Mobile News: Security, Spectrum, and Mergers

Lately in the news, there’s been heavy talk about the mobile industry. News reports have generally been on these topics: hacks/security flaws, spectrum, and mergers. Tech blogs and websites have to been reporting different experiments and studies on the security flaws of either Android or iPhones. Technolog previously reported that paperclips could unlock iPhones and magnets could unlock iPads. While CNBC recently reported about an Android Bug that is released via a link opened from a spam text or email.

As far as spectrum, we are all being warned that, at some point in the not-too-distant future, data will slow tremendously from overuse of radio spectrum. While cell carriers may offer unlimited data, reaching a certain point will slow your data. For example, T-mobile slows data from 4G/3G to a G after 2gbs of data has been used within a billing cycle. This speed reduction or the use of limited data plans is to prevent congestion on wireless spectrum, which causes slow networks.

The other solution to congested spectrum is to acquire more of it. Some media entities have spectrum to sell.  Right now, Verizon Wireless is trying to buy spectrum from Comcast, Time Warner Cable, and Brighthouse Networks. If that deal is approved, Verizon Wireless would walk away with better and more spectrum placing them at a greater advantage then their competition. Another way to acquire spectrum is to merge. AT&T and T-mobile attempted to merge, but the government disapproved on the basis it could deplete competition.

Sprint was a strong enemy of the AT&T/T-mobile merger; it would have placed Sprint last in market share. Despite now having the iPhone, switching to LTE 4G, and still offering true unlimited data, Sprint is losing customers and thus money. Despite fear of landing last in the mobile race due to size, Sprint turned down a merger with MetroPCS. “Sprint Board Walked Away From MetroPCS Takeover” by Gina Chon and Joann S. Lublin of WSJ.com reports Sprint “concluded the timing wasn’t right”. The article reports there may have been a disagreement between CEO Dan Hesse, who supported the merger, and the board.

If Sprint isn’t ready to buy out a competitor, what options will they have left to save themselves? Will they considering selling the company? If the government stands by preventing major mergers in order to keep competition alive, won’t that prevent “spectrum sharing”? I’m pretty sure that these cell companies have enough resources to pick the brains of great scientists to find out the solution to a possible cell apocalypse (CNNMoney.com’s term not mine). In the meantime, continue to watch out for more news reports of mergers, spectrums, and security flaws.