Archive for December 9th, 2009

Sprint CEO Hesse on 4G pricing plans

Dan Hesse On the same day (and at the same investor conference) that AT&T’s Mobility and Consumer Markets CEO Ralph de la Vega talked about how his company is preparing consumers for usage-based billing models, Sprint (NYSE:S) CEO Dan Hesse shared his own thoughts on the subject.

“When you think about post-paid — and I don’t know what’s going to happen — it’s not just going to be your phone,” Hesse said. “It’s going to be your camera, your iTouch, your gaming device – they’re all going to become wireless, so what’s going to be the right plan for those? As we move into 4G, it’ll be much less about minutes and more about gigabytes (GB) as the main driver of what customers are buying per month, because it’s going to be VoIP-oriented. Minutes will be largely irrelevant. It’s going to be data-oriented. Customers may buy 100 GB of data rather than by month, they may buy monthly contracts or 1- or 2-year [contracts]. We want to have the flexibility — in wholesale and retail, prepaid and post-paid, with multiple brands — to move and morph, because business models are going to change…The biggest growth will come from non-traditional wireless devices.”

Blogging Telco 2.0: A way out of the “valley of death”

I’m spending the next few days in Orlando at STL Partner’s first Telco 2.0 show here in the U.S. The conference has quickly grown in influence as one of the industry’s go-to events for new thinking about telco service and business (and, frankly, survival) models.
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As Frontier awaits Verizon lines, cable guys pounce

Competitors are pouncing on Verizon Communications’ (NYSE:VZ) move to sell 4.8 million access lines to Frontier Communications (NYSE:FTR) in 14 states, reaching out to Verizon customers in those areas and urging them to switch providers before the network changes hands.

In particular, Comcast (NASDAQ:CMCSA) has been targeting customers in Washington and Oregon, according to Donald Shassian, Frontier’s chief financial officer. Those attacks are made easier by the high-profile service problems Verizon customers saw in the Northeast after they became Fairpoint Communications customers, in a similar transaction. Frontier says it knows how to avoid the problems that beset Fairpoint. But in the mean time, while its deal is still pending (perhaps until next summer), Frontier can’t fight back in the markets it has yet to acquire.

“We can’t force [Verizon] to come up with a new promotion or new incentives or change their marketing,” Shassian said at an investor conference this week. “It’s been challenging to compete against Comcast’s campaign like that. We can’t advertise in those markets because we don’t have regulatory approval. That [would be] poking a regulator in the chest. You can’t assume you’re going to get something. You’ve got to sit back on your heels and hope Verizon does their best.” more

Helping providers win at the marketing game - on demand

NextGen Marketing Group, a virtual marketing shop with very deep executive roots in the telecom industry, this week launched new suite of services to help its telco customers cut their marketing costs while keeping the marketing pedal to the metal. more

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