Verizon, Mozilla, SK Telecom And Others Join Mobile Linux Efforts; Enterprise Targeted

Verizon Wireless (NYSE: VZ) confirmed today that it will support the Linux mobile-phone operating system, and join the LiMo Foundation as a core member, signaling its commitment to the platform. As part of the announcement, LiMo announced a list of other new supporters, including SK Telecom (NYSE: SKM), Infineon Technologies, Kvaleberg, Mozilla, Red Bend Software, Sagem Mobiles, and SFR. [Releases]

Kyle Malady, Verizon’s VP-network, said in a conference call this morning that Linux will be added to the platforms Verizon already supports, including Windows Mobile, Palm (NSDQ: PALM) and Brew. It does not preclude the No. 2 carrier from joining Google’s (NSDQ: GOOG) Android platform in the future, Malady said. LiMo was chosen over Google’s Open Handset Alliance because it already had handsets in the marketplace, and had a variety of members crossing all sections of the industry. “We anticipate that as we move down the path of Linux, we’ll be looking at it as the OS of choice in handset lineup moving forward,” he said. Verizon will first launch lower-end phones, and move up to smartphone and PDAs with the first phone expected in 2009. Verizon will encourage its handset partners to use the OS even if it is not a part of LiMo. Verizon, which will make a big financial commitment by hiring people, expects the open platform to lower development costs.

Verizon’s commitment to LiMo should not be too much of a surprise given that its partial owner, Vodafone (NYSE: VOD), is a founding member; however, it’s the largest commitment by any North American carrier. AT&T (NYSE: T), Sprint (NYSE: S) Nextel and T-Mobile have all come out in favor of Android.

Targeting Enterprise
ZDNet UK writes that LiMo is in talks with a couple of major Linux distributors to bridge enterprise and mobile. “The principle area of interest [regarding these two companies] is evolving the software stack such that it’s really fit for purpose as a mobile platform in the enterprise segment, and will support applications and services for enterprise which interoperate comfortably on mobile devices and desktop devices,” said Gillis. “It’s seamless enterprise computing, basically.”

Ovum analyst Adam Leach is quoted as being surprised by this because the consumer space is seen as a bigger opportunity—but if a company sells Linux software to enterprises it makes sense they’d want to connect mobiles to that rather than targeting a whole new audience. Leach also said the latest announcement makes Android look bad: “After a good start and big fanfare, we’ve just seen prototype demos. It seems to me that they’re not making the progress that we would expect.”

France: Alcatel and SFR are researching mobile broadcasting solutions

Alcatel (Paris: CGEP.PA and NYSE: ALA) and SFR announced today their collaboration in the field of mobile broadcasting in France. The objective of the joint effort is to validate business prospects for mobile TV broadcasting and evaluate the technical performance of Alcatel’s “Unlimited Mobile TV”, a hybrid satellite and terrestrial solution in the S-Band. This solution has received the support from the French Industrial Innovation Agency.

Alcatel and SFR are working together on different growth scenarios for the mobile TV market in France, as well as on a variety of marketing approaches to match different usage profiles and consumption models. Initial joint analyses of the potential revenues and cost of this innovative service in France tends to confirm interest in this new market. The usage patterns studied will be used to meet the needs of mobile TV users, whether in transit (with individual or public modes of transport), or nomadic (static) either outdoors or indoors (at home, at the office, or in public places such as shopping malls).

In addition, for the past few months the two companies have been conducting a technical evaluation of Alcatel’s proposed system. Alcatel and SFR have exchanged comparative deployment cost information for the different mobile broadcasting solutions. Alcatel provided SFR with information regarding configuration, as well as the number of sites needed to deploy such an S-band network, and the two companies have jointly validated certain technical and cost hypotheses associated with this deployment.

As stated by Jean-Dominique Pit, SFR Director of Strategy and Innovation, “SFR is convinced that mobile TV will be among the important services offered to its customers and wishes to provide them with an excellent technical solution combining a wealth of content with high quality coverage. This is why we are going to pursue joint efforts with Alcatel.” He added that “The 2006 FIFA World Cup showed a very strong attraction of worldwide customers for mobile TV services that are easily accessible, anywhere and any time. In France, SFR customers downloaded 1.4 million videos between June 9 and July 9, and subscribed to 140,000 goal alerts, 73% of those involving the French team. It is clear that future major international sporting events will help mobile TV come into widespread use, which will require effective broadcasting solutions, truly accessible everywhere and to everybody at the same time.”

SFR and Orange France’s 3G Coverage Obligations

ARCEP reports today on the verification procedure for the UMTS roll-out obligations of the operators Orange France and SFR, which has been underway since December 2005.

Under a decree dated 18 July 2001, Orange France and SFR were authorised to establish and operate a public third-generation radiocommunication network and to provide public telephone service.

Because of the significant gap between the technical and economic reality and the forecasts made when the UMTS frequencies were allocated, ARCEP revised Orange France and SFR’s coverage and commercial launch obligations in March 2004: both operators had committed to launching their UMTS services by the end of 2004 and to cover 58% of the population by 31 December 2005.

UMTS has taken off in France since its launch in late 2004

SFR and Orange France launched their third-generation mobile networks commercially in late 2004. With over two million 3G customers, France is in step with the 3G development movement in Europe, where the UMTS Forum estimates there are over 38 million UMTS customers. This period has also seen a great increase in the use of multimedia services, and mobile video and television services in particular.

SFR and Orange France have respected their roll-out deadline of end 2005

Thanks to the significant efforts made by SFR and Orange France to roll out UMTS, they were able to respect their commitments made in 2004 and to develop 3G mobile telephony in France. Indeed, in early 2006, SFR reached coverage of 60% of the population and Orange France 58% of the population. This coverage allows the operators to offer all the services made possible by UMTS, up to 384 kbps for downlink and 64 kbps for uplink: telephony, videophony, SMS, MMS, television, file transfer, etc.

New commitments for 70% coverage

Now that this initial roll-out phase is complete, 3G coverage will continue to spread in coming years. Indeed, both operators have committed to covering 70% of the population. It will be by the end of 2007 for SFR, and by the end of 2008 for Orange France.

ARCEP will also check Bouygues Telecom’s roll-out obligations: in 2005, it committed to opening its 3G service in April 2007 with coverage of 20% of the population.

Continuing 3G roll-out: a major issue for regional development

The roll-out of 3G must go even further. Access for all residents to 3rd generation mobile services is a critical factor for regional development. The higher speeds offered by the new generation of mobile telephony are the foundation for the development of innovative services and multimedia services. ARCEP considers that the medium-term coverage goal of offering 3G services to as many users as possible must be attained.

The technology has made significant gains since UMTS licences were issued in France. One of the most remarkable advances concerns the increase in speeds, thanks to the HSDPA technology (High Speed Downlink Packet Access), which makes downloading speeds of 1.8 or even 3.6 Mbps possible for each user. In addition, HSUPA (High Speed Uplink Packet Access) will increase speeds available for uploading.

The need for low frequency bands

Because of their better propagation and penetration inside buildings, low frequency bands will have to be used to expand 3G coverage. This could be made possible in at least two ways:

- reusing the GSM 900 MHz bands

- identifying low frequencies made available through the planned disappearance of analogue television (the “digital dividend”)

Orange France and SFR’s GSM authorisations include the possible reuse of the 900 MHz bands for UMTS. Both operators have shared with ARCEP their desire to take advantage of this possibility.

In conformity with their authorisations, ARCEP will launch a public consultation on this subject in the Fall. The consultation will aim to determine whether the distribution of the 900 and 1800 MHz bands will have to be redefined in order to guarantee the frequencies are distributed equitably among all 2G and 3G mobile network operators. Thus, the market will be surveyed once more on its interest in the fourth UMTS licence which is still available. ARCEP will then take necessary decisions on the future allocation of corresponding frequencies based on the interest expressed.

Moreover, the freeing of a coherent and harmonised digital dividend at the European level is critical for the development of very high speed wireless systems. In this respect, ARCEP is pleased that on 4 May 2006 the President of the Republic created a Strategic Committee for Digital Issues (ComitГ© StratГ©gique pour le NumГ©rique).