The Prepaid Press - April 15, 2008 - (Page 12)

PREPAID WIRELESS April 15 · 2008 - 12 Prepaid Wireless Roundup By Joe Pawlikowski 700 Mhz Auction Ends With Few Gains For Prepaid The 700 MHz auction was widely anticipated, since it could be a long time before the government makes spectrum available again. Over 200 bidders lined up to stake their claim. Unfortunately, many of them left the proceedings with nothing. Verizon and AT&T, the nation’s top Verizon Talks MVNO In Open Handset Program While existing prepaid carriers did little to pick up valuable spectrum, Verizon has seemingly created an opportunity for MVNOs to ride on its network. Late last year, the nation’s This includes the opportunity to buy wholesale minutes from Verizon, for resale to customers. So, a developer can create partnerships with businesses to create an MVNO. They could then package minutes, or sell them on a pay-as-you-go basis. Verizon doesn’t currently have many MVNOs operating on its network. Some carriers, like TracFone, use part of Verizon’s network, while also borrowing from the other major carriers. Page Plus is one of the only MVNOs to operate exclusively with Verizon. The handset certification process was scheduled to begin at the end of March, with the MVNO operation set to launch in the latter half of this year. a Leap wireless brand, offering unlimited calling and text messaging for a flat monthly rate. U.S. Cellular Pushes Into Rural Areas Twice this month, U.S. Cellular announced that it was dipping into the Universal Services Fund. USF was created so rural areas could have the same advanced telecommunications services as the rest of the nation. It is funded by mandatory contributions from all telecommunications carriers. To be eligible to receive the fund, a carrier must get approval by a state’s public utilities commission. U.S. Cellular was approved in two states in March: West Virginia and Illinois. Under current USF rules, U.S. Cellular would be eligible to receive $7 million annually in West Virginia, and $10 million per year in Illinois. This would be the starting point for them to begin building a wireless infrastructure. Controversy does surround the USF, though, as larger telecommunications companies tend to dislike it. There are some in Congress, like Senator Ted Stevens (R-AK), whose constituents would clearly benefit from an expansion of the USF, who would like to see it go beyond wireless to include broadband Internet. Stevens is faced with opposition that feels that this will reduce competition, and thereby lessen service. While the FCC is looking into possible reform of the USF, U.S. Cellular should be able to proceed under the rules as they are currently constructed. Joe Pawlikowski is a Senior Editor for Prepaid Reviews, an independent website that reviews prepaid cell phone providers and reports on the prepaid wireless industry. He can be reached at info@prepaidreviews.com two carriers, together landed $16 billion in spectrum, out of an auction total of $19 billion. The prepaid realm didn’t fare too well. U.S. Cellular picked 152 smaller licenses, totaling $401 million. This might seem like a lot, but 127 of those licenses were in the B-Block, which broke 12 megahertz of spectrum into 734 licenses. MetroPCS picked up just one license, an A-Block holding in the Boston area, for $313 million. Leap Wireless walked away with nothing, as did the Alltel, the nation’s No. 5 wireless carrier. No. 2 wireless carrier announced a plan to allow third-party handsets and applications to function on its network. Previously, any device that was activated had to be offered through the company itself. Now, developers can send their creations along to Verizon’s testing labs. If they pass muster, the manufacturers are cleared to activate it on Verizon’s network. However, Verizon will have no part in producing or marketing these devices. It is up to the developer, who will not only manufacture it, but create a business out of selling it. Cricket Launches AWS Phone, Announces First Market For New Network The 700 MHz auction wasn’t the only one held recently. Back in the late summer of 2006, the government auctioned off what its termed the Advanced Wireless Services network, or AWS. T-Mobile became the biggest story there, as they planned to use the spectrum for a 3G network expected to launch in New York City sometime this spring. However, Leap Wireless acquired a fair amount of spectrum, and is also planning to roll it out this spring. In early March, Leap announced their first AWS handset, and said that they planned to roll out AWS in Oklahoma City in the near future. Leap also expects to expand into the St. Louis, Chicago, Seattle, and the Potomac markets with its AWS network. Later in the month, the company announced two new handsets, one of which, the Samsung MyShot, is the first AWS camera phone. The AWS network is being launched via Cricket, http://www.dvrg.com

Table of Contents Feed for the Digital Edition of The Prepaid Press - April 15, 2008

The Prepaid Press - April 15, 2008 Motorola to Split Mobile Payments: The Saga Continues Contents The Retske Report: Election Year and Woody Hayes Regulatory Rundown: 2008 First Quarter Mobile Update 5 Minutes with Mark Herrington tppEXPO’08 Spotlight New Handsets Announced at CTIA Prepaid Wireless in Brief Prepaid Wireless Roundup Virgin Mobile Reports Earnings of 6 Cents Movida Files Chapter 11 LiveWire Mobile Acquires Groove Mobile Boost Selects Vesta for Transactions RadioShack to Offer Trumpet Mobile Service Virgin Offers New Pay as You Go Plans Book Review: Webster’s New World Telecom Dictionary Management Changes at IDT Spot Rates Calling Cards in Brief The State of Prepaid Technology: Productive Coexistence FTC Asks Court to Halt Prepaid Calling Card Scam Louisiana Community Mulls Tax on Prepaid Cards Pactolus Wins VON Magazine Award iBasis Lowers Pakistan Rate for Pingo The Legal Line Biometric Update: Keep Your Shirt On AccountNow Ends Upfront Fees Evolution Benefits Acquires SmartFlex Payments in Brief NetSpend to Offer Bill Payment and Top-up Union Bank Introduces Contactless Card Ingenico Announces Development Kit Prepaid 101: Stupid Card Tricks PLS Offering Walk-In Bill Payment Spend Gift Cards ASAP Credit Card Breach at Hannaford Bros. NACS Withdraws Opposition to Tobacco Bill Study Finds Gift Card Packaging Increases Sales NACS Names International VP Inflatable Display Provides Inexpensive Signage Retail Focus in Brief Our Advertisers Contact Us

The Prepaid Press - April 15, 2008

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