Android Tablet Update

Just a little over three months after Google got the green light from the US Department of Justice and the European Commission they have finally received the blessing of Chinese regulators to acquire Motorola Mobility.

Google did have to agree to one fairly major stipulation in the process however — Android must remain freely available to other manufacturers for the next five years. Now it seems likely that this is exactly what Google has in mind anyway, but this should assuage any lingering doubts for other manufacturers.

According to WSJs sources the purchase could be finalized within the week. What, if anything, we will see happen once the deal goes through has been a bit of a mystery ever since we first heard of the planned buyout over nine months ago. There’s been no shortage of rumor and news surrounding Motorola’s future with a shake-up at CEO, a potential sale to Huawei, a complete firewall between the two companies and now a potential US importation ban in the coming months. The only seeming guarantee is that it is unlikely to be a boring year where Motorola is concerned.

We’ve asked you before, but now that we are in the home stretch for this purchase it feels like it’s an appropriate time to ask again. What do you think Google should be doing with Motorola? Should they be a full-time Nexus manufacturer? Should Google allow them to continue as a separate entity? Should Google allow them to continue as a separate entity but insist that Blur and any otherwise named permutation of it be killed off? (I’m only slightly kidding.)

Well that was quick. Just eight months ago, Google announced plans to acquire Motorola, and all the patents they own, for $12.5 billion. In that time, Google has gone from country to country getting the acquisition approved with great success (China is the only country that hasn’t approved the deal). But for what? To keep Motorola afloat, pumping money into the once-mobile-giant until they can get back on their feet? To eventually totally merge the two companies, creating real, honest-to-goodness Google manufactured Android devices? (Rubin promised this wouldn’t happen, so don’t bet on it). Or is Google simply looking to off Motorola as soon as the acquisition is complete? If the latest rumors out of Asia are right, Motorola might be a Huawei-owned company before long.

According to an article from the Wall Street Journal today, no one at Google really knows what to do with Motorola. Or the 20,500 Motorola employees working in 92 facilities across 97 countries.

While Andy Rubin says the two will operate as entirely different companies, Larry Page is “excited about the opportunities” Motorola would bring to Google. Other rumors suggest that Google might be looking to sell Motorola to Huawei, who has been hell bent on breaking into the smartphone market in a big way. Which one do we think makes the most sense? If the price is right, Motowei is a definite possibility.

It’s no secret why Google really wanted Motorola:  for the patents. It’s also no secret that Google makes their money by giving out free software to distribute their ads. Google couldn’t give out free software to make money on ads if they were being sued into oblivion. So they bought a bunch of patents to use as a security blanket. The way they see it, the patents alone are worth $12.5 billion. If Google is able to sell Motorola, while still keeping the patents, it’s a theoretical win-win.

Not only do they not have to worry about managing a sinking ship, they get back some of the money they spent on patents. Of course if Google’s real intentions are to use Motorola’s hardware division to make their own handsets, selling wouldn’t make sense. But there’s a very slim chance that will happen.

We’ve been waiting for some kind of sign indicating what Google will end up doing with Motorola, and selling to Huawei makes quite a bit of sense. What would you like to see happen to Motorola?

Mobile World Congress is chock full of device announcements and product details, but as with any trade show, the most interesting news always comes from the CEOs and Vice President-types behind the biggest names in the industry. Google’s Andy Rubin sat down with reporters at MWC this year, the topic of the day being Google’s acquisition of Motorola. Rubin wasn’t shy when it came to sharing his feelings on the acquisition, leaving the press with a handful of quotes on how Google will manage their newly acquired company.

Andy Rubin was, and still is, a supporter of Google’s acquisition of Motorola. But now that the deal is nearing completion, he doesn’t want anything to do with the big M. Speaking with reporters at Mobile World Congress yesterday, Rubin said he “sponsored” the deal in its earlier stages, but has completely backed away at this point. In turn, Google will essentially take the same route.

With long time Googler Dennis Woodside taking control of the reigns over at Motorola, Rubin said he was “painfully aware” of doubts that Google and Motorola will still operate as two separate entities, but that Google has “literally built a firewall” between the companies. Rubin continued on to say that he has absolutely no idea what Motorola is doing hardware or software wise, saying “I don’t even know anything about their products… They’re separate from me, and I’m going to continue to do my thing.”

Of course, Google’s decision to operate the two companies apart from each other has a lot to do with fostering a competitive environment with other Android manufacturers. Fierce competition is what’s led Android to where it is now and what’s put Motorola into the position it’s in today. Rubin wrapped up his time with reporters by saying that, “Even if I was completely insane, it wouldn’t make any sense for me to think that we could get Motorola to be 90-plus percent marketshare. It just isn’t gonna happen.” Well said, Andy. Well said.

This has been one of the smoothest acquisitions we have seen in the life of Android. In less than 4 months since its announcement, Sony has completed the full acquisition of the Ericsson mobile devision. This costed the Japanese manufacturer €1.05 billion, but good ol’ Sony is now in full charge of its mobile division.

Even before this transaction was finalized, though, things had already started to change. We have seen the latest Xperia devices being unveiled without the Ericsson branding (like the Sony Xperia Ion and the Xperia S). But we feel like Sony’s plans are not fully portrayed by these devices.

Sony can turn the tables around, and make things much better for its future. And we would assume that Sony has a plan – they did not spend €1.05 billion on a hunch. Sony Ericsson hasn’t been making the best profits, but we should start seeing some strategy changes soon.

Seamless Connectivity with Sony Products

According to Sony, this is the main reason for said acquisition. The company wants smartphones to be part of the connected home that they have been creating for years. As of now, they have done a great job with their other products: computers, televisions, Blu-ray players, game consoles and other devices have the ability to communicate with one another, taking us closer to the “smart home.”

This is something we can see the smartphone being integrated into – better communications with other Sony products and services. Many Sony TVs can now be turned on automatically when a Playstation 3 or Blu-ray player is in use, and the console can be controlled via a keyboard and mouse.

It would be great if a portable device could be added into the equation. Imagine if there was an option that allowed you to do the same with your smartphone. Simply select the DLNA (or any form of wireless communication) option when walking into the living roon, and boom – the TV turns on and starts playing the movie.

Maybe being able to access your Playstation 3 while on the go will also be featured in the future, much like the PSP devices have been able to do for a long time. The possibilities are endless, but such features are what we should start seeing in Sony smartphones. The connected home is the future, after all.

Better Gaming

Sony is one of the most successful competitors in the video game industry. Its consoles have created a great consumer loyalty since the release of the Playstation 1. It continues to hang with the best of them with consoles like the Playstation 3 and the PS Vita.

There have been recent rumors of Sony moving to Vita OS in the future^[1], but this is not expected to happen for a long time. And we hope it never happens, because it has great potential to be successful in the Android world.

Gaming is something very important in the mobile ecosystem, and Sony can apply some of its talent to coming smartphones. We have already seen a gaming device being released, the Sony Ericsson Xperia Play (image to the right). This phone is great, and the controller pad definitely makes for a better experience. The games and specs left much to be desired, though.

With Sony in charge, we should be seeing many improvements in the Xperia gaming strategy. Better gaming smartphones and tablets, an improved Playstation Certified experience and console quality games could really turn things around in the Android ecosystem.

Will we see super phones with access to games with PS Vita quality and resolution? We will have to wait and see. It is highly likely Sony will make some strong moves within mobile gaming, though.

Design and Performance

Sony Ericsson devices have not been the best, but they improved greatly last year. Sony Mobile Communications could take great advantage of the company’s resources and talent. As already mentioned, Sony is no small kid on the playground. Many of its products are highly desired by the population, and their name has a great reputation for solid manufacturing.

Sony Ericsson’s design already fits in with Sony’s style, and we probably won’t see that changing too much. We may see Xperia devices with much better specs, though. If the new smartphones are going to be powerful gaming devices, the specs will have to be much more impressive.

Quad-core processors and gadgets with 2 GB of RAM are just around the corner. We might, or might not be seeing Sony taking a leap in this movement. Sony might have some hiccups with the transition, but we could expect them to stay on top of the game from then on.

Conclusion

Sony has great potential and talent. We have seen it in their other products, and hope to see better smartphones being added to its line – but this is only the beginning. There is much more that could be done. The Japanese manufacturer could make use of its talent to add great cameras, better sound, better displays and all of the above mentioned improvements.

But Android enthusiasts care about even more – for some, a super phone is immediately discarded after learning that it has a locked bootloader (Sony Ericsson has been great about open bootloaders). It is also a big “no no” if a manufacturer is known for not keeping its devices updated in a timely fashion.

There are many things that Sony could do to make its customers very happy – some being relatively simple to accomplish. So let’s see how Big Sony plays things out. We hope that it goes well. Competition is a great factor for the mobile evolution, and we hate to see manufacturers fail.

But let us know what you think. Do you think Sony will do well with the acquisition? If so, what do you see coming in the near future?

Google shocked the tech world last year when they announced that they would acquire Motorola Mobility for $12.5 billion. Shareholders already approved the deal and many in the industry assume it will go through, but there are still a few hurdles left to clear before it becomes official. Motorola provided an update on the progress in yesterday’s earnings report.

In order to be approved antitrust clearances, or waiting period expirations, are required by the U.S. Department of Justice, European Commission, Canada, China, Israel, Russia, Taiwan and Turkey.

So far, clearances have only been received from Turkey and Russia. The waiting period has expired in the United States and Canada, but Motorola has been informed that the reviewing agencies have not finished their investigations. The Chinese Ministry of Commerce announced in December that they have moved on to phase two of its investigation.

Motorola “expects the transaction to close in early 2012″ but notes that “factors outside the company’s control” could “delay or prevent completion of the transaction altogether.”

The biggest obstacle to completing the transaction could come from Europe where consumer groups are urging the European Union to block the merger. Consumer Watchdog, a US-based advocacy group, has written a letter [.pdf] to the EU asking them to stop the deal.

Parts of the letter read, “Allowing the Motorola Mobility deal would provide Google with unprecedented dominance in virtually all aspects of the mobile world – manufacturing, operating systems, search and advertising. It would be a virtually unstoppable juggernaut. We urge the Commission to block the proposed $12.5 billion deal.”

Not only does the letter ask the EU to block the merger, but it also calls for an investigation into the Google’s alleged anti-competitive practices.

If you are not familiar with Consumer Watchdog, they have accused Google of engaging in “close relationships” with the U.S. governement and produced several videos attacking former Google CEO, Eric Schmidt.

The EU Commission was originally supposed to make a decision on the merger by January 10th, but that deadline was extended to February 13th after Google submitted additional documents to support its case.

At this point I doubt the deal will get killed, but anything is possible. There was a time when we thought that AT&T’s acquisition of T-Mobile was certain, and look how that turned out.

Now that the AT&T acquisition of T-Mobile ordeal has ended, many Magenta customers may be wondering what the future holds. We know T-Mobile is not doing too well; that was a major reason their parent company wanted to sell them.

It seems Deutsche Telekom will get pretty much all the money AT&T owes T-Mobile for the breakup fee, and they will be using it for debt payments. Does this mean T-Mobile is out in the dust? Well, not exactly. Both carriers have reached a 7-year roaming agreement. This will allow T-Mobile customers to freely roam on AT&T’s UMTS network. T-Mobile has been future-proofing some devices to run on AT&T’s UMTS network (a bit odd, right?), so the next 7 years should be much better for T-Mo’ users.

According to Deutsche Telekom, this deal will expand T-Mobile USA’s coverage by about 50 million subscribers (from 230 to 280 million). This should give T-Mobile a good boost to get back on its feet, and it seems that is T-Mobile’s plan (unless they’re not telling us everything).

T-Mobile’s Chief Operations Officer Jim Alling has released a statement on the company’s official blog to informs us of what the future will be like for Magenta’s customers.

Dear T-Mobile Customers:

By now I am sure you have seen media reports that AT&T and Deutsche Telekom (DT) have mutually decided to terminate their agreement for AT&T to acquire T-Mobile USA. This announcement effectively ends the acquisition process launched March 20.

What does this mean for T-Mobile USA customers? Our focus is unchanged: make the latest mobile products and services affordable for everyone.

And there are many reasons to choose T-Mobile as your wireless provider:

Great Value. We’re offering our best plan ever – 2 lines for $49.99 each that includes voice, text and data (including 2GB at full-speed) on each line with a new 2-year agreement. We also now offer a Monthly4G no annual contract plan that gives you unlimited talk, text, and web (including 100MB at full-speed) for $50.

Compelling Products. We offer a great line-up of 4G smartphones. We continue to rapidly expand our selection of amazing and affordable 4G smartphones, tablets and other devices that make mobile internet service easy and affordable. This holiday, we have cutting edge smartphones including the 42 Mbps-capable HTC Amaze 4G and the Samsung Galaxy S II. In January, we will begin selling the Lumia 710, the first Windows Phone from Nokia for as low as $49.99 after mail-in rebate with a 2-year agreement on a qualifying plan.

America’s Largest 4G Network – now faster than ever. Whether you need driving instructions that are fast enough to keep up with your car, or want to stream a full-length movie uninterrupted, our 4G network delivers. We have expanded our 4G coverage to more than 200 million people in 208 markets and doubled speeds for nearly 180 million Americans in 163 markets.
Thank you for the opportunity to serve you, we appreciate your business and we will continue to focus on earning your loyalty every day.

Regards,

Jim Alling
Chief Operations Officer
T-Mobile USA, Inc.

T-MobileJim AllingCOO of T-Mobile USA

With this, T-Mobile is basically saying “Move along guys, everything will stay the same.” If you have been worrying about the future of T-Mobile, things should stay the same. At least for the near future.

We never know what these companies might be planning in the background. Do you think T-Mobile has some sort of back up plan?

Update

We know Sprint has always been against the AT&T/T-Mobile merger. They made it very clear since the beginning. Such a deal would harm competition, resulting in a worst situation for the consumer.

Sprint has also issued a formal statement, and they are glad to see that this merger did not go through. ^[1]

Earlier today, AT&T terminated its definitive merger agreement with Deutsche Telekom to acquire T-Mobile USA. This is the right decision for consumers, competition and innovation in the wireless industry.

From the beginning, Sprint has stood with consumers who spoke loudly and clearly that AT&T’s proposed takeover of T-Mobile would create an undeniable duopoly that would have resulted in higher prices, less innovation and fewer choices for the American consumer.

Sprint commends the Department of Justice, the Federal Communications Commission and the bi-partisan group of state attorneys general who gave voice to the concerns of consumers across the country. We look forward to competing fiercely in the robust, competitive market that exists today and continuing to deliver the world class service and products that consumers have come to expect from Sprint.Vonya B. McCannSenior Vice President of Government Affairs for Sprint

At this point, it’s really starting to look like the AT&T-Mobile deal is going to be abandoned. AT&T has asked for a stay until January 18th in the court case with the DOJ so that they can continue to “evaluate all options.” It’s not looking good.

The proposed acquisition has been met with a great deal of opposition from consumers, competitors and the government. Today’s request shows that AT&T doesn’t know what to do next. We have no real idea what kind of deal AT&T will offer up to try and save the acquisition, or what will happen to T-Mobile of AT&T decides to back away.

With the future of T-Mobile so uncertain, the company has become an interesting prospect for some rather unlikely suitors. Dish Network’s Chief Executive Officer Joseph Clayton told Bloomberg that if the AT&T and T-Mobile deal falls through, his company would be interested in partnering with T-Mobile. Dish Network has been actively acquiring spectrum lately, but doesn’t have enough to launch a network of their own.

We’re not interested in making money on selling our spectrum. We want to use it to create a national wireless network, video, voice and data. We’ve got expertise in satellite-TV, and we will in satellite broadband. The voice part, we’ll need some help with.Joseph ClaytonDish Network

If nothing else, Dish would still be interested in any customers or spectrum AT&T may drop to keep the merger alive.

Should the merger end up being abandoned, T-Mobile will definitely live on in one way or another. Whether it’s through another wireless carrier, a satellite company or something completely unpredicted, Magenta’s story is far from over.

AT&T‘s proposed $39 billion acquisition of T-Mobile has been one of the hottest topics in the tech industry this year. AT&T claims to need T-Mobile’s spectrum to build out their LTE network, and T-Mobile is going bankrupt – best option would be a merge, right? We wouldn’t be ranting and worrying if things were that simple, though. Such acquisition would bring many consequences, with some being potentially harmful to the cellphone industry.

One of the main concerns is that this deal could substantially harm competition. Not only would one of the 4 biggest carriers be disappearing, but AT&T would easily become the largest carrier in the US, and would give them an essential monopoly on the GSM market. If competition goes down, this means that carriers would have the freedom to charge higher prices, since less companies would be taking away the customers. And we all know that carriers are big businesses, and if they can get away with charging more, they will.

What happens if this deal happens to be blocked, though? While Verizon is not very worried about this, Sprint happens to be one of the most important companies fighting against this merger. And while we are all trying to stop it (or support it), the companies still have their problems to deal with. AT&T needs spectrum for LTE, as they will not be able to handle the load of users, and T-Mobile is still broke and Deutsche Telekom doesn’t want to give them any money.

According to AT&T CEO Randall Stephenson, blocking this deal would be the worst outcome for customers. Claiming that AT&T is still in need of spectrum, he mentions that prices would have to rise in order to offer good service to its customers, a move AT&T customers would none too happy about.

Regulators can’t keep up with the changes in the industry.Randall StephensonAT&T CEO

Of course, if AT&T was to raise the prices too high, they would also lose many of their customers (hence why competition helps). Sprint did mention that they believe AT&T to be badly investing in their network, and that AT&T wouldn’t necessarily need T-Mobile to have LTE reach customers. Should be easier said than done, but it sure beats raising everyone’s bill, especially with, you know, competition out there.

Judge Huvelle will be holding a hearing today at the US District Court. This is in preparation for trial coming February 13th, 2012. We will have to wait and see how things unfold. What do you guys think? Do you believe Stephenson’s comment is necessarily right? Will AT&T really be forced to raise the prices, or are there better alternatives? Will you be switching carriers if this becomes true?