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Industry News: September 2015


Verizon's mobile network handily trounced its competitors in the latest RootMetrics report, winning in 5 of 6 categories.

Internet of Things (IoT) widens software market, says Gartner

The Internet of Things (IoT) is turning many manufacturers of "things" into first-time software vendors that need licensing and entitlement management (LEM) solutions, according to Gartner, Inc. By shifting product value from device hardware to the software running on the device and applying an appropriate licensing strategy, manufacturing product strategists can maximize revenue potential.

"The IoT is creating a new type of software vendor for whom LEM is vital to protect, differentiate and monetize their offerings," said Laurie Wurster, research director at Gartner. "We expect that by 2020, a failure to put in place a LEM system will result in a 20 percent drop in potential revenue generated from software for device manufacturers connecting to the IoT."

AT&T GoPhone follows T-Mobile, adds Mexico, Canada to plans

T-Mobile broke ground when it announced it would add unlimited talk and text to Mexico and Canada for U.S.-based customers, which prompted Sprint to follow suit with a similar offer, plus unfettered access to a smattering of countries in Latin America. 

AT&T is cultivating is strategy for Mexico following substantial acquisitions there, but in the meantime, it's extending free Mexico and Canada calling and texting to customers of its GoPhone brand. According to the company, Starting Aug, 21, customers on the $60 GoPhone plan will automatically get up to 4GB of high-speed data usage plus unlimited talk and text from the U.S. to Mexico and Canada (landline and mobile numbers).

It looks like competing with free is catching on!

NTT DOCOMO talks 4G upgrades

NTT DOCOMO is one of the front-running mobile network operators when it comes to 5G network research and development. That doesn't mean the company has turned all of its attention to the next-gen wireless standard. On the contrary, it has big plans for its 4G network, as a spokesperson recently told Mobile World Live

NTT DOCOMO is going to ramp up its FDD-LTE network to 300Mb/s this year, making it one of the fastest mobile networks on the planet. In 2016, DOCOMO will roll out a TDD-LTE network as well, which will drive further speed increases through carrier aggregation.

Seizo Onoe, CTO, NTT DOCOMO, says that 94 percent of the mobile data traffic on its network is generated over LTE, with just a small fraction remaining on 3G. To watch the full video interview with Onoe, click here.

PayPal buys mobile commerce startup

Since its split from eBay, PayPal is eager to grow in new directions. On Wednesday, the company announced its first acquisition since the split, scooping up Modest, a Chicago-based startup that will help PayPal enhance its capabilities in contextual commerce. 

"At PayPal we are always striving to innovate commerce experiences and make them better for both merchants and shoppers," wrote the company in an official press release. "Today, we’re excited to take another big step in this direction as we have agreed to acquire Modest. Modest allows merchants to offer an end-to-end experience that makes selling on any platform easier and simpler. They have built exceptional mobile technology and bring deep talent in contextual commerce to PayPal."

Will this acquisition improve PayPal's pull in the mobile payments space? Many industry analysts think the answer is yes. 

451 Research Senior Analyst Jordan McKee commented on the news. "The acquisition of Modest underscores PayPal's continued focus on inorganic growth to build out its mobile capabilities. Modest is a particularly interesting addition for two reasons: It has clear synergies with Braintree, which will allow PayPal to develop a full-stack mobile commerce offering for startups and SMBs, and Modest has begun work with contextual commerce, a major emerging initiative for PayPal. Above all, PayPal wants to transition to partner status in the eyes of merchants – a goal Modest helps position it for."



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