FCC To Tighten Rules On Robocalls

The top U.S. telecommunications regulator wants to make it more difficult for telemarketers and other businesses to robocall and text messages consumers under changes to autodialing rules being proposed.

The Federal Communications Commission plans to vote on June 18 on the proposal, which would give legal cover to telephone companies to offer consumers technologies that would block robocalls, regardless of where they originate.

“The FCC wants to make it clear: Telephone companies can – and in fact should – offer consumers robocall-blocking tools,” FCC Chairman Tom Wheeler said in a blog post.

The wireless carriers have worried that blocking automated calls could be construed as violations of the law that requires them to ensure that all calls placed over their networks reach their intended recipients.

The proposal would also reassert that consumers have to agree to receive automated calls and texts and clarify that they can revoke their consent in any “reasonable” way, including a simple request for calls to stop, without the need to file convoluted paperwork.

Robocalls and robotexts are by far the most common cause of consumer complaints at the FCC, topping 215,000 in the last year alone. Consumer advocates and the majority of U.S. states attorneys general had pressed the FCC to clarify the robocall rules.

Numerous business associations, including the U.S. Chamber of Commerce, have also pushed for clarifications, facing a growing number of lawsuits prompted by violations such as calling cellphone users whose numbers used to belong to someone else.

The FCC’s proposal would reassert that companies should try to avoid numbers reassigned to consumers who have not agreed to receive their calls. If they do not know that a number has been reassigned, they are allowed one call to find out.

The business community had also complained that some lawsuits unfairly target them for using dialing technologies that could be modified to become autodialers. FCC officials said any technology with the capacity to dial random or sequential numbers qualifies as an autodialer, even if it would require modification.

U.S. law prohibits telemarketing calls to both landline and cellphones of consumers who have not given written consent.

Source

Is Sprint’s Future Questionable?

Sprint Nextel Corp’s shares fell sharply on Thursday as heavy subscriber losses in the second quarter called into question the strategy and outlook of the No. 3 U.S. wireless company.

Sprint had spent heavily to promote its service and better compete against larger carriers Verizon Wireless and AT&T Inc. But that strategy backfired as profit margins eroded and customer losses persisted.

The weak results overshadowed Sprint’s announcement of a $9 billion network contract with start-up LightSquared, and sent the stock tumbling to its lowest point since February before recovering a little to close down 16 percent.

Investors questioned whether Sprint would be able to meet its 2011 targets after such a disappointing showing.

“Their cost of doing business went up dramatically,” said Piper Jaffray analyst Christopher Larsen. “People have less confidence they can meet expectations.”

Sprint’s operating profit margin of 16.3 percent was well below the average Wall Street estimate of around 19 percent as the company had changed its product rebate terms in an effort to combat Verizon Wireless’ sale of the Apple Inc iPhone, and an iPhone discount at AT&T.

But the bet did not pay off as Sprint still saw defections of 101,000 net subscribers — also known as post-paid customers — compared with analysts’ expectation for losses of 15,000.

Read More…

Visa Digital Wallet Coming

Visa Inc, the world’s largest credit and debit card processing network, is designing a digital wallet that people can use to pay for things on the Internet or with their phones instead of with traditional plastic cards.

The network said on Wednesday it is collaborating with several large U.S. and international banks to create the wallet. Its partners include US Bancorp, PNC Financial Services, Regions Financial, BB&T Corp, Toronto Dominion’s TD Bank and the U.S. arm of Barclays PLC.

The “digital wallet” will store the banks’ customers’ credit and debit card account information, both for Visa cards as well as other cards. People can use the wallet to pay for things online or in stores, Visa said.

The network will also have to convince merchants to put a new “one-click” button on their websites, so that potential customers can use their Visa digital wallets to buy things by clicking the button instead of by manually entering all of their account information every time they want to make an online purchase.

Banks, mobile phone operators and networks like Visa are all trying to gain territory in the small, but high-potential market for U.S. mobile payments. Last week Isis, a separate mobile payments venture run by three of the top four U.S. carriers, said it had modified its initial goals and was now open to working with Visa and MasterCard as it introduces its own mobile wallet.

Jim McCarthy, Visa’s head of global products, told Reuters in an interview on Wednesday that mobile payments in the United States “will more easily take off” from people using their smartphones’ browsers to buy things online.

Read More…

EBS Coming To Your Smartphone

In the event of local and/or nationwide disasters, wireless carriers will soon begin alerting the public by sending emergency SMS text messages to mobile phones.

AT&T, Sprint, T-Mobile and Verizon Wireless have all agreed to a participate in this new Emergency Broadcast System alert method. It  will initially be rolled  out in New York and Washington, D.C., later this year, and nationwide next year, in April at the earliest.

The emergency text messages will cover public safety threats, Amber Alerts for missing children, and messages from the president, the New York Times reports. Messages will be free for customers, who can opt out of them all except the presidential messages.

We don’t expect the alerts to be frequent,” Julius Genachowski, chairman of the Federal Communications Commission, told the Times. “They will be reserved for when they are truly needed, for tornadoes or for disasters like 9/11.”

Genachowski said the emergency texts will look different from ordinary messages, making them more difficult for hackers to infiltrate or fake. They’ll probably appear directly on the screen, along with a special vibration or other signal. No word on how closely they’ll resemble the tone and color bars of the current Emergency Broadcast System for televisions, or whether users can expect “this is a test” messages on a regular basis.

Read More…..

NY To Investigate AT&T’s T-Mobile Acquisition

The state of New York  has indicated that it will investigate AT&T’s proposed take over of T-Mobile USA for anti-competitive effects, including possible increases in mobile broadband costs for New York residents and businesses, Attorney General Eric Schneiderman said.

New York is the first state that has committed itself to probing the $39 billion deal, which was announced on March 20 but is expected to take 12 months to close. At their current sizes, the combined telecom companies would have 130 million subscribers, dwarfing the next-biggest operator, Verizon Wireless, with 93 million. In a press release on Tuesday, the attorney general’s office raised the possibility of Verizon responding with an acquisition of Sprint Nextel, which has about 58 million subscribers.

“The proposed merger could start a process of consolidation that would lead to two firms -AT&T and Verizon – controlling nearly 80% of wireless subscribers nationwide,” Schneiderman stated.

Schneiderman said mobile service has changed from a luxury to a basic necessity and T-Mobile currently is a low-cost option for many New York residents. People in some areas, including Albany, Rochester, Buffalo and Syracuse, already have limited wireless choices, he said.

Read more….

Playbook Set To Launch April 19th

This is shaping up to be quite the season for the tablet wars as Research In Motion’s long-awaited device, the BlackBerry PlayBook, is set to go on sale in the United States and Canada on April 19 at a base price of $499.

RIM said on Tuesday it plans to sell the PlayBook through retailers and wireless carriers including Best Buy, AT&T, Verizon, Radioshack, Sears Canada and Wal-Mart.  ReadMore….

Playbook To Focus On Corporate Space

With the Playbook supposedly launching in April, it is expected that RIM will  a lot of their marketing budget on the corporate space. This is the best strategy for RIM since the company already has a strong presence in the enterprise space with companies that already use Blackberry services as part of their electronic communication infrastructure.

RIM is expected to leverage is clients existing investment in BES Blackberry Enterprise Server). RIM’s strategy gives Playbook a small advantage; since BES customers will be able to utilize functions like provisioning, configuring, applying corporate policies, application deployment/management and auditing PlayBook devices using the BES infrastructure that they already have in place.  Read More….