LTE iPads, More Mobile Data: Who’s Going to Pay for All This?

Two stories in the news today — the potential of LTE-enabled iPads and new projections for mobile data growth — seemed to me to be closely related and both lacking a final explanation: Who’s gonna pay for all the new toys and bandwidth?

As sports fans know, the Apple iPad and its imitators are great devices for watching sports on the go. The screen is big enough to approximate a TV experience, and the device is light enough to not be a bother. And the 4G LTE networks from Verizon Wireless, AT&T and soon from Sprint will make mobile video better thanks to faster download speeds and overall better behind-the-scenes technology.

But my question again — who’s going to pay for all this? At what point do we decide we’ve got enough devices, and that we’re not going to pay premiums just to get content whenever we want it? Are the devices and services so alluring that consumers will simply find a way to budget for them, or are they giving other things up from their disposable income buckets? Or will we see a backlash soon?

For all the heat the two stories have generated in the tech news world, my guess is that both are slightly overrated. Since LTE data contracts still remain fairly expensive — right now Verizon is charging $80 a month for 10 GB of data, its highest plan for tablets — I think folks might buy an LTE-enabled iPad for the convenience but will probably go for the lower-priced plans and use Wi-Fi whenever they can, especially when watching things like sports. Some smart guy already reported that Verizon’s 4G LTE phones aren’t big sellers because there isn’t anything compelling enough to make people pay a premium for the service. I think the LTE iPads will follow a similar lukewarm adoption curve.

On the mobile-data projections there are already some signs that Cisco’s predictions have shot past reality; AT&T, for example, said that its most recent figures showed data use growing more slowly than previously predicted. With cellular services prices expected to remain constant or rise even higher, my guess is that people may want to consume mobile data at the rate Cisco predicts but budgetary pressure will keep it from happening until lower-cost Wi-Fi networks reach out to more places than coffee shops and airport waiting lounges.

What will be really interesting to see is what happens if the LTE iPads fly off the shelves and crowd the networks, bringing back the original iPhone network jams. Think that won’t happen? Want to bet on it?

Friday Grab Bag: Microsoft talks Windows 8 Tablet

The top Windows exec at Microsoft, Steve Sinofsky, has published a huge blog entry that details Microsoft’s plans for Windows 8 on low-powered platforms driven by processors built around the ARM processor technology.

Since that is the primary chip technology driving most tablets, this blog entry shows how the company sees the space and what it believes it can bring to the market that its rivals cannot, or are not doing well.

A few of the key talking points are that versions of Windows for ARM platforms will carry a Windows for ARM branding; there will be a special version of Office for this platform and there will be a major effort to have the hardware and software tightly integrated, much like Apple does with the various iOS products.

Phoenix Suns latest to grab tablets as in-game tool
If you happen to watch closely the next time you are viewing a Phoenix Suns game expect to see branded products from Samsung and Verizon Wireless on the sidelines in place of the old school chalkboards.

The team has signed a deal that will provide the players, scouts and coaches with Samsung Galaxy 10.1 Tab tablets and Verizon 4G wireless service. The team plans to use them for a winde variety of tasks including in-game play calling by head coach Alvin Gentry.

While the NFL and Major League Baseball have been very aggressive in developing and deploying tablets as part of a training regime the NBA has lagged behind. This is probably going to be watched very closely and probably imitated by a number of other teams in the off season.

Asus admits bug in Transformer Prime
Asus has released a firmware update that will fix the random boot problem that has plagued some but not all owners of its Eee Pad Transformer Prime Tablets. The move comes after a flow of negative comments on line and at least one retailer, UK’s Clove to cease selling the product.

The tablet has had several flaws since it was debuted last year including simple lack of product available and a GPS accuracy issue. In the past the company has denied that there was a reboot issue but has now finally admitted it.

Patent Wars
Apple continues to battle and seems to be losing ground at a slow and steady rate. Its latest setback was a German court ruling that Samsung Galaxy Tab 10.1, called the Galaxy Tab10.1N in the German market does not appear to be a copycat version of the iPad.

Apple had won an initial ruling preventing Samsung from selling n the German market last September and the 10.1N is a work around that has been found acceptable by the court, reopening the market to the Apple rival.

Apple has been particularly aggressive pursuing Samsung in both the iPad but also iPhone space claiming that it carefully copied its devices. So far its success has been lackluster in courts but that does not seem to have changed Apple’s determined drive in the patent space.

Google’s bid for Motorola Mobility likely to be approved next week
Multiple sources are reporting that the $12.5 billion purchase of Motorola Mobility by Google will get antitrust approval from the United States Justice Department sometime next week. Among other assets that Google will acquire is a patent portfolio that is 17,000 strong in the mobile phone area.

This patent portfolio is likely to be used for both offensive and defensive purposes by the company. It is aggressively seeking huge payments from Apple over all iPhone and other iOS devices, but will likely also be used to simply be leverage in cross patent licensing agreements.

At the same time the Justice Department is likely to approve of the purchase of Nortel by a consortium of Apple, Microsoft Sony, Research in Motion, EMC, and Ericsson AB. This deal will include 6,000 wireless patents.

AT&T: Super Bowl Crowd Breaks Wireless Data-Sending Records

It was expected to be one of the biggest wireless-data events ever, and according to AT&T the folks attending Super Bowl XLVI in Indianapolis Sunday didn’t disappoint, with AT&T’s customers breaking company records for wireless communications from the big game.

According to statistics provided by AT&T, customers using AT&T smartphones, tablets and other devices inside Lucas Oil Stadium accounted for a total of 215 GB of wireless data traffic, an increase of almost 40 GB from Super Bowl XLV, even though there were almost 35,000 fewer fans at the game this year. Customers also uploaded more data to the network than they downloaded by a wide margin Sunday, 125 GB to 90 GB, likely signifying that AT&T users were busy sending photos, videos and messages out from the stadium to Internet sites or to friends who weren’t in attendance.

The surge in data traffic doesn’t even include any data sent over the Wi-Fi or DAS networks AT&T put in place in downtown Indy outside the stadium to ensure that fans had access to a good connection no matter where they were in the vicinty of the game. According to AT&T’s math the data represent an 82 percent increase in data use per person in attendance, a staggering amount of growth for a practice that even just a couple years ago was basically unheard of.

Given the data surge it’s perhaps no surprise that voice calls, voice minutes and text message totals all dropped from the previous year’s game, perhaps also due to the fact that Cowboys Stadium had 103,219 in attendance for Super Bowl XLV while there were just 68,658 in attendance at the smaller Lucas Oil Stadium Sunday. According to AT&T there were only 722,296 text messages sent by its customers Sunday, down from 2,090,099 sent the previous year. Voice calls and voice minutes were down 59 percent and 57 percent respectively, from 183,216 calls to 75,204 calls and 181,606 minutes to 78,133 minutes. The stats here are only for AT&T’s 2G, 3G and LTE networks inside the stadium itself, over a 7-hour window around the actual game.

In addition to the wide array of technical enhancements AT&T made in and around the stadium over the past year AT&T said it also had an on-site “command center” as well as street-team employees helping customers find the best way to connect. Verizon Wireless, Sprint and T-Mobile also beefed up their cellular operations in and around the stadium, and so far no reports of bad service have surfaced so all the preparations must have been enough to handle the game-day wireless crush, which was probably at least three times AT&T’s total if not more. AT&T’s Super Bowl enhancements are just part of a wide-ranging strategy from Ma Bell to cover stadiums with additional wireless assets.

AT&T’s stats from the game, however, should give pause to stadium operators, teams, schools and other big-event area hosts, because it’s almost guaranteed that wireless tsunamis of demand are coming your way next. As AT&T senior executive vice president of technology and network operations John Donovan notes in a blog post, mobile devices have become “integral to our lives,” and even more so for special sporting activities that we will want to share with friends not present via the Internet. Provided the wireless network allows it.

While the Super Bowl is a special case where providers will send extra resources to ensure performance, not every event can expect such an influx of assets. The question for game hosts then becomes how will you ensure that your customers get the wireless coverage they expect? For the answers, keep following Mobile Sports Report as we cover the news and provide the business analysis for this interesting intersection of mobile, social and sport.

Who’s Going to Get the Tablet Rights for NFL Games?

We all know by now that the Super Bowl is going to be streamed live by NBC, and also to Verizon Wireless smartphones via Verizon’s NFL Mobile app. It will be interesting to see what the viewer metrics are after the fact. But the bigger item on the horizon is who will snag the tablet, aka iPad rights for NFL broadcasts going forward?

I was thinking about this potential conflict earlier today when I read a report from my ex-GigaOM collegue Liz Gannes who was covering a talk with ESPN president John Skipper at the D: Dive Into Media conference. Skipper’s crew seems like it has clear vision on what the Worldwide Leader needs to do with mobile, which as we heard yesterday is the prime platform ESPN develops for.

Inside the industry ESPN is unique since it not only is a network, it is also a content creator as well as a clearinghouse for overall information. The latter is mainly SportsCenter, its enormously popular highlights show that dominates the sports world. But more recently ESPN has become a content creator/provider by bidding for broadcast rights to games themselves, across all major sports and a lot of minor ones too.

While finding broadcasts on TV is fairly easy — you just look up to see which network is broadcasting the game — on digital devices the access has been murky. Verizon does have an exclusive deal to show live games on phones, but that’s only covered Monday Night Football, Thursday night NFL Network games and the Sunday NBC games. ESPN, meanwhile, retains MNF rights for tablets but won’t show the games on phones because of Verizon’s deal. DirecTV Sunday Ticket customers this year could opt for a package that gave them access to the Sunday Ticket via mobile — an interesting twist but as a subset of a subset not really a mass-market solution.

The big question still out there is who will get tablet rights for NFL broadcasts going forward? Right now Verizon can’t offer NFL Mobile on an iPad, which would seem to be a bit of a no-brainer except it isn’t. The tablet market, aka iPad, is getting bigger every moment and it will be interesting to see how the tablet rights get broken out, or whether they are bundled into the overall broadcast rights for a hefty increase in fees. According to Liz’s report, ESPN won’t buy rights without all platforms included:

Since 2005, ESPN has made sure that all its content deals include rights for every device. As Skipper put it, “We don’t cannibalize ourself, we use those platforms to cross-promote.”

After several digital stops and starts ESPN seems to have crystalized its mobile thinking behind the WatchESPN idea, where you download an app and have access to all ESPN programming — so long as you also have a contract with a qualifying cable provider. This is a smart move because it keeps the people paying ESPN the big bucks happy, while giving the cable customers the kind of access that is commonplace for all other kinds of media.

Maybe sometime in the future ESPN will offer a non-cable-customer price to access all its content digitally, but for now it seems content to keep its window open only to those customers willing to pay.

Here’s the link to Liz’s story again. Good stuff, wish I was at that conference.

Pre Play Sports Scores Subway Sponsor Deal for Super Bowl

Screen grab of a typical Pre Play app, where you predict the play before it happens.

In a field that’s going to become extremely competitive, predictive-gaming startup PrePlay announced a sponsorship deal with sandwich giant Subway, just in time for this Sunday’s Super Bowl.

If you’re not familiar with predictive gaming, don’t feel alone. It’s a new category of apps that allow smartphone or tablet users to challenge each other in trying to predict play-by-play outcomes of sporting events as they are happening live. MSR identified several of the players in the space last year, but with Subway sponsor dollars in its pocket Pre Play has clearly done something to attract attention. Even so, the company is using the Subway deal to “re-launch” its app, usually a sign that the initial iteration didn’t quite catch on.

The iOS-only Pre Play app can be freely downloaded from iTunes. Then you assemble a group of friends or family members with Apple devices and can compete to see who can better predict plays before they happen, earning points in the process for correct calls.

To perhaps better explain how it all works, here’s a Pre Play demo video. Maybe this is better than me screaming “FAKE! FAKE!” at the TV screen on every field-goal attempt. At least my neighbors might be happier.

PlayUp Signs Exclusive Deal with Fordham Athletics

In what is expected to be the first of a series of school-exclusive deals, fan-based social network app provider PlayUp is partnering with Fordham Athletics to be the exclusive “fan engagement partner” for the sports teams at the New York-based Fordham University.

Fordham said the PlayUp app, which gives sports fans the ability to track teams, scores and to converse with other fans in either small or large, or private or public groups, is a good fit for schools like Fordham who have interested alumni who might not be able to view games in person. From the press release announcing the deal:

“PlayUp is a very unique service that allows fans who cannot attend Fordham games in person to actively chat on their mobile device while following the action,” said Julio Diaz, Associate Athletic Director/Marketing and Promotions, Fordham Athletics.

According to PlayUp, the company will promote its app live at four upcoming Fordham men’s basketball games, and will be featured in television ads shown during the game broadcasts. PlayUP said it will also have in-game contests and promotions, part of a strategic move to make PlayUp the app fans check in with first when they are at a live sporting event. Here’s the PlayUp quote from the presser:

“We are very pleased to be Fordham Athletics’ Official Fan Engagement Partner,” said David Brody, PlayUp U.S. Head of Marketing. “This partnership will help Fordham fans, friends, family and alumni alike, connect worldwide over Fordham Athletics. Even if they’re hundreds or thousands of miles away, they can hangout together in the PlayUp app. Our app breaks down geographical barriers and allows real interaction between fans all over the globe.”

MSR will track PlayUp (which just launched a beta version of a website component) and its competitors in the fan-conversation market closely. If you are a PlayUp user, give us a holler in the comments below and tell us what you think of the service.