Telco Daily Flash

Sources Say Cingular to Offer iPod Phone
Sources indicate that Cingular Wireless will sell the Motorola Apple iPod wireless phone. Representatives from all three companies declined to confirm or deny the report. The device would include iTunes software allowing users to transfer songs from a personal computer to the phone, and then listen to the songs through headphones. Music on wireless phones is expected to be the "next big thing" for the wireless industry. Many of the national carriers currently or plan to offer phones allowing users to download full songs wirelessly.
Source: The Wall Street Journal, The New York Times

Sprint Nextel Closing Deals on Two More Affiliates
Sprint Nextel is reportedly close to buying two of its wireless affiliates. IWO Holdings, a wireless carrier with 237,000 subscribers, would be bought for approximately $400 million. This deal values the company at 8.5 times estimated 2006 earnings before interest, taxes, depreciation and amortization. Gulf Coast Wireless, serving 93,000 customers, would be bought for $288 million. This deal is valued at 8.1 times estimated 2006 earnings before interest, taxes, depreciation and amortization. Sprint Nextel, which has 11 affiliated companies, recently paid $1.3 billion for affiliate U.S. Unwired. A dispute continues with affiliate Nextel Partners.
Source: The Wall Street Journal

Service Disrupted Because of Hurricane
Flooding and power loss caused by Hurricane Katrina disrupted wireless and long-distance service in parts of the Gulf Coast. Wireless carriers reported that although no wireless towers were knocked down, some stopped operating because of power loss or became disconnected from the network due to flooding and wiring disruptions. Because of these situations, wireless customers trying to place calls likely received busy signals or recordings informing them that all circuits are busy. As soon as conditions are safe, carriers will move into the areas with generators, fuel and manpower to begin restoring service.
Source: Associated Press

Privacy Group Wants Tougher Protections for Customer Data
The Electronic Privacy Information Center (EPIC) is expected to ask to Federal Communications Commission to toughen rules governing how and when telecommunications companies release customer information. EPIC is concerned by the proliferating Internet sale of customer call records and other information. Wireless carriers have a number of measures in place to protect customers' information and aggressively guard against the sale or release of records.
Source: The Washington Post

Carriers Help Customers with Billing Confusion
In response to criticism, telecommunications providers are making efforts to help customers understand their billing statements. Wireless carriers, which are subject to the Federal Communications Commission's truth in billing rules, encourage their customers to talk with customer service reps to understand plans and charges. Additionally, some carriers offer potential customers an estimate of their first bills, including fees and taxes. However, this job of helping customers understand their statements is made more difficult by the hundreds of taxes and governmental bodies carriers must work with.
Source: The New York Times

Wireless Carriers Offer Competitive Overseas Rates
Wireless carriers are lowering their international calling rates in order to compete with landline and VoIP providers that traditionally had lower international rates. Many of the national wireless carriers are offering two types of overseas calling options: a standard plan with no extra monthly fees and discount plans that offer a monthly fee for a set price per minute call. In choosing which type of plan works best for them, consumers should consider where they call and how frequently.
Source: The Wall Street Journal

Samsung Considers Entry-Level Phone Market
Recognizing that its wireless business may slow, Samsung is planning to enter the low-price or entry-level phone market. Samsung has traditionally shied away from the low-end market, concentrating on mid- to high-priced wireless phones, which yield bigger profit margins. However, with developing markets in India, Brazil and China and 60% of the wireless phone market made up of entry-level phones, the company has realized it needs to diversify its products. Samsung, the third-largest phone manufacturer, expects the global wireless phone market to expand 6-7% next year, compared to approximate growth of 55% in 2004.
Source: Dow Jones Newswire

Camera Phones Support Digital Camera Sales
Research from IDC suggests camera phones are creating growth in the digital camera market because they introduce users to digital photography. The research firm suggests that more than 30% of camera phone owners plan to purchase digital cameras because they learned about digital photography through camera phones. Four billion pictures were taken with camera phones in the U.S. in 2004 and approximately 7.5 billion will be taken in 2005. Digital camera pictures will increase to 40 billion this year from 28 billion last year, according to IDC.
Source: Reuters

Spanish Content Available Through U.S. Cellular
U.S. Cellular and Univision Movil are partnering to offer Spanish multimedia content and wireless services to Hispanic wireless customers. The new Spanish content is available through the "En Espanol" section of U. S. Cellular's easyedge platform and can be downloaded directly to consumers' wireless devices. Consumers have a choice of ringtones, images, wallpaper and interactive games for a yearly fee of $9.95.
Source: PC World

Hutchison Plans Investments in India, Vietnam, Indonesia
Hutchinson Telecommunications International will invest more than $500 million in order to build out India's wireless phone network. The company has immediate plans to expand into 10 additional service areas with its Indian partner, Essar Group. Additionally, the company wants to acquire an Essar unit that applied for new wireless licenses in seven areas where Hutchinson does not offer service. Hutchinson also plans to invest significantly in Vietnam and Indonesia.
Source: Dow Jones Newswire

No Vote Expected on Portland Wireless Tax
Portland Commissioner Dan Saltzman shelved a tax on wireless phone service until the tax gains more support from the rest of the council. However, his chief of staff said Saltzman is unlikely to push the tax next year, as he'll be busy with his re-election campaign. Other commissioners and the city's mayor also said they will not bring the tax up for a vote. The wireless industry has contributed significant resources to fighting the proposed tax, which was estimated to cost wireless consumers up to $33 million over the next three years.
Source: The Oregonian

Verizon Wireless Lowers Broadband Prices 25%
Verizon Wireless is lowering the price of its wireless broadband service from $79.99 a month to $59.99 a month. Additionally, the company is adding seven markets to the service and expects to serve more than half of the U.S. population by the end of 2005. Verizon Wireless' EV-DO service enables Internet access at speeds faster than dial-up. Consumers can use it on wireless phones or on cards that plug into laptops.
Source: The Wall Street Journal

Africans Experience Banking For the First Time, Thanks to Wireless
Africa's Standard Bank partnered with wireless carrier MTN Group to bring mobile banking to parts of Africa that previously did not have access to or could not afford banking services. The banking system requires only a wireless phone call and a government-issued identity number to subscribe. With nearly 80 million Africans owning wireless phones, the wireless phone banking system is expected to bring millions of poor South Africans into the official economy for the first time.
Source: USA Today

Latin Ringtones Arrive for Growing Hispanic Population
Wireless companies are planning to introduce Latin music ringtones, appealing to the growing Hispanic population in the U.S. Until this point, the majority of ringtones available in the U.S. have been hip-hop/R&B music, consumed primarily by 15 to 25 year olds. However, with Hispanics expected to be the largest teen minority by the close of 2005 and spending $10 more per month on their wireless bills, companies are looking to offer them more desirable wireless content.
Source: Reuters

Debate Begins on Wireless Etiquette Underground
The Metropolitan Transportation Authority's decision to install a wireless network in 277 of New York City's underground subway stations is creating a debate on whether or not wireless phones underground will be an annoyance to commuters. Some commuters are excited by the prospect of wireless service in the stations, as it will enable them to keep in touch with their children or finish business. Other riders are worried about loud, non-essential conversations proliferating underground.
Source: The New York Times

VoIP 911 Deadline Extended
The Federal Communications Commission granted VoIP providers an additional 30 days to receive customer notification of potential 911 problems, before providers will turn off service. The Commission said the providers had demonstrated significant efforts to comply with the notification requirement and extended the deadline to September 28.
Source: The Wall Street Journal

Nokia To Receive Payment After Telsim Sale
Nokia reached a deal with the Turkish government to recover money it loaned to wireless operator Telsim. According to the terms of the deal, Nokia will receive payment following the sale of Telsim. The amount of payment will depend on how much the company is sold for. Both Nokia and Motorola loaned billions of dollars to Telsim to build its wireless network in 2000. Since that time, Telsim defaulted on loan repayments and was forced to relinquish control and management to Turkish Savings and Deposit Insurance Fund.
Source: Dow Jones Newswire

Andrew Corp. Buys Nortel Location Systems
Equipment manufacturer Andrew Corp bought from Nortel Networks systems that process and calculates the position of wireless phones. The technology is used by corporations to track shipments, trucks and ships. Additionally, the technology can help emergency services locate stranded motorists, children or pets. Andrew will use the systems with its Geometrix business to manufacture mobile location center products.
Source: Reuters