April 2012

Why AT&T and Verizon Are Rooting for Windows Phones

In recent weeks, the two big American phone carriers, AT&T and Verizon, have been talking big about Microsoft’s Windows Phone software. AT&T has been hurling loads of money at marketing Nokia’s Lumia 900, a smartphone that runs on the Windows Phone operating system. And now Verizon, too, has revealed plans to aggressively promote Windows Phone 8, the next version of Microsoft’s software.

Fran Shammo, Verizon’s chief financial officer, said last week that the company wanted a third big player in mobile software to come into the picture, and it was going to throw Microsoft a bone. “We’re really looking at the Windows Phone 8.0 platform because that’s a differentiator,” Shammo said after Verizon’s earnings report. “We’re working with Microsoft on it.” He didn’t say when Windows Phone 8 handsets would be available on Verizon. All the chatter about Windows phones is abrupt. Before April, Windows Phone 7 seemed virtually irrelevant to consumers, and American carriers were relatively quiet about the operating system. So why, suddenly, all the love and support for Windows Phone? The answer is multifaceted: The carriers are tired of Apple’s calling all the shots, Microsoft offers a compromise, and everyone is watching with weary eyes what exactly Google will do with its purchase of Motorola Mobility.

The iPhone Is Still a Strong Seller for AT&T and Verizon

Analysts are getting nervous about Apple after looking at the financial results of AT&T and Verizon. Their iPhone sales results were below some expectations. But where’s the sign that Apple’s iPhone is losing momentum?

The popular smartphone remains a strong seller for both AT&T and Verizon, the nation’s two big carriers, even at a time when the number of new contract customers is slowing to a crawl. AT&T said it set a new first-quarter record with 5.5 million smartphones sales, a slight increase from the year-ago quarter. Verizon, meanwhile, said it sold 6.3 million smartphones, 3.2 million of which were iPhones, over the quarter. For AT&T and Verizon, the iPhone’s success is somewhat of a double-edged sword. They pay hefty subsidies of $400 per iPhone, according to analysts’ estimates. But the iPhone, with its rich Web browser and access to hundreds of thousands of apps, is also a gateway drug to some of the heaviest data use: the new cash cow in wireless.

AT&T wields enormous power in Sacramento

When it comes to state government, AT&T spends more money, in more places, than any other company. It forges relationships on the putting green, in luxury suites and in Capitol hallways. It gives officials free tickets to Lady Gaga concerts. It takes lawmakers on trips around the globe and all-expenses-paid retreats in wine country. It dispenses millions in political donations and employs an army of lobbyists. It has spent more than $14,000 a day on political advocacy since 2005, when it merged with SBC into its current form. A handful of labor unions and trade groups have spent more on a combination of lobbying and direct political giving, but state records show that in the last seven years, no single corporation has spent as much trying to influence lawmakers as AT&T. At the same time, a tide of consumer protections has ebbed and the company has been unshackled from the watchful eye of state regulators.

MTV turning 2012 Election into game

Picture fantasy football, but replace athletes with political candidates running for Congress and the White House. That's how MTV describes Fantasy Election '12, a desktop and mobile game launching this summer.

Players have two ways of earnings points in the game. First, they draft a "team" of candidates running for office, similar to fantasy football. The game "will reward candidates for exhibiting behaviors voters deserve, and penalize politicians for behaviors that hurt our democracy," reads a statement from MTV. Points are based on data from partners including PolitiFact, the Center for Responsive Politics and Project Vote Smart. The game will also follow how engaged candidates are in social media such as Facebook and Twitter. The second way to earn points is getting involved in the election process.

Haley Barbour lobbying for the online sales tax he championed in office

Back on K Street after nearly a decade-long absence, Haley Barbour is lobbying for an online sales tax he championed as Mississippi governor. The Republican power player has registered to lobby for six clients at BGR Group, the K Street firm he co-founded in 1991.

Registrations and first-quarter reports filed since Friday show Barbour is lobbying for Chevron, Southern Company Services, the Mortgage Insurance Companies of America, Tenax Aerospace, the Canadian National Railroad and the Retail Industry Leaders Association (RILA), which is pushing for an online sales tax. The companies and trade groups are the first lobbying clients Barbour has taken on since returning to BGR after leaving the governor’s office in January. One of Barbour’s colleagues at BGR said the ex-governor has long supported the rights of states to make decisions about taxes.

Chairman Rockefeller suggests FCC's impasse with Sen Grassley could end

A new document dump by the Federal Communications Commission could lead a Republican senator to lift his hold on two nominees, Sen. Jay Rockefeller (D-WV) said.

Sen Rockefeller said he was hopeful a standoff over Sen. Chuck Grassley’s (R-Iowa) holds would end with the release of 13,000 unredacted e-mails and other documents from the FCC related to its review of wireless startup LightSquared. Grassley’s holds on Democrat Jessica Rosenworcel and Republican Ajit Pai have been in place for months. Sen Rockefeller, the chairman of the Senate Commerce Committee, which has jurisdiction over the FCC, said he made a personal request to the FCC chief of staff for the new documents.

Rep. McCaul calls for critical infrastructure protections

Rep. Michael McCaul (R-Texas) called for Congress to protect critical infrastructure systems from cyberattacks during a hearing but stopped short of calling for government regulations.

"The potential of cyberattacks is frightening. The Stuxnet worm is groundbreaking malware launched against the Iranian nuclear program — it is so devious in its use of computer vulnerabilities with such a multipronged approach that the Iranians had no idea they were attacked. Such a successful attack against the United States with viruses designed to manipulate, bring down industrial control systems could cause devastating human and economic losses," he said. He warned that cyberattacks could blow up natural-gas pipelines, derail trains, hack financial systems and cause chemical plants to leak toxins.

AT&T earnings rise but new wireless subscribers slow

The number of people joining the network through resellers and non-phone devices, like the Kindle and GPS navigation systems, dropped sharply in the first quarter. The largest telecommunications company in the US says it gained a net 726,000 wireless subscribers in the first quarter. That's less than a third of the number added in the same period last year.

In the quarter, old contract-based plan customers departed faster than AT&T could recruit new customers. Contract-based plans are the most lucrative for a phone company, and the number of new customers is an important measure of growth. AT&T gained a net 187,000 customers on contract-based plans in the January to March period, but these were essentially all tablet users, brought in by the launch of the new iPad in March. Tablet customers pay between $15 and $50 per month, whereas smartphone customers often pay more than $100. Weak subscriber figures are usually good for a phone company's earnings in the short term, since it doesn't have to subsidize the purchase of new devices.

NRB: DeMint/Scalise Bill Could Be 'Fatal' To Religious Stations

National Religious Broadcasters President Frank Wright sent letters to Senator Jim DeMint (R-SC) and Rep. Steve Scalise (R-LA) telling them their Next Generation Television Marketplace Act could be "fatal" to religious broadcasters. The bill would scrap the must-carry mandate, repeal retransmission consent provisions and compulsory licenses, and get rid of ownership rules.

Apple Found to Violate One Patent on Android Phones

Motorola Mobility Holdings won a partial U.S. International Trade Commission judge’s ruling in its bid to block imports of Apple’s devices including the iPhone and iPad tablet computer.

Apple violated one of four Motorola Mobility patent rights being contested, ITC Judge Thomas Pender said. The patent relates to 3G technology. The other three patents weren’t violated, according to the notice. The judge’s findings are subject to review by the six- member commission, which has the power to block imports that infringe U.S. patents.

Benton

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