Friday, August 28, 2009
FCC Votes Unanimously to Make Wireless Industry’s Life a Living Hell
It’s going to be a rough couple of months for the wireless industry. As expected, the Federal Communications Commission on Thursday approved a broad inquiry into the wireless market. In a unanimous vote, the agency’s five commissioners–three Democrats and two Republicans–approved two so-called notices of inquiry, one that will examine competition and innovation and another that will evaluate truth-in-billing practices.
Who will win the gaming console price war of 2009? Consumers. Two weeks after Sony lowered the price of the PlayStation 3 to $299 from $399, Microsoft did the same for the Xbox 360 Elite, slashing $100 off the price of the console. In addition, the company cut the price of its now discontinued Xbox 360 Pro console by $50 to $249.99, while supplies last. 
The Open Book Alliance–or “Sour Grapes Alliance,” as Google likes to call it–formally launched Wednesday afternoon, debuting a new Web site, as well as the manifesto with which it is challenging Google’s settlement with authors and publishers.
Can this really be true? Vonage posted another quarterly profit? Indeed it is. The Internet phone service provider reported a second-quarter profit of $2.3 million, or a penny a share. Wall Street had been expecting a loss of three cents a share. Great news. Sadly for Vonage, it was tainted by an increase in subscriber defections. 
“This is the one that stuns me, that people haven’t figured it out,” said Microsoft CEO Steve Ballmer this morning in Redmond at the company’s annual Financial Analyst Meeting, truly surprised at Yahoo investors’ negative reception to the Microsoft-Yahoo deal. How to convince them otherwise? Not to fear, Steve! The Microsoft-Yahoo propaganda machine is in full swing and has already produced its first talking-points docs.
The consolidation of the prepaid cellphone market has begun in earnest. This morning, Sprint Nextel said it will acquire Virgin Mobile USA in a $483 million stock deal that will give the company a clear lead in the prepaid arena, where low prices are becoming ever more popular with consumers beaten into submission by the continuing recession.
Despite all its threats and protestations, Microsoft has finally capitulated to the European Commission’s demand that it bundle rival Web browsers along with Internet Explorer in Windows 7. “Microsoft has proposed a consumer ballot screen as a solution to the pending antitrust case,” the Commission said in a press release. Microsoft, for its part, says the move is a “big step forward.”
Devices “falsely pretending to be iPods” can once again sync with iTunes, whether Apple likes it or not. Palm this evening released an update to the Pre’s webOS operating system that restores the iTunes syncing ability that its Cupertino rival disabled only last week. 
The mobile application market is clearly a large and growing one, but will it someday be “as big as the Internet”? According to independent app store GetJar, it will. In an interview with BBC News, GetJar CEO Ilja Laurs said the next decade will see such massive growth in the market that apps will rival the Web in popularity.
“We will enter Asia with the iPhone in 2008,” Apple COO Tim Cook declared in March 2008. “And we will one day enter China, we’re not saying when.” How’s September of 2009 sound? Because China Business Network claims that China Unicom and Apple have finally inked a deal that will bring the iPhone to the country around that time.
Consumers may have trouble distinguishing netbooks from notebooks, but that’s clearly not preventing people from buying them. DisplaySearch, an NPD Group subsidiary, estimates that netbooks will claim a 20 percent share of the world-wide market in 2009. 
Amazon hasn’t said how many Kindles it has sold since launching the device in 2007, but it may soon be selling quite a few more of them. The company today dropped the price of the six-inch Kindle to $299–$60 off of its previous price. That’s certainly not a dramatic reduction, but it may be enough to drive consumers who’ve held off on purchasing the device to reconsider.
Here’s an interesting metric: Apple’s Web site last month drew more than 55.7 million unique visitors, more than the site of any other computer hardware manufacturer, according to a report released this week by Nielsen Online. The number of visitors was more than double that of Hewlett-Packard, which drew 21.9 million people, and triple Dell’s, which drew 16.8 million.
