KPN, Bankinter

Bankinter, a Spanish bank, has made a deal to use KPN’s network and services to provide mobile phone service at a special rate to its banking clients.

G8wave, AEI, Alchemedia

G8wave, an integrated mobile media company, has teamed with AEI and Alchemedia to bring Metallica to the big TVs of Shibuya, Japan. These will display ads for mobile content like music videos and ringtones.

Vodafone Spain, Openwave Team to Improve Mobile Net Experience

Vodafone Spain recently chose the OpenWeb application from cell phone browser firm Openwave Systems to provide mobile-formatted Web site content.

OpenWeb is an Internet browser designed to deliver full Internet pages in a user-friendly format to any mobile data-enabled device. It actively defines portions of Web sites as relevant and then places the most relevant information in the first or second segment, increasing the rate at which users get pertinent information.

Hari Haran, senior VP of worldwide field operations for Openwave, said, “Our OpenWeb and security solutions are building on our unparalleled mobile access gateway expertise, market leadership and strong relationship with Vodafone.”

Openwave Secure Content Management (SCM) offers a multiple protocol, multi-service protection for messaging, browsing and downloads for mobiles. Openwave SCM and OpenWeb are designed to support and protect increased mobile Internet traffic, while enabling new servers and applications for merchants and advertisers.

Thumbplay, iLike Offer Ringtones to Social Networking Platforms

Mobile entertainment content destination Thumbplay and social music discovery service iLike have joined together to provide Thumbplay ringtones through iLike.com and iLike’s Facebook application. “With the addition of Thumbplay ringtone links, iLike has just expanded our music discovery features to include also a fantastic ringtone-discovery experience. As the mobile entertainment content industry leader, Thumbplay delivers the broadest and deepest catalog of content to our 15 million registered users, so they can now take their music with them as ringtones regardless of which carrier or phone they’re using,” said Ali Partovi, CEO of iLike.

Thumbplay has some 75,000 pieces of mobile content that includes ringtones, wallpapers, games, videos, voice tones and texting services.

iLike’s social music discovery service is the top ranked app on Facebook with 15 million registered users. The app lets people share music recommendations, playlists and customized concert announcements.

Firefly Mobile Plays Nice With Kidz Bop

Firefly Mobile, a US company that specializes in developing and manufacturing mobile products for children and teenagers, has signed an agreement with Kidz Bop LLC, producer of the “Kidz Bop” children’s audio series. The two are partnering to enable kids to download Kidz Bop content like videos, ringtones and wallpapers to Firefly Mobile’s newest phone, the flyPhone.

“The new flyPhone gives kids and tweens another way to enjoy mobile entertainment created especially for them…parents can be assured that their kids and tweens are finding age appropriate material at the flyStore,” said Patrick Marry, CEO of Firefly Mobile.

The flyPhone features a MP3 player, video player, camera, games, customizable ringtones and wallpaper that are age-appropriate for their target market. The Kidz Bop content for flyPhones will be made available through Firefly’s online store “flyStore.”

Kidz Bop has been the top children’s music series from 2002 to 2006, according to Billboard. Kidz Bop, which has sold 10 million CDs over the past six years, is a compilation of current popular songs sung by kids in order to create a child-friendly tone.

Orange Brings Setanta Football to Mobiles

Orange has become the first British mobile network to offer sports programs from Setanta, a pay-TV service, making Orange’s mobile TV the only one to offer all the televised Barclays Premiership football (soccer to the US folks) matches.

For £5 a month, customers get access to Setanta Golf and Setanta Sports 1 and 2. Orange already has a partnership with Sky’s mobile TV, so if users don’t mind paying for both they won’t miss a single Barclays Premier League match. Setanta signed one million premium subscribers within four months of its first Barclays Premiership season.

“No serious football fan would risk missing his team’s progress this season and the deal with Orange means that need never happen,” said Timothy Ryan, Great Britain marketing director for Setanta Sports.

Setanta has also snatched up rights to most of the away-game qualifiers for the 2010 World Cup for England, Wales, Scotland, Northern Ireland and the Republic of Ireland. Setanta has secured the right to show the FA Cup and England’s home international games for next season.

This Week in Content Deals

Vringo, WeeWorld 

Video ringtone sharing site Vringo and WeeWorld, the online community site known for its customizable avatars called “WeeMees,” are partnering to integrate the WeeWorld avatars into Vringo’s video ringtone service.

Popular TV Shows Now Available on iTunes Store in Canada

Popular television programming from both the US and Canada is now available from the iTunes Store in Canada at CAN$1.99 per episode.  “We’re off to a great start with hit shows from CBC, CTV, Comedy Central and MTV Networks, along with the best of classic and current NHL action,” said Eddy Cue, Apple’s VP of iTunes.

Specifically, the iTunes Store in Canada will offer the following:

– Comedy programs “Little Mosque on the Prairie” and “The Rick Mercer Report” and reality shows “No Opportunity Wasted” and “Dragon’s Den” from CBC.

– Comedy “Corner Gas,” dramas “Instant Star,” “Degrassi: The Next Generation” and “Robson Arms” from CTV.

– “South Park,” “Drawn Together” and “The Sarah Silverman Program” from Comedy Central.

– “Avatar: The Last Airbender” and “The Hills” from MTV Networks.

– NHL Games of the Year, which include the top full-length matches from the 2007-2008 season, Stanley Cup Classics and a five-game bundle of Stanley Cup Final games.

Nokia Accelerates Change of Pace in Mobile Industry

– Bridges the Divide between Mobility and Internet
– New Music Service to Make Applesauce of iTunes

After the unfolding of Nokia World 2007, held this week in Amsterdam, it’s apparent that the Finnish handset maker is prepping to become a key player in the overall mobile market. “Consider all the new words that became part of the industry lexicon in the past 12 months: N95, iPhone, Android, Ovi. They are words that represent new directions and new competition in our industry, which is ultimately great for the consumer,” said Nokia president and CEO Olli-Pekka Kallasvuo in his keynote to a crowd of approximately 2,700. “We are at the dawn of a new era in mobile communications driven by the rapid convergence of the Internet and mobility, and Nokia is setting the pace of change.”

The conference featured a host of announcements that included the introduction of its new Comes with Music service, the expansion of additional services for its Ovi portal, the launching of the eco-friendly Evolve handset and a partnership with Telecom Italia. Overall, the event served as a means for Nokia to announce its vision for the mobile industry – and to warn those companies who stand in its peripheral vision.

Comes with Music Hopes to Make Applesauce of iTunes
At the event, Nokia launched Comes with Music, an app that offers a selection of unlimited music for a year from a variety of current and past artists. Comes with Music is pre-loaded onto newly purchased devices and is a result of a partnership with Universal Music Group International, Nokia is currently in talks with the remaining major labels about getting them to participate. After the 12-month period expires, users can opt to purchase a subscription to the service. Interestingly, and unlike any other subscription service, listeners can still keep the tracks that they’ve downloaded regardless of whether or not they pay for the service.

“We set out to create the music experience that people are telling us they are looking for – all the music they want in the form of unlimited downloads to their mobile device and PC. Even if you listened to music 24 hours a day, seven days a week, you would still only scratch the surface of the music that we’re making available,” said Anssi Vanjoki, executive VP and general manager of multimedia for Nokia. “Comes with Music fulfils our dream to give consumers all the music they want, wherever they want it, while rewarding the artists who create it.”

Additionally, Nokia will expand its Ovi portal to PCs and the Internet. Previously, Ovi’s features, which include music access, games, social networking, content sharing and mapping, were only accessible through an on-device WAP portal. Now, users will be able to access Ovi through personalized mobile and PC Web-based portals, or “dashboards,” which will offer integrated access features like contact list synchronization.

Mike Grant, head of broadband and media at telecommunications research company Analysis Mason Group and a conference attendee, said the implications of Nokia’s launchings are extremely important to operators. “Should Nokia successfully execute these developments and attract even a small proportion of their current one billion customers to this service, both operators and other OEMs will have a mountain to climb to offer the same compelling proposition. Nokia is laying down the gauntlet, saying effectively that Apple have got it right, and they intend to compete for consumer loyalty across mobile, PC and the Internet. Moreover, while Apple have a strong presence in the US, Nokia’s global market reach and scale make it a powerful competitor to all in this space,” said Grant.

Partnering with Carriers
Nokia also announced that it will be partnering with Telecom Italia to provide mobile services to customers by enabling Ovi and additional Telecom Italia services on select Nokia handsets. Nokia’s N95 8GB and N81 will be the first models whose menus will be customized to provide access to both services. “Ease of use has always been at heart of Nokia devices and this collaboration is an important step in creating the same for Internet services,” said Jyrki Salminen, senior VP of Nokia multimedia. “Nokia devices and services are based on open standards making it easy for us to work with forward thinking operators such as Telecom Italia to provide consumers with a choice about which internet services they want to access from their mobile device.”

Last month, Nokia and Vodafone collaborated to integrate a number of Vodafone’s Internet and software services with Nokia’s Ovi portal. According to Faultline, the Telecom Italia deal and a previous partnership with Vodafone Italy enable Nokia to access more than 80% of the Italian market as well as significant sections of Western Europe.

Bridging the Mobility-Internet Divide
The event also announced the acquisition of Avvenu, a US-based start-up whose services let consumers access and share files stored on their PC on their handset over the Internet.

Finally, Nokia addressed its commitment to environmental issues by launching the Evolve 3110, a candybar-style handset composed of bio-covers made from approximately 50% renewable materials. The device’s energy-efficient charger uses 94% less energy than the Energy Star requirements and comes in a small, 60% recycled content package.

Overall, companies like Apple need to heed Nokia’s battle cry to the mobile industry. Even though Apple has seen success with its products like iTunes and the iPhone, customers still aren’t completely satisfied with their overall mobile experience, one which Nokia hopes to rectify – and take some additional mindshare away from Apple while it’s at it. “Nokia has stepped out ahead of the rest of the industry in bridging the divide between mobility and the Internet. Successful execution appears to be their one remaining challenge,” said Analysis Mason’s Grant. “We shall watch the company’s progress in 2008 with interest.”

Verizon Wireless to Support Google’s Android

– An Open Access Cellular Network Followed by Selection of LTE for High-speed Wireless Broadband
– Integration of FiOS and LTE: Wireless Meets Wireline
– Verizon Could Offer Seamless High-speed Wired & Wireless Broadband Services

Last week Verizon Wireless said it would open its network to third-party devices and Internet applications and services. Then it said it would begin testing a wireless networking technology called LTE next year that will directly compete with WiMAX. This week the cellco said it will support devices that use Google’s new Linux-based Android operating system on its current and future cellular network.

Verizon Wireless, 55% owned by Verizon, is the second-largest US mobile phone service in market share, barely trailing AT&T, and is the most profitable. It is the largest mobile phone service to publicly promise support for Android. Adding to Verizon Wireless’ clout is that Vodafone, the world’s largest mobile phone operator by revenue, owns the other 45%.

Android competes directly with operating systems for mobile devices such as Microsoft’s Windows Mobile, Nokia-backed Symbian, Palm and several Linux-based operating systems. Apple in its iPhones and RIM in its BlackBerries use proprietary operating systems that they developed, own and control. Apple recently promised to open up its iPhone operating system to third-party developers

Google promised that any mobile device maker can use Android for free as long as the general rules of open source software are followed, such as making improvements available to other developers for free.

Verizon Wireless CEO Lowell McAdam told BusinessWeek that once the company decided to open access to its cellular network, it made sense to support Android. “We’re planning on using Android,” McAdam said in the magazine. “Android is an enabler of what we do.”

Despite Verizon Wireless’ promises, there is still doubt in the industry as to how much the company is really opening its network. One reason for the doubt could be that the company has been among the most restrictive, the most closed to third-party devices, by creating a walled garden around the sites that its subscribers could access. Its transition from closed access to open access is as remarkable as mankind’s transition from a constant and continuous hunt for food and warmth to, seemingly, full-time search for media.

Two events may have prompted Verizon Wireless’ moves. One is Apple’s announcement that it will open the iPhone to third-party developers. That’s particularly alarming considering how much success Verizon Wireless rival AT&T has had selling iPhones. Then there’s Google’s statement that in January it will bid on spectrum that can be used to build a wireless network. Whether Google would build and operate its own network or farm it out to a more experienced wireless network operator remains to be seen. Verizon Wireless may think that by making its cellular network open and supporting Android that Google will have less incentive to build its own wireless network.

There’s also the threat from WiMAX technology, which Sprint is using to build an open access network that will provide subscribers access to any and every Web site and online service plus allow any WiMAX-certified device to connect.

One difference between the Sprint and Verizon Wireless approaches is that WiMAX gear will be certified by an industry group that Sprint does not control, but Verizon Wireless will certify devices in a $20 million certifications lab that it’s building and will control. In a world of level playing fields, Verizon Wireless would turn its testing over to an industry body or contract it out to an independent lab.

BusinessWeek reported that Verizon Wireless has spent upwards of a year considering and planning its move to open access. The magazine said McAdam held numerous meetings with the chairman of the FCC and many late night sessions with top executives at Verizon and Vodafone.

Reportedly, McAdam kept with him at all times a well-worn piece of paper that listed seven bullet points that defines what an open-access policy would mean to Verizon Wireless. BusinessWeek said that Verizon Wireless decided that moving to an open access network would allow it to continue growing but hold costs down. One of its biggest costs is customer support. Verizon Wireless operates 25 call centers, each of which has about 1,000 employees. Additionally, 20,000 employees in its 2,300 stores are estimated to spend only about 10% of their time signing up new subscribers. The other 90% is spent assisting existing customers with such things as technical support and billing issues. The magazine quotes McAdam as saying that the current business model is not sustainable. “If we get to 150 million customers, boy, that’s a lot of overhead,” he said.

Open Access
When most people think of open access, if they think of it at all, they think about what they have at the office and at home – the ability to use any PC or other device that can connect to the Net and the ability to access any and every Web site and run any and every Web-based service (like search) or software (like instant messaging). The mobile phone companies have by and large prevented that from happening with their cellular networks.

There are downsides to open access networks. If there’s a problem, consumers have to call the device maker. The broadband service only has to verify that there’s live broadband at the router but doesn’t have to check to see if the devices that are connected to it are functioning properly. Verizon Wireless’ plan for its open access approach means that it will only confirm that an open access device can connect to its network, not that every feature on the device works or that every third-party application and service is working.

The device makers will have to spend the money to support their products, not Verizon Wireless.

Verizon Wireless will test each model of a mobile device before it certifies the device for use on its network. Beyond that, McAdam said its subscribers would “have to talk to their handset provider or their application provider if they have particular issues.”

Another major difference between Sprint’s planned WiMAX network and Verizon Wireless’ current approach is that Verizon Wireless subsidizes every handset that it sells so that the user pays in many cases less than what Verizon Wireless paid for the handset. The company said it does not intend to subsidize open access devices. This would give it the benefit of having thousands of devices with wide variances of capabilities available for use on its network – without the burden of testing, inventorying and subsidizing them. That, plus the reduction in its customer support operations, could be worth billions.

Wireless Meets Wireline as LTE Connects to FiOS
There’s another major piece in the remaking of Verizon Wireless that involves its adoption, at least for testing purposes, of LTE (Long Term Evolution) as its future network technology – the so-called 4G network that would be the equivalent in speed and access of what consumers now have in their wireline broadband at home.

Verizon Communications is considering integrating LTE into its fiber-optic based FiOS network. According to Verizon CTO Dick Lynch, LTE offers speeds fast enough that Verizon could offer on Verizon Wireless’ network what had previously been only available over wireline broadband.

“We don’t expect people are going to download [high-definition] video over the LTE network, but there will be other services that tightly integrate with FiOS,” Lynch said. “This is a Verizon ‘big picture’ decision. One of the reasons I made the move from Verizon Wireless to Verizon is because there is this belief that the future is about the converged network.”

Vodafone and Verizon Wireless won’t begin testing LTE until late 2008, with a full-blown rollout not expected until the 2010 to 2012 time frame. Sprint says it’s on schedule to begin testing its WiMAX network by year-end (only a few weeks away) in the Chicago and Washington, DC-Baltimore areas.

Verizon’s LTE announcement, according to Lynch, is not a sign of an immediate launch, only a signal to device makers of where Verizon and Verizon Wireless are headed.

“4G is not about voice services,” Lynch said. “It’s not about ‘light’ broadband services. It’s about high-speed IP data services.” He expects hundreds of consumer electronics makers to develop a variety of devices that offer different functions. By announcing now, Lynch said, the telco is enabling the device and network gear makers to develop future products to a specific standard, one that they know Verizon, Verizon Wireless and Vodafone will support.

It’s much the same strategy that Samsung, Intel, Motorola, Google, Sprint and others have used to make WiMAX the world’s most-awaited mobile network.

Nortel, Alcatel-Lucent, Ericsson and Nokia Siemens are expected to be the big winners to supply LTE network gear to Verizon and Vodafone.