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T H E M A G A Z I N E

MAY 2013
www. wi r e l e s s we e k . c o m
T-Mo Talks Evolution to
Un-Carrier Page 18
Mobile Games: Devs Turn
Fun into Profit Page 20
MOBILE PLATFORM WARS:
What Does a Third Ecosystem Look Like?
1305_WW_CvOnline.indd 1 5/2/2013 1:24:20 PM
1305_WW_Ads.indd 2 5/2/2013 1:29:13 PM
4 Up Front: A Wireless Baseball Metaphor
for the Ages
10 Review: BlackBerry Z10
BlackBerry 10 has arrived in the form of the Z10. Its an
impressive piece of hardware, with a slick UI, but is it enough
to save the once great BlackBerry brand?
12 LTE Network Self-Optimization: Looking to
the Past & Future
Contributor Elliot Drucker looks at the challenges and
benefits of Self Optimizing Networks.
14 No Free or Easy Ride with Open Source
Software Licensing
Keith Mallinson breaks down the world of open source
software and the legal complexities that go along with it.
18 T-Mobile on Why Going Simple Isnt Easy
T-Mobiles Harry Thomas talks about his companys transition
from carrier to un-carrier.
20 Monetizing Mobile Games Proves Serious Business
Ben Munson looks at the many options available to mobile game
developers as they look to turn fun into profit.
Where Its At
WirelessWeek. com

FEATURES

24 By the Numbers
Mobile money, phablets, LTE deployments, and M2M
25 Vu Digitals New Approach to Search
The new Vu mobile app aims to decentralize
search

COVER STORY
6

May 2013 Wireless Week 3


Android and iOS have a stranglehold on the smartphone
market right now. Is there room for another platform?
Mobile Platform Wars:
What Does a Third Ecosystem
Look Like?

Read these and other features, including Web


Exclusives, on our website at www.wirelessweek.com
1305_WW_WhereItsAt.indd 3 5/2/2013 1:32:04 PM
By Andrew Berg
Senior Editor
In 2013,
were going
to be talking
about some
high-profile
mergers and
acquisitions
that aim
to create a
third carrier
who can
finally match
batting
averages
with Verizon
and AT&T.
Time for Carriers to Swing for
the Fences
Up Front
WirelessWeek. com
I
ts baseball season, and Charlie Ergen has
just proven he can throw a knuckleball
as well as R.A. Dickey. Wheres the cold
beer and peanuts? Its looking like this battle
for Sprint is headed into extra innings.
The industry has talked a lot about the
need for a third mobile platform, but in 2013
were also going to be talking about some
high-profile mergers and acquisitions that
aim to create a third carrier who can finally
match batting averages with Verizon and
AT&T. Sprint and T-Mobile are both to be
commended for the rehab work theyve done
over the past few years, but both carriers
realize they cant play triple-A ball forever.
You have to like the kind of game Ergen
plays. Hes a scrappy ballplayer. However,
after stealing that huge chunk of AWS
spectrum, you kind of hope he doesnt leave
it stranded. Thats what makes this play for
Sprint a suicide squeeze. Its all or nothing for
Dishs wireless hopes. Ergen needs a wireless
veteran to help him get that spectrum in play.
In the end, however, the tie-up between
Clearwire, Dish, Sprint, and Softbank is
playing out like a high-profile trade for the
ages, and were going to need more than
Jay-Z to resolve this thing or its in danger
of turning into that famous Abbott and
Costello skit, Whos on First? As it stands,
both Dish Network and Softbank have made
offers for Sprint. Meanwhile, Clearwire
continues to take monthly funding to the tune
of $80 million from Sprint. Im guessing the
Commissioner will be glad hes this one up to
the next guy.
And then theres T-Mobile. If Charlie
Ergen is a finesse pitcher, then John Legere
is bringing the high heat. Legere has already
thrown at AT&T for crowding the GSM
market, and that recent cowboy TV spot is
an inside brush off of Verizon Wireless and
Sprint as well.
Remember Ricky Vaughn, played by
Charlie Sheen, from the movie Major League?
Rickys nickname in that film was Wild
Thing. He was the kind of pitcher that
batters hate to face because of his velocity
and his control problems. LeGeres a little
like that. Hes unpredictable, but it looks like
he has the potential to stare down the heavy
hitters. Well see.
As for AT&T and Verizon, theyre a
little like the Yankees and the Red Sox 10
years ago. Theyre able to pick up the big
arms (Samsung, iPhone), and theyre always
contenders. And yet they sometimes incite in
the fans a need to root for the underdog.
Speaking of big arms, it should be
interesting to see what kind of control
Samsung and Apple can muster. While
Samsungs Galaxy line has proved a crowd
pleaser, itll be matching up against Apple.
Still, Apple appears to be struggling with the
curve lately, which has sent the companys
market value sinking like rock. Is it possible
that veteran relievers Nokia and BlackBerry
might get the nod from consumers?
In the end, the wireless industry has all the
makings of an entertaining season. Legere and
Ergen, as well as Hesse, would like to shutout
the big two, and theyve proved theyre willing
to trade up to do it. Legeres lineup is pretty
much set, but Ergen and Hesse are going to
have to untangle the previously mentioned
negotiations with the Japanese Baseball League
if theyre going produce at all.
One things for sure, everyone on the field
this year is going to be looking for more
ways to get on base, which if we continue
with this metaphor, can mean more growth
opportunities. Whether that means selling
virtual peanuts and popcorn, or dialing
up HD Voice from the bullpen, everybody
wearing the skippers jacket will be angling to
boost revenue at the ballpark this year.
Comments or story suggestions?
Contact me at andrew.berg@
advantagemedia.com
4 Wireless Week May 2013
1305_WW_Upfront.indd 4 5/2/2013 1:32:34 PM
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A
t present, it takes some effort to imagine a world where
Android and iOS are not the clear frontrunners in the
U.S. smartphone market. Sure, BlackBerry and Microsoft
are fighting tooth and nail for a way back, but for now
and much to the dismay of those operators struggling to manage
steep subsidiesApple and Google have a lock on just over 90
percent of the U.S. market.
The carriers are not shy about admitting that theyre looking
for a third ecosystem, and theyve proven that theyre willing
to put significant advertising behind products that might drive
competition amongst OEMs. Some estimates pegged AT&Ts
initial advertising budget for the Nokia Lumia launch at $150
million, and Ralph De la Vega couldnt stop plugging the platform
for months. Hes right, of course, to put a shoulder behind
Microsoft and BlackBerry. Theyre still trusted, recognizable
names, and they both have experience in the smartphone game.
But theyre not the only ones vying for a piece of the pie.
The big buzz at Mobile World Congress this year was around
a couple of different mobile operating systems, including the
much touted Firefox OS, as well as Samsungs Tizen. While
Firefoxs play will probably be relegated, at least for now, to
emerging markets, Tizen might be just what the doctor ordered in
Samsungs fight to best Apple.
How big does the third ecosystem
have to be?
Stephen Baker, vice president
of industry analysis for consumer
technology at NPD Group, says
that while carriers definitely are
searching for a third ecosystem,
they may not need one that comes
anywhere near the size of Android
or iOS.
No one ever asks how big that
third ecosystem has to be, Baker
said. At some level, just having big
companies committed to the market,
like a BlackBerry or Microsoft, in that third, fourth position,
that provides enough balance for the carriers to be able to not
feel beholden to iOS or to Google.
But even with Google and Android vying for consumer
attention, Baker isnt entirely sure the carriers absolutely need
a third and a fourth ecosystem given the many diverse Android
options available out there.
I think you can make a pretty good argument that given
how varied the activity with Android is, youve already got
multiple ways to play one brand and one group off another,
Baker says.
ANDREW BERG
6 Wireless Week May 2013
Stephen Baker
Mobile Platform Wars: What Does
A
Some say theres only room for one more mobile platform, with Android and iOS helping
themselves to the lions share of the market for the foreseeable future. If true, the only
question is just who will get the crumbs.
BlackBerry 10
If ever there was a long way to
market, BlackBerry, formerly
Research In Motion, managed
to find it. Delayed multiple times
and at the loss of consumer
confidence and one CEO,
BlackBerry 10 has finally arrived.
Based on QNX and featuring deep
integration of HTML5, as well as
beautiful UI work from Swedens
The Astonishing Tribe, BlackBerry
10 has actually impressed in
reviews. Even the hardware has
won some hearts. Still, many
wonder whether BlackBerry is
simply too late to the party, with
too few quality apps, to sway
now devoted and entrenched
Android and iOS users.
Entners Take: If we ignore
the rest of the world, theyve
done a very good job.
Blackberrys new Z10 is a looker but is it enough?
1305_WW_CoverFeature.indd 6 5/2/2013 1:33:10 PM
Baker adds that smaller platforms like Firefox will have a
tougher time getting carrier support. The attractive part of
BlackBerry and Microsoft is the either have a lot of money and a
lot of brand, and Firefox just doesnt have either one of those.
Its still all about the apps
Its a known fact that any mobile
platform has to bring with it those
most popular apps, or its dead in
the water before it even started.
Roger Entner, founder of Recon
Analytics, eschews the idea that it
has anything to with how many
apps a given app store has anymore,
but rather the quality of the apps it
does have.
Its a fools game. Its a numbers
game thats irrelevant, Entner says,
noting that most people only have
about 10 or 12 apps that they use regularly and for the most
part those are well-known, big name apps.
The biggest obstacle for new providers to come in is that
people are hesitant to buy the same apps over and over again,
Enter says. Nobody in this industry has come up with the idea
of giving customers $50 or $100 worth of free apps, he says.
That would completely level the playing field. Here, buy a
BlackBerry and have $50 worth of apps.
Enter agrees with Baker that Microsoft and BlackBerry
are the clear leaders behind Apple and iOS, but hes also not
enthusiastic about how either has executed. Essentially, he
thinks both BlackBerry and Microsoft left the door open.
Due to the lack of execution from the Microsoft camp,
and its too early to tell from BlackBerry, the race is wide open.
Anybody can make it to be that third operating system,
Who loses out?
The idea of a third ecosystem is dependent on the idea that
someone, namely iOS or Android, will end up losing market
share to the newcomer. Given all the bad press Apple has had
recently, its tempting to jump on that bandwagon and say
Apple will lose out, but Entner argues otherwise.
I would be very careful not to discount Apple. In the same
way that Apple was overly glorified in the days of Steve Jobs.
They are currently, unjustly criticized, Enter says. They are a
very good company that has better usability than anybody else.
While he admits that Samsung has by necessity out-
innovated Apple with the S3 and S4
Samsung is energized by chasing number one. They tried to
chase Nokia and now theyre chasing Apple. Theyre relentless
in that pursuit, and it makes them a very good company as
well, Enter said.
Of all the OEMs, its no secret that Apple and Samsung
are dictating the terms of the market right now. Enter says
thats perhaps even more of a problem than finding that third
ecosystem, and he says it will have consequences down the line.
The biggest concern that I have is that when you look at the
profits in the industry, Apple and Samsung have more than 100
Percent of the profits, he says. The rest of the industry is losing
money. Its inevitable that there will be a shake-up. Some folks
are gonna die.
Wireless Week May 2013 7
Roger Entner
a Third Ecosystem Look Like?
Microsofts Windows 8
The long-term results of Microsofts partnership with Nokia
are still unclear but theres little doubt it was the Finnish
OEMs name and slick hardware that has kept Ballmer and
company in the mobile game. With Windows 8, Microsoft is
hoping some of the popularity of its desktop OS will rub off
on its mobile platform. Windows 8 has arguably had more
developer support than has BlackBerry, which can make or
break an operating system. And theres even evidence that
perhaps Windows is starting to gain some traction. According
to the latest numbers from ComScore, Windows Phone actually
gained .2 percent market share in the three months between
November 2012 and February 2013, landing at 3.2 percent.
No, thats not a lot, but it at least suggests momentum.
Entners Take: Window Phone is the best operating system no
one is using. Due to the lack of execution from the Microsoft
camp, and its too early to tell from BlackBerry, the race is wide
open. Anybody can make it to be that third operating system.
Microsoft has carrier and OEM support, but Windows Phone is still not a lock.
1305_WW_CoverFeature.indd 7 5/2/2013 1:33:24 PM
8 Wireless Week May 2013
Wildcard: Mozillas Firefox OS
Mozillas Firefoxs OS made was a hit at Mobile World Congress.
While its probably not ready for the high-end smartphone market,
it could see traction in emerging markets. Based on HTML5,
whats perhaps most interesting about Firefox is the support it
has behind it. Mozilla has announced
18 carrier partners putting their
weight behind the new web-
based OS, as well as initial
devices from Alcatel OneTouch,
ZTE and LG, with Huawei to
follow. Operators committed to
the open Web device initiative
include: Amrica Mvil, China
Unicom, Deutsche Telekom,
Etisalat, Hutchison Three Group,
KDDI, KT, MegaFon, Qtel, SingTel,
Smart, Sprint, Telecom Italia
Group, Telefnica, Telenor,
Telstra, TMN and VimpelCom.The
first wave of Firefox OS devices
will be available to consumers
in Brazil, Colombia, Hungary,
Mexico, Montenegro, Poland,
Serbia, Spain
and Venezuela, with additional devices to come. Again, this isnt
likely to take the United States by storm right now. However, as
networks continue to get faster and improvements are made
in browser technology, you never know what the future holds.
Tizen
With roots in the open-sourced
LiMo Foundation, Tizen is
published under a closed
Samsung license. This is one
to watch, as evidence mounts
that Samsung would love
to shift at least some of its
dependence on Googles Android
operating system. As previously
noted, Samsung has already
committed to producing high-end
smartphones around Tizen. Given
consumer adoption of its many
connected products, including the
Galaxy smartphone and tablet
lines, the company just might
be able to drive acceptance of
Tizen. One thing Tizen has in its
favor is the ability to run Android
applications through a runtime
environment. Whether other OEMs would want to license the
platform from Samsung remains to be seen. One things for
sure, Samsung has emerged as perhaps the only real competitor
to Apple and an OS like Tizen could give it the kind of control
it needs/wants to continue producing innovative products.
Entners Take: Absolutely [Samsung] will give Tizen a try. Tizen
is their answer to iOS. [Samsung] treated Googleand Android
like a dirty word. It was mentioned only once when the S4 was
introduced...They fully relegated Android to being the unseen
middlewareBy the way, Facebook is trying to do exactly the same.
Firefox may be aimed at emerging markets, but who knows what the future will hold.
Samsung would like nothing more than to chart its own course with Tizen
1305_WW_CoverFeature.indd 8 5/2/2013 1:33:43 PM
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10 Wireless Week May 2013
Review: Blackberry Z10
$200 with two-year contract from AT&T
Its not just the diehard fans whove grown
tired of the buzzards circling BlackBerry. Even
users loyal to other OEMs and eco-systems
must, at this point, have had enough of how
the Z10 and the new BlackBerry 10 operating
system it supports represent a do-or-die
moment for the Canadian smartphone legend.
Despite continual decline in market share and
the recent subscriber losses, its still too soon
to predict BlackBerrys fate. But it is clear to
see, after spending some time with the Z10,
that the company is making tangible strides
toward shaking off some vestiges of what a
BlackBerry was and embracing what it can be.
The hardware
On first impression, the BlackBerry oozes
elegance. The sleek slab of glass and plastic
easily outclasses the touchscreen bricks
BlackBerry used to make, like the Torch. Its
profile comes close to that of the Lumia 920,
while its rounded corners echo the iPhone 5
and its face closely resembles the HTC One.
The minimalist front shows off the 4.2-
inch LCD display, a 2-megapixel camera and
a red notification light between two thin strips
of matte black housing containing the ear
piece and microphone. The sides, consistent
with the phones .35-inch thickness, remain
mostly untouched save for micro USB and
HDMI ports, a center-mounted power
button on top with a headphone jacket
next to it and a silver volume rocker with
a mute button in the middle. The back,
marked only by some branding and an
8 megapixel camera and flash side-
by-side, has a wonderful, luxury car
interior feel to it. It feels solid enough
that its easy to forget the back can
be popped off to access the battery,
SIM and SD memory.
The whole package feels
sophisticated and understated, which
ultimately results in less immediate impact but
ensures its a phone that youll still be happy
showing off near the end of your contract.
The software
Much was made early on of BlackBerry
10s reliance on gesturesthe phone
features no buttons on the front, physical
or otherwise. Its a big departure from the
OS paradigm to which BlackBerry formerly
assigned itself and requires a small window
for learning the ropes. But once you get the
flow, it essentially becomes intuitive.
Without a home button, a swipe up from
the bottom of the phones frame becomes
the single tool for unlocking and backing
out of applications. When using the phone
horizontally, like while taking pictures or
playing a game, I got a little frustrated with
how I had to return the phone to its upright
position to back my way out. And the side
to side swiping seemed a bit too sensitive at
times, causing me to swipe clear across the
screen I was trying to get to.
But it gets easier and then it gets fun, with
the phones dual-core 1.5 GHz processor up
to the task of keeping the flow smooth. It was
especially nice to flip so quickly to the Hub,
a one-stop shop for all your communications
needs. At first it looks like a daunting pile-
up of a unified inbox, but a quick swipe to
the left reveals an easy sub-category menu,
making for much more efficient management
of everything from LinkedIn to voicemail.
The OS packs many more nice surprises
BY BEN MUNSON
Its too early to say if the Z10 is an absolute make-or-break moment for BlackBerry. But regardless
of how integral the devices success is to the companys future, its certain now BlackBerry has built a
smartphone that can compete with any other flagship device on the market.
The Z10,
BlackBerrys all-touch
flagship smartphone.
BlackBerry World, the companys lackluster digital
storefront. Continued on page 26
1205_WW_Blackberry.indd 10 5/2/2013 1:35:06 PM
1305_WW_Ads.indd 11 5/2/2013 1:34:33 PM
O
ne of the more interesting trends in the wire-
less industry is development of technologies
for the so-called self-optimizing network
(SON). Particularly in the case of LTE, it is
widely accepted that successful implementation of
SON features will be crucial if network capacity is
to expand to meet anticipated growth in demand.
With this in mind, it might be useful to take a look
at where SON stands now and what it might provide
in the future.
The Third Generation Partnership Project, (3GPP)
is supposed to be developing standards that support
SON features in a multi-vendor LTE network
environment. The 3GPP first published TR 36.902 in
late 2009 as part of general LTE standards Release
9. A few revised versions of that SON Release 9
standard have been issued, but the last dates back
to mid-2011. It provides only basic descriptions
of use cases that illustrate some of the potential
functionality of some SON features, and few if any
specifics on how they might actually work. Since then
3GPP has issued general releases 10 and 11 of its suite
of LTE standards, neither of which included an update
of TR 36.902.
This seeming lack of progress on SON standards
should not be interpreted as disinterest in SON
technology development. Indeed, major infrastructure
vendors like Ericsson and Huawei strongly promote
their existing and planned SON capabilities on their
public websites and at industry trade shows. These
offerings provide an assortment of features that
address virtually every aspect of network deployment
and operation, but those dealing specifically with the
LTE radio access network generally follow the key
capabilities discussed in the last published version
of TR 36.902. These include: configuration of
physical cell ID; optimization of handoff parameters;
determination of cell neighbor lists; optimization of
random access channel (RACH) parameters; and configuration and
optimization of inter-cell interference coordination (ICIC) features.
The first four of these standard SON features for LTE RANs can
generally be thought of as automation of basic engineering functions in
wireless networks. When a new base station is deployed, or an existing
one is reconfigured, functions such as identifying non-conflicting
physical cell IDs and determining neighbor lists have traditionally been
approached as part of the engineering process. Automation obviously
has the advantage of reducing the engineering effort (and thus the
cost) involved in eNodeB deployment and reconfiguration, but more
importantly it makes practical the widespread use of
very small cells. Consider, for example, the technical and
business model of allowing a customer to buy a femtocell
device at a local retail outlet, take it home, plug it in,
connect it to some sort of broadband Internet access,
and turn it on with the expectation that it will operate
properly and fully integrated with the surrounding macro
network. That obviously doesnt work if the process
requires case-by-case human engineering of air interface
parameters. Automatic configuration of cell ID, RACH
and handoff parameters, and neighbor lists is therefore
crucial to the plug and play model of small cell
deployment, which in turn is a big part of the attraction
of heterogeneous networks or Het-Nets, another
area thats currently the subject of intensive technical
development in the industry.
These four elements of self-configuration and self-
optimization are certainly important. However, in
my opinion, by far the biggest potential win that
might ultimately be derived from SON technology will
come from management of inter-cell interference. I
am not referring here to the currently used models for
ICIC, or even enhanced ICIC (EICIC), which are static
configurations based on simplistic RF propagation and
interference models. (See Are Het-Nets the Answer?
Wireless Week August 2012.) Instead, I am envisioning a
future LTE interference management system based upon
the dynamically changing potential interference situation
in the network.
To see how such a dynamic interference control system
might work we can start by imagining an extensive LTE
network serving a vast distribution of mobile users. At
any given time, a random fraction of these users will
be actively engaged in data communications sessions.
Most of the active UEs will be subject to potential
mutual uplink or downlink interference. From moment
to moment, the mix of active users, their geographic
locations, and their data throughput demands will
change. Thats mostly what makes the potential
interference situation dynamic.
Now lets assume that within this network there are three cells
well call them A, B, and C with geographical RF propagation
footprints that significantly overlap. Based on the current ICIC model,
to avoid potential inter-cell interference UEs in these three cells would
have to be assigned resource blocks from three different portions of
available network spectrum, at least for UEs located near the largely
mythical cell edge. (See The Myth of the Cell Edge, Wireless
Week December 2011.) But there will be plenty of cases where, for
example, an active UE in cell A is located where it would be interfered
with by downlink co-frequency use in cell B, thus putting it at the cell
Tech Insights
12 Wireless Week May 2013
O
As operators move aggressively to LTE, implementation of self-optimizing network features will
To see how
such a dynamic
interference
control system
might work we
can start by
imagining an
extensive LTE
network serving a
vast distribution of
mobile users.

Elliott Drucker

BY ELLIOTT DRUCKER
LTE Network Self-Optimization:
1305_WW_Drucker.indd 12 5/2/2013 1:35:34 PM
Wireless Week May 2013 13
play a big part in expanding network capacity.
Looking to the Past & Future
edge, but would not be bothered by co-frequency use in cell C. At
the same time there may very well be an active UE in cell C that could
tolerate simultaneous co-frequency use in cell A. Those two UEs one
each in cells A and C could then be allocated common downlink
resource blocks without excessive mutual interference. Extended to
every active UE in an LTE network, such resource allocation based on
real-time UE positioning could affect a substantial increase in average
spectrum reuse density and a corresponding increase in network
throughput capacity and QoS. In its ultimate form, the dynamic system
would optimize every downlink and uplink resource block allocation
in every cell in both frequency and time domains so as to minimize RF
interference.
This level of dynamic interference control will require two key
elements. The first is complete real-time information about potential
interference situations that have to be avoided. The most practical way
to get this information is for each active UE to measure and report
downlink signal levels from all potentially interfering cells, something
that is actually within the capabilities of todays LTE UEs.
The second required element as a mammoth system of high speed
processing that takes the downlink measurements from UEs, translates
them into RF path loss, takes into account the current throughput
demand for each UE and each cell, and then, in real time, optimally
allocates resource blocks for upcoming frame periods.
Such real time dynamic optimization may seem impossibly complex.
It probably is today, but in a few years this system might be completely
practical. Its also possible that slightly less optimal results can be
achieved with much less complexity. In any event, I believe that
dynamic interference control is where future SON development efforts
will reap the greatest rewards.
Elliott Drucker has over 30 years of experience in the wireless
industry, beginning in 1979 when, as an R&D engineering manager, he
participated in the development of test mobile equipment used in the
famous AT&T AMPS cellular trial system in Chicago. Elliot founded
Drucker Associates in 1992 and has been a regular contributor to
Wireless Week since 1998.
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14 Wireless Week May 2013
P
urveyors of competitive and market-leading
products and services in IT and telecom are
highly reliant upon the technological innovations
of many others. These offerings typically
abound with technologies developed by many different
organizations. Superlative technologies are by definition
unique and characteristically without close substitutes.
For example, leading smartphones need to employ
many standard-essential patented technologies for
LTE and video coding encoding, as well as non-SEP
technology pinch-to-zoom, swipe-to-scroll on multi-
touch displays and more.
Implementations require a sophisticated and highly
interdependent mixture of hardware, firmware and
software.
This brings with it a liability to pay dues to those
who own the IP rights to the various technologies
employed. That cannot simply be ignored or wished
away by implementing algorithms in software or under
open source licensing arrangements. This is illustrated
by the recent licensing agreements by Google for the
Android mobile operating system, the Chrome PC
operating system and the VP8 video codec.
OPEN SOURCE AND OTHER INFRINGEMENTS
Open source software arrangements in which code is
contributed, modified and used freely without royalty
payments are very appealing to many developers and
implementers; but this does not absolve parties, who
voluntarily agreed to such commitments, from de jure obligations
externally.
While royalty payments seemingly challenge or even threaten the
existence of open source business models, Google and implementers
of its open source offeringssome of whom, including Samsung
for example, have done exceedingly well with these programsare
agreeing to cough up.
Android and Chrome are Google-controlled operating systems
with open source software development and licensing. According
to Microsoft, the two operating systems employ technologies it
has patented. Smartphone vendor ZTE and contract manufacturer
Foxconn have recently joined Samsung, HTC and Acer in signing up to
Microsofts patent licensing program. ZTEs agreement,
for example, provides access to patents covering
phones, tablets, computers and other devices running
Googles Android and Chrome operating systems.
Microsoft has forged licensing deals with nearly all of
the worlds largest Android smartphone vendors and
manufacturers. Also according to the company, 80
percent of Android smartphones sold in the U.S. and
a majority of those sold worldwide are covered under
agreements with Microsoft.
Microsoft has filed lawsuits for patent infringement
against various Android device makers including
Google-owned Motorola Mobility. Tit-for-tat litigation
with Motorola asserting H.264 video and 802.11 WiFi
patents against Microsofts Xbox360 and Windows
PCs has been extensive and prominent.
On the basis of a decision announced April 25,
2013 by U.S. District Judge James Robart in Seattle,
Microsoft should pay Motorola about a half-cent per
unit for video- decoding technology and 3.5 cents for
wireless technology in compensation for Motorolas
relatively small share of the many SEPs to these
standards. According to Microsoft, that equals about
$1.8 million a yearmuch less than the 2.25 percent of
the retail price Motorola Mobility initially demanded
which would have instead cost billions of dollars.
Microsoft, who, in press reports, supposedly negotiated
royalties for Android with HTC and Samsung in the
$5-$15 range, is clearly heartened by such differences.
However, one should note that unofficial figures such
as the latter should be treated with great caution: all
terms and conditions (e.g., netting off charges with cross-licensing)
were not revealed and these figures might not reflect final agreements.
Android has also flourished despite Apples resistance. Apples
deceased founder and former CEO, Steve Jobs, was quoted in his
authorized biography as saying: I will spend my last dying breath
if I need to, and I will spend every penny of Apples $40 billion in
the bank, to right this wrong. Im going to destroy Android, because
its a stolen product. Im willing to go thermonuclear war on this.
While Apples cash pile has multiplied since then, Android has also
gone from strength to strengthdespite litigation and licensing
paymentsto take 70% of the 700 million unit smartphone market
in 2012.
Analysis
If I have seen further [than certain other men] it is by standing upon the shoulders of giants.
-- Sir Isaac Newton (16421727), British physicist and mathematician referring
to his dependency on Galileos and Keplers work in physics and astronomy.
BY KEITH MALLINSON
Android and
Chrome are
Google-controlled
operating systems
with open source
software develop-
ment and licensing.
According to
Microsoft, the two
operating systems
employ technologies
it has patented.
Keith Mallinson


No Free or Easy Ride with Open
Source Software Licensing
1305_WW_Malinson.indd 14 5/2/2013 1:36:18 PM
STATE-OF-THE-ART VIDEO ISNT EASY
Absent indemnities to implementers, the WebM project web
site has misleadingly stated for several years that the codecs WebM
supports (VP8 video and Vorbis audio) require no royalty payments
of any kind. In addition, the projects web site states you can do
whatever you want with the WebM code without owing money
to anybody. High-performance video codecs employ many and
various state-of-the art technologies. These are developed in
an intellectual community comprising scores of companies and
universities, including thousands of technologists. Most of these
organizations are clearly unwilling to contribute their patented
technologies on a royalty-free basis. Leading open standards in
this field include H.264 which is substantially licensed with an
aggregate royalty of up to 20 cents per device through a patent
pool administered by MPEG LA with 29 licensors, 2,600 SEPs and
1,200 licensees. These licensors tend to be content with this fairly
low royalty rate because they are also predominantly downstream
licensees including manufacturers and service providers.
It was unsurprising that several of these patent owners
concluded the competing VP8 codec was infringing their patents
given the development environment described above. Google
initially attempted to thwart MPEG LAs attempts, announced
March 2011, to formulate a VP8 patent pool with an antitrust
action. But the antitrust authorities were having none of it. There
is no reason in antitrust or patent law why these patent owners
should not seek to assert their rights bilaterally or through a pool.
Instead, in March 2013 Google agreed to license 11 patent owners
for VP8 through administrator MPEG LA, who said that as part
of this licensing agreement with Google, it would cease seeking to
create a VP8 pool.
The patent peace did not last long. Within a couple of weeks,
Nokia said publicly it believed VP8 infringed some of its patents. It
also described the codec as a proprietary technology that offers
no advantages over H.264 and that Google is attempting to
force it on others as part of its WebM project. Nokia said it is
unwilling to license its patents for use with this codec. It is quite
entitled to block a standard in this way if its patents are valid and
infringed. Whereas participants to standard-setting organizations
are typically required to commit to offer licenses under (Fair)
Reasonable and Non-Discriminatory terms, no such obligation
would apply to non-participants such as Nokia. With nothing
like the level of demand Android commands, VP8 will continue to
struggle significantly with such impediments.
Thisannouncement isintendedsolelyfor therecipient aspart of adescriptionof our investment bankingcapabilities, isnot
anddoesnot constituteanoffertosell orasolicitationof anoffertobuyanysecuritiesof anyissuerreferencedhereininany
jurisdiction. RBCCapital MarketsisaregisteredtrademarkofRoyal BankofCanada. RBCCapital Marketsistheglobal brand
nameforthecapitalmarketsbusinessofRoyalBankofCanadaanditsaffiliates,includingRBCCapitalMarkets,LLC(member
FINRA, NYSEandSIPC); RBCDominionSecuritiesInc. (memberIIROCandCIPF)andRBCEuropeLimited(Authorisedbythe
Prudential RegulationAuthority andregulatedby the Financial Conduct Authority andPrudential RegulationAuthority).
Registeredtrademarkof Royal Bankof Canada. Usedunderlicense. Copyright2013. All rightsreserved.
October 2012
Value Undisclosed
Sell-Side Financial Advisor
has sold certain wireless
operating assets in NM-6 to
Verizon Wireless
Take Condence in Our Approach
rbccm.com/communications
Delivering Results.
Earning Condence.
February 2013
$2,800,000,000
Joint Bookrunner
Revolving Credit Facility
January 2013
$1,000,000,000
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Lender
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5.25%Senior Notes due 2023
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1305_WW_Malinson.indd 15 5/2/2013 1:36:48 PM
16 Wireless Week May 2013
I
n 2012, Congress passed
the Tax Relief Bill that
included, under Title 6,
allocating the 700-MHz
D Block to the existing Public
Safety broadband spectrum
giving Public Safety a na-
tionwide license for 20 MHz
(10X10 MHz), setting up an
independent board to build
and manage the network (FirstNet), and al-
locating $7 Billion to fund the network from
future spectrum auctions. That $7 billion is
not nearly enough money to build out this
network, which is being planned to cover as
much of the populated areas of the United
States as possible, and then using satellite
communications to provide coverage to what
is being called 100 percent of the states, ter-
ritories, and tribal areas.
The law also provides for public/private
partnerships so that public companies can help
fund the network build-out and operations
by leasing unused spectrum from the Public
Safety community. Some of those designing this
network believe that even in the major metro
areas there will be excess spectrum that can
be used by commercial operators on a second-
ary basis. By secondary, I mean that if Public
Safety needs all of the network capacity in a
given area for an incident, it will have the abili-
ty to pre-empt any other traffic on the network
and take control of the entire spectrum. I have
my doubts about the amount of spectrum that
will really be available to secondary users in
the major metro areas, but it is clear that under
normal conditions there will be spectrum avail-
able in suburban and rural areas.
The idea that the Public Safety spectrum
(band 14) could act as spillover LTE spectrum
for commercial networks appears to be a win-
win for both Public Safety and commercial
network operators. Care will have to be taken
when setting up the agreements between the
network operators and FirstNet. How many
commercial users can the network support
while still providing primary data and video
services for the Public Safety community? How
Sharing Proves Key to Successful
Public Safety Network
BY ANDREW SEYBOLD
many commercial network opera-
tors will share the spectrum in key
metro areas? What will the impact
on cost be for the commercial
operators to have devices that are
capable of band 14 services? These
questions will have to be reviewed
and answered by the networks and
FirstNet, and allowances will need
to be made for increased Public
Safety usage over time. As more
Public Safety applications come
online and as more first responders come onto
the network, the greater the percentage of the
total capacity they will need.
The good news for the commercial opera-
tors is that Public Safety usage patterns will be
the reverse of commercial users. That is, com-
mercial networks send more data and video
down to devices than users send back up to the
network. In the Public Safety environment, it
appears that most of the data and video will be
sent from the field devices back to the network
so it can be shared with dispatch centers and
incident commanders. Another point in favor
of this type of network sharing is that during
normal patrol activities, the network will not
be heavily loaded, and when there is an inci-
dent (typical daily types of robberies, hostage
situations, traffic accidents, etc.) it will be
limited to a single cell sector or a couple of cell
sectors and access to the network over a larger
area will not be adversely affected.
In rural America, where network opera-
tors struggle to find a business model that will
make it practical to build commercial net-
works, the private/public aspect of the Public
Safety broadband network will be a bigger
win for both parties. Networks can be built in
areas where they were never before economi-
cal; there will be more spectrum for the com-
mercial operators to use; the percentage of time
the network will be available to their custom-
ers will be much higher; and with cost-sharing,
commercial customers should have access to
LTE for mobile as well as fixed, in-the-home
and office usage. By the way, this was one of
the selling points we used when talking to
members of Congress about reallocating the D
Block to Public Safety. Many in Congress have
districts where a large percentage of the area is
rural and their constituents do not have access
to any type of broadband service today. Many
of the commercial operators already have
assets that can be used for the Public Safety
network, and backhaul to and from these sites
will be less expensive for both parties if it is
shared between multiple organizations.
Commercial operators need more spectrum
and cannot wait the 4-5 years it will take for
the FCC to auction and clear new spectrum.
Public Safety needs to build this network as
quickly as possible. The fact that public/private
partnerships have been authorized by the law,
and that spectrum is a scarce resource should
work to everyones advantage as the network is
being deployed. FirstNet has stated that it envi-
sions a dual build-out approach, building out
metro and rural areas at the same time. As a
result, extending broadband into rural America
just became easier for commercial operators,
and in metro areas there is the possibility that
some of the LTE traffic on the commercial net-
works can be offloaded to this network during
times of commercial network congestion.
However, it is important for commercial
operators to understand that they are leasing
spectrum from the Nationwide Public Safety
Broadband Network that may not always
be available. FirstNet holds the license and
Public Safety is FirstNets primary customer.
Therefore, Public Safety will have access to the
spectrum even when secondary users will not.
The reason Public Safety needs its own data
and video network is because during major
incidents commercial networks tend to become
overcrowded with too many demands for
service and not enough capacity to go around.
Using the Public Safety network, Public Safety
users assigned to an incident will have full
priority and true pre-emptive access to the
network. Even with this caveat, commercial
network operators that partner with FirstNet
will end up with access to this spectrum most
of the time.
Join Us At Andrew Seybold Wireless
University, May 20 at CTIA 2013. For more
information please go to http://www.andrews-
eybold.com/events/wireless-university.
Seybolds Take
Andy Seybold
1305_WW_Seybold.indd 16 5/2/2013 1:37:19 PM
N
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s
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tio
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o
f H
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m
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B
u
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e
rs
1305_WW_Ads.indd 17 5/2/2013 1:37:40 PM
BY BEN MUNSON
I
ts probably too soon to draw a line in
the sand between the wireless world
now and how it was before T-Mobile
put a stop to device subsidies. But
the newly branded un-carrier has set a
bold new course that could send disrupting
waves through the industry depending on
how consumers react to the new business
model. Wireless Week recently spoke with
Harry Thomas, director of marketing at T-
Mobile, to find out how difficult the move to
simplicity really was.
Wireless Week:
The idea behind the un-carrier is to
some degree aimed at offering consumers
a radical break from the traditional 2-year
contract model. Were there specific indicators
that pointed to a U.S. consumer base that was
ready for a major change?
Harry Thomas: We started with, What are
the major pain points for consumers in our
category overall? Two-year contracts were
a big pain point at the top of the list for
consumers. When we launched un-carrier
with John Legere,
he talked about
how strange
our industry
is and really,
thats one of
the pieces,
these two-year
contracts.
We worked
our way
down the list
of pain points: devices are too expensive,
contracts are two years but the devices come
out every year, how do I make that work? We
launched a lot of moves but were not going
to stop there. Were continuing to stay close
to consumers to find out what their issues
are and just continue to break down those
restrictions.
WW: What other patterns are you seeing
with customer complaints as you continue to
listen?
Thomas: You use the word complaints and
I think thats one source of whats going on
in the industry, but we look at different ways
of getting input from consumers, whether its
calls directly to us, input from our frontline
and what theyre hearing, focus groups,
surveys, third-party data and even just general
chatter out on social networks. You do hear
consumers talk a lot about this category and
what irks them.
WW: What was the process in thinking about
the right time to switch to Simple Choice?
Thomas: A few weeks ago we thought we
had critical mass of a few things we could
talk about that were working toward with
helping consumers with all these restrictions
and changing the way this category works. It
really was, Lets build up a few things. Lets
not talk about necessarily only one thing. To
make things more simple is actually difficult
work. Anyone who says it would be easy to
match probably isnt very close to how our
industry works and how difficult it is. We had
to do a lot work behind the scenes in terms
of our billing systems, our activation systems,
our commissions, financial analysis. This
industry has a lot of structure built around it
that matched the old model. So we needed to
build some systems that match our new un-
carrier model.
WW: What have been the main challenges in
CEO John Legere emphatically pushed for a disruption to the traditional carrier business
the confusion and frustration out of business as usual is hard work.
T-Mobile on Why Going
18 Wireless Week May 2013
Harry Thomas
CEO John Legere addresses the press at T-Mobiles Un-carrier event in New York.
1305_WW_Carrier.indd 18 5/2/2013 1:38:12 PM
May 2013 Wireless Week 19
model as T-Mobile became the Un-carrier. But it turns out taking
Simple Isnt Easy
adjusting to the no-subsidies model?
Thomas: I think our biggest challenge is
going to be that there is an established way
in our category that the players are used to
talking about buying service and phones and
the consumers are used to being talked to
about it. Our biggest challenge is changing
that conversation and reorienting people
around what we feel is a more rational
approach.
WW: How has this new model affected the
consumer experience at T-Mobile?
Thomas: Were getting great feedback both
anecdotally from our frontline and directly
from consumers but also, in terms of the
traffic that weve been seeing since we made
the un-carrier announcement. Traffic has
been up so we think it has been working, the
message is resonating. It does help that we
simplified. Having a simple set starting with
one rate plan and then options you can add to
it really helps in that conversation as well.
WW: In lieu of overage charges, T-Mobile
customers are throttled back to 2G when they
exceed their data limit, correct?
Thomas: They are throttled back to slower
speeds. I would say 2G is more a network
descriptor than it is a descriptor about speed.
But yeah, what people would traditionally
think of in terms of slower speed.
But we also have unlimited that does not
reduce speeds in any way, which is unique.
Nowhere else can you get unlimited 4G
data on a nationwide network. You have to
choose one or the other with our national
competitors. Either get a nationwide 4G
network and no options to do unlimited
data on that or you can get unlimited 4G
but, guess what, the network isnt quite
nationwide yet.
WW: Has the unlimited offering put any
unforeseen strain on your network?
Thomas: No, no unforeseen strain. We
anticipate what kind of usage consumers are
going to have with these plans as well as with
the devices that were selling. With the latest
4G devices and the speed that we offer we
expect and we are seeing that consumers will
use a lot more data because its just a richer
experience.
WW: As long as were talking about consumer
experience, given the publics love for Carly
Foulkes and the sadness about not seeing
her anymore, was there any handwringing
about launching a new ad campaign with-
out her?
Thomas: [Laughs.] There are always going
to be people who will react to change in
that way. But we feel that theres a lot more
sentiment toward the things that matter the
most. Your device price, your contract, the
simplicity of rate plans and the opportunity to
get unlimited all certainly outweigh any angst
that someone may have over missing their
favorite TV spokesperson.
WW: John Legere is obviously not a behind-
the-scenes CEO. How necessary was that kind
of leadership for T-Mobile as it thought about
its future?
Thomas: Obviously, John is his own
individual and has his own style that would
be difficult for others to emulate. But were
fortunate to have him as a CEO and the
biggest reason is that he actually represents
the passion that all the employees have
toward doing the right thing for the consumer.
While hes unique and can command the
stage and can be more straightforward than
even our frontline employees can be, what
he matches with our culture is being that
advocate for the consumers.
T-Mobiles new ads show the carrier breaking away from the pack.
This industry has a lot of
structure built around it
that matched the old model.
So we needed to build some
systems that match our
new un-carrier model.
1305_WW_Carrier.indd 19 5/2/2013 1:38:24 PM
20 Wireless Week May 2013
ompeting for a job that comes with a
shot at a trip to outer space sounds like
more of a game than an interview.
Maybe it even sounds a little crazy.
It makes sense to Rob Emerich, CEO of
PaeDae. His startup is focused completely on
games and so it stood to reason that when the
time came for PaeDae to find a new software
engineer, it might as well have some fun with it.
This is what our company does. We give
rewards to consumers, sometimes fantastical,
sometimes more everyday, said Emerich.
Why not do it with our next hire?
PaeDae is a white-label company offering
mobile game developers an SDK for integrating
consumer rewards into their existing games.
Its an inventive way of tackling the difficulties
with monetizing mobile games. Consumers get
prizes, consumer partners get positive exposure
and mobile developers get money for adding
the lightweight software to their games. Just like
PaeDae offers players incentives to keep plugging
away at games, developers need incentives (i.e.
income) to keep making those games.
Emrich explains the meaning to consumers
like this: When we win something or we
earn something, were much more likely to
find value in that thing.
Those rewards come from PaeDaes brand
partners and range from free soft drinks to
chances to win larger prizes, to the ability to
make a charitable donation. Emrich said its
been well-received by consumers.
That kind of positive experience for
consumers invariably provides a benefit to
developers as well. But Emrich said theres
more for than just that for developers.
In addition to the PaeDae software, his
company offers a service called Bartr that
allows developers to trade ads. For every ad
promoting a different app a developer runs
on their app, they get to run a similar ad on
someone elses app. Its a free and targeted
system that helps developers bring consumers
to their games.
Attracting new users was heretofore
something each developer had to pay for and
was probably their largest expense, Emrich
said. Were trying to develop a relationship
of trust with developers, to provide them with
a service that we know they need that is also
generally very expensive and that we have the
infrastructure to support.
APP MARKET BOOMING
Take a look at how business is booming
for mobile apps and its easy to estimate that
there are a lot of developers out there looking
for help in grabbing a slice of the pie.
According to Canalys App Interrogator
research, app downloads across the four
leading digital storefronts totaled more than
13.4 billion in the first quarter of 2013,
marking an 11 percent increase quarterly.
Without revenue sharing taken into account,
that total was enough to post $2.2 billion in
revenue for all stores combined.
The benefits are there for mobile game
categories. Direct combined revenue from
paid apps, in-app purchases and subscriptions
grew by 9 percent quarterly.
But those kinds of boosts in sales dont
come without a little controversy.
Earlier this year, Apple was essentially
forced to start labeling when an application
in its App Store offers in-app purchases. This
small but significant change came on the heels
of Apple finding itself in hot water as toddlers
ran up staggering bills in mobile games. One
British boy rang up more than $2,600 of
BY BEN MUNSON
Even with the controversy surrounding in-app purchases it remains one of the most potent
forms of making money off mobile games. In-app purchases have their pros and cons, but
there are many more monetization models for games that carry less risk.
One boy racked up $1500 worth virtual donuts on the Simpsons game.
1305_WW_MobileGaming.indd 20 5/2/2013 2:07:52 PM
digital goodies playing
the game Zombies Vs Ninja. Another British
youngster managed to rack up more than
$1,500 in digital donuts on a Simpsons game.
In both instances, Apple refunded the money.
Thats relatively small potatoes compared
with the near $100 million it cost Apple to
settle a U.S. lawsuit over similarly high bills
stemming from kids spending real money
inside of free games. Its a trend that has led
consumers to question just how free mobile
games really are and it has possibly attracted
a certain level of shadiness to developers of
these popular apps.
STRIKING A BALANCE
Thats why a resoundingly positive
monetization scheme like PaeDae seems so
vital for mobile games. Such a solution strikes
a balance between actually making money off
of developing and bogging down free games
with so many ads that annoyed consumers
just skip it all together.
How much money can I make while
limiting how much I piss off my players? is
how Emrich phrases the question developers
have to answer. He adds that his platform is
one of the first opportunities for developers to
monetize and engage their player and thats
Strategic
consulting in
wireless
technology,
product,
and business
development
since 1992
We can
get you
there.
Drucker Associates
www.drucker-associates.com
425-820-3411
info@drucker-associates.com
1305_WW_MobileGaming.indd 21 5/2/2013 2:08:09 PM
22 Wireless Week May 2013
a very new option for them.
But hes quick to differentiate what PaeDae
offers from in-app purchases, while still
insisting theres a time and place for in-app
purchases and that they can be convenient for
the right user.
Its really not a part of our system at all,
Emrich said. Theres nothing to buy in our
system. The user can choose to interact with a
brand but the developer gets paid regardless.
But given the continued dominant
popularity of free apps, developers will have
to have more creative ways to get paid since
purchase and subscription
fees dont account for much
of the action. According to
Gartner, total downloads
across all storefronts are
expected to pass 81 million
in 2013 but only about 10
percent of those will be paid-
for apps. The rest will be
free and Gartner doesnt see
that number going down,
predicting free apps will
account for 91, 92 and 93
percent respectively in each
year following.
But Gartner sees the
number of downloads
featuring in-app purchases
jumping from 5 percent of
total downloads in 2011 to
30 percent in 2016 with in-
app purchases accounting
for 41 percent of total store
revenue by 2016.
In-app purchases are
on track to become quite a
dominant revenue producer
but if they are deployed in
conjunction with other, less
hot-button monetization
techniques, consumer annoyance or
exploitation can be kept to a minimum.
DEVELOPERS NEED OPTIONS
Scott Swartz, CEO of MetraTech, a
company that specializes in monetizing
business relationships, sees something in the
form of a hybrid approach to monetizing
apps, including mobile games.
With MetraTech, our special sauce is
allowing the customer to configure the model
they want, Swartz said. You can have
subscription models, you can have usage
models, you can have advertising models and
you can have all types of hybrid models.
David MacQueen, director of wireless
media strategies at Strategy Analytics, sees
all of those models as viable options. He
recognizes in-app purchases as a strong
monetization plan for mobile game developers
but acknowledges that the practice is still in
its infancy and the positives and negatives are
still being sorted out.
[In-app purchases] can lead to a
meritocracy, MacQueen said, talking about
games garnering financial success based on
quality instead of marketing. If everything
was monetized through in-app purchases you
would have a true meritocracy where only
the games that were good and resonated with
consumers would be the
ones that would actually
generate revenue.
MacQueen sees the
negatives of in-app
purchasing coming from
different directions, both
from scams and from
legitimate companies
trying out different things
and making unfortunate
mistakes. Problems like kids
accidentally spending $300
of their parents money on
Tetris will continue until the
industry learns to regulate
itself or government
regulators get involved.
An example of self-
regulation MacQueen cites
would be the industry
doing away with hybrid
monetization models that
combine up-front charges
and in-app purchases.
If Ive paid the full
price for something I expect
full access, he said. If
its free theres a bit more
leeway where consumers
will understand, Well, this has been free for
me to play up till now. I will pay a little bit
extra for level packs, add-ons, etc
But MacQueen sees monetization
alternatives for game developers wishing to
avoid the possible pitfalls associated with in-
app purchases. Recognizing that theres the
kind of mobile game developer community
that powers something like PaeDaes ad-for-
ad exchange program, he sees advertising as
a viable model for making money off mobile
games. But he identified a curious problem
that practice could present.
If you create a game thats ad-funded,
your major advertisers are going to be your
competitors, MacQueen said. What tends to
happen is you see adverts for other games, people
who are effectively trying to steal your audience.
Beyond those options he sees subscription
models as a money-making tool, but that
practice is most often associated with the
massive multi-player experiences common to
PC and console gaming but not as much to
mobile gaming.
Subscriptions for mobile apps, not just
games, is something MacQueen has seen take
root in Asian markets but its a practice hes
yet to see catch hold in western markets like
the U.K. and the U.S.
As the market for mobile games continues
to grow, more and more developers are going
to have to find the monetization model or
combination of monetization models that best
suits their games and the players it attracted.
It appears that all models, not just in-app
purchases, come with a wide variety of pluses
and minuses. In-app purchases just happen to be
carrying the hottest lightning rod at the moment.
But with the right amount of patience and
participation from players and a good balance
of the business and pleasure principals that
guide developers, mobile games will continue
to be a beneficial experience for everyone
involved.
If everything was monetized
through in-app purchases you
would have a true meritocracy.
Apple has been forced to display when apps include
in-app purchases.
Developers decide when and where they
want PaeDae rewards to pop up in their
games.
1305_WW_MobileGaming.indd 22 5/2/2013 2:09:03 PM
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By The Numbers
WirelessWeek. com
1
2
3
24 Wireless Week May 2013
e
s
Most Mobile Money
Moves Toward the Bank
Still in its infancy,
mobile commerce
platforms are work-
ing their way into
consumers daily
routines. New data
from the Yankee
Group suggests
that mobile banking
is the most widely
accepted form of
this wireless tech-
nology, with fully
39 percent of con-
sumers interviewed
saying they had
done some mobile
banking in the past
three months. Thats compared with 14 percent say-
ing they had used mobile payments, 16 percent saying
they had used mobile coupons and 18 percent saying
they had engaged in mobile commerce in the last three
months. As far as the future of mobile money is con-
cerned, Yankee Group said, Mobile bankings stance
will only strengthen.
An April 2013 report from CDMA sees maturing markets rapidly accelerating their
adoption of wireless technology. CDMA counted about 40 percent of people in
the developing world as mobile service subscribers now and noted that number
has grown more than 10 percent every year since 2007. Furthermore, it can place
the 50 percent of people worldwide in the wirelessly connected population by
taking into account those who have access to mobile but do not own a device.
Still, CDMA estimates that less than 10 percent of those connected people in the
developing world own a smartphone compared to the near 50 percent of mobile
customers using smartphones in Europe and the U.S.
Developing World Catching Up on Mobile
LTE Continues Broad Expansion
As LTE coverage continues
to reach toward all corners
of the country, the gap
between carriers footprints
starts to narrow. Heres
where U.S. carriers are at as
of April 19, 2013 (the tallies
below are as of this writing):
Verizon Wireless: Verizon Wireless says it
currently covers 491 markets with LTE and is on track
to complete its LTE rollout by the middle of 2013.
AT&T: AT&T says it currently covers 182 markets with
LTE and plans to add an additional 77 cities to that list
by the end of summer 2013.
Sprint: Sprint currently covers 88 markets with LTE
and has announced plans to bring coverage to more
than 100 additional markets in the coming months.
T-Mobile: T-Mobile just deployed its LTE network to
its first 7 cities and plans to coverage 200 million of its
subscribers by the end of 2013.
U.S. Cellular: U.S. Cellular has announced plans
to bring LTE to an additional 3,800 cities and towns
by the end of 2013 and bring LTE coverage to
approximately 87 percent of its customers.
A new study from iGR that surveyed 1,000 wireless subscribers
found that 21 percent wanted a larger display size on their
smartphones. iGR discovered that the consumers who indicated
they used their smartphones for all the possible activities
included in iGRs list were the most likely to want more screen.
iGR said, These users, in addition to users who use their
smartphone for both work and personal use, were more likely
to desire a larger screen on their next smartphone. Coupled
with data from IHS that shows average smartphone display size
has been growing steadily since 2008, its reasonable to think
that smartphone screens stay super-sized and that plenty of
Consumers Could Fall for a Phablet
Evolving M2M
Connectivity
According to Ciscos annual mobile
data forecast, fully 64 percent
of global mobile M2M connections
were connected via 2G connectivity,
while 35 percent were connected
via 3G and only 1 percent via 4G.
By 2017, Cisco still sees 32 percent
of M2M modules operating on a 2G
connection, with a significant amount
of that traffic having migrated to 3G
(59 percent). By 2017, only 9
percent of total M2M traffic will be
over LTE.
A Good Technology survey of 100
companies, found that 76 percennt
of those surveyed that currently sup-
port BYOD have more than 2,000
employees, making mid-to-large sized
companies the biggest adopters of
BYOD. The study also found that in
2012, 35 percent of large enter-
prises with more than 10,000 em-
ployees had a policy in place, and this
year, those large companies with more
than 10,000 employees make up
the largest segment supporting BYOD
at 46 percent.
Trend Towards
BYOD Continues
1305_WW_ByNumbers.ndd.indd 24 5/2/2013 2:27:18 PM
earching for content in an
aesthetically pleasing man-
ner within the constraints
of a mobile device isnt
easy. Many have failed miserably
at the task and plenty of new-
comers, as well as veterans, are
constantly looking to refine how
we find the information we need.
Traditionally, the bigger names
like Google and Microsoft, have
dominated the space. These are
typically centralized strategies
that have users entering a single
item that theyre looking for and
then
asking the search engine to go
out and find that thing and bring
it back.
Surprisingly, many say thats an
outdated way of looking at things.
Vu Digitals new mobile app
for iOS emphasizes personalization, while eschewing the more tradi-
tional modes of searching for information. The company is a C Spire
affiliate that aims to get its users the right information before they go
looking for it.
You cant always know to search for something if you dont know
whats going on. So we pick up where the search engines drop you off,
says Wade Smith, Vice President of Operations and Management for
Vu Digital.
The Vu mobile app presents multiple categories of contentFood,
News, Sport etc.and then asks that users identify those pieces of con-
tent that they find most interesting. Over time, Vu learns what a person
likes and hopefully delivers content that fits the users interests, while
still keeping them informed with timely information about other topics
and events.
Vu sees its platform as an ecosystem that goes beyond the mobile
app. The company has also deployed a website (MyVu.com) where
users can tweak their profile if Vus algorithms have gotten something
wrong. It also did a soft launch of an HTML Vu button that any web-
site can embed.
Smith explains that the Vu button acts very much like a Twitter or
Facebook button, however the Vu button aims to add personalization
to any given website by referencing the users Vu profile.
The end game includes a monetization strategy, as well as a back-
end analytics engine that publishers will find appealing because the
Vu button offers them a complete profile of the users interests beyond
just their websites content. Still, it doesnt pull the user away from the
site. In fact, it doesnt change the look or feel of the publishers website
at all. It simply displays content that is relevant to the user in a drop-
down menu.
If you embed our button on your site, we only pull content from your
site...Were not going to send you out to the New York Times, Smith says.
The difference between the
traditional approach to search
and Vus approach is pretty ob-
vious. In the old way of doing
things, the user goes out onto
the Web looking for a specific
piece of information. With Vus
decentralized approach, the hope
is that it can gather enough infor-
mation about a user that it can
deliver what the user is looking
for before she even knows shes
looking for it.
Its probably ironic that ex-
Google CEO Eric Schmidt and
Jared Cohens recent musings on
the digital future rest more heav-
ily on the profile-centric idea of
search than on Googles current
centralized philosophy. If youre
familiar with Schmidts version of
the future, you know that he envisions a world where computers know
you better than you know yourself. Schmidt has long espoused the idea
of autonomous search as the next step in personalized computing.
And while that all sounds perfectly amazing for Google to predict
a users every move, for instance offering suggestions for lunch based
on the time of day and my calendar, it would probably be difficult for
such a system to predict a spontaneous query at a cocktail party for the
name of that one guy, in that one movie.
The most common objections when Schmidt opens his mouth about
the future of computing is the complete absence of digital privacy in a
world where everyone lives and dies by their collection of virtual pro-
files.
Vu recognizes that privacy is top of mind for consumers and has
been audited and certified by TRUSTe and follows its best practices.
But Smith says that the ability for consumers to view and edit their Vu
profiles ads yet another level of transparency to the service.
Weve attempted to take it in a different than most folks who are
trying to collect as much data about you and sell it off to the highest
bidder, Smith says, noting that Vu has a strict opt-in policy that makes
users aware that the information being gathered is to improve the Vu
experience.
As Smith acknowledged, its hard to make it in the search game,
especially with big hitters like Apple, Google, Yahoo!, Microsoft and
most recently Facebook, all deeply embedded in the market.
While Vus solution is perfectly reasonable, it requires that users
spend a lot of time with the product in order to create that profile.
Smith says leading with the mobile app in its launch of the product was
key to getting users registered and creating the kind of engagement nec-
essary for a rich profile.
While the profile game certainly isnt new, Vu is getting in on the
ground floor of new type of search. However, it remains to be seen
whether Googles more centralized search strategy up to this point, as
well as its Android platform on nearly a billion phones by 2014, hasnt
already created the richest profile set yet.
BY ANDREW BERG
y
Vu Digitals New Approach to Search
Wireless Week May 2013 25
Vu is based on user preferences.
The Vu Digital app has an aesthetically
pleasing, easy-to-use UI.
S
1305_VU.indd 25 5/2/2013 1:44:05 PM
like a great browser, easy
integration with Dropbox
and a wonderful keyboard.
Mimicking the physical
QWERTY that BlackBerry
built much of its reputation
on, the on-screen keys take
on the same layout and
include the frets between
rows, where predictive text
appearsoften above the
key you intend to useand
waits to be flicked up to the
text field.
The display and camera
The display presents a
curious issue: its a more
than adequate size at 4.2
inches but like the iPhone, it
leaves so much real estate on
the front uncovered that you
cant help but wonder why
it couldnt have been bigger
or, vice versa, why the phone
couldnt have been smaller.
Beyond that, its crisp, clear
and bright, everything thats
expected from the display on
a modern smartphone. Its a
good canvas for a better than
average camera.
The BlackBerrys camera
certainly isnt perfect.
Its hampered by some issues with focus and color
reproduction, but it mostly makes up for those
issues with performance and cool tricks. The camera
launches quickly from a dedicated button on the
home screen and photos snap almost immediately
after you touch the screen. Videos, shot in 1080p,
look sharp. Time Shift Mode, similar to Nokias
Smart Shoot or Samsungs Best Shot, is an easy and
fun detail, allowing you to cycle through numerous
shots of subjects faces.
The specs and battery
The Z10 doesnt pack anything under the hood
that will surprise. It supports LTE, HSPA+ and UMTS
along with 802.11 Wi-Fi. It packs NFC, Bluetooth
and mobile hotspot capability. Its healthy with 2 GB
of RAM and willing to expand its 16 GB of storage by
32 GB. But beneath its back
panel it hides an ugly secret
in the form of its 1,800 mAh
battery, a relatively weak
power source that produces
a disappointing amount of
bang from a full charge.
With moderate use, including
messaging and browsing,
the Z10 just barely made it
through an eight-hour work
day. The fact that the battery
is removable, so it can be
replaced with a fresh pack,
makes the dismal battery life
more acceptable. But a full
days use out of a full charge
shouldnt be too much to ask
for out of a smartphone at
this stage in the game.
BlackBerry World
One of the biggest
concerns approaching
the Z10s launch was app
availability in the BlackBerry
World storefront. Those
doubts end up being validated
the more you peruse the
offerings. There are knock-
offs of popular apps like
Netflix that dont come
close to the functionality
of the originals. There are
staples but they come missing
features, like Facebook showing up without chat or
Messenger. But BlackBerry World should close the
gap between more mature offerings like Google Play
and the App Store, especially if the eco-system proves
popular enough to attract more developers.
Something it has right over the App Store is the
housing of apps, music, TV shows, movies, ebooks
and magazines all under the same umbrella. It may
seem like a small timesaving measure to eliminate
separate storefronts, but it makes shopping sessions
more convenient.
The verdict
The Z10 is a good phone that can stand up in
terms of hardware, software and performance to just
about any other flagship smartphone on the market
today. BlackBerry has made some genuinely refreshing
moves with its gesture-based OS and it has whipped
up a brutally efficient communications device, for
business or personal. But if BlackBerry really is
counting on the Z10 to keep the companys ship from
going under, it may have chosen a paddle a bit too
much like the others. The Z10 definitely wont push
BlackBerry ahead of the pack, but it should keep it in
the race.

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Volume 20 Number 1, May 2013. WIRELESSWEEK

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While not perfect, the Z10s camera launches quickly
and photos snap with little latency.
BlackBerry has made some genuinely
refreshing moves with its gesture-based
OS and it has whipped up a brutally
efficient communications device, for
business or personal.
Continued from page 10
26 Wireless Week May 2013
1205_WW_Blackberry.indd 26 5/2/2013 2:37:19 PM
Welcome to a brighter, bolder wireless world.
Corning introduces a revolutionary all-optical, converged in-building wireless
solution that delivers unmatched bandwidth and support for operators, services
and applications over a single, high-performing fber infrastructure. The Corning
ONE Wireless Platform supports cellular services, Wi-Fi and applications
including Public Safety, and delivers location-based service capabilities to
enterprises today for tomorrows mobility needs.
Join us at CTIA 2013 Booth 2455 and experience the Optical Network Evolution
(ONE) platform.
2013 Corning Incorporated. All Rights Reserved.
W
i
r
e
l
e
s
s
Illuminating
1305_WW_Ads.indd 27 5/2/2013 1:47:32 PM
1305_WW_Ads.indd 28 5/2/2013 1:47:59 PM

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