Wireless

Perhaps you have already become used to Verizon's Droid tossing names at the iPhone like an 8-year-old boy behind his teacher's back.

However, the latest ill feelings directed at Apple's little cutey seem beyond even anything heard in an elementary school.

In a new TV spot, Droid asks an important question: "Should a phone be pretty?" To which many sane people would say "yes," and many emotionally challenged beings made of metal would say, "Huh? What?"

Its answer--the latest in its presentation of the Droid as a robotphone--is to hurl metallic-tasting custard pies as if the Apple store was a state fair.

"Should it be a tiara-wearing digitally clueless beauty pageant queen?" belches the ad's rhetoric, clearly referencing the iPhone, while wrapping the pie in a question.

I know many Socratically-inclined Apple fanpersons will object to the notion that beauty is only skin deep. But they will surely rail against the mere suggestion that the iPhone is digitally clueless.

Of course, this ad implicitly suggests that the Droid is, well, one of Cinderella's sisters, which might well affect its abilities to entice certain sectors of the populace.

Actually, the suggestion is more than implicit, for the deeply hirsute voice declares: "Is it a precious porcelain figurine of a phone? In truth, no."

So do you wait for a design that is pretty and is, as this ad so elegantly puts it, "racehorse duct-taped to a Scud missile fast" or do you have to compromise?

I know they say you can't have everything in life, but surely there must be some very attractive engineer out there who can give us everything in a few square inches of cell phone.

Google and Microsoft have joined a group devoted to creating a way that cell phone buyers can easily comprehend the quality of their camera phones.

The International Imaging Industry Association said the tech titans signed up to help with the third phase of the Camera Phone Image Quality Initiative, in which a variety of companies try to create measurements to capture various test results.

Mobile phones that can take photos are ubiquitous today, but with tiny image sensors and lenses and severe budget constraints, they vary widely in their ability to take good photos. Mostly all that buyers have to go on is a megapixel count, which isn't terribly meaningful when it comes to such small sensors. The International Imaging Industry Association, a consortium whose mission is to make imaging better for consumers, is trying to come up with a better way.

The mobile phone camera tests include resolution, color uniformity, lens distortion, and lens chromatic aberration, but the group also plans to factor in sharpness and noise reduction. A variety of other possibilities ranging from dynamic range, white balance, and resistance to glare also could be added into the mix as well.

The group is trying boil all this down into an official star rating consumers can trust.

Other companies working on the standard include Aptina Imaging, CDM Optics, DxO Labs, Eastman Kodak, Fujifilm, Motorola, Nokia, OmniVision Technologies, Sony Ericsson Mobile Communications, STMicroelectronics, ST Ericsson, and VistaPoint Technologies.

Lenovo's purchase of the mobile phone arm it sold off last year signals its intention to penetrate the global market, but the move could dilute its core computer business, according to a Shanghai-based analyst.

The Chinese computer maker last week announced it bought back Lenovo Mobile Communication Technology in a deal worth $200 million in cash and Lenovo shares. It had sold the business unit to a group of investors in early 2008.

In a statement, Lenovo said it plans to capitalize on combined synergies from the two companies in product innovation, manufacturing, channels, and retail "to lead the market for new mobile handheld devices in China."

But Shaun Rein, managing director of China Market Research, noted that Lenovo may be interested in more than just the local market, and its global ambitions could be driven by demands from its private investor shareholders.

Read more of "Lenovo mobile hopes threaten PC biz at ZDNet Asia.

The Federal Communications Commission opened a formal proceeding Wednesday to get feedback on whether it should reclaim some spectrum licenses held by TV broadcasters and auction them off to wireless broadband providers.

The public comment notice issued by the FCC is the first step in a process that could pit TV broadcasters against the FCC and the wireless industry.

FCC Chairman Julius Genachowski said in a speech earlier in the week that he is interested in taking back some of these airwaves to re-auction them for use in building new wireless broadband services.

Broadcasters oppose a plan under which they'd give up any spectrum licenses, saying that it would harm some Americans' access to free over-the-air TV programming. But some FCC officials, such as Blair Levin, who is in charge of drafting a policy plan for national broadband, argue that some of this spectrum is not being used efficiently or effectively. The idea is that the spectrum could be better used for providing 4G wireless services.

Spectrum that is used by broadcasters is considered ideal because it transmits signals over long distances and can penetrate through walls. Using it to build wireless broadband services would mean that service providers do not have to put radios on as many towers, which saves money when building networks and increases the reach of a network.

The most recent spectrum auction sold licenses for the 700MHz band of spectrum, which had been used to transmit analog TV signals. The FCC re-auctioned this spectrum after Congress mandated that all major TV broadcasters shift to broadcasting digital signals rather analog signals. Verizon Communications was one of the major winners in the 700MHz auction. And its wireless division, Verizon Wireless, is using the spectrum to build its 4G next-generation wireless network, which is expected to go live in some markets starting in 2010.

As more Americans use Internet-connected wireless devices, such as smartphones, and ultra portable devices, such as e-readers and Netbooks, the current allocation for wireless services is becoming saturated. Chairman Genachowski warned in his speech that without more spectrum dedicated to wireless broadband services, the nation faces a crisis that could stifle innovation.

The FCC will accept public comment on this issue until December 21.

Verizon Wireless and AT&T have ended their public legal spat over advertising, and have thus agreed to stop complaining about each other's advertising campaigns.

On Wednesday AT&T announced it dropped its suit against Verizon Wireless for allegedly misleading customers by showing its weak 3G coverage. And Verizon said it agreed to drop a suit it filed earlier this year against AT&T for claiming it had the "More Bars in More Places," the "Best Coverage," and the "Best Worldwide Coverage."

In its amended suit filed in August, Verizon said that AT&T had no basis to refer to its network as the best, because Verizon claims in its own advertising to have "America's Most Reliable 3G Network" and "America's Best 3G Network."

"Through these advertisements, AT&T claims to have a wireless network that is superior, both qualitatively ("More Bars") and quantitatively ("More Places") to the wireless networks of all other U.S. wireless carriers, including Verizon Wireless, both in the United States and worldwide, when in fact, none of those claims is true," Verizon said in its complaint.

But now it looks like AT&T and Verizon have made peace with one another, as AT&T dropped its case in Atlanta and Verizon dismissed its case filed in New York.

However, the lawsuits bring up an interesting trend that was noted recently in an article published by The New York Times. Increasingly, companies are suing each other over claims made in their advertising campaigns.

In addition to AT&T and Verizon Wireless, other longtime foes, such as shampoo and soap makers Pantene and Dove, dog food makers Science Diet and Iams, and soup companies Campbell Soup and Progresso have all haggled over ads, challenging competitors to prove their claims.

Some complaints over "misleading" advertising are filed with the National Advertising Division of the Council of Better Business Bureaus, which is the industry's main self-regulatory program for national ads. But others go to court and file lawsuits under the Lanham Act, which was passed in 1946 to strengthen trademark law. Verizon's lawsuit cited the Lanham Act.

While these lawsuits and complaints may be legitimate, the truth is that most consumers take these advertisements claiming to be the "best" or the "strongest" at anything with a grain of salt. And there is some indication that the mere publicity from these lawsuits can backfire on companies, giving consumers a negative impression of the company that files the lawsuit.

It can be argued that this has happened to AT&T. There have already been numerous reports about problems with AT&T's network, particularly for iPhone users. And when the company filed its lawsuit against Verizon, many consumers expressed anger at AT&T for whining about the advertisement, when many felt that the claims expressed in the advertisement were true.

By contrast, Verizon's lawsuit against AT&T was not well-publicized. In fact, most technology reporters and bloggers hadn't even known about or mentioned the suit until Wednesday when the two companies agreed to drop litigation against each other. It remains to be seen if consumers will also deem the dismissed Verizon lawsuit a bit whiny.

If you thought that all wireless carriers know just how good their competitors' networks are, you might be suffering from a dropped conception.

In a recent speech to the Association of National Advertisers, posted on the AdAge Web site, Verizon Chief Marketing Officer John Stratton explained that his company couldn't get hold of any good data on just how reliable AT&T's network is. So it commissioned a third-party survey, one that seems to have sent it giddy with joy.

"What we saw, we sort of suspected, but it was almost astounding," he said.

So almost astounding, in fact, that Stratton said the company canned its fourth-quarter holiday campaign, which had already been produced but not yet aired (and presumably did not mention AT&T), and began mapping out its besmirchment of its rival's alleged network deficiencies.

"There was a bit of fact here that needed to be expressed aggressively to the marketplace," he added.

The bit of fact, which AT&T feels has been stretched into the part of the bookstore entitled "fiction," revolved around the accusation that AT&T's network has more holes than your average chunk of emmental.

The new Verizon ads seem certainly to have stirred a girding of loins in the marketplace and perhaps helped sales of the Droid, which are approaching 1 million.

Stratton added that because people are using cell phones in so many more ways, the strength of a company's network will be an increasingly important factor in consumer choice.

Strangely, he said nothing about Verizon one day offering the iPhone on its network.

There again, with the agility the company showed in producing the anti-AT&T ads so quickly, perhaps they're already shooting some happy Verizon iPhone ads. You know, just in case. You know, somewhere in Fiji, perhaps. You know, with the money they're saving now that AT&T has dropped its lawsuit against the map ads.

This Roamobi handset is smaller than a credit card.

(Credit: Roamobi)

Correction at 10:01 a.m. PDT December 7: VMSP licenses will be sold at $41,200.

How will demand for mobile technology play out in developing countries? Mike Kellett and Joe Morgan are tackling this issue as they prepare to launch their global mobile platform at CES 2010.

Although their joint venture, IP2, isn't the first company to address the need for low-cost international cellular service, it's taking a different approach. "We have a system that doesn't depend on government intervention," says Mike Kellett, co-founder of IP2, based in the U.K.

IP2 will launch a cellular service based on the concept of VMSP, or virtual mobile service provider. Anyone can start a VMSP and sell services and handsets. Usually, a license to operate as a local mobile service provider can cost up to $5 million, but IP2 will be selling VMSP licenses for only $41,200.

The handsets provided by IP2, which are smaller than a credit card, will be priced at $25. Communication between subscribers will be free, along with incoming calls in more than 50 countries. Short codes, text messages, and voicemail retrieval will all function in IP2's internationally based mobile service.

"We want to empower local companies to become VMSPs," Kellett said. "We feel that this will be supported by NGOs and local government, allowing them to become local players in the mobile industry."

Participating NGOs might loan a local enough money to purchase phones and prepaid minutes to become a micro-dealer. Locals who wish to subscribe to the service would contact a dealer or a micro-dealer to obtain a phone and SIM card.

The service would be marketed by word of mouth, as selling the phone service on the Internet eliminates the opportunity for locals to financially benefit from the program, Kellett explained. "We'd like to step backwards to the ordinary man who has no means to sell but face-to-face."

Micro-dealers will manage their business through a text messaging system. Sending a message to an IP2 short code would engage them in an automated dialogue, allowing them to view their balance or transfer money, for example.

IP2's cellular service vies to connect developing and developed countries. Kellett suggests that refugees attempting to contact relatives or small companies making worldwide business deals will benefit from an international service that doesn't charge for roaming and works on a prepaid model.

Contemporary services like 3G, 4G, and Wi-Fi aren't available in developing countries, as most still run on GSM and 2.5G networks. "Our product allows anybody in the developing world with an old phone to have international mobile service," Kellett said.

After 10 years of research and development, Kellett and Morgan will launch the IP2 product under the brand Roamobi. At launch, the service will readily support millions of international subscribers.

AT&T has dismissed its lawsuit against Verizon Wireless for using an advertisement that AT&T complained confused customers about its 3G wireless coverage.

(Credit: Verizon Wireless)

On Wednesday, AT&T formally dismissed the lawsuit. Last month, the wireless operator suffered a major legal setback when a judge rejected the company's request to force Verizon to pull its "There's A Map For That" advertising campaign.

AT&T filed its lawsuit in federal court in Atlanta in early November asserting that Verizon Wireless' advertisements mislead customers by suggesting that AT&T subscribers cannot access wireless Internet services throughout its network. AT&T has called the ads blatantly false and has said that the commercials have caused irreparable harm to the company.

The advertisements that Verizon is running show two maps that each indicate 3G wireless coverage. One map shows coverage for Verizon and the other depicts AT&T's coverage. Verizon just recently started airing another commercial that depicts Santa Claus' reindeer referring to Verizon's and AT&T's 3G coverage maps.

AT&T has also started running its own advertisements that are critical of Verizon Wireless. The ads feature Luke Wilson and slam Verizon for not allowing users to talk and surf the Web at the same time, something that wireless subscribers can do on AT&T smartphones.

Verizon Wireless declined to comment on the news of the dismissal. And AT&T also declined to comment further on the matter.

The Federal Communications Commission is shaking up the communications market with bold initiatives to overhaul the $7 billion Universal Service Fund to help pay for universal broadband and reallocate wireless spectrum for new wireless broadband services.

FCC Chairman Julius Genachowski presented plans for revising the USF program and reallocating spectrum during a speech on Tuesday in Washington, D.C., at The Innovation Economy Conference.

Julius Genachowski, FCC chairman

The Universal Service Fund is a $7 billion federal subsidy program that is funded by fees added to consumer phone bills. The USF was originally designed to provide subsidies to pay for phone service in rural communities and to low-income residents. But the FCC believes that the fund should also be used to help pay for universal broadband, a policy priority for President Obama's administration.

Revamping the fund has been controversial, as some rural phone companies have resisted any attempts at expanding the scope of the program. Genachowski acknowledged that making changes wouldn't be easy, according to a transcript of his prepared speech.

"This is a thorny issue, with no shortage of practical and statutory challenges," he said. "(But) we need to wring savings out of the system, protect consumers, avoid flash cuts, while ultimately moving USF in the direction it needs to go to support our 21st century platform for innovation."

Genachowski emphasized that reallocating some of these funds to help build broadband infrastructure in rural areas is important for spurring innovation.

"USF is a multibillion-dollar annual fund that continues to support yesterday's communications infrastructure," he said. "The goal of universality is as important as ever--and to meet our country's innovation goals, we need to reorient the fund to support broadband communications."

Genachowski also reiterated the importance of auctioning off more wireless spectrum to be used for mobile broadband services. He called wireless spectrum the "lifeblood of our wireless networks." And he said they are a critical part of innovation and infrastructure.

The FCC has already increased the amount of spectrum available to wireless companies threefold in the past few years, Genachowski, noting that experts believe that there will be a 30-fold increase in traffic on these networks. And without more spectrum, these networks will be congested and will stifle innovation.

"Given that spectrum can take many years to reallocate and build out, if we don't start the process now, we'll pay a steep price in innovation down the road," he said.

As part of his proposal, he says the FCC will encourage more efficient use of spectrum and devices through innovative spectrum policies. He noted that the FCC will also look at increasing spectrum flexibility and opening secondary markets for licensed spectrum use. And he said the agency will look into allowing more use of unlicensed spectrum, such as the "white space" spectrum that sits between broadcast channels.

But the most controversial proposal he has put forth involves taking away spectrum from current spectrum license holders, such as TV broadcasters, and reallocating those licenses to broadband wireless providers through another auction process.

"In order to support the full flowering of innovation, and to keep the U.S. globally competitive, we will need to find ways to free up new spectrum to mobile broadband," he said, according to the transcript of his speech. "This will require examining old allocation decisions--often decades-old--and evaluating them against current technologies and consumer demand."

TV broadcasters have vehemently resisted this proposal.

Broadcast airwaves are considered very valuable because they can travel long distances and penetrate walls. The most recent 700MHz spectrum auction, which auctioned off analog TV spectrum, is being used by operators such as Verizon Wireless to build 4G wireless broadband services. And Genachowski believes that more spectrum should be freed up to allow for more 4G wireless broadband services.