Orange Spain Launches Direct Carrier Billing for Apple

Orange Spain has announced the launch of direct carrier billing for Apple services. All prepaid and postpaid customers can now purchase content from the Apple’s App Store, iTunes, iBooks and Apple Music via their phone bills. To access the service, Orange customers with a new or existing Apple ID must select “mobile telephone” as a payment method in their account settings for the App Store, Apple Music, iBooks and iTunes. The new payment option will be configured automatically and immediately allows for one-tap purchasing from all the user’s Apple devices, including Apple TV and the Apple Watch.
 
Direct carrier billing has proved a lucrative strategy both for operators than provide it and for the third-party entities whose services are billed that way. In the case of Apple, with its plethora of services and devices, the arrangement is especially beneficial—and especially appropriate.
 
Given the dominance of the iPhone among users in developed markets like that of Spain, the demand for services and products offered via the App Store, iTunes, etc., is high, and therefore there is synergy between the operator that provides the connectivity for the phone and the phone itself with its attendant options. The seamlessness of paying for one’s Apple services and phone bill without having to use two accounts is bound to be attractive, and it will likely be a strong force to keep Apple users within the Orange ecosystem. So in addition to driving revenue to the operator, it will also aid in retention.

Tarifica is the global leader in monitoring and analyzing telecom pricing. Covering hundreds of operators in every region of the globe, Tarifica’s databases of mobile and fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance.  

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Orange Makes Exclusive Offer of New Apple Watch in France

Orange France has begun accepting pre-orders for the LTE-enabled Apple Watch Series 3. According to the operator’s website, the device will be available exclusively on its network starting on 22 September 2017. Eligible customers—meaning those with unlimited calling plans with Orange or its budget brand Sosh—will have access to a voice and data add-on, called Multi-SIM, with which they can share their allowances with the watch.
 
This deal is being offered free of charge for the first six months, to customers who make their purchases between 22 September and 3 October. After that, the subscription for the add-on will cost €5.00 (US $5.97) per month. Customers must have a compatible handset (iPhone 6S or later model) in order to make use of the Apple Watch Series 3.
 
With all the fanfare surrounding Apple’s announcement last week of its iPhone X and iPhone 8 models, the new Apple Watch seems to have gotten a little less attention. However, while the improvements to the company’s flagship handsets are more or less incremental, the wrist-based unit comes with a quantum leap (albeit one already made by Samsung and LG)—cellular connectivity, and LTE at that.
 
Now that the Apple Watch no longer needs to be tethered to a nearby iPhone, users have greater freedom to access voice and data services at times when they may not have the ability or desire to have their handsets with them. And Orange is well positioned to benefit from this situation by achieving (for the time being) market exclusivity in its home base, France. While we of course cannot be sure at the moment what the level of demand and uptake there will be for the LTE-enabled watch, Orange’s first-mover status will allow it to garner all the revenue in this sector for a while and possibly to keep ahead of its competitors even after they enter.
 
According to a report, Orange’s exclusivity is due to technical reasons rather than to a privileged deal inked with Apple: Currently in France, only Orange’s network is capable of supporting e-SIMS, which is the system used by the Apple Watch Series 3. This circumstance could cause the period of exclusivity to last longer than it would otherwise.
 
Adding a free six-month promotional period to the offer is a savvy move, although the future cost of the Multi-SIM add-on is certainly not onerous. While the operator will make money from this surcharge, we expect that if the Apple Watch Series 3 catches on among French users, it will create a serious revenue opportunity in the form of increased data consumption. 

Tarifica is the global leader in monitoring and analyzing telecom pricing. Covering hundreds of operators in every region of the globe, Tarifica’s databases of mobile and fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance. 

To learn more about Tarifica, please visit www.tarifica.com 

3 UK Launches Wi-Fi Calling for Android and iOS

Mobile operator 3 UK announced that embedded Wi-Fi is now available on its network for both Android and iOS users. With it, customers can make voice calls and send texts over a Wi-Fi network when in the U.K. Users of Apple’s iOS phones need to have the latest software version, iOS 10.2, and then activate Wi-Fi calling in their settings. For Android users who have a compatible device and the necessary software, the Wi-Fi calling settings install automatically. Compatible devices currently are the LG G5, Samsung Galaxy S6, Galaxy S6 edge, iPhone 5c, iPhone 5s, iPhone 6, iPhone 6 Plus, iPhone 6s, iPhone 6s Plus, iPhone SE, iPhone 7 and iPhone 7 Plus. The Samsung Galaxy S7 and Galaxy S7 edge will be compatible beginning in mid-February. The new service removes the need for the operator’s former Wi-Fi calling solution, Three InTouch app. InTouch users will receive a pop-up message informing them that they can delete the app.

The rise of non-cellular voice calling technology was originally a threat to mobile operators’ revenue streams because it allowed users to bypass calling plans and get access to unlimited messaging and voice calls, both domestically and internationally. Operators responded in various ways, including tolerating, co-opting or co-branding various VoIP services. Another non-cellular voice calling system, Wi-Fi calling, now becoming prevalent, is another technology that lies outside the traditional cellular calling networks. Rather than constituting an end-run around the operator, Wi-Fi calling is a billable service that keeps the user within the operator’s ecosystem. Its primary utility is when the cellular signal is too weak or unavailable, so with Wi-Fi calling that is billed within an existing calling plan, the operator can keep its subscribers using voice and text services even when they are in so-called “not-spots”—which are, according to reports, still quite prevalent in the U.K. By making access to Wi-Fi calling seamless instead of through an app, the operator ensures that more subscribers will adopt it, and that those who used it before will now use it more often. Therefore, 3 UK’s decision to make Wi-Fi calling “native” to a wide variety of smartphones in both major operating systems is an excellent one. Easily, intuitively accessible Wi-Fi calling will aid customer retention because rather than becoming frustrated with the operator’s service when the cellular network is unavailable, users will be able to connect by Wi-Fi (given that Wi-Fi networks are sufficiently prevalent) and stay satisfied.

Tarifica is the global leader in monitoring and analyzing telecom pricing. Covering hundreds of operators in every region of the globe, Tarifica’s databases of mobile and fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance.

To learn more about Tarifica, please visit www.tarifica.com 

WhatsApp to Roll out Video Calling

WhatsApp said it will be introducing a new video calling service to its over 1 billion users worldwide on iOS, Android and Windows Phone. The OTT provider stated that the service is meant for every type of phone, from the most expensive to the least expensive. The service will be rolled out to all users over the next few days. According to reports, during a video call, users will be able to switch between the forward-facing and rear-facing cameras, mute the call or press the red button to hang up. WhatsApp, which currently offers messaging and voice calling, says that video calling has been one of the most-requested features from users.   As we have noted frequently in these pages, free or nearly-free OTT services that compete with the offerings of MNOs have been proliferating over the past several years, posing a challenge to the mobile operators. Along with Skype, Facebook-owned WhatsApp has been one of the most vigorous challengers, fueled by its huge worldwide base of subscribers. First with text messaging, then with voice calling, it offered services that closely paralleled or duplicated those of mobile operators. The expansion of high-speed LTE networks (built with the investment of the MNOs) and the increasing availability of budget smartphones have made video calling a possibility for a vast number of users worldwide, so the time is right for WhatsApp to offer it. In this case, however, we do not see it being as significant a competitor to MNOs as with its earlier offerings. While some mobile operators have created native video calling services, for the most part consumers rely on third-party apps for video calling. Probably the company that will be most threatened by WhatsApp’s new offering is Apple, whose FaceTime feature enjoys great popularity. WhatsApp video calling is platform-agnostic, and therefore users no longer have to buy an iPhone to make video calls. The question will be how high the quality of the calls will be, and that will have a great effect on the uptake rate for WhatsApp’s video calling service.

Tarifica is the global leader in monitoring and analyzing telecom pricing. Covering hundreds of operators in every region of the globe, Tarifica’s databases of mobile and fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance. To learn more about Tarifica, please visit www.tarifica.com

What to Expect Now a New York Judge has Ruled for Apple in Locked-iPhone Case

A federal judge in New York ruled for Apple against the U.S. Department of Justice about whether the company can be forced to help investigators extract data from a locked phone in a drug investigation, according to a news report. The ruling could affect a similar case involving a phone that belonged to a deceased terrorism suspect in San Bernardino, California. The ruling came a day before the head of the Federal Bureau of Investigation and Apple’s top lawyer are due to testify before Congress. The New York judge rejected the Justice Department’s argument that the All Writs Act gives prosecutors the authority to compel Apple to help investigators bypass the passcode-protection system on an iPhone. Last week we wrote here that whether or not Apple prevails in U.S. federal court against the FBI, possible future demands of governments in the rest of the world for access to phones could end up affecting Apple more. Still, the New York ruling is an undeniable victory for Apple, creating a degree of presumption that could influence other judges and ultimately Congress. If Apple ultimately succeeds in keeping the iPhone’s encryption sacrosanct in the U.S., its reputation with many consumers will be strengthened, and the momentum thus generated could help it in other markets, at least among the Western democracies.  Tarifica is the global leader in monitoring and analyzing telecom pricing. Covering hundreds of operators in every region of the globe, Tarifica’s databases of mobile, fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance. To learn more about Tarifica, please visit www.tarifica.com

Regarding Apple's Refusal to Decrypt iPhone

Apple stated last week that it would not comply with a request from the U.S. Federal Bureau of Investigation (FBI) to unlock an iPhone 5s that belonged to a suspect in the San Bernardino terrorist attack that took place in December 2015, Syed Farook. According to Apple CEO Tim Cook, the company has already cooperated with the FBI to the extent of providing requested data and having Apple engineers help investigate mobile devices that belonged to the deceased suspects in the case. However, Apple will not take the next step of actually decrypting the iPhone in question. To do so, it says, would required the creation of software that does not currently exist, a so-called “backdoor” that would bypass the passcode-based encryption system built into the iOS operating system. Currently, if a wrong passcode is entered into an iPhone 10 times, the phone’s data will automatically be wiped.

Cook said that if the U.S. government can force Apple to decrypt a phone, it “could extend this breach of privacy and demand that Apple build surveillance software to intercept your messages, access your health records or financial data, track your location, or even access your phone’s microphone or camera without your knowledge.” Supporting Apple in its refusal to build a “backdoor” are Facebook, Google and Twitter. Google Inc. CEO Sundar Pichai said that if Apple were to comply with the FBI request, it would set a “troubling precedent.”

Much of the U.S. discussion of this ongoing crisis has revolved around the interpretation of the law under which the FBI is pursuing its quest for the encrypted information, the All Writs Act of 1789. But from a telecom industry perspective, rights and wrongs under U.S. law are less important and relevant than the issue of mobile device encryption as a marketing strategy and as a potential bone of contention between companies such as Apple and national governments around the world. Apple’s creation of a native smartphone encryption system that is inaccessible to Apple itself has a very powerful branding function. In the post-Snowden environment we live in, strong security measures have come to be very attractive to consumers, not just to corporations, governments, and the military. In addition to the specter of government surveillance and privacy invasion, the ever-growing threat from criminal hackers, coupled with the increasing linkage between phones and financial services, has intensified consumers’ desire to have maximum protection on their devices. By giving its phone an “unbreakable” lock, Apple has positioned itself very well in today’s market.

Whether or not a “backdoor” software, if created, would ever escape Apple’s headquarters and become the common property of hackers worldwide, Cook knows that compromising the iPhone’s encryption would hurt the company’s reputation with customers. Of course, if Apple does not prevail in court, the FBI will get its way in the end, regardless of what Apple says. However, to be seen as defending privacy as vigorously as possible will be good for the device manufacturer no matter what the outcome. On the other hand, if Apple wins in the U.S., that would not necessarily settle the question forever—a government elsewhere in the world could eventually try to force Apple to compromise its encryption for similar or different reasons, and Apple would then face the choice of giving in or withdrawing its business from that country entirely. If the country is big enough, the financial loss could be very harmful, even devastating, to Apple.

Tarifica is the global leader in monitoring and analyzing telecom pricing. Covering hundreds of operators in every region of the globe, Tarifica’s databases of mobile, fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance.

To learn more about Tarifica, please visit www.tarifica.com 

IBM to Put US $3 Billion Into Connecting Enterprises to IoT

U.S.-based technology giant IBM wants to connect the Internet of Things (IoT) to the enterprise, and will invest US $3 billion over the next four years to reach that goal. The company has announced that it will establish an IoT unit to drive insights into business operations and build a cloud-based open platform to help clients and ecosystem partners build IoT systems. IBM’s IoT Cloud Open Platform for Industries will provide new analytics services for IBM, clients and partners and will be used to design and deliver vertical industry IoT systems. For example, IBM will introduce a cloud-based service that will help insurance companies extract insight from connected vehicles. This will enable the implementation of more dynamic pricing models and the delivery of services customized to individual drivers. IBM’s IoT ecosystem will expand, with partners ranging from device manufacturers to industry-oriented system providers such as U.S. telecom operator AT&T, U.K. semiconductor manufacturer ARM, U.S. semiconductor company Semtech and The Weather Company. The alliance with The Weather Company’s B2B division WSI will enable the analysis of massive amounts of data. WSI’s forecasting system generates 2.2 billion unique forecast points worldwide, and averages more than 10 billion forecasts a day. The IoT and cloud computing allow data to be collected from more than 100,000 weather sensors and aircraft, millions of smartphones, buildings and even moving vehicles. IBM and The Weather Company will help industries use their understanding of weather on business outcomes and take action systemically to optimize those parts of their businesses. The Internet of Things is a rapidly growing phenomenon worldwide. We have written about it on a number of occasions recently, though mainly with regard to its applications in the consumer sector, such as smart-home technology. However, its potential in the enterprise sector is huge, and it makes sense that a giant technology developer such as IBM has seen that potential and made a substantial investment in it. By doing it via a cloud-based open platform, it makes access to the IoT easier for a wide variety of companies, and if that strategy might entail a certain surrender of control on IBM’s part, we believe that will be more than compensated for by the breadth of expansion of the IBM ecosystem, and therefore, ultimately of revenues. The deal with The Weather Company has particularly great potential. As the provider of information for the weather apps for Apple, Google, and Microsoft, the company has a very large footprint. And weather data is an invaluable resource for industry as well as for consumers. By means of IBM’s IoT platform, The Weather Company’s enterprise division, BSI, will be able to connect more businesses with weather-data collection sources. Mobile operators also participate in the IoT, if only by providing the connectivity. Here, a non-MNO entity has provided the platform, and that could be considered a challenge for MNOs to try and compete in the sector by creating their own branded IoT platforms or systems for their enterprise clients. One of IBM’s partners in the Cloud Open Platform for Industries initiative is AT&T; while its role is not yet clear, it could point a path for other operators toward exploiting the expanding IoT sector.

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Samsung to Offer Fewer New Phones in 2015

South Korea-based device manufacturing giant Samsung Electronics says it plans to reduce the number of smartphone models it will offer next year. The move is part of a strategy of cutting costs to offset declining mobile-device profits. The company will cut the number of models by about 25 to 30 percent, according to Robert Yi, head of investor relations, who made the remarks during a presentation in New York. Samsung did not disclose the number of models that would be affected by the reduction.

Samsung’s position in the worldwide device market is being eroded by two forces—one, the new iPhone 6 models from rival Apple, whose larger screens compete directly with those of Samsung’s flagship Galaxy models; and two, a more fundamental challenge from Chinese manufacturers that are producing well-designed low-priced phones that approach or match many of the specifications of high-end devices. In the third quarter of 2014, Samsung saw its profits from mobile devices go down by 74 percent.

Cutting down on its range of devices could plug the hole to some extent, but cost reduction is by no means the whole answer. According to a recent report, the company is transferring hundreds of engineers from its mobile division to an Internet of Things (IoT) initiative. That makes sense on more than one level. Samsung already makes many non-mobile devices, from washing machines to TVs, that ultimately could be connected to mobile networks in the emerging smart-home sector of the IoT. Adding the ability to connect to the internet via mobile networks would be a natural step, and one for which Samsung is eminently well-qualified. Beyond that, though, if the idea of enabling a plethora of devices and appliances—not only in the home but in the workplace and elsewhere—to be controlled by mobile devices truly takes hold, there will be a wealth of opportunities for savvy manufacturers to profit from it. 

The above item appeared in a recent issue of Tarifica's "The Story of The Week", a weekly report that analyzes noteworthy developments in the telecoms industry from around the world. For past issues or to learn more about The Story of The Week or to contact the Tarifica Research department:  http://www.tarifica.com/contactus.aspx

Vodacom South Africa Launches Voice Biometrics

Vodacom South Africa has launched a voice biometrics security measure, which allows a person’s unique “voiceprint” to be used as a key to provide access to a mobile device. Vodacom customers can register for it via their My Vodacom app or through the customer-care call center. Once a customer has successfully registered and recorded the voiceprint, he or she will need to repeat a pass-phrase for the system to verify it against the recorded voiceprint. Research has shown that 80 percent of consumers view voice biometrics positively.

Security is a major concern that companies are using more frequently as a means of differentiating themselves from the competition. Apple uses fingerprints, SK Telecom has launched Security Box and now Vodacom South Africa is using voice biometrics. The idea of having a secure feature that prevents others from accessing a device—or at least certain features of it—is comforting to consumers. However, there are also concerns that need to be addressed.

The first is that of reliability. It remains to be seen whether the technology Vodacom uses is going to be reliable enough to not only prevent others from accessing the device but also to ensure that those who should have access will always be able to get it. When the iPhone 5S launched with a fingerprint sensor, there were reports of phones not recognizing when a finger was present or not approving fingerprints it should have. We could imagine a voice sensor failing to recognize a voice if the speaker sounds different from usual, due to illness, for example. The other concern is privacy. According to an estimate by the Associated Press, there are around 65 million “voiceprints” stored in corporate and government databases around the world. Members of the public are concerned that having their voices in a database could compromise their privacy, which could have effects not only for daily life but also with regard to services that require anonymity, such as counseling services and crime-tip hotlines. Overall, it seems that Vodacom is releasing this feature as a differentiation tactic. While it may accomplish that goal, it is unclear whether it will have the security impact that is being advertised.

The above item appeared in a recent issue of The Tarifica Alert, a weekly resource that analyzes noteworthy developments in the telecoms industry from around the world. To access all of the latest articles and issues:  http://www.tarifica.com/TarificaAlert.aspx

Women are More Inclined to Buy Leading Mobile Phone Brands

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Samsung’s Q2 Profits Below Expectations

Korean device manufacturer Samsung stated that according to its preliminary figures, second-quarter revenues were KRW 52 trillion , down from 54 trillion  in the same quarter last year, and that operating profits fell 23 percent year-over-year, to KRW 7.2 trillion. Analysts had expected profits of KRW 8 trillion. In a statement, Samsung attributed the shortfall to increased competition in China and Europe and to soft smartphone and tablet sales. Samsung’s statement sought to contextualize the disappointing results and sound a somewhat optimistic note for the near future: “The second quarter is a seasonally weak period for smartphone demand in China. Samsung also saw an increase in inventory due to price competition and a weaker demand for 3G products ahead of the expected growth of 4G LTE products in the Chinese market.… The company cautiously expects a more positive outlook in the third quarter with the coming release of its new smartphone lineup.” Nonetheless, the preliminary Q2 figures for the manufacturing giant tell a larger story. One cause of Samsung’s difficulty is the rise of the big-screen (5- or 6-inch) smartphone, sometimes known as the “phablet,” which has been championed by none other than Samsung. Such devices have been cannibalizing tablet sales. In addition, with the maturation of smartphone technology, users are finding that their devices have sufficient functionality and durability that they do not have to upgrade them as often as before. And finally, Samsung and other high-end device manufacturers, such as Apple, are finding their domain encroached upon by cheaper and simpler handsets that, with the advance of technology, can now perform enough key smartphone functions to deter many consumers from spending the extra money on a state-of-the-art phone. The Samsung Q2 figures are by no means the last word on the Korean giant’s business, but they are part of an evolving narrative about the maturation of the worldwide device market.

The above item appeared in a recent issue of Tarifica's "The Story of The Week", a weekly report that analyzes noteworthy developments in the telecoms industry from around the world. For past issues or to learn more about The Story of The Week :  http://www.tarifica.com/storyoftheweek.aspx

Samsung Partners with Marvel Entertainment

South Korean device manufacturer Samsung Electronics has recently partnered with Marvel Entertainment, which publishes comics and produces movies, among other enterprises. The partnership will begin with a three-month offer of free unlimited access to over 15,000 Marvel Comics through the Marvel Unlimited app on the Galaxy Tab S. In addition, all Samsung users will have exclusive access to sneak peeks of upcoming Marvel films debuting next year, including “Marvel’s Avengers: Age of Ultron.” There will also be Samsung product placement in Marvel entertainment content.

Apple has consistently surpassed Samsung in the tablet market and continues to hold the largest market share at 32.5 percent, compared to Samsung’s 22.3 percent in Q1 2014 (see graph). Samsung’s market share has increased significantly over the past year, but Apple still holds the lead. The partnership with Marvel Entertainment holds out the possibility of driving more business to Samsung’s tablets.

Marvel has a huge worldwide fan base, and Samsung product placement within its films could have a positive effect on device sales. However, the promotional offer of three months of free unlimited access to Marvel Comics on the Marvel Unlimited app may not be as useful a strategy as the company expects, since the application only allows access to most newly released comics six months after they go on sale in stores. Also, the app allows users to access six comics offline, the rest requiring internet access, which makes it inconvenient to use in areas without an internet connection.

The above item appeared in a recent issue of The Tarifica Alert, a weekly resource that analyzes noteworthy developments in the telecoms industry from around the world. To access all of the latest articles and issues:  http://www.tarifica.com/TarificaAlert.aspx

Worldwide Tablet Shipments Decline as Global Smartphone Market Grows

According to recent reports, worldwide shipments of tablets and 2-in-1 devices decreased to 50.4 million units in the first quarter of 2014. That represents a decrease of 35.7 percent from the previous quarter and an increase of 3.9 percent in comparison with the same period a year ago. Apple continues to lead the global tablet and 2-in-1 market, shipping 16.4 million devices. Samsung, on the other hand, increased its worldwide share from 17.2 percent in the last quarter of 2013 to 22.3 percent in the first quarter of 2014. While global tablet shipments decreased, the worldwide smartphone market showed a 28.6 percent increase in the first quarter of 2014, year over year. Manufacturers shipped 448.6 million units, up 3.9 percent from the 431.8 million devices shipped in the first quarter of 2013, but down 9 percent from the 492.8 million units shipped in the last quarter of 2013. Samsung shipped an estimated 85 million smartphones, which is 30 percent of the global market share and represents a year-over-year increase of 25 percent. Apple shipped 43.7 million iPhones, constituting 15.5 percent of the worldwide market share, for a year-over-year growth figure of 17 percent. Other major smartphone manufacturers such as Motorola-Lenovo, LG, Huawei and ZTE also maintained their market share and showed overall growth.

Based on the current reports, Samsung and Apple continue to dominate the market. For the last few years we have been following the two tech giants as they competed against each other. Samsung’s Galaxy S smartphone was introduced in June 2010 and within about a year its manufacturer became the world’s largest smartphone seller. In 2013 Samsung shipped more than 300 million units of its various models, while Apple sold about 150 million iPhones. While Samsung leads in global smartphone shipments, Apple’s iPads continue to outsell its Korean competitor’s tablets.

When it comes to smartphone popularity and overall usage, the developed markets offer very limited opportunities for growth, as smartphone penetration is already high there. Emerging markets, on the other hand, are trying to eliminate feature phones and are slowly replacing them with entry-level smartphones. These are the markets that offer growth opportunities for handset manufacturers as mobile devices become more affordable and more essential to all daily activities. Subscribers in the developing world are increasingly using their mobile phones to complete banking transactions, receive daily news updates, check their emails, and fulfill many other vital functions.

Mobile networks continue to expand, so operators and device manufacturers would both benefit from working closely together to develop strategies that would drive tablet sales through attractively priced smartphone bundles. Operators should also continue to create innovative services that are specifically targeted to tablets or smartphones, as well as plans that bundle services for both.

The above item appeared in a recent issue of The Tarifica Alert, a weekly resource that analyzes noteworthy developments in the telecoms industry from around the world. To access all of the latest articles and issues:  http://www.tarifica.com/TarificaAlert.aspx