Microsoft's Windows 10 finally has a release date: July 29
The next iteration of the software maker's operating system is slated to arrive in time for the summer.
Nick Statt/CNET
Microsoft has set a release date for Windows 10 to arrive in the summer.
The software maker announced Monday that it will begin offering its newest software to power PCs andtablets as a free upgrade on July 29. Windows 10 Mobile, the company's companion software designed to power smartphones, is expected to arrive later this year. Windows 10 will be free for users who have bought a computer in the past six years or so, powered by Windows 7 or later, or tablets running Windows 8.1.
Users running Windows 7 or 8.1 with the latest updates can reserve the upgrade, which is available until July 29, 2016, starting today. Check out CNET's guide for more details.
Windows 10 marks the next iteration of the one of the world's most ubiquitous pieces of software. Microsoft's operating system powers a majority of personal computers and acts as the backbone of many of the world's businesses. Despite its dominance, Microsoft critics see the company and its products as a tech titan in decline, as mobile phones and competing, cheaper software have chipped away at Windows. The company's goal with Windows 10 is both to repair the damage done by the ill-received Windows 8 and to convince consumers that upgrading is worth the time and effort.
Rumors originally swirled around a July release date for Windows 10 back in April when Lisa Su, head of chipmaker AMD, discussed the timeline on a conference call. Microsoft has mostly remained mum, coyly avoiding discussion of a launch date even during its developer conference in April. Some industry watchers became concerned the software may not be ready in time.
In a statement given to CNET, Microsoft confirmed the price of single Windows 10 licenses in the event you are not eligible for a free upgrade or wish to build your own computer. A copy of Windows 10 Home will run $119, while Windows 10 Pro will cost $199. Those prices match Windows 8 pricing, the company said. For those who wish to upgrade from the Home edition to the Pro edition, a Windows 10 Pro Pack will cost $99.
Through its Windows Insider program, which lets eager users sign up to receive developer versions of the software-in-progress, Microsoft has been more transparent with Windows 10 than previous releases. Since its unveiling in September, those early users have watched the software's evolution firsthand. Some of the key changes Microsoft has made include a revamped Start button and the removal the unpopular tablet-focused interface of Windows 8. There's also a new browser, Edge, to replace the decades-old Internet Explorer, as well as a more robust version of Cortana, Microsoft's voice-enabled digital software assistant.
The most important aspect of Windows 10, however, is the company's philosophy powering it: one Windows to rule them all.
Microsoft remains the world's largest software maker, with Windows running on more than 90 percent of the world's computers, according to NetMarketShare. But the company had a late start on smartphones and has struggled to keep its software relevant while developers focused on Apple's iOS mobile operating system, Google's Android and the Web at large. PCs sales have also been on a steady decline.
With Windows 10, Microsoft is making a big gamble that its Windows software can power a web of devices, attracting customers to own computers, tablets and smartphones all powered by one company's software. It's a gamble that's worked for Apple, whose iPhones, iPads and Macs are well regarded for working well with one another.
Microsoft executives, including CEO Satya Nadella, have stressed the importance of thinking of Windows and Microsoft software as services, not products we buy. The company has already begun applying this model to its Office software suite, which includes programs like Word, Excel and Outlook. Microsoft now available offers it as subscription service, called Office 365, instead of selling individual disks to customers at a one-time flat rate.
The company has not yet said if there will ever be a Windows 11, or a version of Windows we consumers will pay for like past releases. Users who update to Windows 10 will get "new features and benefits for a long, long time," said Joe Belfiore, Microsoft's vice president of operating systems, said at Build earlier this month.
Though it still makes most of its money selling its traditional software to businesses, Microsoft's fastest-growing business division now is its cloud services group, which is on track to make $6.3 billion in sales this year. Nadella, who oversaw Microsoft's cloud business before assuming the role of chief executive in February 2014, hopes to see annual sales there grow to $20 billion over the next three years.
By 2018, Microsoft hopes to have more than 1 billion devices running Windows 10. That's ambitious, particularly considering Microsoft's previous release, Windows 8 which arrived in 2012, powers less than 15 percent of the world's computers.
Update at 11:25 a.m. PT:Added Microsoft's statement on Windows 10 single license pricing.
Rare iOS bug can cause text messages to crash your iPhone
But the message must contain a specific series of Arabic characters, so you're likely to receive it only as a prank. And there are ways to resolve the problem.
A bug in iOS is causing certain text messages to crash your iPhone.CNET
A quirky bug in Apple's iOS can crash and reboot your iPhone if you receive a certain text message.
First revealed by a Reddit user on Tuesday, the bug works as follows: Someone texts you a message with a specific string of Arabic characters. If your iPhone is locked, and you receive a notification of the new text, iMessage crashes and your iPhone proceeds to reboot.
iOS bugs are nothing new. Since its release last September, iOS 8 has been beset by glitches that have forced Apple to continually issue updates to resolve certain issues. But this latest bug is much more random and rare than others, so it's not something that would affect a wide audience. And it's one that users can resolve themselves without waiting for Apple to issue a fix.
What's the cause behind this newly-discovered bug? It's not the Arabic characters per se but the way iOS tries to handle the full text string, as described by AppleInsider. The Unicode characters that attempt to render and display the string chew up too many resources when your phone is locked and the notification of the message appears.
The folks at AppleInsider sent the same text string during a normal iMessage conversation, and the iPhone did not crash or reboot. That test suggests the glitch lies more within iOS's notifications process and not within the iMessage app.
Several iOS users have chimed in on Reddit and Twitter to report the problem. But it's not one likely to affect most people. First of all, you'd need to be texted that specific string of characters while your iPhone is locked. That means you're not going to receive it accidentally but rather from someone who knows your mobile number and is purposely trying to crash your iPhone for some reason.
What if you do bump into this particular bug? There are a few ways around it.
You can always turn off notifications for text messages, but that's hardly an ideal solution. Instead, you can simply trigger another text message. You can ask the person who sent you the original message to send a new one, assuming that person didn't send it maliciously. Otherwise, you can send yourself a text message easily enough by telling Siri to do it or using an iOS app that lets you share content via iMessage. The new text message essentially supercedes the older message, so you can use iMessage again.
Apple knows about the problem and is working on a fix.
"We are aware of an iMessage issue caused by a specific series of unicode characters and we will make a fix available in a software update," an Apple spokesperson said.
Apple didn't say when the fix would roll out, but it could pop up as soon as the next iOS update appears. Developers are currently beta testing iOS 8.4, so Apple may have time to squeeze in a fix before it rolls that latest update.
Apple's envisioned multitouch keyboard could kill the trackpad
Described in a newly-published Apple patent filing, the so-called Fusion keyboard could pick up multitouch gestures from your keystrokes, potentially eliminating the need for a trackpack.
Could trackpads one day be obsolete?Apple/USPTO
Your future Apple MacBook may not need a trackpad for you to move around the screen.
Published on Tuesday by the United States Patent and Trademark Office, a patent dubbed simply "Fusion keyboard" describes a keyboard with keys that can both insert characters as well as deploy touch gestures.
Why create a laptop that doesn't necessarily need a trackpad? Size is one major reason. The trackpad on MacBooks as well as other laptops take up a fare amount of space, increasing the overall size of the device. A laptop that dispensed with a trackpad could shrink in overall size or allow greater space for the keyboard so the keys aren't as scrunched together and are therefore easier to type on. You'd also be able to work faster since your hands would never have to leave the keyboard to move to a trackpad.
How would a Fusion keyboard work? You'd be able to swipe your fingers across the keys to move across the screen, just as you can with a trackpad. The touch-sensitive keys would provide all the functionality of a trackpad, giving you the ability to point and click, select items, zoom in and out and scroll around the screen, all without leaving the keyboard.
Each key would also have two levels, so you'd be able to perform different tasks based on how hard you press the key. For example, pressing the key softly to the first level could input a character, while pressing it harder to the second level might register a mouse click.
Further, you'd be able to type and swipe at the same time. So your left hand might be typing away on the left side of the keyboard, while your right hand would be swiping across a set of keys to move around the screen.
In the patent application, Apple describes the drawback with current keyboards:
There have been numerous attempts made to introduce an alternative to the standard keyboard. The changes include, but are not limited to, non-QWERTY layouts, concave and convex surfaces, capacitive keys, split designs, membrane keys, etc. However, while such alternative keyboards may provide improved usability or ergonomics, they have failed to replace or duplicate the commercial success of the conventional mechanical keyboard.
As always, a patent application by itself doesn't mean the invention will ever hit the real world. But by adding touch sensitivity to the standard mechanical keyboard, the Fusion keyboard could succeed where other alternative keyboards have failed.
Popular live-streaming app arrives on Android almost a month after its top competitor Meerkat.
Twitter is launching its popular live-streaming app Periscope for Android users.James Martin/CNET
After weeks of speculation and anticipation, Twitter is launching its wildly popular Periscope live-streaming app for Android users.
The microblogging service announced Tuesday its broadcasting app, which lets users stream and edit live video, will be available on the Google Play store. Periscope's debut on Android devices comes less than three months after its launch and less than a month after after rival Meerkat appeared on Android.
Periscope has been a huge success for Twitter since its debut on iOS hot on the heels of Meerkat. The social network said Periscope had more than 1 million users within its first 10 days. Periscope's app for Android will comparable features to its iOS counterpart, including allowing users to tweet a link to their broadcasts and have optional location sharing.
The app also will give Android users more specific control over notifications, including when a follower goes lives, shares a broadcast or is followed by someone else. Also, if an Android user leaves a broadcast to answer a text message, they will get a notification inviting them back to the broadcast they were watching.
"It will be unmistakably Periscope with a look and feel that is Android-specific," said Sara Haider, Twitter's lead engineer for Android.
Live video is quickly becoming an important elements for social networks as more people are broadcasting their personal lives -- from celebrating at parties to demonstrating at protests -- on the Internet. There are also potential revenue opportunities as marketers look to how they can make money and advertise with individualized video feeds.
Periscope founder Kayvon Beykpour said he understands the public demand as the startup quickly began working on the app for Android earlier this year. Beykpour said he's been astonished to see the reaction.
"The reception has been overwhelming in the most positive way just by the sheer magnitude of users," he said. "We're seeing people using in ways we never thought of, it's been actually quite mind blowing."
So much so that Periscope came under sharp criticism earlier this month after many users illegally live-streamed the highly anticipated Floyd Mayweather-Manny Pacquiao boxing match that cost $100 to watch on pay-per-view. Beykpour said they received 66 requests to take down broadcasts and took action against 30 within minutes. The rest were already removed.
Twitter CEO Dick Costolo fanned the flames by tweeting "And the winner is...@periscopeco."
Beykpour reiterated prior to Periscope's Android launch that it is operating in compliance with the Digital Millennium Copyright Act and is working to ensure there are tools in place to respond to illegal streams.
Want cheaper wireless service? Patience is a virtue
CNET's Marguerite Reardon explains how three key phenomena could reshape the wireless industry in the next few years and pave the way for more-affordable mobile services.
The US wireless market is on the cusp of big changes and competitive clashes. Those, in turn, could lead to lower prices and better deals for you.
At least that's how I hope things will play out over the next few years. From Google's Project Fi experiment to build a hybrid Wi-Fi/cellular network, to rumblings about someone finally making use of Dish Network's stockpile of wireless spectrum, to the last major wireless auction for the foreseeable future -- there's a lot of activity in the mobile world. And with luck we'll see additional legitimate options in the wireless business, which could mean more-competitive prices.
In this edition of Ask Maggie, I look at each of these scenarios and explain how it could shape the future of the wireless industry.
How long do I have to wait for change?
Dear Maggie,
I've been reading your articles regarding cell phone bills and upgrades. Clearly, there is a lot of confusion about upgrades right now, and about leasing phones.
I recently called my wireless provider to inquire about a potential phone upgrade on my family plan, since my contract ends in October. I've heard so much about all these great deals, so I was expecting to be able to take advantage of them. What I quickly learned is that whether I sign up for another two year plan, take the leasing plan or buy a phone outright, my total cost is about the same.
Let's get real. They are NOT offering real discounts/incentives. If you read between the lines, the only thing they've promised is to increase your bill. Especially, for those households with teens. How many families can really afford to purchase multiple cell phones these days? It really doesn't matter if you choose a two year contract (if available) or the (AT&T) "Next" plan.
The fact is, we as consumers are being ripped off. To add insult to injury, the phones we currently own seem to self-destruct right around the time our contract is about to end or the phone is fully paid for. It's like the phone makers and wireless companies are in cahoots to make sure you upgrade.
Please tell me something better is coming. When will we see real discounts on service?
Thanks, Shawn
Dear Shawn,
You seem to have a pretty good read on the market. You're absolutely correct that some of the new no-contract leasing plans don't offer much of a discount, if any discount, over the older contract plans. And you're also right about the plans being confusing. Sometimes I wonder if the complicated plans offered by wireless operators are deliberately designed to confuse people into spending more money because they don't fully understand all the charges.
CNET
But the truth is that over the past year, wireless companies have reported that the average revenue per user has fallen about 7 percent, and total revenue for the entire wireless industry has essentially flatlined, according to equity research analyst Craig Moffett of MoffettNathason Research. This is happening at the same time that consumers have nearly doubled the data usage on wireless networks.
Still, this doesn't mean that every consumer is seeing huge discounts on their monthly bills. As you rightfully point out, some folks may actually be paying more under new plans, and scores of others are seeing no difference in how much they pay each month for phone service. At the end of the day, mobile phone bills are still a big strain on family budgets.
Where are things headed?
I like to think of myself as an optimist, and I see signs that positive change for consumers is coming. We've already begun to see some changes in the industry as the result of growing competition. T-Mobile's Uncarrier strategy, introduced two years ago, has prompted AT&T and Verizon to alter service plans. Sprint has also come out with some aggressively priced plans that have given consumers an alternative to AT&T and Verizon.
Though pricing may not have dropped as dramatically you'd like, consumers in general are getting more services for roughly the same money they were paying before. And some customers are actually paying less for their service.
More changes could be on the horizon. Here are three main trends/events that could reshape the industry and create more competition that would ultimately benefit consumers.
'Wi-Fi first' and the Google effect
Last month Google announced its Wi-Fi-first wireless service called Project Fi.The service is built using a combination of free Wi-Fi networks and leased service from traditional carriers to provide consumers with inexpensive wireless service. Small startups, such as Scratch Wireless and Republic Wireless, have already been offering services based on this model for more than a year.
Juan Garzón/CNET
The idea of Wi-Fi first is that customers of these services can make phone calls, send text messages and access the Internet using Wi-Fi hotspots when they're available. When not, the service automatically switches to a traditional cellular service. In the case of Scratch and Republic Wireless, customers access Sprint's network. Google's Project Fi service will use either T-Mobile's service or Sprint's service, depending on which one offers the best connection.
The benefit is that Wi-Fi first phone services are cheap. Republic's service is only $5 a month for customers who make calls, access the Internet and text over Wi-Fi networks. Scratch offers these basic services for customers on Wi-Fi networks for free. The cost of these services increases when customers roam onto a cellular network. But because most wireless subscribers are within a Wi-Fi network most of the time, cellular roaming is often minimal, which keeps costs low. For instance, Scratch says that two-thirds of its customers every month do not roam onto a cellular network at all.
Google's pricing is not nearly as aggressive as that of Scratch Wireless or Republic Wireless. Its basic service, which includes unlimited talk and text messaging, starts at $20. It then charges $10 more a month for every 1GB of data. Even though Google's pricing is higher than that of Scratch or Republic, the fact that Google has dipped its toe in this market has huge implications for the industry.
Project Fi on its own isn't likely to threaten the dominance of Verizon and AT&T, but the lessons that Google learns and the technology it hones could be useful for the entire industry. And this could help nontraditional telephone companies looking to compete with the big wireless companies get into the market using a similar Wi-Fi-first approach.
For instance, Google could use its technology and clout to push for a more seamless transition between Wi-Fi and cellular -- a transition that hasn't worked so well in the past. That could pave the way for cable providers or other companies with wireless ambitions to create a wireless business to challenge the wireless operators. The cable industry is uniquely positioned for such a disruption, since they could wed cellular service with their own network of Wi-Fi hotspots.
"Google will be an accelerant in a market that the cable companies have already shown interest in," said Spencer Kurn, analyst at New Street Research. "It will help cable companies figure out how to improve the quality of the Wi-Fi service so that it can compete with wireless."
Dish Network: Spectrum hoarder or new competitor?
Satellite TV provider Dish isn't in the wireless service business today. But Chairman Charlie Ergen hasn't kept secret his desire to expand into the area. The company has amassed a healthy war chest of wireless spectrum over the past few years in various auctions and through private deals. That's necessary if you want to build your own wireless network.
Dish Network
The company has talked about getting into the wireless broadband market with a service to rival those offered by the big wireless companies. But so far, it hasn't made a major move other than buying more spectrum assets.
That could soon be changing as the company faces pressure from the Federal Communications Commission to put its spectrum to use. Last week, Yahoo Finance reported it had obtained a "confidential" document that indicates Dish is seeking a chief marketing officer to move into the wireless market.
Though Dish has been tight-lipped about specific plans for its wireless spectrum, the company has tried to strike deals with existing wireless companies. Two years ago it tried to acquire Sprint but lost out to Japanese wireless carrier Softbank. And there's been a lot of speculation over the past year about a merger with T-Mobile or a possible deal with Verizon.
At this point, it's unclear whether Dish will build its own wireless network or if it will strike a deal with an existing wireless player. There's also a chance the company could partner with a nontraditional wireless company to add a new competitor to the market. If the spectrum is put to use to create a new competitor, that could bode well for consumers, who would benefit from another upstart potentially offering some deals.
Last call for wireless spectrum
In early 2016, the FCC is expected to hold the last major auction of wireless spectrum for the foreseeable future. Wireless spectrum is considered the lifeblood of the wireless industry because its radio signals are critical to carrying the data that translates into our phone calls, text messages and YouTube cat videos. Operators need more and more of it to keep up with demand for more bandwidth from consumers. Without enough spectrum in the right markets, competitors wither and die.
James Martin/CNET
The so-called incentive auction scheduled for early 2016 will take unused or underused spectrum in the 600MHz band of frequency used by TV broadcasters and sell it to mobile-broadband operators. The auction will let TV broadcasters take a portion of the proceeds from the auction in exchange for giving up some of their unused spectrum.
This auction is important because the licenses that will be auctioned off are for low-band frequencies, which can transmit data over longer distances and penetrate through obstacles like walls easier than at higher frequencies. It's often referred to as the "beachfront property" of spectrum frequencies.
This spectrum is of particular importance to operators like T-Mobile and Sprint, because it could enable them to extend their networks to more suburban and rural markets.
What this means for consumers of wireless is that T-Mobile could become an even stronger competitor to AT&T and Verizon. Its Uncarrier strategy has already put pressure on the carriers to make changes in their plans, and a stronger network would only help its case. AT&T and Verizon are now offering device leasing options, thanks in large part to T-Mobile's move in this direction. Even though this change may not make services less expensive for all consumers, it offers consumers options. And it could be an initial step toward more change. T-Mobile believes that with this additional spectrum, it can continue to put pressure on the rest of the market, which will ultimately benefit all wireless subscribers.
"T-Mobile is playing a really interesting role that benefits all American consumers by changing the rules in wireless," Mike Sievert, T-Mobile's chief marketing officer, said in a recent interview. "We can continue to do that indefinitely on behalf of the industry's consumers with the right asset base."
Sievert went on to explain that the low-band spectrum that will be auctioned off next year is the key to keeping its competitive momentum going.
"We know that in order for us to take the best advantage of our ability to create real competition in the marketplace, spectrum is the core ingredient," Sievert said. "There is just no question about that."
The bottom line
Pricing pressure from T-Mobile and Sprint has already begun to shake things up in the wireless market. Consumers on average are spending slightly less on service than they were a few years ago. But there's still a long way to go in terms of making wireless service more affordable.
More competition could shake things up further. But the reality is that none of these things will happen overnight. And there's no guarantee that any of them will work out as expected. For instance, Google's service could be a disaster and the company could abandon its efforts. Dish could continue to stall its plans to put its spectrum to use. And larger operators AT&T and Verizon could once again walk away with the majority of wireless spectrum in the upcoming auction and shut out smaller players like T-Mobile and Sprint.
Craft makers, would you decamp from Etsy for someplace called Handmade at Amazon? The e-commerce giant is looking to gauge your interest.
Uh-oh, Etsy. Amazon may have a Handmade challenge for you.Screenshot by CNET
A decade into its run on the Web, the crafts marketplace Etsy may soon face its biggest challenge yet.
E-commerce titan Amazon has been putting out feelers to sellers on Etsy, pointing them to an online form thanking them for their interest in "Handmade at Amazon." They're asked to fill out the form with information about their business and the items they sell -- from jewelry to gourmet goods to toys and games -- with a promise to keep respondents updated "while we set up shop."
Etsy's artisans began posting notes about Amazon's inquiries to Etsy's online forums late last week, and the news was noted by the Wall Street Journal on Friday evening.
Etsy as it appears on iOS.Etsy
Amazon and Etsy both declined to comment to CNET.
Brooklyn-based Etsy has built a business by connecting buyers and sellers of arts and crafts, deriving its revenue from listing fees and from commissions on items for sale. The potential launch of Amazon's Homemade marketplace comes as it enters a new financial phase. In April, the 10-year-old Etsy began trading as a public company on the Nasdaq exchange.
At the end of the first quarter of the year, Etsy reported more than 1.4 million active sellers (up 26 percent year over year) and 20.8 million active buyers (up 37 percent). Its revenue for the period was $58.5 million on gross merchandise sales of nearly $532 million -- increases year over year of 44 percent and 28 percent, respectively.
The Wall Street firm Wedbush Securities last week called it unlikely that a big e-commerce company like Amazon, eBay or Alibaba would want to acquire Etsy "as they already have most of Etsy's customers and many of Etsy's sellers." Rather, Wedbush said in a note to investors, "We believe if the bigger players wanted to specifically address this [niche] ... they would only need to segregate a handcrafted section and funnel existing buyers and sellers."
But as the Wall Street Journal noted, Etsy's fees to sellers are notably lower than those of Amazon.
Amazon, which got its start as a bookseller, now has dozens of marketplaces in areas as far afield as fine art, laboratory and scientific equipment, musical instruments and business supplies. It already has a marketplace dedicated to "Arts, Crafts & Sewing." Through its Amazon Prime subscription service, meanwhile, it also serves up streaming video and music, unlimited cloud storage of photos and other perks.
Want cheaper wireless service? Patience is a virtue
CNET's Marguerite Reardon explains how three key phenomena could reshape the wireless industry in the next few years and pave the way for more-affordable mobile services.
The US wireless market is on the cusp of big changes and competitive clashes. Those, in turn, could lead to lower prices and better deals for you.
At least that's how I hope things will play out over the next few years. From Google's Project Fi experiment to build a hybrid Wi-Fi/cellular network, to rumblings about someone finally making use of Dish Network's stockpile of wireless spectrum, to the last major wireless auction for the foreseeable future -- there's a lot of activity in the mobile world. And with luck we'll see additional legitimate options in the wireless business, which could mean more-competitive prices.
In this edition of Ask Maggie, I look at each of these scenarios and explain how it could shape the future of the wireless industry.
How long do I have to wait for change?
Dear Maggie,
I've been reading your articles regarding cell phone bills and upgrades. Clearly, there is a lot of confusion about upgrades right now, and about leasing phones.
I recently called my wireless provider to inquire about a potential phone upgrade on my family plan, since my contract ends in October. I've heard so much about all these great deals, so I was expecting to be able to take advantage of them. What I quickly learned is that whether I sign up for another two year plan, take the leasing plan or buy a phone outright, my total cost is about the same.
Let's get real. They are NOT offering real discounts/incentives. If you read between the lines, the only thing they've promised is to increase your bill. Especially, for those households with teens. How many families can really afford to purchase multiple cell phones these days? It really doesn't matter if you choose a two year contract (if available) or the (AT&T) "Next" plan.
The fact is, we as consumers are being ripped off. To add insult to injury, the phones we currently own seem to self-destruct right around the time our contract is about to end or the phone is fully paid for. It's like the phone makers and wireless companies are in cahoots to make sure you upgrade.
Please tell me something better is coming. When will we see real discounts on service?
Thanks, Shawn
Dear Shawn,
You seem to have a pretty good read on the market. You're absolutely correct that some of the new no-contract leasing plans don't offer much of a discount, if any discount, over the older contract plans. And you're also right about the plans being confusing. Sometimes I wonder if the complicated plans offered by wireless operators are deliberately designed to confuse people into spending more money because they don't fully understand all the charges.
CNET
But the truth is that over the past year, wireless companies have reported that the average revenue per user has fallen about 7 percent, and total revenue for the entire wireless industry has essentially flatlined, according to equity research analyst Craig Moffett of MoffettNathason Research. This is happening at the same time that consumers have nearly doubled the data usage on wireless networks.
Still, this doesn't mean that every consumer is seeing huge discounts on their monthly bills. As you rightfully point out, some folks may actually be paying more under new plans, and scores of others are seeing no difference in how much they pay each month for phone service. At the end of the day, mobile phone bills are still a big strain on family budgets.
Where are things headed?
I like to think of myself as an optimist, and I see signs that positive change for consumers is coming. We've already begun to see some changes in the industry as the result of growing competition. T-Mobile's Uncarrier strategy, introduced two years ago, has prompted AT&T and Verizon to alter service plans. Sprint has also come out with some aggressively priced plans that have given consumers an alternative to AT&T and Verizon.
Though pricing may not have dropped as dramatically you'd like, consumers in general are getting more services for roughly the same money they were paying before. And some customers are actually paying less for their service.
More changes could be on the horizon. Here are three main trends/events that could reshape the industry and create more competition that would ultimately benefit consumers.
'Wi-Fi first' and the Google effect
Last month Google announced its Wi-Fi-first wireless service called Project Fi.The service is built using a combination of free Wi-Fi networks and leased service from traditional carriers to provide consumers with inexpensive wireless service. Small startups, such as Scratch Wireless and Republic Wireless, have already been offering services based on this model for more than a year.
Juan Garzón/CNET
The idea of Wi-Fi first is that customers of these services can make phone calls, send text messages and access the Internet using Wi-Fi hotspots when they're available. When not, the service automatically switches to a traditional cellular service. In the case of Scratch and Republic Wireless, customers access Sprint's network. Google's Project Fi service will use either T-Mobile's service or Sprint's service, depending on which one offers the best connection.
The benefit is that Wi-Fi first phone services are cheap. Republic's service is only $5 a month for customers who make calls, access the Internet and text over Wi-Fi networks. Scratch offers these basic services for customers on Wi-Fi networks for free. The cost of these services increases when customers roam onto a cellular network. But because most wireless subscribers are within a Wi-Fi network most of the time, cellular roaming is often minimal, which keeps costs low. For instance, Scratch says that two-thirds of its customers every month do not roam onto a cellular network at all.
Google's pricing is not nearly as aggressive as that of Scratch Wireless or Republic Wireless. Its basic service, which includes unlimited talk and text messaging, starts at $20. It then charges $10 more a month for every 1GB of data. Even though Google's pricing is higher than that of Scratch or Republic, the fact that Google has dipped its toe in this market has huge implications for the industry.
Project Fi on its own isn't likely to threaten the dominance of Verizon and AT&T, but the lessons that Google learns and the technology it hones could be useful for the entire industry. And this could help nontraditional telephone companies looking to compete with the big wireless companies get into the market using a similar Wi-Fi-first approach.
For instance, Google could use its technology and clout to push for a more seamless transition between Wi-Fi and cellular -- a transition that hasn't worked so well in the past. That could pave the way for cable providers or other companies with wireless ambitions to create a wireless business to challenge the wireless operators. The cable industry is uniquely positioned for such a disruption, since they could wed cellular service with their own network of Wi-Fi hotspots.
"Google will be an accelerant in a market that the cable companies have already shown interest in," said Spencer Kurn, analyst at New Street Research. "It will help cable companies figure out how to improve the quality of the Wi-Fi service so that it can compete with wireless."
Dish Network: Spectrum hoarder or new competitor?
Satellite TV provider Dish isn't in the wireless service business today. But Chairman Charlie Ergen hasn't kept secret his desire to expand into the area. The company has amassed a healthy war chest of wireless spectrum over the past few years in various auctions and through private deals. That's necessary if you want to build your own wireless network.
Dish Network
The company has talked about getting into the wireless broadband market with a service to rival those offered by the big wireless companies. But so far, it hasn't made a major move other than buying more spectrum assets.
That could soon be changing as the company faces pressure from the Federal Communications Commission to put its spectrum to use. Last week, Yahoo Finance reported it had obtained a "confidential" document that indicates Dish is seeking a chief marketing officer to move into the wireless market.
Though Dish has been tight-lipped about specific plans for its wireless spectrum, the company has tried to strike deals with existing wireless companies. Two years ago it tried to acquire Sprint but lost out to Japanese wireless carrier Softbank. And there's been a lot of speculation over the past year about a merger with T-Mobile or a possible deal with Verizon.
At this point, it's unclear whether Dish will build its own wireless network or if it will strike a deal with an existing wireless player. There's also a chance the company could partner with a nontraditional wireless company to add a new competitor to the market. If the spectrum is put to use to create a new competitor, that could bode well for consumers, who would benefit from another upstart potentially offering some deals.
Last call for wireless spectrum
In early 2016, the FCC is expected to hold the last major auction of wireless spectrum for the foreseeable future. Wireless spectrum is considered the lifeblood of the wireless industry because its radio signals are critical to carrying the data that translates into our phone calls, text messages and YouTube cat videos. Operators need more and more of it to keep up with demand for more bandwidth from consumers. Without enough spectrum in the right markets, competitors wither and die.
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The so-called incentive auction scheduled for early 2016 will take unused or underused spectrum in the 600MHz band of frequency used by TV broadcasters and sell it to mobile-broadband operators. The auction will let TV broadcasters take a portion of the proceeds from the auction in exchange for giving up some of their unused spectrum.
This auction is important because the licenses that will be auctioned off are for low-band frequencies, which can transmit data over longer distances and penetrate through obstacles like walls easier than at higher frequencies. It's often referred to as the "beachfront property" of spectrum frequencies.
This spectrum is of particular importance to operators like T-Mobile and Sprint, because it could enable them to extend their networks to more suburban and rural markets.
What this means for consumers of wireless is that T-Mobile could become an even stronger competitor to AT&T and Verizon. Its Uncarrier strategy has already put pressure on the carriers to make changes in their plans, and a stronger network would only help its case. AT&T and Verizon are now offering device leasing options, thanks in large part to T-Mobile's move in this direction. Even though this change may not make services less expensive for all consumers, it offers consumers options. And it could be an initial step toward more change. T-Mobile believes that with this additional spectrum, it can continue to put pressure on the rest of the market, which will ultimately benefit all wireless subscribers.
"T-Mobile is playing a really interesting role that benefits all American consumers by changing the rules in wireless," Mike Sievert, T-Mobile's chief marketing officer, said in a recent interview. "We can continue to do that indefinitely on behalf of the industry's consumers with the right asset base."
Sievert went on to explain that the low-band spectrum that will be auctioned off next year is the key to keeping its competitive momentum going.
"We know that in order for us to take the best advantage of our ability to create real competition in the marketplace, spectrum is the core ingredient," Sievert said. "There is just no question about that."
The bottom line
Pricing pressure from T-Mobile and Sprint has already begun to shake things up in the wireless market. Consumers on average are spending slightly less on service than they were a few years ago. But there's still a long way to go in terms of making wireless service more affordable.
More competition could shake things up further. But the reality is that none of these things will happen overnight. And there's no guarantee that any of them will work out as expected. For instance, Google's service could be a disaster and the company could abandon its efforts. Dish could continue to stall its plans to put its spectrum to use. And larger operators AT&T and Verizon could once again walk away with the majority of wireless spectrum in the upcoming auction and shut out smaller players like T-Mobile and Sprint.
But as I said before, I am an optimist. I'm hopeful that the next 5 to 10 years will bring more competition from new and existing competitors. And that could mean a lighter load on our wallets.