Tag Archives: Alltel

Mobile Phone 101

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I’m writing this because as I drafted another post I realized not many people are knowledgeable about mobile phone technology and a quick Mobile Phone 101 class may be helpful to many. In the United States there are 4 major mobile phone operators (listed in order of number of subscribers); AT&T, Verizon Wireless, Sprint, and T-Mobile. AT&T, which I have recently seen called AT&T Mobility and/or AT&T Wireless, is the former Cingular, and is fully owned by American phone giant AT&T. Verizon Wireless is a joint venture between 55% owner Verizon Communications and 45% partner Vodafone; Vodafone being the English company which is the largest mobile operator in the World. Sprint and Nextel are owned by Sprint and T-Mobile is owned by German giant Deutsche Telecom. The large companies also typically have smaller companies, subsidiaries, and joint ventures operating using their name in different regions. There are also some virtual carriers such as Virgin Mobile, Qwest, Boost Mobile, and Amp’d that sell service, but don’t operate their own network in favor of renting space from one of the big 4, and there many other small carriers such as Dobson (which operates as Cellular One) and Alltel.

In America there are also 2 major mobile phone technologies; CDMA and GSM. CDMA stands for Code Division Multiple Access and is used by major players Verizon Wireless and Sprint, but not Nextel, as well as some smaller carries such as Alltel, US Cellular, and Cellular South. Many believe CDMA is the best mobile phone technology currently available, hence the Verizon commercials about their network. GSM stands for Global System for Mobile Communications and is used by big boys AT&T and T-Mobile in America, and smaller carries such as Dobson Communication, which was recently purchased by AT&T. GSM is the dominate worldwide technology controlling about 80% of the market, and is used by Vodafone in each of their markets outside of the United States. The differences in technology are a large part of the reason you cannot keep your AT&T phone when switching to Verizon. The remainder is due to company greed even though the companies will blame it on network compatibility.

In my opinion the only 2 national carriers worth considering are AT&T and Verizon for people who travel out of their home area frequently. Verizon is widely considered to have the best network in America, but limited coverage outside of the States. AT&T is best if you travel outside of America often because their network is based on the same technology used in most of the modern World. Hopefully Sprint will fix the issue they are having and complete the integration with Nextel and become a recommendable third option soon. T-Mobile has stated they are expanding their American network so maybe they will make it a 4 horse race. To me the other carriers are either going to remain regional carriers targeting limited travelers, be purchased by the big 4 as Dobson recently has, or combine with each other to become a fifth national power.

Corporate Predictions

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People seem to love predictions so I’m going to make a few business predictions I can see happening in the next year or so. First is the one that gave me the idea of writing this post; Google buying Adobe. Imagine 2 of our favorite Silicon Valley brands combining and giving us on- and off-line version of Dreamweaver & Photoshop powered Adobe AIR and supported by Google’s ever exanding super computer network. Granted this is possible without the 2 companies combining, but where’s the fun in that. A third, significantly less likely player in this combiniation would be Apple. Adobe & Google both seem to have extraodinary tight relationships with Apple. Google CEO Eric Schmidt is on Apple’s Board of Directors and Adobe is consistently the first to take advantage of the full power of Apple hardware. A hardware/software combination involving all 3 companies would instantly be THE force in the tech industry.

Next we move to banking. Once Bank of America completes its deal purchasing LaSalle Bank from ABN Amro, making it a major player in the Chicagoland area, it will no longer be able to make significant deposit purchases in America because it will be bumping up against the 10% limit. Bank of America will turn its vision overseas, starting with the previously rumored to soon be a Bank of America target, and new ABN Amro parent company, Barclays. Buying Barclays after Barclays purchases ABN Amro, the deal which made LaSalle available for purchase, will help Bank of America’s presence in Europe and South America. In addition Bank of America will push organic growth within the States in an attempt to truly become the first and only nationwide, coast to coast, in every major and mid sized city, bank, or in other words the Bank of America.

AT&T & Vodafone – How does AT&T continue to grow following combining the companies once know as PacWest, Ameritech, SBC, BellSouth, Cingular, AT&T Wireless, AT&T, and soon to be Dobson/Cellular One, among others? It buys the largest GSM carrier in the World, Vodafone. Vodafone has a market capitalization of about $160 billion, meaning it could be purchased for under $200 Billion. The great part of the deal is it would give AT&T control over the 45% of Verizon Wireless currently owned by Vodafone. The Feds would never let AT&T keep that portion, but in a pre-arranged deal with a private equity firm AT&T could sell the Verizon Wireless stake, currently valued at around $65 Billion, for $80 Billion or so, cutting the actual Vodafone purchase price to somewhere in the neighborhood of $120 Billion. Who would be interested in 45% of VZW? How about KKR and/or Blackstone who seem to be buing everything. Or the Goldman Sachs/Texas Pacific consortium which recently puchased fellow CDMA carrier Alltel for $27 Billion? This would give GS/TP more leverage in it attempt to get VZW to buy the CDMA assets, probably raising the price to over $115 Billion.