Posts by Julie Ask from June 05, 2008

Julie Ask | June 05, 2008, 08:50 PM
Smart Marketing Tactics for Verizon/MediaFLO's Mobile Video

I was watching the Stanley Cup Finals last night. There was a really good mix of ads from Verizon. (I have Tivo, but I slowed down to watch these ads). They were promoting NHL video content during an NHL game. They were promoting goals scored, highlights, etc. The ads featured the phones. Verizon also did their traditional network quality ads, but they mixed in a few promoting the video service. It seemed to be really smart marketing in that they a) were focused on an audience interested in the content and b) that they presented a use case for watching video on the cell phone - watching the goals and highlights or seeing updates during the game. The small screen in this case would complement the larger screen rather than substitute. This kind of marketing should help drive consumer interest.

Saw another story today (see Fierce) on MediaFLO/Verizon/AT&T and the upcoming U.S. Open. "Live" coverage - great idea. Again, they are showing consumers a use case. Most of us work Thursdays and Fridays. This gives us a way to stay tuned in or watch while at work or away from our TV's. The Internet could provide some of this, but it's a use case and provides some context for "why I would want mobile video services on my cell phone" - something that hasn't been part of enough of their messaging to date.

Julie Ask | June 05, 2008, 11:50 AM
Verizon's Bid for Alltel - Implications for Sprint?

I heard the concrete rumors yesterday, but this topic has been one that folks have been speculating about for a long time. All morning long, people have been asking me what it means for Verizon Wireless?

Short answer: #1 wireless carrier in the US with 80M subscribers. Alltel adds 13M to their rising total.

Other highlights:
- Common network technology and roadmap
- Both use BREW
- Similar ARPU though VZ has higher data ARPU
- Fills in coverage gaps in rural areas
- Cost synergies - $9B quoted in the press release. Always a lot of work to achieve. Alltel is substantially smaller than Verizon, but is still a very large company.

Being smaller, Alltel has been nimble and able to roll out new services quickly. They were innovative with their friends/family circle plan being first to market in a category that T-Mobile has now become famous for. They have a great UI on their new handsets. Hopefully, this tradition of innovation with new product rollouts will continue.

I think one of the more interesting questions could be: what does this mean for Sprint? Do they have enough scale to be cost competitive with the others? It's a question that I don't have the means to answer, but I'm sure some of the financial analysts will be. T-Mobile benefits from the scale (to a large extent) of their corporate parent in Europe though they lack the wired (local, long distance, TV) infrastructure and service offerings of AT&T and Verizon. Verizon's choice of LTE will give them a cost advantage. WiMax still seems to be Sprint's choice alone.

What does this mean more generally for players who aren't either really, really large? or MVNO's? Mixed models will still work. My grandmother's telco (see blog) that serves a population of several thousand is a profitable entity, but they rent/lease wireless from a larger network operator. Rural operators still have a play.

Will be interesting to watch.