The FCC established a pleading cycle on a complicated spectrum transaction between Sprint and Open Mobile in Puerto Rico, creating a new company -- PR Wireless (PRW). Sprint would hold a 68 percent economic interest and a 55 percent voting interest, and Open Mobile the remaining interests in PRW, said a public notice. “Applicants assert that consumers will benefit from the combination of Sprint’s experience as a nationwide service provider and Open Mobile’s experience as a local service provider in Puerto Rico,” it said. “PRW plans to operate both the existing Sprint and Open Mobile Networks for the foreseeable future and support existing customers with no mandatory migration of customers from one network to the other. The Applicants maintain that Open Mobile’s customers will benefit from enhanced wireless coverage through the deployment of more cell sites, improved service quality through a 4G LTE upgrade, more choices of competitively priced handsets, a larger number of retail outlets, and expanded, lower cost roaming.” Petitions to deny are due June 21, oppositions June 28, replies July 6 in docket 17-112. The FCC also sent letters to the companies asking follow-up questions.
Qualcomm is billing its new mesh networking platform as a way for gear makers and ISPs to deliver connected home experiences, it announced Monday. It said the platform delivers robust and consistent connectivity for smart home devices.
Global smartphone unit shipments are expected to rise 3 percent in 2017, a slight improvement over the 2.5 percent growth rate recorded in 2016, IDC said in a Tuesday report. “With several major devices entering the market this year, IDC anticipates shipment volumes will grow to 1.52 billion in 2017.” IDC expects that momentum to carry into 2018, when smartphone shipments are forecast to grow 4.5 percent, “fueled by improved economic conditions in many emerging markets and a full year of new iPhone shipments from Apple,” it said. One “big topic” in the smartphone industry is “the intense fight for the high end of the market,” IDC said. Samsung “made a lot of noise” with its recent Galaxy S8 and S8+ device launches, and “all signs point to late 2017 being one of Apple's biggest, if not the biggest, product announcements with the highly anticipated next round of iPhones,” it said.
Wireless pressures mean even though Verizon’s stock price could pop up from its current $46.20, now is not the time to buy the carrier's shares, BTIG analyst Walter Piecyk wrote Tuesday. Piecyk said he remains neutral on Verizon. If Sprint manages to buy T-Mobile, that could be a catalyst to raise Verizon’s stock price, but a deal isn’t assured, he said. “Threat of a new, well-funded entrant into the wireless industry cannot be ignored,” Piecyk said. “Last week, Crown Castle CEO Jay Brown acknowledged that Crown had been conducting tests with large technology companies on a wide range of spectrum, including mid-band” (see 1705260043). Verizon’s densification focus, putting money into small cells throughout its network, is also driving up its costs, the analyst said.
With stock prices for major telecom companies down 17 percent this year, MoffettNathanson Tuesday said it's upgrading it's rating on AT&T from sell to neutral. The analyst firm is maintaining a buy rating on Verizon, neutral on T-Mobile and sell on Sprint. Analyst Craig Moffett said in a research report that AT&T probably has found a floor and his outlook is now “less bearish” rather than more positive. “Certainly, there are few positive signs to which to point,” Moffett wrote. “Competitive intensity may have ebbed a little … but only a little; in fact, just last week, after talking about pulling back, both Sprint and T-Mobile launched yet another round of aggressive promotions. And things will likely only get worse when the next iPhone comes to market this fall. Meanwhile, Verizon and AT&T are both shrinking at their fastest pace ever; indeed, every one of AT&T’s major business segments is now contracting. Only International, which represents just 5 percent of revenues, is actually growing.”
Amazon and Dish Network may have overlapping IoT interests, bolstering speculation that Amazon Web Services could be an anchor customer for Dish's planned IoT network, Citigroup's Michael Rollins wrote investors Tuesday. He said Dish's IoT network decision (see 1703080026) "could make a lot of sense" since IoT standards should let companies use higher power to increase cell radius, decreasing the number of cell sites needed, and network infrastructure likely could be converted into a 5G network. Dish likely is looking to maintain optionality for its spectrum and interested in monetizing spectrum holdings, and Amazon is interested in expanding AWS offerings and differentiating from competitors, the analyst said: An Amazon/Dish partnership would allow the two companies to share risk and leverage high-cost fixed assets they separately own. Possible models could include a platform company like Amazon being a strategic investor in the network, or an outright acquisition of a wireless network or spectrum, Rollins said. A nationwide IoT/IP network could run over Amazon Web Services, and numerous Amazon products would benefit from having low-bandwidth communications or an IoT platform, he said.
Retail reaction has been “excellent” to Movado’s debut of its first Android Wear smartwatch, CEO Efraim Grinberg said on a Thursday earnings call. The company plans to introduce the smartwatch, called Movado Connect, in Q3 (see 1703080045). The category isn't material to the company, and margins aren't “as attractive” as in “traditional” watches, said Grinberg. Movado shares fell nearly 6 percent midday Friday before recovering to finish the day 3.4 percent lower at $21.40 after the company missed its revenue and earnings targets for Q1 ended April 30.
After soaring 22 percent Thursday to $61.27 following a better-than-expected Q1 earnings report (see 1705250026), Best Buy shares closed 3.7 percent lower Friday at $58.98. The results come amid challenges, Wedbush Securities analyst Michael Pachter wrote investors Friday. Wedbush expects growth to “stall in the back half” of Q2 on a “possibly delayed iPhone 8 launch” and aggressive holiday pricing “as Amazon protects itself from Walmart, with Best Buy caught in the crossfire.” On the Thursday earnings call, Best Buy CEO Hubert Joly said Q1 mobile sales topped expectations amid demand from new unlimited data plans. Joly cited customers moving into installment billing plans that extended smartphone replacement cycles. Chief Financial Officer Corie Barry said Best Buy is taking a “moderate” view on the next iPhone release. Helping the company's recovery from previously tougher financial times are partnerships, and it's expanding tech support and related options, executives said.
The Wi-Fi Alliance hailed a decision by Innovation, Science and Economic Development Canada to modify the technical and policy framework for radio local area network (RLAN) devices operating in the 5150-5250 MHz band. The decision “will allow higher power and outdoor RLAN devices to operate in the band and help alleviate congestion in other bands,” the alliance said in a statement. “Given the ever-growing importance of Wi-Fi networks to deliver demanding services and applications, this decision will help meet existing spectrum demands and bring enhanced benefits to Canadian businesses and consumers.”
Ethernet connections are going to become "more prolific" in autos, said Marvell Technology CEO Matt Murphy on an earnings call. He cited a vision dating to 2007 of "upgrading that legacy bus in the car,” by connecting disparate electronic control units “on one packet-based network" and said it's "starting to happen.” Having "been involved with automotive for quite a bit of time ... when I got really involved with my old company, this concept of Ethernet in the vehicle was around even then,” said Murphy of his past executive role with chip supplier Maxim Integrated. The automotive Ethernet connections business isn’t expected to flourish before 2019, he said Thursday.