LTE Fuels Fast Growth at Verizon

Verizon reported a 5.7% year-on-year increase in revenue in the second quarter to 31.5 billion US dollars.  Boosted by growing take-up of LTE, wireless service revenues rose 5.9%, while strong demand for fibre connections lifted wireline consumer revenue 5.3%. source: Verizon presentation

Flattish Quarter for Ericsson

Ericsson, the world's leading supplier of mobile networks, said its sales in the second quarter fell 1% year-on-year to 54.8 billion Swedish krona (8 billion US dollars) on an organic basis.  Hans Vestberg, CEO of Ericsson, said: "Sales in the quarter year-over-year were driven by growth in the Middle East, China and India, as well as continued capacity business in North America. This was offset by, as previously communicated, lower revenues from two large mobile broadband coverage projects in North America that peaked in the first half of 2013, and reduced activity in Japan." source: Ericsson statement

Google Sees Strong Revenue Growth

Google said it revenues rose 22% year-on-year in the second quarter to 15.96 billion US dollars, driven by a 23% increase in advertising revenues generated by Google owned sites and apps. However, the average cost per click paid by advertisers fell 6% year-on-year. source: Google presentation

Communications is the only Cloud on Intel's Horizon

Intel reported an 8% increase in revenues in the second quarter to 13.8 billion US dollars. PC Client Group revenue was up 6% year-on-year to 8.7 billion dollars, while Data Centre Group revenue was up 19% to 3.5 billion dollars. The world's largest chip maker said Internet of Things Group revenue was up 24% year-on-year to 539 million dollars, but Mobile and Communications Group revenue fell 83% to just 51 million dollars.

"Our second-quarter results showed the strength of our strategy to extend the reach of Intel technology from the data center to PCs to the Internet of Things," said Intel CEO Brian Krzanich. "With the ramp of our Baytrail SoC (systems on a chip) family, we have expanded into new segments such as Chrome-based systems, and we are on track to meet our 40 million unit tablet goal. In addition, we hit an important qualification milestone for our upcoming 14nm Broadwell product, and expect the first systems to be on shelves during the holidays." source: Intel statement

Android Users Spend Modestly on Apps

Google said it paid out 5 billion US dollars to developers selling apps through its Google Play store in the past year - that is 2.5 times the amount it paid out the previous year. The search giant also said there are now one billion users of Android, which implies most users are spending less than $10 a year on apps (Google keeps 30% of the price paid by consumers). source: Rappler live blog from Google I/O 2014

Emerging Best Practice in Digital Commerce

Extract from the conclusions in the GSMA's guide to Emerging Best Practice in Digital Commerce for Mobile Network Operators, which I co-authored:  

"Minimise the risks for service providers: There are many different potential charging models, ranging from a one-off fee to regular rental fees to transaction-based fees. A success or transaction-based charging model, which is widely used for internet advertising, is likely to be popular with service providers, as it limits their risk – they only have to pay when their customers are actually making use of the digital commerce service. 

"Competition and regulation could also have an impact on business models. If internet-based digital brokers offer merchants and brands transaction/success-based fees, then mobile operators could come under pressure to offer a similar tariff structure. At the same time, regulation, particularly with respect to capping interchange fees, could limit the scope the banks and payment networks to pay digital commerce brokers transaction-based fees.

"In summary, MNOs need to simplify their approach in terms of business models and on-boarding of service providers. Only through these changes will they achieve scale and the mass uptake of services. Ultimately it will be the consumer and the market that drives innovation and uptake, with those service providers who deliver an excellent customer experience and safe, secure and simple services, winning the battle for customer’s loyalty." source: Emerging Best Practice in Digital Commerce for Mobile Network Operators

Amazon Fires Up E-commerce Smartphone

Amazon unveiled its first smartphone, the Fire. It is equipped with Amazon's new Firefly app, which is designed to quickly recognise things in the real world—web and email addresses, phone numbers, QR and bar codes, movies, music, and millions of products, and enable the user to take action in seconds.

Amazon says Firefly "combines Amazon’s deep catalog of physical and digital content with multiple image, text and audio recognition technologies to quickly identify web and email addresses, phone numbers, QR and bar codes, plus over 100 million items, including movies, TV episodes, songs, and products. Simply press and hold the dedicated Firefly button to discover helpful information and take action in seconds."

When it recognises printed phone numbers, email, web addresses, QR, and bar codes, the Firefly button enables the user to make a call, send an email, save as a contact, or go to the website without typing out long URLs or email addresses. In the case of multimedia content, the Firefly button enables the user to add titles to a watch/wish list or download the music track or video and start watching immediately. In the case of physical products, the Firefly button enables the user to add the item to a wish list, or order on Amazon.com. source: Amazon statement

AT&T Lifts Revenue Forecast

Citing strong second quarter wireless trends, AT&T said it now expects its revenue to rise about 5% in 2014. (It had been forecasting revenue growth of at least 4%). The giant U.S. telco also reaffirmed that it plans to spend 21 billion US dollars on capex this year. source: AT&T statement