Even though the FCC just gave Verizon until Monday to respond to its inquiries regarding the company’s new $350 “advanced device” early termination fee, they’ve shown some hustle here and delivered their 77 (yes, seventy-seven) page response today. Here are the two big takeaways consumers are going to care about:
The company justifies the advanced device ETF a couple ways; it starts out by referring to some 2003 statements by the FCC in which the Commission says that it doesn’t support the concept of customers breaking contracts and that carriers have a right to recoup those fees. Of course, that really doesn’t drive to the point here, which is that Verizon’s now charging two completely different ETFs based on a rather arbitrary line in the sand drawn by Verizon; to that end, the carrier says that the additional cost it incurs to procure the devices on its advanced list is greater than the difference between the two ETFs ($175) on average. It also says that it needs that extra guaranteed revenue to keep its broadband network up to snuff, since advanced devices are more likely to strain it.
Call it wishful thinking or evidence of the inevitable, but BusinessWeek is reporting that Verizon is bolstering its network in preparation for the iPhone.
Verizon Wireless Chief Technology Officer Anthony Melone recently told Bloomberg BusinessWeek that the company is ready for the extra traffic that the iPhone would bring. “We have put things in place already. We are prepared to support that traffic.”
They’re not exactly calling off the hounds, but the FCC’s standing down just a wee bit in its hunt to get to the bottom of Verizon’s astronomical new $350 “advanced device” early termination fee; the original deadline for the carrier’s responses was yesterday, December 17, but instead, the FCC will now be checking its mailbox on Monday. Even in the most extreme outcome, it’d likely be months or years before the FCC would actually go from an inquiry to applying pressure on Verizon to lower the fee. In the meantime, though, failure to respond to the questionnaire will probably result in an entertaining series of strong verbal admonishments and — if Genachowski’s in a feisty mood — perhaps a flurry of punishing blows to Verizon’s torso and upper body.
Our buddy Tnkgrl just had a sit down with Google and HTC’s lovedroid, the Nexus One. She “wasn’t allowed” to take pictures or video but she came away with plenty of detail. The biggest point of clarification might not be what’s included in the handset, but what’s missing: multitouch. She confirms, “no multitouch support in the browser or in Google Maps,” just like Verizon’s Droid (but available on its European Milestone brother). The unit she tested included a 4GB microSD card, 1400mAh battery, works on T-Mobile’s 3G only (AT&T is limited to EDGE data), and was “super snappy! Faster than the Droid.” She also noted “gold contacts” along the bottom edge presumably for a docking port thus jibing with whispers of a Nexus One Car Dock accessory. Now hit the read link for all the details if you still have the strength.
We’re still not totally clear on how exactly Verizon intends to enter (or rather, re-enter) the Palm stage in 2010; we know there’s definitely a WiFi-equipped CDMA Pixi out there that’ll likely find its way into Big Red’s clutches, but otherwise, we really need to wait for this event at CES next month. Well, maybe — we’ve got another little clue here in the form of some tips to PhoneArena stating that a “Pre Plus” has found its way into the carrier’s systems, which fits in nicely with info we’d previously received from one of our trusted sources that Verizon’s Pre would be somehow “different” from Sprint’s though we don’t yet know how. As far as we can tell, this isn’t the same as that WiFi Pixi (wouldn’t it be confusing if it was?), so we should probably expect at least two webOS models on Verizon over the next few months. In other news, that Motorola Calgary (pictured) appears to be shaping up as the “Devour” with a 3 megapixel cam and Blur running on Android 2.1 — yes, 2.1, not 1.5, which should give hope to CLIQ owners that an update is probably in the works. Finally, there’s talk of an LG VS750 in a mega-thin form factor running WinMo 6.5 with global roaming capability, but we don’t have a picture of that one just yet. Anyhow, back to the Pre Plus, we’re accepting all guesses as to what the “Plus” in the name might stand for — 16GB of integrated storage or a microSD slot seem like obvious candidates, but feel free to get creative with us.
[Image via BGR]
We don’t know just how quickly Palm (or Elevation Partners, for that matter) thought it’d become profitable following the release of webOS, but it’s not there quite yet — the company is in the process of outing its earnings for the second quarter of fiscal year 2010 right now, and in a word, they’re still in the red. The good news is that it’s a marked improvement from last quarter — they’ve gone from a $164.5M GAAP net loss to an $85.4M one this time around. On a non-GAAP gross basis, they actually made $5.5M, which is up from $2.8M a quarter earlier. They’ve got $590 million in cash and other “short-term investments” on the book right now, which seems like it should be enough to keep the company going without a profit or additional cash infusion for at least a few additional quarters, but then again, burn rate is going to vary with just how much hardware and software R&D they’re doing and the kinds of carrier deals they’re scoring. We bet they’re looking forward to this Verizon business going down, eh?
Update: Palm’s specifically saying that they’re looking to grow carrier and geographic coverage right now — a good plan, if we say so ourselves.
Talk about making good on a promise… and then some. Back in March, Ericsson proudly proclaimed that it would be able to make 21Mbps look like child’s play by reaching 28Mbps before the dawn of 2010, and now the company is tooting its horn once more after demonstrating 42Mbps equipment to common folk over in Stockholm, Sweden. Reportedly, it’s the planet’s first 42Mbps HSPA achievement on commercial products, and better still, it’s now available for mass deployment. Unfortunately, details beyond that were few and far between — we’re guessing Ericsson just needed an avenue to gloat — but we suspect carriers like Telstra will be pushing out their own releases once the upgrades start rolling out. Granted, we’ve seen mobile data rates tickle the 42Mbps mark before, but those showcases were hardly ready for public consumption. Meanwhile, Verizon and AT&T are spending bundles arguing about their comparatively glacial “3G networks.” Way to go, America.
There are plenty of ways to measure smartphone marketshare. IDC measures units shipped from manufacturers whereas Gartner measures units sold to consumers. Then there’s comScore, the research firm that conducts monthly surveys in the US to measure the total number of devices (and thus operating systems) currently in use. Its latest data is summarized above for the three-month period ending in October. See those yellow lines? If our kindergarten skills haven’t failed us, then this data shows iPhone usage surpassing the once mighty Windows Mobile OS for the very first time. Unfortunately for Microsoft, Google’s Android OS is set to accelerate significantly by the time the February 2010 data rolls in as is WebOS just as soon as Palm can bring its fledgling OS to Verizon’s subscriber base. What’s most troubling to Redmond about this report though, is where we found it: on FierceDeveloper, a site for mobile software developers who will presumably use the data to help determine which platforms they will focus their time. Oh Windows Mobile 7, where are you?
We always knew Palm would be bringing the Pre to Verizon sometime in early 2010, and it looks like preparations are underway: check out this leaked internal training slide, which describes a 20-minute Palm / webOS training that runs until January 4th. Interestingly, that’s the day before CES, so we’re guessing we’ll be hearing something about all this during Palm’s CES event — and if we had to guess, we’d wager that that updated Pixi with WiFi will somehow figure into the mix as well.
CES 2009 was a biggie for Palm, what with webOS and the Pre and all. Will they top it in 2010? And if so, how? A Verizon partnership seems plausible, if not likely — but otherwise, your guess is as good as ours. Anyhow, keep it locked right here next month and you’ll be finding out just as we do!