Author: Robert Andrews

  • iPad: Overseas 3G Deals Unclear Until At Least Summertime


    Steve Jobs Holding iPad (from gdgt)

    Steve Jobs just announced Apple’s new iPad line-up will include a 3G version that will be carried by AT&T (NYSE: T) in the U.S. – but no international deals appear to be in place and would-be owners elsewhere will have to wait a couple of months later.

    We hope to have our international deals in place in June/July time – we’re starting on that tomorrow,” Steve Jobs told journalists in San Francisco. “However, all iPad 3G models are unlocked and use new GSM microsims… internationally, if any carriers offer microsims, they’ll just work. We’ll be back this summer with other carriers offering deals internationally.”

    This somewhat mimics Google’s Nexus One launch, which debuted earlier in January with a discount on a T-Mobile USA contract but which won’t be available in Europe until Spring – but, unlike Apple (NSDQ: AAPL), at least Google (NSDQ: GOOG) already has one partner carrier lined up, in the shape of Vodafone.

    Amazon (NSDQ: AMZN), too, has exhibited a half-assed approach to European roll-out of the Kindle, which will now face a good challenge from iPad everywhere. It’s shipping to the UK from the U.S., priced in dollars, with a U.S. power plug and involving roaming, not domestic, mobile deals. Clearly, Apple has no European carrier partners to announce right now – but if it can get a proper local launch in order, it will pose an even bigger threat to Kindle in Europe than it now will in the States.

    Apple may face a challenge convincing carriers to accept iPad’s terms. In the U.S., the 3G versions of the gadget will come with “two awesome plans” ($14.99-a-month for 250Mb of data and $29.99-a-month for unlimited data) – but “there’s no contract, you can cancel any time you want”, Jobs said – a far cry from conventional mobile contracts, which have grown from 12 to 24 months in the last couple of years. And these prices are a hefty discount on the $60-a-month that Jobs said is common to U.S. unlimited-data contracts. Will carriers maintain their own long-term contract structure, or will they switch to month-by-month contracts just to get their hands on the hot new machine?

    iPad is coming to the 3G market with iPhone’s exclusive partner, AT&T – but iPhone exclusivity in the UK has now given way to deals with Orange, Vodafone (NYSE: VOD) and even Tesco Mobile. And the delay to the iPads that can take 3G SIM cards doesn’t mean other flavours of the device won’t be available internationally at launch. An alternative version that packs only WiFi looks perfectly sexy; Jobs said there would be “worldwide availability of the WiFi models” “in 60 days”.

    3G versions won’t ship at that time even at home in the U.S.: “It will take us probably another 30 days beyond that to get it through the process with the carriers – so in 90 days we’ll be shipping 3G models with the carriers,” Jobs said.

    The pricing starts cheap…

    —Non-3G models at $499 (£309) for 16Gb, $599 (£371) for 32Gb and $699 (£432) for 64Gb.
    —3G-enabled iPads will be $629 (£389) for 16Gb, $729 (£451) for 32Gb and $829 (£513) for 32Gb.

    “We had a very aggressive price goal – we want to put this in the hands of lots of people,” Jobs said. But no international pricing was initially announced and my currency price conversions are likely to end up more expensive upon the eventual European release – all Apple products tend to come at a premium in Europe.

    “International pricing and worldwide availability will be announced at a later date,” according to the press release, which Apple only published on its main U.S. site. “iBookstore will be available in the US at launch.”

    Related


  • Vodafone Claims 450,000 Music Subscribers


    Vodaphone Sign

    No single kind of digital service is going to save the music business on its own, but every little helps. Doing its bit, Vodafone (NYSE: VOD) came to the Midem music-biz event having totted up the number of paying customers it has for unlimited subscription music – the model that offers perhaps the most likely salvation…

    The result: 450,000 around Europe. That makes it the continent’s biggest subscription music operator, it claimed (Spotify has just over 250,000, it said during the conference, and is looking to provide its service to mobile carriers). Voda attracted 100,000 music subscribers in December alone, it said at the event in Cannes.

    The telco first started offering unlimited, DRM’ed music downloads for £1.99, via subscription-music vendor Omnifone’s MusicStation service, in September 2007, so has been in the game a relatively long time, but it’s recently started concentrating again on a la carte downloads, striking deals with major labels to remove DRM. That allows is to offer a bundle of 10 MP3s a month to consumers – an offering that labels have made standard to many retailers.

    Voda’s DRM-free repertoire is only about two million, the music industry has digitised some 11 million tracks, but Voda says will have six million soon. Numbers on Nokia’s Comes With Music service are unavailable.

    The promise of subscription music services excited music industry folk in Cannes this week.


  • Tap’s Revenge: Profiting From Pirates; Shazam Booming, Too


    Tap Tap Revenge

    iPhone app piracy may have cost Apple (NSDQ: AAPL) an estimated $450 million (really?) – but mobile pirates may also provide app developers with a rich new income stream, according to a fascinating insight from the stage at the Midem music conference in Cannes…

    Rhythm game Tap Tap Revenge saw 2.5 million downloads in its first two months – but a million of those were pirate downloads, Tapulous business development head Tim O’Brien told delegates.

    But that’s okay. “We know who they are,” O’Brien said, adding that many of the pirates are now buying virtual goods and legal music downloads within the app.

    We’ve started running ads to the pirate users more aggressively.  Some of those users, because we sell virtual goods, have become high-volume users.” Now Tapulous has 25 million unique users and has been profitable since June.

    Panelists – from music labels and the mobile app world – were united in their affection for in-app purchasing, which they said gives publishers more pricing flexibility than app stores’ billing engines allow.

    For one music app, it’s proving remarkably successful. Shazam is now identifying two million songs every day and is converting 13 percent of them in to actual song purchases, CEO Andrew Fisher said. In other words, Shazam is sending a whopping 260,000 paying customers every day to affiliate partners like iTunes.

    “And it’s growing,” Fischer said. Already beyond 50 million users, it’s picking up another 750,000 new users every week. “When we launched Encore (the new premium version), we haven’t seen one single instance of piracy, which has surprised us given how much we’ve shipped in to the marketplace.”

     

     

     

    Related


  • ESPN Follows UK Portal With Mobile Sites, Racing-Live Revamp


    ESPN corridor

    Next stop in ESPN’s European odyssey – new mobile versions of two of its sites. Rugby site ESPNScrum.com and motorsports site ESPNF1.com get the mobile web treatment.

    The latter is the rebranding we anticipated following ESPN’s acquisition of Racing-Live.com in August 2008. One by one, ESPN (NYSE: DIS) has renamed sites it’s bought with its “ESPN” prefix… ESPNSoccernet.com, ESPNScrum.com, ESPNCricinfo.com, so it’s no surprise that the Racing-Live.com brand, which was started in 1995, has been killed off.

    It comes a week after ESPN launched the the UK-facing content portal, ESPN.co.uk, we first revealed in September it would create to go along with its new UK soccer and other TV rights.

    ESPN holds no online broadcast rights in Britain, but, after several months using its .co.uk merely as a shop window for its pay-TV products, it’s begun publishing textual news stories of its own, some wire copy, plus scores and fixtures from its existing content.


  • Sony Ericsson Hurting From Touch-Screen Migration


    Bert Nordberg, Sony Ericsson's President

    More job cuts are coming, Sony (NYSE: SNE) Ericsson (NSDQ: ERIC) president Bert Nordberg warned, announcing horror-show Q4 and 2009 earnings blamed partly on customers flocking to touchscreens.

    Continued cost saving activities and resource realignment are necessary in order to build a leaner, more efficient organisation,” Nordberg (pictured) said in the announcement.

    Q4 phone shipments were three percent back up from Q3 (thanks to Satio and Aito models) – but they join company revenue in being a horrible 40 percent below last year. This is “mainly due to a downturn in the global handset market and a faster than anticipated shift to touch screen phones in the mid-priced sector of the market”.

    Annual losses ballooned from €73 million ($103.1 million) in 2008 to €836 million ($1.18 billion) in 2009, though Q4 losses were largely stable from Q3 at €167 million ($236 million).

    Sony and Ericsson had to step in last year to pump €175 million each in to the handset maker, part of a €455 million ($642.8 million) refinancing program. The company has used up €255 million of it.

    It’s still in the middle of a 18-month-old restructuring to shave €880 million ($1.25 billion) off costs that has seen it cut its workforce by 2,500 to 9,100. So far, the restructuring has already cost it €339 million and the effects won’t come down the pipe until this summer – but the company says total layoff costs will be “well within” a budgeted €500 million.

    Sony Ericsson reckons the market for mobiles dipped eight percent last year, and it had five percent market share. For 2010 handsets, it’s forecasting “slight growth.”

    How on earth is Sony Ericsson going to get out of this hole? “By establishing Sony Ericsson as the communication entertainment brand based on an exciting portfolio of mid- and high-end products, such as our recently announced Android-based phone, the Xperia X10,” the earnings announcement says.


  • Nuance On Spinvox: ‘More Synergies Than We Expected’


    SpinVox Blockhead

    Speech recognition outfit Nuance will unveil its plans for Spinvox, the troubled voice-to-text firm it bought for $102.5 million in December, at Mobile World Congress in Barcelona in February.

    For now, Nuance has placed the firm in a new voice-to-text division run as general manager by Seattle-based John Pollard, EMEA marketing director Alan Ranger tells paidContent:UK. Pollard was CEO of Jott the note-taking service Nuance also bought in July.

    Does that mean Spinvox’s leadership is out? CEO Christina Domecq and co-founder Daniel Doulton remain aboard “at present”, Ranger says: “It’s still fairly early. It’s down to them what they want to do.” As for Pollard: “He’s acting as the leader of the combined acquisition.”

    Will Nuance retain Spinvox’s controversial overseas transcription centres?: “It depends entirely on the contractual obligations of the customer. Everyone who had a contract with SpinVox still has one with Nuance. All those commitments that were made, we’ll continue to honour them.” How about after they expire? “No decision has been taken – we’re trying to ensure it’s business as usual.” Private call centres were used by Spinvox in new territories, so that human operators could aid machine transcription until Spinvox’s software learned to understand local dialects itelf. Nuance acknowledged in its December announcement that the combined company would “comprise full and partial speech automation”.

    How will the acquisition affect staff?: “It’s too early to define what will be used where, as it’s a new division. Will any of Spinvox’s Marlow staff be moved to Nuance in the U.S.? It’s network technology, so it doesn’t matter – we’ll let the talent be where it wants to be and work around them. I can’t see us centralising technology anywhere at the moment.” Nuance also has three UK offices, headquartered in Bracknell.

    What does Nuance’s Spinvox integration look like?: “We’re very pleased. There are greater synergies than first thought. It’s become part of Nuance’s new voice-to-text division – we’ve created a new category. We’re known for our capabilities in speech recognition – the one thing Spinvox had achieved in a relatively short team was the internationalisation of the service, the ability to scale up to handle millions of messages every day. They had hosting facilities in Europe that we didn’t have.”

    Have Spinvox’s debts been paid?: “We bought the company on a debt-free basis – we paid a mixture of stock and cash.”

    Related


  • New-Look Skype Picks Flint For Chair, Gurle For Business VP


    Miles Flint

    The new man charged with keeping the peace between eBay (NSDQ: EBAY), Silverlake, Andreessen Horowitz, CPP and Joltid is former Sony (NYSE: SNE) Ericsson (NSDQ: ERIC) president Miles Flint. Skype is appointing him to chair its new-look, 17-person board, CEO Josh Silverman tells Bloomberg.

    Former chairman Michael van Swaaij exited in eBay’s eventual $1.9 billion November sale of 70 percent of the Luxembourg VoIP firm to the above consortium, after acrimonious negotiations. Flint left the handset maker in 2007, before it really started to slide, and was already a Silverlake adviser.

    The choice of a handsets man is a logical one for Skype, which seems intent on refocusing on its core VoIP proposition, including getting its service on to consumer mobile phones. Flint has also has previous experience in managing competing interests, by running the London-based, Japanese-Swedish Sony-Ericsson JV.

    It’s not just in the consumer area where Skype is moving. At the same time, it’s announcing David Gurle, the head of Thomson-Reuters’ collaboration services and Asian sales, has joined to replace Stefan Oberg as GM and VP of Skype’s B2B team.

    Prior to Thomson-Reuters (NYSE: TRI), Gurle oversaw products including NetMeeting and Windows Messenger as head of Microsoft’s real-time communications division and struck carrier partnerships as alliances VP at VoIP firm VocalTec.

    Bloomberg: “Skype has said it’s on schedule to generate $1 billion in sales in 2011.”


  • Guardian.co.uk’s iPhone App Could Be A £2 Million-A-Year Business


    Guardian iPhone app with landscape view

    Okay, that may be getting ahead of ourselves a little…

    Guardian.co.uk says it’s sold 68,979 copies of its premium iPhone app since launching in December.

    At £2.39 a pop in the UK (and $3.99 in U.S.), that’s £164.859 in income over the month, or, at that rate, £1.97 million (about $3.2 million) a year.

    But this is before Apple’s 30 percent commission comes off, and ignores currency differences and any future pattern changes – up or down – that may result as the installed base grows and as Guardian.co.uk considers whether to go to other platforms like Android.

    There’s plenty of reason to think the monthly rate will increase. Guardian News & Media has only just expanded the app outside of the UK, U.S. and Ireland, in to “most European countries”, Australia and Canada. It launched during the Christmas quiet period and there’s a good-sized appetite for the publisher’s “liberal” news in America.

    GNM is content enough to have press-released the figure on Wednesday. In it, digital director Emily Bell, who thinks charging for Guardian.co.uk online news is a “a stupid idea”, declares herself “thrilled”.

    No wonder – GNM annual losses grew 40 percent to £36.8 million in 2008/09 and the company has been going through hundreds of redundancies.

    But it won’t last forever (the installed base may plateau at some point) and isn’t enough to arrest the decline by itself.

    Note – other news apps are available. Over 300,000 downloaded Telegraph.co.uk’s free, ad-supported iPhone app between its February 2009 launch and December 2009 – the company says it’s recouped 10 times it development costs.

    Disclosure: Our publisher ContentNext is a wholly owned subsidiary of Guardian News & Media.

    Related

  • SpinVox Shareholders Get Virtually Nothing After Debt Payback


    SpinVox logo

    Spinvox says it’s fully repaid a £30 million bridging loan that kept it afloat until its sale to Nuance last month.

    The voicemail-to-text company had accepted the mezzanine loan from the Tisbury fund in July after falling in to a financial mess. The company has now told Companies House it has paid it back in full.

    The payback is just one of those to come from the $102.5 million (£63.5 million) sale – but these debts the company racked up have left shareholders with virtually nothing…

    After repayments, all shareholders received a total of only £600 ($968) and staff who, as we revealed last year, accepted stock instead of salary during the summer, are getting nothing, according to a memo obtained by BBC News.

    Update: From Nuance PR: “Those who accepted stock options in lieu of salary did receive payment of their foregone salary in connection with the transaction.”

    Related


  • Nokia’s New Mobile Chief: We’ll Match Apple, RIM By 2011


    Rich Simonson

    If he had wanted to debunk those rumors that it might buy Palm, Nokia’s new mobile phones head Rick Simonson could have picked a more outright denial.

    Simonson, who in November switched from CFO to run the mobile unit of Nokia’s devices division, tells India’s Economic Times: “We have been hearing that for a long time now — maybe it is like one of those things that you keep predicting and hope that by 2010, or in the next 10 years, it will actually come true. It’s like you keep saying, ‘it will rain, it will rain’ and one day it finally rains, and then you say you predicted it!”

    Simonson ventures: “I can even make a prediction for 2010: In Latin America, we will grow faster than (RIM). By 2011, our efforts will start producing results, as we will be at par with Apple (NSDQ: AAPL) and RIM (NSDQ: RIMM) in smartphones. Not only we draw level with them, we will also win the war because, in addition to email, we will be adding content, chat, music, entertainment and several other features, which will soon become very critical for success of any company in this space.”

    Nokia (NYSE: NOK) finds itself with diminishing market share in the U.S. and established markets but a growing embrace for Brazil, Russian, India and China. Its Symbian operating system appears increasingly ill-suited to smartphone demands in the west and all manner of systems are snapping at its heels. Simonson tells ET: “Fourteen to 15 operating systems cannot survive. There is definitely not enough room for more than four to five operating systems. Scale is critical. For instance, Palm’s OS is very good, but with less than one percent of the global volumes, it won’t be too appealing to developers.” Might Nokia fancy taking Palm (NSDQ: PALM) OS to the audience of developers its building for its own Symbian?


  • Network Upgrades Promised After iPhone ‘Explosion’


    Guardian.co.uk on iPhone

    AT&T (NYSE: T) customers must know exactly how O2 UK subscribers must feel. Many using the network in 2009 have struggled with disappearing data service and unconnected calls.

    In the FT, CEO Ronan Dunne apologises, blames an “explosion” in smartphone data traffic and promises three fixes – “software modifications to ensure it can better manage the combination of voice and data traffic on its network”, 200 new London base stations and “O2 is liaising with handset manufacturers, including Apple (NSDQ: AAPL) and Research In Motion, maker of the BlackBerry, to learn about applications that could place heavy demands on the network”.

    Dunne’s insistence that “the problems were largely confined to London” doesn’t ring true – as recently as December, customers elsewhere in the UK have experienced poor service.

    Separately, FT takes the opportunity to say that, as smartphones place higher demands on carriers, 2010 will be the year of mundane, if vital, infrastructure upgrades. O2 was the exclusive UK iPhone carrier until November, but now Vodafone (NYSE: VOD) and Orange are joining the fray…

    Voda’s UK head promises the paper: “We are confident that our network is up to the standard required to service these smartphones.” And Orange, which already claims to be the UK’s biggest 3G network, could get to expand that coverage if its merger with T-Mobile UK goes ahead.

    Related


  • Nuance Confirms Spinvox Acquisition For $102.5 Million


    SpinVox logo

    Earlier reports had said Burlington, Massachusetts, digital speech company Nuance may buy troubled voicemail-to-text counterpart Spinvox before year’s end – and Nuance on Wednesday confirmed exactly that…

    The price – $102.5 million – is less than half the more-than-$200 million in investment that Spinvox had raised before things started to go bad earlier this year, so there’s significant loss here for investors. It comes in $66 million in cash and $36.5 million in Nuance shares (2.3 million).

    Nuance says it will be “integrating SpinVox’s carrier services with Nuance’s advanced speech recognition platform”, making it sound rather like the speech-to-text technology on which Marlow, England-based Spinvox has prided itself will play second fiddle to Nuance’s own. Nuance’s announcement repeats its clear statement that it’s its own, “sophisticated” speech technology which is “proven”: “This transaction marries innovative speech solutions and robust carrier-grade infrastructure to accelerate innovation.”

    It means much-needed consolidation in a digital telephony market that may yet prove hot in 2010, with Google (NSDQ: GOOG) Voice and BT’s Ribbit ramping up to offer voice comms overlapped with web services.

    Until recently a second-generation dot.com darling of English media, six-year-old Spinvox raised its second $100 million in March 2008 from Goldman Sachs, along with GLG (SEO: 066570) Partners, Blue Mountain Capital Management and Toscafund Asset Management. Invesco Perpetual in September said it lost 90 percent of its own investment

    But its finances began looking shaky this year, when paidContent:UK reported how staff had accepted an offer of stock instead of salary. CEO Christina Domecq, in a July interview with us, said missed payments from its suppliers and the pressure of rolling out in Latin America had stressed company finances, and promised the company would turn cash-positive in 90 days.

    But our story opened a can of worms. A BBC News story piled on, reminding readers that Spinvox’s voicemail-to-text process is not wholly automated. The company admitted the necessity to use human transcribers at call centers in new territories is very expensive…

    Spinvox had never outright disguised its use of humans but, facing a perception problem in the summer season on top of financial difficulties, it was forced to raise over £15 million in emergency investment and take a £30 million bridging loan to stay afloat – all while defending against staff complaints about company spending…

    It amounted to a perfect storm that was sure to mean investors calling for a full or partial sale. Three months ago, Invesco publicly confirmed sale chatter by saying in a filing the company was on the block. The company declined to tell us whether it met its 90-day cash target.

    Nuance isn’t yet detailing which parts of Spinvox, which has been through a few layoff rounds in the last year, may be retained, but our guess is it won’t be the whole thing. In a final effort to be upfront about the product, however, Nuance’s announcement reminds us that the service offers both “full and partial speech automation”.

    Related


  • Survey: Android, iPhone Users Very Similar


    android blow up

    Google’s mobile operating system has come a long way in a short time. While iPhone users are more likely to use features like apps and web browsing than those of other smartphones, Android owners are already right up there with them on most counts, according to comScore/Compete research presented by eMarketer

    —Owners of each handset are almost exactly as likely to use mobile media, news, apps and social networking; iPhone users are only slightly more likely in each category.

    —But only 63 percent of Android owners use email, compared with 87 percent on iPhone, despite Android’s always-on email access.

    —More iPhone users (52 percent) say they spend most of their phone time using apps, rather than web browsing (compared with 35 percent of Android users.

    Related


  • Vint Cerf: ‘The Internet Is Christmas All The Time’

    We wish the father of the internet had said that!

    But there’s no Santa Claus behind that white beard – his proclamation comes courtesy of Cassette Boy’s naughty re-edit of Digital Revolution, a four-part BBC Two documentary coming in 2010.

    Digital Revolution has been in production since July, and has been posting raw video rushes along the way. Hence Cassette Boy taking the lead in a competition open to budding mashup artists and budding filmmakers.

    By the way – you get points for correctly naming all the tech culture luminaries featured therein.