Sunday, August 17, 2008

Buzz of the week: 11-Aug-08

1. App store download exceed 60M in the first month

Consumers have downloaded more than 60 million iPhone applications in the month since Apple opened the App Store, the computing giant's CEO Steve Jobs revealed in an interview with The Wall Street Journal. While a majority of the applications were free, Jobs said that Apple still sold an average of $1 million a day in iPhone apps, generating about $30 million in sales so far--if sales continue at their current pace, the company is poised to earn at least $360 million in new revenue from the digital storefront. "This thing's going to crest a half a billion, soon," Jobs said. "Who knows, maybe it will be a $1 billion marketplace at some point in time. I've never seen anything like this in my career for software." But Jobs said Apple stands to derive minimal direct profits from the App Store, claiming the 30 percent of application proceeds the firm retains are just enough to cover operating expenses. Jobs said iPhone application earned about $21 million during the first month, with the top 10 developers raking in roughly $9 million. He declined to update sales totals on the iPhone 3G itself. More here.

2. US: Mobile data market grows by 40 percent

The U.S. wireless data market grew 40 percent in the second quarter compared to year-ago totals, generating $8.2 billion in data revenues, according to a new report issued by advisory firm Chetan Sharma Consulting. Mobile data has now yielded $15.7 billion in the first six months of 2008, a 38 percent increase over the first half of 2007 and on pace to reach $34 billion for the year.
Some Q2 highlights:

  • Overall ARPU among U.S. operators increased by $0.46, with average voice ARPU declining by $0.05 while average data ARPU grew by $0.50.
  • Verizon Wireless leads in data ARPU with $12.58 (or 24.4 percent of total revenues), followed by Sprint at $12 (or 21.4 percent), AT&T at $11.59 (or 22.9 percent) and T-Mobile USA at $8.60 (or 17 percent).
  • Verizon generated an industry-record $2.6 billion in data revenues, followed by AT&T at $2.5 billion. Both operators are on target to exceed $10 billion in annual data revenues, and together they account for 62 percent of the U.S. market's total data services revenues.
  • Non-messaging services account for 50 percent to 60 percent of U.S. operator data revenues.
  • Venture investment in mobile is on the decline--during the first half of the year, private wireless firms announced $1.8B in 173 financings, compared to $2.7 billion in 209 financings over the first six months of 2007.
More here.

3. Study: 56 percent of consumers have never viewed mobile video

While video-capable mobile handsets are now present in nearly one-third of U.S. households, 56 percent of consumers have never viewed mobile video content according to a new study issued by market research and consulting firm Parks Associates. The report argues that mobile video is largely the victim of a chicken-and-egg dilemma: Consumers are reluctant to pay for a new, unfamiliar service, but will remain unfamiliar with mobile video until taking the plunge. Parks Associates suggests mobile operators can solve the problem by offering more mobile video programming for free, contrasting the success of free mobile TV efforts in Japan and South Korea with disappointing uptake for premium services in the Italian market. More here.

4. T-Mobile to launch first Android phone in late'08

T-Mobile USA will debut the first mobile handset based on Google's Android operating system, The New York Times reports. Citing unnamed sources briefed on the operator's plans, the NYTYouTube video, and according to the report, a person who has seen the Dream up-close confirmed it is indeed the same phone depicted in the video. The retail release date of the HTC Dream hinges in large part on the device and the Android OS earning network standards certification from the Federal Communications Commission--execs from T-Mobile, Google and HTC all hope to officially announce the Dream in September in an effort to cash in on the lucrative holiday season. The Dream is expected to be the sole Android-based device released in the U.S. during the remainder of 2008. More here.

5. Leap and others ask FCC to deny Verizon/Alltel merger

Leap Wireless along with a group of rural carriers and associations including the Rural Telecommunications Group, NTELOS, SouthernLINC Wireless, SpectrumCo, the Organization for the Promotion and Advancement of Small Telecommunications Companies (OPASTCO), Mobi PCS, Revol Wireless, LCW and Denali Spectrum have petitioned the FCC to deny the proposed merger between Verizon Wireless and Alltel.

Leap and the other parties argue that the merger reduces the competitiveness of the wireless industry by eliminating a major regional carrier, exacerbates roaming issues by having fewer major roaming partners (particularly for CDMA carriers), and allows a mega-carrier to increasingly control spectrum.

Leap asks the FCC to do the following before it approves the merger: revise the existing Roaming Order by eliminating home roaming and "in-market" exclusion and initiate a rulemaking on spectrum caps. More here.

Thank you very much,


RamP!

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