CTIA WIRELESS: Am I in PC Land?

I realized after the "pre" show event, which took place in the Wynn Hotel on Monday night, that CTIA WIRELESS is really just as much a computer show as it is a wireless one. As I peek at badges as people walk by (come on, you all know you do it!), I notice tons of media outlets that have either the word "computer" or "laptop" in it. And really, don't wireless and PC go hand in hand? Often times, they do.

So much content and accessibility is available on mobile phones these days, from music to movies, games, e-mail, Internet browsing, etc. Much of this will either originate from a PC, or will be something you also enjoy on a PC. So it's no surprise that many of the technologies on display at the event help you better connect a mobile phone with a PC.

Take a company like mspot, for example, that offers a slew of mobile music services (the company works with both Bell and Telus in Canada). Using mspot's new subscription-based Remix application, customers will be able to take music from a PC (DRM-free, of course) and instantly transfer it to a mobile phone. The customer just needs to download software onto his PC, then he can simultaneously download tracks to his phone while they're being played back from the computer. mspot has already forged its first partnership for the service in the U.S. with AT&T. Another neat service (which I can imagine plenty of teens and "tweens" enjoying) is called Make-UR-Tones, which lets you take pretty much any song and make your own cut of it to become a 30-second ringtune for your phone. mspot has partnered with EMI Music, Universal Music Group, Warner Music Group, INgrooves, and IRIS to offer a selection of over 250,000 songs. Talk about personalization!

Meanwhile, on the more business-oriented side of things, French company Gemalto, which focuses on digital security, is offering a way for traditional wireless carriers to compete with the burgeoning VoIP category. More and more consumers are moving toward VoIP services like Vonage and Skype for making phone calls when they're out of town, mainly because it's cheaper. Gemalto offers a neat doo-hickey called the Upteq Smart Dongle that contains the customer's mobile phone information, and plugs into a PCs USB port. Once inserted, incoming phone calls will ring on both the handset and via a virtual dialpad on the customer's PC screen. He can then choose to pick up the call using the computer rather than the mobile phone, and thus circumvent a hefty long distance bill. Since Gemalto is a security company at heart, you can bet your bottom dollar that password authentication is required to actually use the dongle, since it contains all of the owner's mobile phone information. Gemalto already offers the Upteq Smart Dongle through Orange Business Services, the leading mobile network operator in France. It really is an ingenuis idea, and the perfect answer to the question: how can one compete effectively against VoIP services. Now, if someone could find a way that the traditional landline phone could better compete against VoIP...but that's another issue altogether...

When you really think about it (and I mentioned this in the previous post without even realizing it), mobile phones really are just like mini computers. In that respect, I'm preparing myself to see a whole different breed of propeller heads on the CTIA WIRELESS show floor.

As an aside, the Wynn Hotel truly is the classiest looking hotel in all of Las Vegas. I can't help but feel like I'm in an old Vegas movie when I walk in there!

Vonage Owes Over $200M

I have either been living under a rock for the past few months, or just simply can't keep up with all of the industry news. Just yesterday, it was brought to my attention that VoIP provider Vonage is tied up in a legal battle with Verizon over three alleged patent infringements. After appeals, the latest news is that Verizon Wireless won the case, and Vonage has to pay a grand total of US$120 million to the wireless phone provider. Ouch.

What makes the situation even worse for Vonage is that the company recently settled two other litigation cases with AT&T and Sprint. On October 8, Vonage settled a suit with Sprint in relation to six patents in its "voice over packet patent portfolio." Vonage was to pay Spring a total of US$80 million to cover licensing for past and future use of the technology. A few weeks later, Vonage settled a dispute with AT&T over "packet telephone system" patent infringements, leading to a payment of US$35 million over the next five years.

Basic math would indicate to me that the company might just be in a tad bit of trouble. Vonage's just-released Q3 2007 results report just US$211 million in total revenue.

It's a shame, because I really think we need more competition in the telephones arena, whether it be landline, Internet, or wireless, not less. I tried out the Vonage service in its early days, and thoroughly enjoyed using it. It was simple, convenient, and compared to a "regular" home phone plan, much, much cheaper. Customers who often make long distance, and even international, phone calls, will especially save tons of cash by jumping on the VoIP bandwagon. Of course, like any other service, it does have drawbacks: the most obvious is that, if your broadband Internet connection goes down, so will your phone. But with 70%+ wireless phone penetration in Canada, and broadband services becoming more reliable by the minute, this probably isn't such a huge deal. Hopefully Vonage will pull through, and come out with some great, new offerings in 2008! VoIP could very well be the way of the future in voice communication, and the more options the consumer has, the better.

Update: Wal-Mart Steps Up CE Presence

We've been told by spokesperson Christi Gallagher at Wal-Mart Canada that the announcement mentioned below is specific to U.S. Wal-Mart stores. However, Wal-Mart Canada has been remodeling its existing stores and opening new Super Centres over the past year, all of which employ a new format for the electronics department. In the case of new stores, this represents about 7,000 sq. ft. of space dedicated to consumer electronics: about double what was previously offered! All stores also feature a new, more open-concept design that allows customers to walk freely through the aisles instead of entering a dedicated CE area.

Gallagher says the changes were made based on research conducted with its Super Centre stores. Not surprisingly, she says iPods and HDTVs are two of Wal-Mart's "hottest selling items right now". The retailer has even added a Connection Centre kiosk in new stores that features things like mobile phones, satellite radio receivers, and GPS devices. Although Wal-Mart Canada hasn't taken on the Skype products like its counterpart in the U.S., the retail giant has been offering Vonage VoIP service since January of this year.

In a way, this is also good news for other CE retailers: if the biggest retailer in the world is ramping up its technology offerings, this means that interest in CE products is as healthy as ever.