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Holiday Shopping: Spending Money to Stay Connected

Motorola’s Media Engagement Barometer found that Americans of all ages want to be connected at all times through their entertainment and communication devices – Millennials 80%, Gen Xers 78%, Boomers 78%.

And guess what. They’re willing to pay forĀ  it.

I was reviewing data this morning on gadget spending this holiday season and came across an interesting nugget from Retrevo. The gadget search and research site conducted a study just before Black Friday this year on what consumers planned to buy, and how much they planned to spend. Keeping in mind that the study participants were gadget-inclined Retrevo site users (no doubt skewing the results in favor of CE buying), holiday budgets this year look to be surprisingly high. Roughly 20% of consumers planning to shop for electronics for the holidays said they planned to spend more than $1,000, with roughly 25% saying they planned to spend between $500 and $1,000. HDTVs were at the top of shopping lists, followed by GPS units, Blu-ray players, and game consoles.

Not only is the digital divide between generations disappearing, but the amount people are willing to spend to stay connected indicates a robust market for product and service providers in the industry. Imagine the results when the US economy rebounds further.

Motorola D3 Gear in Cox Las Vegas

Word is in from one of the Broadband Reports forums that Cox subscribers in Las Vegas are seeing massive speed increases thanks (once again) to Motorola D3 gear. Specifically, subscribers are reporting speed boosts with the Motorola SB6120 DOCSIS 3.0 modem.

Well came home tonight to see the blue light on my Motorola SB6120. Ran a speed test with Cox’s internal testing site and I’m getting a reported 88Mbps available bandwidth and able to run the speed test at over 70Mbps.

I got the new Motorola Surfboard Extreme picked up from Fry’s about 2 months ago. Cost about $99

The other day I almost broke 100 during the test

The new Cox “Ultimate Internet” tier only went live officially a few days ago, and it promises downloads speeds up to 50 Mbps. As noted above, actual speeds may vary in your favor.

AT&T U-verse News Round-Up

I’ve missed covering some of the AT&T U-verse news of late, so here’s a quick round-up of everything U-verse that’s hit the wires in the last couple of weeks. AT&T tends to get lost in the shadow of Verizon and its cable brethren, but the telco has been plugging along quite nicely. Two million subscribers, two billion in revenue, and that’s just the beginning.

This week AT&T officially hit the two million mark for U-verse customers, almost exactly one year after it hit the one million mark in December of 2008. At the end of Q3, the company said it was also on track to bring in two billion in U-verse revenue this year. As it gains subscribers and revenue, AT&T is also beefing up the U-verse service. The company announced this week that it is launching a 24-Mbps tier, starting with a trial in three markets – Austin, San Antonio, and St. Louis. It is also pushing a monthly tech support offering by throwing in free Wi-Fi network set-up to subscribers who sign up for the $15/month service.

Meanwhile, there are several hints that AT&T is looking to expand the TV portion of the U-verse service as well. Multichannel News uncovered last month that AT&T is looking to hire someone to develop original content for TV, online, and mobile platforms. And Reuters reported yesterday that a telco exec says AT&T is “very close to offering services that allow consumers to move media content between their televisions, cellphones and computers.” Sounds like the U-verse version of TV Everywhere.

LTE in Asia – 18 Months from Dream to Requirement

We’re jumping around a bit on the blog here, but sometimes that’s just the way the timing works. Last week I had the good fortune to sit down with Motorola’s Mohammad Akhtar to discuss the evolution of 4G networks in Asia. I’ve finally got the write-up from that discussion here, including details from Mohammad on why LTE has progressed so quickly in Asia, and also how Motorola has come to play a leading role in its development there. Enjoy.

A Look at Japan and Asia

Japan has long been a global leader in adopting advanced mobile technologies, including 3G networks, which has had an impact on consumer expectations in the generation coming of age today. Adults in Japanese cities grew up with wireless connectivity, and not only do they have a history of relying on robust mobile networks, but daily circumstances, like long commutes on public transportation, have fueled continued heavy demand for high-speed mobile connections. There are more wireless broadband users in Japan today than fixed-line customers. China, meanwhile also moved quickly with 3G; not just in urban areas, but in rural regions as well to support the country’s astounding economic growth. Many consumers there have also grown up in a wireless age.

Beyond 3G, Mohammad believes that the efforts of leading telecommunications providers in Japan and China will push a larger group of operators throughout Asia to move quickly in adopting 4G technology; perhaps more quickly than originally planned. Eighteen months ago LTE was only a dream, but it has quickly become a viable concept, and is now a perceived requirement for Asia’s wireless future.

Motorola’s Role

Motorola is working with two of the largest operators in Asia now, KDDI and China Mobile (CMCC). Field trials are currently underway, with initial commercial deployments expected in 2010. Success, however, did not come overnight.

Motorola began focusing on OFDM-based technology (also the basis for Motorola’s WiMAX solutions) all the way back in 2004, and that early focus is part of what has given the company a significant head start in LTE. Backed by years of development work and commercial network deployment experiences, Motorola’s LTE solutions provide a robust interface, high data rates, and low cost per bit. Both KDDI and CMCC acknowledge those advantages and the company’s overall expertise as reasons they chose to work with Motorola.

In addition to Motorola’s foresight in focusing on OFDM five years ago, technologists in the company also recognized a need to provide a migration path from legacy networks to 4G networks that would work well for Asian customers. For the last three years, Motorola has been designing products with a built-in upgrade path to get to LTE. This past February, Motorola introduced two new base station radios capable of running legacy wireless technologies as well as LTE. The ability to upgrade rather than to rip and replace has proven to be a compelling proposition, and one that continues to help Motorola win business.

Motorola has hit several milestones with LTE of late, including demonstrating a live TD-LTE network with CMCC in a real urban RF environment, winning a handful of awards, and launching an advanced LTE self-organizing network (SON) solution geared toward improving operator profitability. This continued progress, particularly in conjunction with Motorola’s operator customers, provides a promising outlook for 2010. Mohammad and Motorola’s larger 4G team in Asia expect momentum to continue to grow as we turn to the next calendar year.

Measuring Broadband Adoption

Broadband has become such a politicized issue in the US that it’s always reassuring to hear about an idea or a new finding that has the chance to take public conversation in a new direction. This week a consultant partner of BroadbandCensus.com, Brian Webster, has a new report out that clarifies broadband adoption rates around the country. (Found via Michael’s Insight) Rather than measure subscriber numbers against total US households, the new report plots take rates only against US households with access to broadband. The report finds that among households with access to broadband, adoption runs at an estimated 72.9%. That number is significantly higher than earlier estimates that considered both households with and without access to high-speed Internet services.

There is one caveat here. Because the new study includes both fixed and mobile broadband adoption, households that subscribe to both are counted twice. For example, I have both Comcast high-speed Internet service at home, and I subscribe to Clearwire’s Clear WiMAX service. My household would be counted twice in this study.

In any case, the new study by Webster illustrates the type of research needed to determine where and how to focus efforts on increasing broadband adoption. Expand fiber deployments? Push 4G networks out faster to unserved areas? The FCC even has an interesting idea to use set-tops to push adoption above that 72.9% mark among households with access to services that have not yet subscribed. The ideas are out there. Continued research is needed to make the best decisions about which ones deserve funding.

WiMAX – From Chicago to Dubai

Chicago Clear launch with Motorola mobile WiMAX

Over the last few days I’ve had photos arrive in my inbox from WiMAX events in very different regions of the world. One set came from the Chicago Clear launch, while the other came from a launch with UAE provider du and Motorola in the Dubai metro system. The chance to depict Motorola’s mobile WiMAX presence around the globe was too much to pass up. Photos above and below.

Dubai metro with Motorola mobile WiMAX

Dubai metro with Motorola mobile WiMAX

Introducing the Motorola Media Engagement Barometer

If you’ve ever tried to help a parent program the VCR, set up voicemail, or create an email account, you may be surprised at the findings from a new study commissioned by the Motorola Home and Networks Mobility business. According to the Motorola Media Engagement Barometer, age is much less of a factor today in technology engagement than in the past. Not only are Americans of all ages more connected than ever before, but consumers across multiple generations are influencing the media and technology behaviors of their family, friends, and colleagues.

From the Motorola Media Engagement Barometer:

  • An almost equal number of Millennials (80%), Gen Xers (78%), and Boomers (78%) say they areĀ  constantly connected to CE devices for communication and entertainment purposes
  • Seven in ten Americans feel it’s “important for me to always be accessible”
  • There are technology influencers across multiple generations, with the majority of Americans reporting that they influence the decisions of their children (75%), friends (74%), colleagues (67%), and parents (58%)

Millennials take the edge in influencing other cohorts, but Boomers and Gen Xers are coming on strong. More interesting, it appears that age is not the greatest determining factor in how Americans engage with media and technology. The issue is more one of lifestyle than age group; “my community” rather than “my generation”.

For more findings detailed by the Media Engagement Barometer, check out this page on the main Motorola site. The research was completed with the help of StrategyOne, which conducted 15-minute phone interviews of 1,000 Americans between the ages of 16 and 24. The sample size of 1,000 is considered representative, and the margin of error for the 1,000 respondents is pegged at plus or minus 3.1.

Teaser: New Motorola Study on Consumer Media Habits

It’s that time of year again; the time for wrap-ups and prognostications. Motorola is contributing in 2009 with results from a new study on consumer media and connectivity habits. Launching tomorrow, the Media Engagement Barometer looks at how Americans young and old are interacting with technology today, and what they expect in the future.

Here to introduce the new Motorola study is Eduardo Conrado, CMO of Motorola’s Broadband Mobility Solutions businesses.

Eduardo Conrado, Introducing the Media Engagement Barometer

Motorola Home and Networks Mobility has just completed analysis on a new study of consumer technology and evolving consumer behaviors, the Media Engagement Barometer. We began research back in August with the goal of learning how Americans are interacting with technology today, and how that’s changed since we examined the behavior of millennials a year ago. Last year we discovered that the millennial generation has high expectations for connectivity and control, but this year we wanted to go beyond studying a single cohort to get a better understanding of the relationship Americans as a whole have with their technology. Have media consumption habits shifted? How connected do people want to be? Is there a demand for content customization? How big are the differences between age groups? These are the types of questions we wanted answers to.

By understanding consumer mindsets, we can better understand how to develop the types of products and services that will resonate in the market and drive the next generation of information and entertainment delivery.

Stay tuned tomorrow for a look at what we found. The answers may surprise you.

Motorola WiMAX Hometown Launch

Motorola ran its first major public demonstration of WiMAX more than two years ago on a boat at WiMAX World in Chicago. The windy city is Motorola’s hometown, and since the fabled boat ride there in 2007, many of us have been anxiously awaiting an official 4G service launch. That wait has now ended. Motorola and Clearwire have announced the availability of Clear WiMAX service in Chicago today. As part of the launch celebration, Motorola is donating laptops and USBw 100 adapters to students at the local Nativity BVM School, and Clearwire is providing twelve months of free WiMAX service.

Details:

The Chicago launch today coincides with WiMAX launches by Time Warner Cable (a Clear service reseller) in several North Carolina markets and Dallas, Texas.

A Short History of Connected Devices

A few short years ago (earlier this decade), wireless connectivity was a novelty. Some folks had wireless home networks back in the early 2000s, but not many, and wireless gadgets relied mainly on RF broadcasting. (Think cordless phones and baby monitors.) It was around this time, circa 2002, that Motorola started exploring a vision of connected devices and the connected home. In a bid to bring new products to retail, the Motorola Connected Home business introduced the Simplefi networked audio player. It was ahead of its time. Promising to stream music wirelessly from a PC, the Simplefi entered the market at a time when mp3 players were still rare, and the device never got an upgrade from RF to Wi-Fi. It was perhaps an inauspicious start to the connected home space for Motorola, but we’re still talking about the very early days of wireless connectivity.

Fast forward a few years. Motorola’s Connected Home business returned its focus to video and Internet delivery as a means of enabling connected devices for consumers. This part of the CE industry grew increasingly important as more and more devices started supporting Wi-Fi, connecting not only to each other (as with networked stereo systems in the home), but also to the Internet. Meanwhile, Motorola’s Networks business started zeroing in on mobile broadband, another means of getting consumers hooked in to the Internet from a wide range of devices.

Fast forward a couple more years. Connected devices are everywhere – from smartphones, to mp3 players, to cameras, and digital photo frames. Even TV has gone mobile, accessible through the Internet and a variety of TV Everywhere services. Motorola’s Connected Home and Networks businesses have merged to become Home and Networks Mobility, and the focus for the entire division centers on broadband and media delivery. Given consumer demand for connectivity, the business has positioned itself nicely in a growing segment of the market.

Fast forward just a bit more. Parks Associates predicts that the CE industry will ship around 200 million connected devices globally by 2013. It’s an estimate that some have called conservative, and it’s one that would have been nearly unimaginable around the turn of the millennium. While there have been some setbacks and missteps along the way, the speed of progress has been nothing short of remarkable. And what’s Motorola doing? Leading the way with deep-fiber networks, DOCSIS 3.0, digital compression, and 4G technologies. After all, someone has to make all those connected devices work. It’s a market with a short history, but a long, exciting road ahead.