Verizon Wireless recently released its Q4 2009 revenue, boasting impressive mobile data and SMS/MMS usage numbers as well.  The company reported full-year mobile data revenues of $16 billion, up 31% over 2008, and representing 31.9% of Verizon’s total Q4 2009 revenue- a 26.5% increase over Q4 2008.

Even more impressive is the amount of SMS/MMS messages flowing through Verizon’s network.  During the fourth quarter alone, Verizon Wireless subscribers sent or received more than 162 billion text messages, more than 4 billion picture/video messages and more than 38 million music and video downloads.

Verizon has arguably worked the hardest on strengthening its mobile data services in preparations for the massive growth coming down the pipeline, and the numbers the company is posting is evidence of that.  Mobile data consumption accounted for over a third of Verizon’s total revenue in Q4, proving that a shift in the way mobile networks are utilized is happening quicker than anticipated.  Long past are the days were wireless carriers only have to worry about providing the best voice coverage- mobile data is the area were competition will thrive between carriers.

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Airvana, a mobile broadband solutions company, has conducted some interesting research regarding the effects of smartphones and their data-intensive nature on wireless broadband networks.

Through its research, Airvana identified a significant mobile network “load multiplier effect” caused by smartphone data traffic on the macro-cellular network.  Airvana engineers comparing data use profiles found that for a given volume of data transmitted, one smartphone typically generates eight times the network signaling load of a USB modem-equipped laptop. Although smartphones may only account for a minority percentage of all devices on operator networks today, they’re always on, moving between cell sites and continually ‘polling’ the network.  As a result, smartphones are already responsible for the majority—two to three times as much as laptops—of the total signaling activity.

Put simply, the nature of smartphones – with their mobile Web-focused design and always-on capabilities are swallowing bandwidth faster than any other device in use on wireless networks today- eight times more than a laptop pulling the same bandwidth from a USB-based mobile broadband connection.

“Conventional wisdom has been that data traffic produced by laptops equipped with mobile broadband was the culprit when looking at the impact on the network,” said David Nowicki, vice president, Marketing and Product Management, Airvana.  “The industry is just now beginning to understand the real impact of smartphones on network performance and we’re finding that their effect is distinctly out of proportion to the amount of data they transmit and receive.”

Read the rest

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AT&T has announced that the release of the latest iPhone 3.0 firmware has lead to a dramatic increase in its WiFi hotspot usage.  Use has increased nearly 41% over the previous quarter, according to AT&T.

The major reason for such a spike, is the fact that the 3.0 firmware update included an easier way for users to login to freely available hotspots sponsored by AT&T at places like Starbucks, McDonalds and other public places.

Before the update, users had to enter their phone number, recieve an SMS message with an embedded link, and click the link to be logged into any WiFi network.  Now, the iPhone will automatically detect and log a user in automatically.  This ease of connection has resonated with consumers, and usage is finally taking off.

AT&T, and other carriers, have been introducing massive WiFi networks to its customers using smartphones in an attempt to save bandwidth on their 3G networks.  AT&T in particular has a major need for this shift, given that increased iPhone saturation is putting a major burden on its network.

Any attempt to get users off its network and using WiFi is a win for AT&T- and it’s doing a pretty good job at it.  The company said it has already had 25.6 million WiFi connections for 2009, which already surpasses the 20 million times the service was used in all of 2008.

It’s a relatively smart move for a company that’s been receiving plenty of bad press regarding its weathered 3G network and its surge of iPhone data usage.  By covering as much ground as possible with WiFi, AT&T is making sure it’s network remains strong- but will it work?  Early reports say it’s helping more than expected, but we’ll have to wait and see.

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AT&T again announced recently that it plans to double the speed of its 3G network in the near future from the current 3.6M to a hefty 7.2M, while laying the groundwork for its upcoming conversion to LTE 4G speeds by 2011.

The increased speed is courtesy of an upgrade to its network to High Speed Packet Access (HSPA) technology later this year, but will speeds actually peak at what’s promised? Many still believe it won’t. In the past, promises of 1.7M and the current 3.6M speeds have proven controversial, and have even resulted in AT&T and Apple being sued for not delivering on its promises when the original iPhone debuted.

Last June, AT&T said that it had already upgraded its 3G network to reach peak speeds of 1.7M. This past April, the company said that it was doubling its 3G capacity to reach peak speeds of 3.6M, but in reality, many people are still only seeing speeds in the range of 500-700Kbps. A recent survey by Gartner Research showed that all four major U.S. carriers’ 3G networks failed to deliver on customers’ expectations for data rates. Gartner said that it received the most complaints from users about AT&T’s network and that actual mobile network averages are “generally between 300Kbps and 700Kbps lower” than expected for both uplink and downlink speeds

For a 3G network that AT&T has spent an estimated $20 Billion on to build out over recent years, you’d think it could handle the speeds that have been promised. This most likely will come with the transition to LTE technology which is poised to delivery true “mobile broadband” speeds that many have been wishing for, including me. I guess only time will tell.

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With the onset of mobile broadband from almost every carrier, will Wi-Fi still have its place in the market?  Will it truly be needed once a broadband connection can be used- not only at home and in the office but everywhere else as well?  The wireless carriers say yes.

Beyond that, carriers are making strides to partner with broadband providers to offer access to hotspots all across the country in hopes of subsidizing their own networks and providing coverage in areas where mobile broadband signals aren’t the strongest.

Qwest, for example, has partnered with AT&T to offer its high-speed Internet subscribers free access to over 17,000 hotspots, it said recently, and Verizon Communications is getting ready to partner with Boingo Wireless to do the same.  Carriers and broadband providers alike believe Wi-Fi will always maintain its relevancy due to cheaper international data roaming, much better indoor coverage and the ubiquity of built-in support for the technology.

No matter how advanced and ubiquitous mobile broadband becomes, Wi-Fi will always compliment it nicely due to several advantages. Read the rest

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Ever hear of Xanadoo? I read about them on Information Week earlier today (here). They’re carving out a nice niche for themselves. They’ve partnered with Navini to provide and deploy a Mobile WiMAX solution for rural markets where traditional network connectivity just doesn’t exist. Xanadoo provides the modems and network connectivity and Navini is providing the mobile wireless network infrastructure.

Last week Xanadoo reported 12,000 subscribers in 4 rural markets! It’s easy to see why this is an attractive offer for consumers that are unable to get DSL or Cable. Xanadoo has consumer friendly mobile internet service plans and a dirt simple zero install plug and play wireless modem.

• 5 desktop modem plans (no phone or cable service requirements)
• A PCMCIA plan
• A low end plan that starts at $14.95 per month
• No annual service plan options

Naturally, not all customers are on the $14.95 plan, do the math, these folks are generating some revenue in just 4 markets. They have 2.5GHz licenses in the following markets which covers 8M people.

• Texas
• Arkansas
• Illinois
• Kansas
• Minnesota
• Missouri
• Nebraska
• Oklahoma
• West Virginia

They’re barely scratching the surface with 12,000 subscribers and have a great opportunity to grow considerably.

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If you’re a mobile broadband geek you might want to check out WiMAX World which is set to kick off later this Month in Chicago. I know some folks that I work with that should be attending this thing but I just found out about the show tonight. It’s being billed as the world’s largest Mobile/Wireless Broadband Event focused on WiMAX.

Though this page indicates 3,700 attendees, it’s actually over 4,300 now according to the graphic on the home page. Here’s the WiMAX World conference schedule and you can pick up a free WiMAX World Expo Pass too.

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