of any MME service during the next five years.
SIM Card Management Apps Gets an Upgrade
By Evan Koblentz
SmartTrust announced a new version of its SIM card management software this week with a renewed focused on customization and usability.
The company’s Wireless Interpreter Browser 2.0 resides on SIM cards and serves as administrative client software. It edits whatever software exists on the card by interpreting SMS codes sent by operators or keyed in manually by users.
“It would help you utilize what you have on that SIM card,” such as security, prepaid minutes or any form of premium application, explained Magnus Friberg, SmartTrust’s general manager of the Americas. It also can be a time-saver, for example, as carriers or enterprises could send a single SMS to multiple phones to alter a setting, rather than each phone needing to be changed manually by a technician.
The latest version has modern menus, a compact programming environment, GPRS access, behavior analysis and is faster than previous versions, Friberg said. Another new feature is a gateway tool that carriers can use to program phones running cards with SmartTrust software, or with the industry-standard SIM Alliance software called S@T.
The new software version is free for members of SmartTrust’s certification program.
Bitfone OTA Apps Re-Appear as HP
By Evan Koblentz
Hewlett-Packard is bringing its Bitfone over-the-air (OTA) mobile management software back into play with a rebranding effort and a software upgrade.
HP acquired Bitfone in December 2006 for an undisclosed amount. Bitfone’s former FusionDM application is now called Mobile Management Center, but the Bitfone mProve client retains its name, said Paul Yang, vice president of the Mobility Solutions Group. A new component is the Enterprise Mobility Suite, which lets companies use some traditional carrier and handset tools without having to subscribe to anything.
The enterprise product can be used for tracking mobile assets, configuring and troubleshooting devices, security and policy management, Yang said. HP may include these functions with certain enterprise models of its iPaq brand of handhelds – but the company will still support the traditional OTA market as well, he added.
Another new feature is the ability to integrate the OTA software with third-party applications. HP already does so internally by using the Mobile Management Center to administer enterprise resource planning (ERP) software for its mobile employees’ handhelds. That kind of integration can be done directly by customers without having to wait for third-party software companies to partner with HP, and the wireless connections can work on Wi-Fi, WiMAX or ordinary cellular links, Yang said.
Currently, the software is available for Windows Mobile and Symbian devices. The software is available now, Yang said, declining to state prices.
Bluesocket Reveals 6.3 Wireless LAN Software Platform
By Rhonda Wickham
Burlington, Mass.-based Bluesocket took the wraps off version 6.3 of its software platform designed for the BlueSecure wireless LAN (WLAN) product family. The software release adds full 802.11n support to BlueSecure controller and access point (AP) products.
The 802.11n-ready platform provides users with improvements in security, control and quality of service to support advanced network-based applications. Building on Bluesocket’s existing WLAN architecture, the 6.3 platform offers AP firmware enhancements for the 802.11n BlueSecure 1800 802.11n access point (BSAP 1800) and advanced 802.11n RF management capabilities for its line of BlueSecure controllers and BlueView management system (BVMS).
The 6.3 software also includes link aggregation enhancements, Blueview Management System search engine capabilities, simplified device management and enhanced credit card billing for hotspots in the integrated guest access solution included in all controller models.
According to Mads Lillelund, CEO and president at Bluesocket, the 6.3 software platform is the next step in Bluesocket’s integrated mobility roadmap and provides the foundation for Bluesocket’s next-generation Virtual Wireless LAN (vWLAN) architecture. Announced in December 2007, vWLAN unifies wireless and existing wired networks, allowing customers to dramatically reduce the cost of deploying and operating large-scale Wi-Fi networks.
The software will be available in May.
Alvarion Earns FCC Nod for 802.16e Base Station
By Rhonda Wickham
Alvarion announced commercial availability and FCC authorization for its 802.16e BreezeMAX 3650 base station and customer premises equipment (CPE).
All equipment that is deployed and used in the 3.65 GHz band requires the government’s seal of approval. This frequency band was specifically allocated for wireless broadband to help overcome broadband service gaps in the United States. Currently, various U.S. WiMAX service providers including Towerstream are using Alvarion's BreezeMAX 3650 in commercial trials to deliver broadband services.
According to Towerstream CEO Jeff Thompson, his company uses WiMAX to serve high-value commercial customers in major urban markets and it needs high performance equipment that is also future-proof.
BreezeMAX 3650 supports self-install CPE, advanced antenna technologies, including MIMO, and enables up to fourth-order diversity to maximize capacity and coverage.
SiteSpect Empowers Mobile Marketers
By Rhonda Wickham
Boston-based SiteSpect, provider of marketing optimization technology, is trying to solve marketing problems related to device compatibility with its Mobile Web Optimization functionality.
Today, there are more than 2,000 types of cell phones and wireless devices on the market. It’s virtually impossible to perform mobile content optimization because of compatibility issues. For instance, many wireless devices have limited or no support for JavaScript or cookies, making it difficult for traditional optimization approaches to work for all visitors.
According to the SiteSpect, the risk for a marketer is that by testing and targeting only compatible devices, campaign data is biased toward certain demographics, thus leading to incorrect analyses and missed opportunities.
SiteSpect’s Mobile Web Optimization features a multivariate testing and behavioral targeting platform that works with all mobile devices. It doesn’t require JavaScript or cookies, and is able to test and track behavior across any type of content including WML, HTML, CSS and streaming media.
This capability allows operators to non-intrusively test variations of any content and track visitor behavior, revealing which versions are most engaging and persuasive.
go2 Offers NBA Playoff Action
By Rhonda Wickham
NBA Playoff results are only a click or two away, thanks to Boston-based go2 Media and its latest mobile Website (NBA.go2.com). The Website offers users game and telecast schedules, the latest scores and links to purchase tickets to the games.
The go2 NBA Playoffs site is accessible through the main menu of go2 (wap.go2.com) or by visiting NBA.go2.com directly from the mobile phone.
Other go2 specialized mobile sites include go2 Colleges, go2 Pets, go2 Golf and go2 Movies. go2 Media claims to have delivered more than 1 billion WAP page views of local content to mobile phone users across U.S. carriers since 2001. It is currently ranked by Nielsen Mobile as one of the top 20 U.S. mobile Websites.
News Briefs for April 23, 2008
Companies in today’s briefs include: Alltel Wireless, Valista, Verizon Wireless, Comfone, Whisher, Huawei, Qualcomm, Topex, Sierra Wireless, XacomComunicaciones, Openet
Alltel Wireless announced that in its 2008 Wireless Call Quality Performance Study, J.D. Power and Associates ranked Alltel Wireless: “Highest Call Quality Performance Among Wireless Cell Phone Users In the West Region,” “Highest Call Quality Performance Among Wireless Cell Phone Users In the Southeast Region” and “Highest Call Quality Performance Among Wireless Cell Phone Users In the Southwest Region in a Tie.” The study measured wireless call quality based on seven problem areas that affect overall carrier performance: dropped calls; static/interference; failed connection on the first try; voice distortion; echoes; no immediate voice mail notification; and no immediate text message notification.
Valista, provider of digital commerce software and managed services, announced that its Managed Payments Service has been named as a finalist for a Convergence World Award for Best Service or Product Innovation. The Convergence World Awards, held in association with the IEC and endorsed by the FMCA and the Wi-Fi Alliance, showcase the convergence of fixed and mobile communications, broadcasting and entertainment and recognize the innovations and achievements of the companies driving this convergence forward. The winners will be announced at a ceremony to be held April 29 at the Olympia National Hall in London.
Verizon Wireless announced that it will offer exclusive video from the Tribeca Film Festival over its V CAST Video service and on Verizon’s FiOS TV video-on-demand (VOD) service. Starting today, customers will be able to view trailers, short films and more on their mobile phones and for the first time, in their own homes. In addition, customers will have access to three commissioned short films that are exclusively available on FiOS TV VOD and V CAST Video. Verizon Wireless customers also will be able to view mobile shorts, red carpet coverage and celebrity interviews on their mobile phones. Full-feature films will be made available on Verizon’s FiOS TV VOD service.
Comfone, a wholesale hub of Public WLAN and GSM roaming, signed an agreement with Wi-Fi access service provider Whisher, which allows the users of Whisher’s software application to access WeRoam’s established network of hotspots covering more than 60 countries worldwide. Whisher’s users will benefit from access to all these hotspots, without monthly subscription or minimum connection time. The agreement complements Whisher’s 100,000 residential hotspots shared by the end users through the Whisher application.
Huawei and Qualcomm completed Europe's first MBMS (Multimedia Broadcast Multicast Service) field trial, carried out in conjunction with Telecom Italia. MBMS technology is based on 3GPP standards and supports multicast and broadcast services, allowing speeds of up to 256 kbps on a mobile device. The trial, which was conducted by means of Huawei's MBMS solution, together with handsets powered by Qualcomm's MSM7201A chipset, demonstrated MBMS service deliveries of between 128 kbps and 256 kbps under various indoor and outdoor MBMS channel conditions. Test results also indicated that MBMS technologies, in some conditions, enable greater service reception and capacity than expected, thus enhancing MBMS' potential within the commercial network environment.
Topex, provider of next-generation network solutions, launched its new Bytton router with Sierra Wireless embedded modules for HSUPA networks, together with its Spanish partner Xacom Comunicaciones. Using the HSUPA option, the router enables mobile data uplinks at speeds of up to 1.44 Mbps.
Openet unveiled it Parental Controls application. Using its FusionWorks Product suite, the application lets parents prevent children from using specific services; cap the total amount of spending for children while allowing calls to designated numbers, such as home and emergency services, after the limit is reached; limit the amount of usage by service, such as a maximum number of music downloads or gaming usage; control access to services by time of day, day of the week and specially designated times; and limit access to services based on the children’s location, such as while they are in school.