Virtua Team Talk

The telecoms regulator, Ofcom, has just launched a “consultation” on how best to sell off the rights to the next generation of mobile wireless networks. The auction of the fourth generation or “4G” spectrum is going to be the largest ever – equivalent to three quarters of the mobile spectrum that is in use today. The auction is planned to start in the first quarter of 2012.

The last time an auction was held was in 2000 for “3G” and it raised a staggering £22.5bn for the Treasury so there is already a lot of attention being paid to the launch of 4G. However, most carriers and observers believe that operators overpaid for those licences and were then unable to invest in the infrastructure as a result of paying such extortionate fees. The simple fact is though consumers are demanding more bandwidth to fuel their insatiable desire for information.

The additional spectrum to be sold off promises faster speeds for downloading data – such as movies and music to phones and similar devices as more capacity is made available for all the networks. Smartphones such as the iPhone, Google Android and other tablet devices are big users of bandwidth, which means there has been a squeeze on what is left.

The sections of the spectrum being sold, at the 800MHz and 2.6GHz bandwidths, will include parts of the wireless spectrum historically used by analogue TV which is being switched off as digital is rolled out.

According to Ofcom Chief Executive Ed Richards, “The auction is not only critical to the future of the UK mobile telecommunications market but it is also of significant importance to the wider economy. It will support a wide range of data services that are fast becoming essential features of the modern world.”

Ofcom has already allowed some mobile phone carriers like Vodafone and O2 to use parts of the old 2G network until more of the spectrum is made available leading to UK network making a complaint. ‘Three’, the country’s smallest mobile phone operator is understandably concerned that its rivals will outbid it at auction, buying up larger slices of the available bandwidth and potentially squeezing Three out of the market altogether. In response the regulator has said it would impose a cap on the amount of new airspace companies could win at the auction in order to ensure fair competition and give consumers more choice.

Interestingly Ofcom said it would make any successful bid conditional upon a licensee agreeing to extend their coverage to 95% of the UK population. Current mobile coverage, particularly 3G coverage, is less available in rural areas than in urban areas so Ofcom has made it clear that it wants more “uniformity of coverage” for 4G services.

For those of us who remember the fanfares for 3G the launch of 4G is just another example of ‘bigger, faster, more’ that describes our obsession with mobile data. What I’m beginning to wonder is ‘where will it all stop’? Some of us are already drowning in a deluge of electronic information and it shows no sign of stopping.

But the demand continues to grow and there is no stopping progress. For those of us who work in the mobile phone industry it’s actually good news because it brings great new opportunities to develop and grow our business – and that means jobs and more security of employment.

Surely it will be only a matter of time though before the Holiday Operators start to advertise ‘mobile phone free’ holidays for those of us drained by information overload? I hope so because I’m tempted to book up straight away – before the 4G orgy begins!

You might have seen in the news last week that Microsoft has launched “Windows Phone 7” in an attempt to break into the lucrative smartphone market. Many have been surprised that until now the company has failed to provide a credible challenge to rival operating systems from Apple, Google, Research in Motion and Nokia but all that is about to change. In fact, mobile phone operators predict smartphones could have a 70% market share in just three years.

Microsoft claims it has made Windows Phone 7 more user-friendly by rebuilding the operating system from bottom up. The phone uses a concept of ‘hubs’ that aggregate content like contacts, pictures, music, video and documents. The content on the phone is then synchronised with both storage services on the internet as well as the owner’s computers at home. In the UK the phone launched on 21st October and will eventually extend to 60 operators in 30 countries.

Previous Microsoft phones have failed to make an impact with customers due to their limited functionality, complex user interface and a lack of applications which resulted in a steady loss of market share. The new Windows 7 mobile phone software though, is very different from Microsoft’s previous attempts and is much more intuitive – like Apple’s iPad.

Andy Lees, the head of Microsoft’s mobile phone division said the phone marked “a new beginning” with his team building both a new operating system and a new user interface in just 18 months. He also promised that many new and exciting applications will become available when the Windows 7 Phone hits the market this month with many more still in the pipeline for approval. Key apps like Twitter, eBay, Facebook and railway timetables though, have been fast-tracked to be ready for launch.

Tony Cripps of technology consultants Ovum commented “There is a huge amount resting on the launch of Windows Phone 7 for Microsoft, its device and operator partners, and for the ecosystem market in general and if it fails to claw back market share lost to iPhone and Android, then Windows Phone 7 may well mark the point at which Microsoft turns its back on smartphones forever.”

Microsoft though is very enthusiastic and confident about their new offering. The software will be launched with phone makers who have experience building phones for the Windows mobile platform like Samsung, LG and HTC as well as computer maker Dell.

As the boundaries between phones, computers and pda’s blurs even further it is exciting times for communications technology and Virtua are pleased to be at the forefront of the revolution. In the final analysis technology in isolation is nothing without the people that make things happen. Without good people concepts would never turn into tangible results and this is the vital ingredient that it is important we focus on in an increasingly wired world.

Although India is viewed as a huge potential growth market for smartphone and mobile devices recent concerns about national security are changing perceptions about the way such devices are used. In the last few days India has given Blackberry phone maker RIM a deadline of 31st August to give the government access to all of its services or face being shut down.

According to the Financial Times the country is also reported to be considering similar bans on Skype and Google services. In response to India’s concerns RIM has clarified the principles which underpin any request for access to data sent and received by Blackberry handsets but said it is unwilling to do ‘special deals’ for particular countries.

The issue is that India fears the device could be used by militants and insurgents in a repeat of the 2008 attack on Mumbai that left 166 people dead. The United Arab Emirates (UAE) was the first country to propose a block on the devices claiming they posed a “national security risk” because of their ability to send messages and e-mail without the governing authorities having the facility to monitor the communications. The row is the latest in a long running dispute between Research in Motion (RIM) and international governments.

It seems that the central issue is all about whether or not governments should be able to monitor the encrypted traffic from Blackberry devices and if so, how this could be done.

Although India is the latest country to enter the fray following the UAE’s lead, Lebanon, Algeria, Saudi Arabia and Kuwait have also expressed similar concerns with analysts expecting more to follow suit.

RIM’s CEO, Michael Lazardis, defended BlackBerry’s position saying that India’s concerns risked undermining the growth of e-commerce and added “This is about the internet. Everything on the internet is encrypted and if they can’t deal with the internet, they should shut it off.” Mr. Lazaridis said that his devices were being unfairly singled out by foreign governments who were out to score political points and while he would not comment on the status of individual negotiations, be believed a mutually agreeable settlement could be reached.

Government officials in India said that if no solution between themselves and RIM was found, then they would ask mobile phone operators to block Blackberry’s messaging and e-mail until RIM provides access to data transmitted over the handset. Working in the mobile Telecoms arena I can fully understand both sides of the argument. Clearly national security is very important and having the facility to monitor terrorist activity is an enormous advantage for the security forces. Equally, it is reassuring to know that personal privacy is respected by the Telecoms industry rather than having to live in a ‘Big Brother’ society where all personal business can be closely monitored by the government should they wish to ‘spy’ on your activities.

Whilst there is no easy answer I believe that ‘compromise’ has to be the way forward. In an uncertain world there is ample justification for monitoring crime and terrorist activity but not at the expense of civil liberty. Maybe the issue is really about having the necessary regulations and facilities in place to enable access to sensitive data when it is fully justified but not in a way that is open to misuse. There are also some religious and cultural issues that need to be factored in.

Everyone will have their own view on the pros and cons of this. The debate over the privacy of communications and national governments wish or need to be able to monitor communications has been with us for some time. It was ever thus. It’s always been a challenge for governments, law makers and the privacy lobby to keep pace with technology. I wouldn’t presume to see a way through that debate, but It’s pretty clear that the law makers and privacy guardians need to continue to find a way; and to continue to adapt fast. Technology like evolution, just keeps progressing.

If you are thinking of investing in a smartphone then in many ways you are spoilt for choice. The problem is that there are numerous types of smartphone to choose from and it is easy to get confused by the plethora of models and features. There are, however, only two ‘celebrities’ in the smartphone marketplace, with both currently battling for supremacy – the sophisticated Blackberry and the iconic iPhone.

Yes there are some other great smartphones out there including the HTC powered by Google’s Android mobile OS. Palm is back in the game with the Pre, Samsung have launched the ‘Jet’ and there is also Microsoft’s ‘Windows phone’. But somehow all these great phones still fall within the shadow of the cool, sensuous Blackberry and the mighty iPhone.

So if you have set your eyes on the two hottest smartphones on the market how do you possibly choose between them? iPhone or Blackberry? An “impartial” observer would probably rate it a dead heat but few of us are truly impartial and we all have an allegiance to our favourite. If you are really stuck though here’s a few of my thoughts to help you make your mind up.

Firstly, as we’ve come to expect from Apple, the design and aesthetics of the iPhone are unrivalled and the user interface is slick, intuitive and responsive.  The on-screen touchpad keypad takes a little practice to get used to though, and some users will always prefer the more tactile feel of a real qwerty keyboard as found on most Blackberry models.

When it comes to apps the phone clearly wins hands down based on the range and sheer volume of apps available, usually at very reasonable prices.  OK, there are plenty of “dross” apps available but there are also some really useful gems to track down too. For web browsing, the safari browser supplied with the phone is difficult to beat and if you are fond of social networking (Face book, Twitter, etc) the phone appears to win hands down.

The Blackberry, in contrast, remains a firm favorite for corporate users because of improved integration with corporate networks, ease of management, exchange & MS Office integration and secure networking features.  For the installed base, corporations have made significant investment in integration of Blackberry with their corporate networks/IT systems and there will be a resistance to ditch this investment in the near term (regardless of the merits of iPhone or Blackberry) Both phones are fully capable of supporting email, although Blackberry’s qwerty keyboard is generally more easy to use than iPhone’s touch screen and in my opinion wins out for very heavy email users.

So in summary the main purpose of the iPhone is for personal use, web surfing and apps, rather than emails and calls, and the Blackberry is generally perceived to be a better business tool than the iphone.

But, at the end of the day, in terms or quality there’s not a lot to choose between them and the jury’s still out.

For me, I’m still hanging on to my Blackberry. Biased? Yes, probably!

“This new generation of phones have so much power in them, so many activities, so much information that it is the defining new category for our industry” Eric Schmidt, Google Chief Executive.

In some ways the mobile phone industry is going through one of those technology shifts like the one that happened in the 90’s. Nokia was the first to realise that kids thought mobile phones were as much a fashion accessory as a communications device.  That paradigm shift is happening again now as “smart phones” start to become more and more useful.

This time, though, the shift is affecting more than just the mobile phone industry. Smart phones and tablets are going to affect the computer business as well.

It’s two years since the iPhone was launched and it’s certainly changed the way in which people use hand held devices. As I talked about last week, it’s even changed the way quizzes are conducted at the local pub.

Some say that the success of the iPhone is down to the huge range of interesting applications that are available for it. It’s claimed that whatever you want to do there is an app for it. In some ways they’ve copied the very successful model Microsoft used against Apple in the early PC market place. Bill Gates always said that he considered the contribution of Windows as an application development environment to be much more important that its role as a user interface or an operating system. In other words, get great apps developed for your platform and you will win. It worked then and it seems to be working now.  The success of Apple’s ‘app store’ is testament to that. The store – which now boasts 65,000 apps and over two billion downloads, is now making serious money, but more strategically it’s making it harder and harder for rivals to compete.

So is the iPhone the end of the story? I don’t know. I think that the ‘form’ factor of devices will continue to change. I’ve long thought that in the fullness of time we will still all have two devices. We’ll have something “consciously portable”, which will probably resemble an A4 piece of paper. Why? Well, the paper business has had plenty of time to evolve to a size that humans feel comfortable to write on and carry. People don’t carry A3 notebooks, and only reporters’ carry A5 size ones. Your other device will be “unconsciously portable”. You won’t know you’re carrying it – and something about the size of a credit card seems about right.

I might be wrong about this ‘form’ factor thing, or even about the role applications play but I’m interested in this topic because it supports the view, which does matter, that the days of desk bound computers and phones are over.