Given that the firm has virtually no path forward to use its frequencies to provide 4G-type services in light (no pun intended) of the apparently unresolvable GPS interference issues, Chapter 11 gives LightSquared a way to step back and . . . → Read More: LightSquared files for Bankrupcy (Chapter 11)]]>      To the surprise of very few, LightSquared has filed for Bankruptcy protection under Chapter 11.

Given that the firm has virtually no path forward to use its frequencies to provide 4G-type services in light (no pun intended) of the apparently unresolvable GPS interference issues, Chapter 11 gives LightSquared a way to step back and see what it can salvage of their operations.

In a Chapter 11 bankruptcy proceeding, in most cases, the debtor remains in control of its business and operations as a “debtor in possession.” The day-to-day operations are subject to the oversight and jurisdiction of the federal court (and typically the trustee). The goals of a Chapter 11 proceeding is for the company to find the cash to emerge from bankruptcy having paid its creditors some portion of the amount due, cancelling or renegotiating some contracts, and then resuming normal operations after completing the bankruptcy.

It seems pretty clear to me that the $9B contract LightSquared entered into with Sprint will be a target for cancellation.  That will place even more pressure on Sprint to fund its Network Vision project.

A Chapter 11 bankruptcy proceeding is is very different from Chapter 7 proceeding.

In a Chapter 7 bankruptcy action the business ceases its regular operations.  The court-appointed trustee sells off all of the business’s assets and distributes the sale proceeds to the creditors. If there’s any money leftover after all the creditors are paid, that balance is returned to the owners/shareholders of the bankrupt company, and the company ceases to exist.

Sometimes a firm starting out on a Chapter 11 bankruptcy path can still end up shutting down.  It would not surprise me if that’s the case with LightSquared, especially if they are forced to sell off their licensed frequencies.

Time will tell.

Attached to this posting are the slides I used today during my portion of the T-Mobile External Affairs Headliner Series presentation.  I’ve also attached John Pestle’s slides.

We hope you find them useful.

Kramer’s T-Mobile Headliner Series Slides Pestle’s T-Mobile Headliner Series Slides

The title of our lecture, thought up by T-Mobile, is “If the Tower Doesn’t . . . → Read More: If the Tower Doesn’t Grow, Can Municipalities Say No?]]> John Pestle of Varnum and I have been invited to speak on  this month’s T-Mobile’s National External Affairs Headliner Speaker Series.  This is a monthly conference call/webinar with hundreds of internal and external T-Mobile executives, managers, line-level staff, and outside contractors.

The title of our lecture, thought up by T-Mobile, is “If the Tower Doesn’t Grow, Can Municipalities Say No?”

The conference call is scheduled for Wednesday, April 25th at 11am PST/2pm EST.

If you’re invited, you should already have the call-in information.  If not, you’ll have to contact External Affairs to get it.

This should be fun!  I have lots of slides to share.

Heck, I’ve always wanted to be a headliner!

(Added 4/23 at 8:50 a.m. PDT: I’ve received several questions asking if non-T-Mobiler’s can sit in on the call.  The answer is that I wish I could say yes.  This is a closed webinar, so you’ll have to ask your contact at T-Mobile External Affairs whether you can join in. -jlk)

Sprint has committed $15B to Apple in connection with securing rights to market the iPhone to Sprint’s subscribers (let’s not talk about the newest Apple product, the iHeatingPad). That’s a lot of cash, and I’ll bet that Apple’s contract leave virtually no room . . . → Read More: Might Apple buy Sprint?]]> Okay, it sounds wild, but let’s look at this for a bit…

Sprint has committed $15B to Apple in connection with securing rights to market the iPhone to Sprint’s subscribers (let’s not talk about the newest Apple product, the iHeatingPad). That’s a lot of cash, and I’ll bet that Apple’s contract leave virtually no room for Sprint to get out from under the weight of an 800 pound Apple.

At the same time, the $9B Sprint was expecting from LightSquared seems to drifted away. This raises very serious questions about the future of Sprint’s touted Network Vision upgrade. As a result, Sprint’s plans to shutter some 30,000 cell sites, relying on the Network Vision project to make it possible…must have dropped to ‘maybe’ status, too.

Clearwire. That word has turned into a blackhole of cash for Sprint, and Google just helped further devalue Sprint’s, ah, majority investment by dumping the Google-held shares at a 90% write off. WiMax is not Sprint’s path forward–LTE is. Clearwire may be too late to Sprint’s party.

Sprint’s Board of Directors last month vetoed Dan Hesse’s plan to buy MetroPCS (for a 30% premium, no less). That puts Dan Hesse’s future outlook at Sprint at a 30% deficit (others say that number is even worse). Will there be new blood on the head of the pin, much less new confusions over the direction the pin is pointing? Hey, how about T-Mobile buying MetroPCS?

This month, Sprint seems to have tried…and failed…to get a network sharing agreement with T-Mobile, according to the Wall Street Journal. I guess that shots a hole in my idea about a SprinT-Mobile merger.

Let’s not forget the grandest of Sprint’s Grand Experiments: Nextel. Oh, you want to forget about that? Likely Sprint does, too.

With research firm Sanford Bernstein dropping its rating on Sprint, citing that Sprint might visit BK land, the Bad News Band keeps marching on. For a thoughtful look at this particular issue, see the SeekingAlpha story of March 20th by clicking here.

Now let’s consider Apple.

Apple has attained the status of a ‘mythical creature’ that can seemingly devour all that blocks it path.

Apple has been fanatical about controlling, to the n-th degree, every element of its users experiences with all of the Apple devices. It controls the look and feel of the user experience, and via the App Store all of the applications on iPhones that have not been subject to a jailbreak, as well as iPads of various operating temperatures.

It must peeve Apple that it decided to confine its iPhone and iPad devices originally on an exclusive basis to AT&T to run on that carrier’s less-than-robust and less-than-adequate-capacity network, and one that actually gave up spectrum in the failed T-Mobile love affair.

Now, at least, Verizon subscribers have a better chance at being able to enjoy close to 3G speeds with their iSomethings.

Oh, yes, there’s that cash reserve thing for Apple. It’s sitting on more cash than the U.S. Treasury, and since last Summer it has been the most valuable company you’ll find in the U.S., and maybe anywhere in the entire galaxy.

If Apple thinks about it, it can have its cake and eat it, too: Buy Sprint, fund and complete Network Vision, deploy 4G at real 4G speed, and dump all of the Sprint phones save for Apple iSomethings. Using the software defined radios of Network Vision, Apple can actually build a wireless network that is optimized for data (but still including the voice app that defines LTE). Siri may be the first step to Skynet, albeit with a programmed sense of humor. (How much wood can a woodchuck chuck? See here.)

For Apple, a Sprint purchase would yield it monthly cash flow that can be put back into expanding and optimizing the “Apple Wireless” Network Vision. And given Sprint’s majority ownership in Clearwire (and the 106ish MHz Clearwire controls in the U.S.), Apple would have a real playground to expand data capacity and speeds.

Maybe Apple might make apply the principles of the iTunes Store to Sprint to shift the marketing of Sprint services to the faceless online monolith. Buy a phone and activate service online. Forget about pins dropping.

It just seems right for Apple to continue its quest to control everything its users see and do with the iSomethings now and in the future by controlling its own data delivery network. At the same time, it can keep feeding iSomethings to Verizon, AT&T, and any other carrier that can’t afford to be left in Apple’s iDust.

With the passing of Steve Jobs, the direct minutia-level control he seemed to exert on Apple (at least according to Isaacson) has also passed. This may free up the current management of Apple to take the leap (no, not Leap Wireless) to controlling even more of the user experience, but from a new distance, all without asking “WWSD?”

Of course, Apple might buy T-Mobile instead–or as well–and do more or less the same thing, but that’s a thought best left for a future post.

The problem with WiMax is that its availability is limited and its performance, . . . → Read More: Why not WiMax, Sprint? Oh, it’s LTE. Got it.]]> Sprint, whose original “4G” network was to be built on a WiMax platform, is moving to deploy an LTE network in place of WiMax. This means that Sprint is currently running 2 types of “4G” technology on its network, LTE and WiMax.

The problem with WiMax is that its availability is limited and its performance, when compared to LTE, is not lighting fast. It’s just DSL fast and we all know that isn’t really that fast. Another limitation of WiMax is the farther you get from the node the slower the network speed. Who wants slower speed?

Is Sprint ditching its WiMax partner? It appears so.

The big push to deploy LTE seems to be a result of pressure from Sprint’s consumers rather than a big difference in the technology. I mean, all the other big time providers are deploying LTE, why can’t Sprint’s customers have LTE?

WiMax might still have viability in other platforms like broadband internet access as a landline bypass, as cable or satellite TV bypass, or for providing some limited backhaul services.

One thing that seems almost certain, is that WiMax viability as a mobile telephone provider is waning as LTE is becoming the next go to technology for high speed mobile data.

OnStar is showing off its new navigation . . . → Read More: Text the U.S.A. From (the Backseat of) Your Chevrolet]]> Not only can OnStar (the in-vehicle mobile phone system) unlock your car doors, tell you where to go, help you deliver a baby, and propose to your girlfriend, soon, OnStar will also pull up your favorite movies as well as text your mother, all at the same time.

OnStar is showing off its new navigation and entertainment system called CUE, which will consist of a large touch screen in the center of the dash, in the backseat, or maybe even embedded as a heads-up display in the windshield (no, not really – as far as I know the technology is only available in the movies).

CUE is being positioned to work much like an iPhone or any other touch screen SmartPhone.  In fact, OnStar has plans to open up its application programming interface (API) software so that third-party developers can create new apps for CUE.  (When visiting the ‘CUE Store’ does one need to actually drive there?)  In the same vein, CUE will be built on a software upgradeable platform that will use soft keys on-screen to access apps, movies, maps, your cup of java (well, at least order it, anyway).

How great would it be to turn your car into an iPhone?  Let’s not worry about drivers playing Angry Birds on their way to work, for now anyway.

As all early iPhone adopters have learned, a great device needs a fast and reliable network (thanks to AT&T for that often frustrating lesson). OnStar is NOT going down that same road.

In a vote of confidence to both its speed and overage, OnStar is heading to a deal with Verizon to use Verizon’s shiny new, if still not completely reliable, LTE network (see http://gigaom.com/broadband/verizon-explains-its-string-of-lte-outages/).

The speed of Verizon’s LTE network will be important for the navigation functionality of CUE to deliver real time high resolution maps that will make the DVD driven and stand alone navigation systems obsolete.

Expect CUE to also provide destination photos, and linked web content.  Going to a restaurant? See their menu on the way, and order your appetizers before you arrive.

Coming soon to a new Cadillac near you!

In a couple of years, it’ll migrate down to your Chevrolet.

So T-Mobile, recently left at the alter by AT&T, is now looking for $9B to build out a LTE network that can compete with AT&T.

T-Mobile has a great start towards its goal when you consider that AT&T gave it $4B as a parting . . . → Read More: Buddy, can you spare $9B?]]>

Please feed the T-Mobile Kitty. (Photo illustration by Jonathan Kramer)

So T-Mobile, recently left at the alter by AT&T, is now looking for $9B to build out a LTE network that can compete with AT&T.

T-Mobile has a great start towards its goal when you consider that AT&T gave it $4B as a parting gift.  If you have some loose change or small bills, please drop it in Carly’s cup.  Heck, all she needs is another $5B.  Easy!

$9B’s a lot of investment money simply to split the market even more than it is, today.  It’s also interesting that T-Mobile seems determined to join the rest of the world by going to 4G via LTE rather than via its current industry-isolating path of HPSA+ (also known as “it’s 4G if we say it’s 4G”).

I continue to believe that T-Mobile will either join forces with Sprint (can you say “SprinT-Mobile”?) or T-Mobile will acquire one or several smaller regional carriers.  How about “Hello…Hello…Hello” for example.  A dark horse: Maybe Deutsche Telekom, T-Mobile’s German parent will sell off its entire worldwide wireless network to some small country…or maybe to Microsoft.

Only time…and money…will tell.

Look for T-Mobile to either buy some second tier carriers, to perhaps do a deal with Sprint (see that posting here).