Global Nerdy

Chetan Sharma’s Q1 state of the mobile market report

You can always count on consultant Chetan Sharma to provide insights about the mobile industry that are more than just valuable; they’re quite interesting as well! In his latest report, titled US Mobile Market Update Q1 2015, he reports on the growth of cellular data consumption. It took 20 years for American mobile users to reach the point where the average cellular data consumption rate was 1 gigabyte a month, but less than 4 quarters for the average to become 2 gigabytes a month. At the end of the first quarter of 2015, the average is 2.5 gigabytes a month. In Q1 2015, the average mobile user consumed as much cellular data in 75 hours as the average mobile user in 2007 would’ve used in a year.

Click the graph to see it at full size.

Sharma has been paying attention to the growth in mobile data usage. In his mobile market update from the same time last year, he observed that mobile carriers had reached the point where more of their ARPU (average revenue per user) was coming from data than from voice, and that they’ve adjusted their business models accordingly. That’s why we’ve seen a reversal over the past few years; in the pre-iPhone era, voice calls were limited and data wasn’t, and nowadays the opposite is true for a lot of plans. In US Mobile Market Update Q1 2015, Sharma has this to say about mobile data:

• Mobile data contributes to 62% of mobile carriers’ overall revenues.
• US carriers made more than $100 billion from mobile data last year, and they’re like to hit $132 billion this year.
• The two biggest mobile carriers, AT&T and Verizon, accounted for 70% of mobile data services revenue and 68% of subscribers in Q1 2015.
• In 2015, Verizon will become the first carrier to generate more than $50 billion from mobile data.

Other interesting news items that appear in Sharma’s report:

• Smartphone penetration in the U.S. is now at 76%, and they represented 95% of mobile phones sold in Q1 2015. Non-smartphones (sometimes kindly referred to as “feature phones” and less kindly as “dumbphones”) are now an endangered species.
• Connected devices — non-phone, non-tablet devices that use cellular networking — accounted for just more than half of net-new added mobile accounts in Q4 2014, and they’ll make up the majority of new mobile accounts in general. The lion’s share of connected devices in that time period were cars, which made up 68% of the new additions.
• People want even more mobile data: half of AT&T’s postpaid subscribers have data plans that provide at least 10 gigabytes a month.
• Mobile data growth contributes to the revenue of more than just carriers. 70% of Facebook’s quarterly revenues come from mobile, as does 89% of Twitter’s advertising revenue. Outside the world of web businesses, Starbucks, Sears, and Hertz are also generating significant revenue from mobile.
• T-Mobile’s “Uncarrier” strategy is paying off. In Q1 2015, they had more than 40% of all the net-new subscribers. With less than 300,000 subscribers separating T-Mobile and the next-largest competitor, Sprint, we should see them take the #3 slot in the “Big Four” sometime this year. Sharma calls this “more or less just a symbolic event with the transfer of bragging rights”, but if there’s someone who can get mileage out of such a symbolic event, it’s T-Mobile CEO John Legere.

We could go on about Sharma’s report, but we think it’s far better to show it to you instead. We’ve included his slides below:

The most important new feature in iOS 9

If you missed the livestream of the opening keynote at Apple’s Worldwide Developer Conference earlier this week, you can watch Apple’s recording, which runs about 2 hours and 24 minutes to find out about what’s new in iOS 9.

Or you could watch The Verge’s summary, which takes the highlights of the keynote and shrinks them to a more digestible 12 minutes:

Or you can take it from us and watch this video, which shows you what we think is the most important (and likely to be underappreciated) new feature in iOS 9:

For all these years, despite not having the limitations of physical keyboards, the iOS virtual keyboard letters have never changed to reflect the current case of the letters. A keyboard that shows upper-case letters when the shift key is engaged and lower-case letter when it isn’t has been a feature on Android and Windows Phone devices for some time now, and at long last, iPhones and iPads will have one as well. Consider how much time you’ve wasted wondering if shift lock was on and making upper-/lower-case corrections on your iOS devices, then multiply that hundreds of millions of users. This feature may be the one that creates the biggest gain in productivity — far more than Apple Music will, anyway.

Smartphones take over a Sports Illustrated cover

The cover of the June 15, 2015 issue of Sports Illustrated is supposed to be about the race horse American Pharoah winning the Triple Crown at the Belmont Stakes, but given that a sea of smartphones takes up the foreground, we think it’s also about how much mobile devices are a part of our lives now. Huffington Post sports takes a dimmer view of this, saying that the photo “epitomizes everything wrong with modern society”. We disagree; smartphones as we know them haven’t even been around a decade, and we’re still figuring out what’s possible with them.

Upon taking a closer look at the photo, we may have found something wrong: not with society, but with usability. Take a look at our zoomed-in view:

It shows someone who’s using their camera app, but will never be able to capture this historic moment because right then, the phone decided that it was time to show one of those notifications that won’t let you do anything until you dismiss it. Come on, mobile phone operating system vendors — make it so that our phones can give us notices and still not get in the way while we’re in the middle of something!

Once again, it’s time for WWDC 2015, the 2015 edition of Apple’s Worldwide Developer Conference, where software developers who write applications for iOS and Mac OS get together in San Francisco to find out what’s coming up for Apple’s platforms. While the conference itself runs for the entire week and is aimed generally at programmers, it kicks off with a very layperson-friendly, attention-grabbing keynote.

Stability and bug fixes…get it?

If you’ve been using iOS 7 and 8 after having used iOS 6, you may have some concerns about the upcoming version. With each successive release, the operating system appears to have become a little less reliable, a little more buggy, a little less performant. It could be because Apple no longer has a raging perfectionist like Steve Jobs at the helm, but it could also be that a feature race is a natural outcome of the fact that the smartphone war is down to two superpowers. There will be some new features announced, but don’t expect something mind-blowing along the lines of a Steve Jobs-esque “one more thing…” announcement. Personally, I don’t mind that the both iOS and Android are slowing down and cleaning up what’s already been implemented instead of rushing forward to create the next new thing, and I think that many users feel the same.

How to watch the WWDC 2015 keynote livestream

Want to see the livestream video of the WWDC keynote? You’ll need to watch it on an Apple platform:

• On Apple desktop computers and laptops: You’ll need to run OS X 10.8.5 or later, and you can view it only on the Safari browser (Steve Jobs may no longer be with us, but his control-freakery lives on.). If you’ve got those, go here to see the livestream. 
• On Apple phones and tablets: You’ll need an iOS device running iOS 6 or later, and if you do, go here to see the livestream.
• On the Apple TV set-top box: There’ll be a dedicated channel for the livestream, and I’m sure if you turn it on, you’ll be told how to get to it.

Where to catch the WWDC 2015 keynote liveblogs

A number of sites will have their reporters in the WWDC keynote audience, liveblogging it as it happens. Unlike the video livestream, you’ll be able to catch these on any computing platform that supports web browsing:

• Ars Technica’s liveblog
• Computerworld’s liveblog
• Forbes’ liveblog
• Gizmodo’s liveblog
• Houston Chronicle’s liveblog
• IGN’s liveblog
• iMore’s liveblog
• iPhone Hacks’ liveblog
• Mercury News’ liveblog
• TechCrunch’s liveblog
• TechnoBuffalo’s liveblog
• TheNextWeb’s liveblog
• The Verge’s liveblog
• Wired’s liveblog

Found via Catsmob. Click the photo to see it at full size.

I’m sure at least one of these is being used as a GPS.

Found via AcidCow. Click the photo to see the source.

T-Mobile and Dish Networks are discussing a merger

The Wall Street Journal reports that T-Mobile is in talks to merge with Dish Network, a deal in which T-Mobile CEO John Legere would be the CEO of the newly-combined organization. This move would offer the following benefits to each participant:

• T-Mobile would gain Dish Network’s billions of dollars of largely unused wireless licenses, giving it the ability to expand the capacity of its network.
• Dish Network would gain a solid broadband internet service, giving them access to the “second screen”, which broadcasters are relying on increasingly as their audience moves to the internet.

T-Mobile’s “Uncarrier” strategy, which has included data giveaways, price cuts, rollover offers, and the occasional CEO antics, has helped them grow their customer base at record rates, but they still remain the smallest of the “Big Four” mobile carriers. Dish Network’s wireless licenses, which were bought mostly as a gamble without any real plan for using them, would give T-Mobile the ability to expand their coverage and lure more customers away from its competitors.

In 2013, both Dish Network and T-Mobile’s parent company, the Japanese telecom Softbank, attempted to join with Sprint. This merger between the two one-time rivals mirrors the AT&T/DirecTV and the Charter Communications/Time Warner Cable deals, a fact that wasn’t lost on Ina Fried when she wrote “a deal between Dish and T-Mobile is akin to two people who hook up because they are the last ones left in the bar at closing time.”

If the deal goes through, T-Mobile could be well-positioned to take the number 3 slot from Sprint. Keep in mind that this isn’t a done deal, and it’s being made between two rather mercurial CEOs.

For more on the merger, see:

• The Wall Street Journal: Dish Network in Merger Talks With T-Mobile US
• re/code: A T-Mobile-Dish Deal Could be The Ultimate Marriage of Convenience
• TIME: T-Mobile and Dish Network Are Nearing a Merger, According to Reports

Losing the Signal: Interesting reading on the rise and fall of BlackBerry

In 2015, it’s all too easy to dismiss BlackBerry (or RIM, as they were originally named) as merely a casualty of  the smartphone revolution, but to do so is to forget that they started that revolution in the first place. Before the iPhone and Android, there was the BlackBerry, the product brought to life by co-CEOs Mike Lazaridis, the electronics tinkerer who foresaw the possibilities that would come from merging computing and wireless technologies, and Jim Balsillie, the businessman with grand ambitions to become a figure like Bill Gates or Steve Jobs. It was the BlackBerry that tore email away from the desktop and put it in our pockets, got North American businesspeople hooked on text messaging, and introduced us to the habit of continually staring at a glowing screen in our palms.

Losing the Signal is a newly-released book written by Canadian reporters Jacquie McNish and Sean Silcoff that does far more than tell the story that most of us know about BlackBerry — their fall from being the must-have smartphone after the iPhone’s announcement and release in 2007. It tells the story of RIM’s early days and the challenges they overcame, from the limits of the technology and cellular networks of the time to how other companies tried to stifle them by withholding payments for orders. More importantly, it tells the stories of two very different co-CEOs, and of their partnership, both as friends and in business.

According to co-author Sean Silcoff, it took dozens of hours of personal interviews with Balsillie and Lazaridis at their homes to get them to “open up”; on one particular day, he followed a six-hour session with Balsillie by another five with Lazaridis. Their efforts paid off; Losing the Signal is a fascinating book that’s hard to put down; I’ve been getting my readings in during lunch, at the gym, and any time I can sneak in during the day. If you’re looking for a summer read that’s both substantive and fascinating, I highly recommend picking up Losing the Signal.

For more on Losing the Signal, see:

• Amazon.com: Losing the Signal: The Untold Story Behind the Extraordinary Rise and Spectacular Fall of BlackBerry
• The Globe and Mail: Losing the Signal: How BlackBerry’s bid to one-up the iPhone failed
• New York Times’ Bits: Behind the Downfall at BlackBerry

Coming soon: the next versions of Android and iOS

Summer is coming, and along with the warm weather and sunshine (well, we’re hoping they’re coming) are previews of the upcoming versions of Apple’s and Google’s mobile operating systems. Both OS vendors hold conferences for software developers around the beginning of summer; Google recently concluded their Google I/O conference, and Apple’s WWDC (Worldwide Developer Conference) will start on June 8th. These conferences are where both companies show sneak previews of their upcoming mobile OSs.

Android M made its first public appearance at Google I/O. According to Sundar Pincai, Google’s senior VP of products, this upcoming version of Android features a “back to basics” approach. While continuing with the visual aesthetic that premiered with Android L (better known as “Lollipop”), this upcoming version’s focus is more on usability and stability rather than flashy new features. Among the additions that you’ll find in Android M when it comes out (presumably later this year) are:

• An easier and better way for you to grant permissions to apps to access certain sensitive phone features such as your Contacts list, camera, microphone, and current location,
• an improved web experience with support for automatic sign-in, saved passwords, autofill, and other things we’ve grown accustomed to with our desktop browsers,
• support for fingerprint scanners, not just to unlock your phone, but also to make in-person and online purchases,
• mobile payments through Android Pay, Google’s answer to Apple Pay,
• better power management for improved battery life, and
• automatic backup of data for apps whose supporting data is 25 megabytes (that’s some pictures, but a lot of text) or smaller

We expect that iOS 9 will be announced at WWDC, as is their habit. Those of you who’ve been less than pleased with the problems that came with the upgrade from iOS 7 to iOS 8 will be happy to hear that a large part of the iOS 9 development effort is supposed to be about making the operating system more stable, optimized and reliable. As with Android, the upcoming version of iOS is less about adding flashy new features to draw in new customers and more about making the existing ones better in order to make their current user base happy. As with Android M, we expect that iOS 9 will see general release later this year.

For more on the upcoming versions of Android and iOS, see:

• Android Pit: Android M has arrived: here’s what you need to know
• MacWorld: Podcast: Unpacking Google I/O and making WWDC predictions and How to watch WWDC 2015 keynote livestream, and the Apple announcements to expect: Apple TV, Macs, Beats Music, iOS 9, OS X 10.11
• Ars Technica: iOS, OS X, music, Swift, and more: What you should know before WWDC next week

What’s cramming?

Cramming is the very apt name for a form of fraud where third parties unauthorized charges are added to your wireline, wireless, or bundled services telecom bills. Crammers rely on the combination of telecom bills being so confusing and making sure that the charges they add — often with vague, yet plausible-sounding names — are small enough not to raise suspicion. The FCC (Federal Communications Commission) says that cramming affects tens of millions of household in the U.S., and a Senate Commerce Committee investigation released a report in 2011 that said that cramming costs U.S. consumers $2 billion a year.

The FCC’s web page on cramming provides examples of what these unapproved charges can look like:

• Charges for services that are explained on your telephone bill in general terms such as “service fee,”  “service charge,” “other fees,” “voicemail,” “mail server,” “calling plan” and “membership.”
• Charges that are added to your telephone bill every month without a clear explanation of the services provided – such as a “monthly fee” or “minimum monthly usage fee.”
• Charges for specific services or products you may not have authorized, like ringtones, cell phone wallpaper, or “premium” text messages about sports scores, celebrity gossip, flirting tips or daily horoscopes.

Cramming came about when telecom carriers saw an opportunity to increase their profits by acting like credit cards. They now allow third parties to charge customers through their telecom bills, treating their phone numbers like credit card numbers, and they collect a small percentage of the transaction. While convenient for customers and lucrative for carriers, this introduces a number of opportunities for fraud. While credit card numbers are treated as confidential, phone numbers are published openly; some crammers have made money simply by charging phone numbers obtained from directories while others incentivize people into divulging their phone numbers through fake contests and offers.

The key to protecting yourself from cramming is to pay close attention to your phone bill. Review it as closely as you’d review your credit card statement, and ask yourself these questions:

• Are there any names of companies on your phone bill that you don’t recognize?
• Does your bill include charges that can’t be accounted for — calls you didn’t make or services you didn’t sign up for?
• Are there small “mystery charges”, typically less than $10, and often as little as $1, with non-descriptive names that don’t seem to be tied to any service that you’ve signed up for?
• Are the rates and line items that appear on your bill consistent with the rates and line items that you were quoted?

If you’re thinking about signing up for a service that charges you through your phone bill, be sure to read the fine print. If you’re thinking of signing up for a service that texts you things like “love tips”, “fun facts” and “celebrity gossip”, think again: last year, a crammer by the name of Andrew Bachman was found to be cramming users at $9.99 a month for these services without their approval.

You should also keep a record of all services that you subscribe to that charge via your phone bill.

A settlement for Sprint and Verizon customers

The FCC, along with the CFPB (Consumer Financial Protection Bureau) and state attorneys general have been pursuing cramming activity in telecom bills, charging the third parties involved in cramming and issuing over $350 million in penalties to the “Big Four” carriers, more than $250 million of which was returned to affected customers.

On May 12, 2015, it was announced that…

• Sprint Corporation will pay $68 million and
• Verizon will pay $90 million

…to settle investigations that showed that they were party to third parties billing customers hundreds of millions of dollars in unauthorized third-party premium text-messaging services, a.k.a. cramming. $120 million of the sum of their payments will be repaid to customers, and you may be due for some of that payback! If you’ve been a customer of Sprint, Sprint’s prepaid subsidiaries (Virgin Mobile, Boost Mobile, Sprint prepaid, and Assurance Wireless) or Verizon in the past five years, you may be eligible:

• If you might be an eligible Sprint (or subsidiary) customer, visit their site at sprintrefundpsms.com or call the Sprint settlement hotline 1- 877-389-8787. Sprint customers should use the claims form in the FAQ section, and subscribers to Sprint’s prepaid subsidiaries (once again, Virgin Mobile, Boost Mobile, Sprint prepaid, and Assurance Wireless) can file for a one-time $7 refund.
• If you might be an eligible Verizon customer, visit their site at CFPBSettlementVerizon.com or call the Verizon settlement hotline at 1-888-726-7063.