Mobile jamming returns

NY TimesLast Sunday’s NY Times carried an article about cell phone jamming equipment making its way into the US. It would be surprising if the equipment hasn’t leaked into Canada as well.

[Jamming devices are not permitted for sale or use in Canada. Their use, possession, sale, manufacture, distribution or importing would contravene sections 4 and 9 of the Radiocommunication Act.]

James Katz, director of the Center for Mobile Communication Studies at Rutgers University, provided an insightful quote

If anything characterizes the 21st century, it’s our inability to restrain ourselves for the benefit of other people. The cellphone talker thinks his rights go above that of people around him, and the jammer thinks his are the more important rights.

When this subject was examined by Canadian regulators five years ago, I recall hearing a radio interview with a thespian from the Stratford Festival whose support was being sought for silencing cell phones in the audience. The actor demurred, suggesting that the rare ringing during a performance was less of a distraction than people coughing, yet no one was calling for the audience to be subjected to a medical check-up before being admitted.

I tend to believe that jamming cell phones is not just illegal – it can endanger lives. What about simple common courtesy on both sides?

Your views?

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Continuing to connect the unserved

Just returning to the office after a few days in Atlantic Canada visiting with the team at Barrett Xplore.

I have spoken of Barrett many times in the past and I am on their advisory board.

Barrett Xplore continues to expand its fixed wireless footprint into underserved parts of Canada – its satellite internet service is already available everywhere. Fixed wireless solutions provide an even better broadband experience at a lower price point and with an easier installation.

Our vision is simple — more for rural Canada: more choice, competition, and availability of broadband access, applications, and accessories.

What is remarkable is that Barrett Xplore’s business plan isn’t predicated on government assistance or draws from the CRTC’s deferral account.

Policy makers need to ensure that government rural broadband strategies don’t serve to distort market forces and inadvertently damage the successful business that is allowing companies like Barrett Xplore to expand without handouts. Over the coming days, I will try to add some thoughts on possible alternate different approaches for policy makers to promote increased broadband adoption.

Could Apple bypass mobile carriers?

iPod TouchMy daughter couldn’t hold off any longer waiting for an iPhone. She is now a proud owner of an iPod Touch – and she loves the device.

Thanks to built in WiFi, she can use the device as an internet access terminal and do her emails as well as load up music and videos from within the university buildings or through other internet hot spots.

When you reflect on the alternate forms of connectivity that are built into these devices, and consider the way that people like Alec Saunders have avoided excessive roaming charges, you can see that the carriers have limits to their negotiating position with companies such as Apple or Google who are seeking a slice – a big slice – of the wireless pie.

It seems to me that all that is missing from the iPod Touch is a microphone and my daughter’s iPod Touch could become a WiFi enabled telephone. No carrier required. Would Apple consider such a strategy to bypass the carriers?

You know, ’tis the season for people to be shopping for new electronics. Even without the iPhone in Canada, there are lots of new phones appearing in ads and on the shelves of dealers for the upcoming peak shopping season. The LG Shine is now available from Rogers, Bell and TELUS – it looks like it is the RAZR for 2007. I stopped by a couple stores this past weekend and I noticed that the packaging for the new HTC Touch at TELUS stores was inspired by Apple. The bundle includes a hefty micro-SD memory card to help make this a hit with recipients of that gift box.

The industry is dreaming of a shiny Christmas.

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Wanted: a turbo charged iPhone

iPhoneA number of stories have emerged in the past few days about Apple’s discussions with Australia’s Telstra for the future launch of iPhone down-under.

One of the stories suggests that 20% of the iPhones sold so far in the US have been unlocked and moved to other carriers or exported to other markets. What does this mean for AT&T;’s reported revenue sharing with Apple? The mobile migration problem is certainly going to be a consideration for negotiations with carriers in other markets.

Another one of the reports suggests that Telstra would want Apple to introduce 3G capabilities to leverage the carrier’s ‘Next G’ network launch in 2008. iPhone currently operates at EDGE speeds in the US.

Telstra’s network also operates at a different frequency, so Apple would need to make some changes to the radio in order to launch in Australia. However, HSPA chipsets may have an impact the cost and power characteristics.

Consumers in many markets are getting used to the faster mobile internet experience enabled by 3G HSPA networks and Apple’s competitors are introducing an array of devices to deliver such capabilities.

When will Apple deliver an iPhone Turbo?

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Investing in arbitrage

A couple weeks ago, I was speaking with Howard Thaw of Iotum. Howard works with Alec Saunders and both have sung praises about a Montreal-based mobile services company that has been saving them money on their considerable cell phone bills. On Friday, Alec wrote about how he has found ways to save considerable amounts of money when travelling to VON last week, spending only $4.16.

Mobivox seems to be attracting some attention lately, with new funding and a new COO. A couple weeks ago, Mobivox closed $11M in funding from IDG Ventures, Brightspark and Skypoint. Last week, Mobivox announced a new COO, Nitzan Shaer, formerly of IDG Ventures and former head of Skype’s mobile products group.

I have been trying out Mobivox for the past couple weeks and I think it is an interesting application.

How does Mobivox work? When you sign-up, you build an address book. The system can help by importing your Outlook, Gmail or Skype contacts. Then, you place a local call to the Mobivox access number nearest you – there are access numbers in major cities in 36 countries already. You speak to an automated attendant and just say the name of the person you want to reach.

If that person is a Mobivox or Skype user, the call is free. Well, for the cost of an outbound local call. Of course, there are lots of mobile calling plans out there that would allow customers to make their Mobivox access number one of their unlimited free destinations, such as Rogers My 5 or TELUS’ My Faves .

If the person you are trying to reach isn’t a Mobivox user, the call goes through at rates we have come to expect from VoIP. If you live in a place where there isn’t an access line, there is a call-back option – just send a text message and the system calls you.

Now, I have never been crazy about investing in arbitrage – at some point, the cellular companies will decide that they don’t really need 97% margins on their long distance calling rates and make North America part of their local calling. Say good bye to long distance arbitrage.

On the surface, Mobivox is just a sophisticated prepaid card / call-back company for mobile phones. Only worse for investors – a lot of the calling is for free. I seem to remember from the demand curves in my first year Economics course that it is easy to attract customers when the price is zero.

So how does Mobivox move onto the radar screens for venture capital? How does the business plan to make money?

Look at the marketing approach. Part social networking. Part viral. Look at the intelligent interface with voice recognition that drives enhanced features. Instant conference calling. Instant group calling. Transfer calls in progress from your mobile phone to a fixed line. Convenience features that will still be valuable to end users even when the savings aren’t as important.

All of these capabilities could be offered by the carriers, if they wanted to. That is a big “if”, because it puts LD revenues at risk, with an uncertainty that the elasticity will drive sufficient increases in total airtime to make up for the potential revenue shortfall.

That day will come. In the meantime, Mobivox is building out a global following. There are lots of places on the planet to arbitrage mobile long distance, even if carriers in any one country try to cut down the opportunity.

That is precisely what Hutchison appears to be doing with a recent announcement from 3UK, its upstart operating unit in the UK. In a deal done directly with Skype, 3UK is offering free calling and free messaging between Skype branded customers. An interesting acquisition strategy – but how do they make money?

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