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Why AT&T Bought T-Mobile

AT&T, criticized and even despised for its inability to keep up with growing mobile data usage, thinks it has found the solution to its network woes. And all it will cost the telecom giant is $39 billion and months (or even years) of regulatory hurdles.

In a stunning move, AT&T has acquired T-Mobile USA for a whopping $39 billion from Deutsche Telekom. The deal will deliver $19 billion in cash and $25 billion in stock to the German telecom giant. Along with acquiring approximately 8% of AT&T, Deutsche Telekom will also be gaining a seat on AT&T’s board of directors.

The new combined entity, if it can garner regulatory approval, will be largest carrier in the U.S. by leaps and bounds. AT&T and T-Mobile USA combined have over 25% more subscribers now than Verizon (125+ million vs. 93+ million).

This acquisition isn’t about subscriber bases, though; it’s about improving AT&T’s reliability and preparing it for the 4G era of wireless communication.


The Spectrum Problem



AT&T’s press release tells a very clear story of why AT&T bought T-Mobile and why T-Mobile bought AT&T.

It’s no secret that AT&T has a tattered reputation. The iPhone may have brought it millions of new customers and billions in revenue, but the vast increase in data usage has also strained the network to unacceptable levels. There wouldn’t have been so much hype surrounding the Verizon iPhone if AT&T’s network didn’t drop so many calls and upset so many customers.

And while AT&T is investing billions to upgrade its network, it takes years to get the approval to build new towers, especially in metropolitan areas such as San Francisco. Without a dramatic move, AT&T’s network wasn’t going to get better anytime soon.

Two sections of AT&T’s press release are devoted specifically to this problem. It’s a testament to just how crucial this problem is to AT&T’s future. The first problem it addresses is spectrum: The wireless carrier simply doesn’t have enough wireless spectrum to fuel the accelerating growth it has experienced over the last few years.

“AT&T’s mobile data traffic grew 8,000 percent over the past four years and by 2015 it is expected to be eight to 10 times what it was in 2010,” AT&T explained in its announcement. “Put another way, all of the mobile traffic volume AT&T carried during 2010 is estimated to be carried in just the first six to seven weeks of 2015.”

AT&T believes it will take years until more spectrum is opened up by the U.S. government for mobile broadband use. The simplest way to get its hands on precious broadband is through acquisition, and T-Mobile USA has the most GSM broadband spectrum after AT&T.


The Infrastructure Problem


The second problem is infrastructure. AT&T simply can’t build towers fast enough, and the approval process to build the unsightly things acts as a major roadblock to the company’s efforts to boost its network reliability. So if you can’t build towers fast enough, what’s the next best way to get them? That’s right: You acquire them.

“At closing, AT&T will immediately gain cell sites equivalent to what would have taken on average five years to build without the transaction, and double that in some markets,” AT&T notes in its press release. “The combination will increase AT&T’s network density by approximately 30 percent in some of its most populated areas, while avoiding the need to construct additional cell towers.”

$39 billion is a lot of money to buy some towers, but because T-Mobile USA utilizes GSM technology (rather than the CDMA technology employed by Verizon), it can immediately use them to boost its network. If the deal is approved, expect AT&T to quickly offload some of its mobile data traffic on T-Mobile’s infrastructure.

AT&T may be talking a lot about 4G in its press release, but T-Mobile has no LTE technology or infrastructure to offer. No, today’s acquisition is all about bolstering AT&T’s network and beginning the process of repairing its reputation.

More About: 4G, acquisition, att, Deutsche Telekom, GSM, T-Mobile, t-mobile usa, verizon

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AT&T Buys T-Mobile for $39 Billion [BREAKING]

AT&T just announced a definitive agreement with Deutsche Telekom to buy T-Mobile USA for $39 billion in cash and stock. In a press release, AT&T said the agreement has been approved by both companies’ boards of directors.

If the deal meets regulatory approval, AT&T will be the largest wireless provider in the United States. The company says the transaction will allow it to expand its 4G LTE network to 95% of the population of the United States, and touts enhanced “quality in the near term” for AT&T and T-Mobile customers.

Those of a patriotic bent will be glad to know that the transaction will make T-Mobile USA a U.S.-based company instead of a German telecom company that ironically calls itself T-Mobile USA. However, if you want to use a GSM phone, you won’t be left with many choices if this deal does go through. But in AT&T’s press release, the company emphasized how the U.S. market will continue to be competitive even after this deal:

The U.S. wireless industry is one of the most fiercely competitive markets in the world and will remain so after this deal. The U.S. is one of the few countries in the world where a large majority of consumers can choose from five or more wireless providers in their local market. For example, in 18 of the top 20 U.S. local markets, there are five or more providers. Local market competition is escalating among larger carriers, low-cost carriers and several regional wireless players with nationwide service plans. This intense competition is only increasing with the build-out of new 4G networks and the emergence of new market entrants.

Let us know in the comments what you think of this deal, and cast your ballot in our quick poll:


More About: att, business, T-Mobile, Wireless

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4 Innovative Ways to Use Web Video for Small Business

video image

This post originally appeared on the American Express OPEN Forum, where Mashable regularly contributes articles about leveraging social media and technology in small business.

You’ve seen videos of people doing ridiculous things on the Internet. But you probably haven’t seen too many videos of small businesses sharing their good work. Web video is more or less the domain of the ridiculous — whether that means something cute or something painful. Even top ads and commercials have a touch of the absurd (Old Spice, Dos Equis, I’m looking at you).

So how does a small business compete with disturbingly low attention spans and a whole Internet of viral videos? Read on for five ways that small businesses can take advantage of web video without blowing their budgets and let us know your own success stories in the comments below.


1. Request User Submissions


“Going viral” is a frustrating term both for its elusiveness and effectiveness. Viral videos can quickly get your product and brand out to a wide audience, but there is also practically no guaranteed way to “make” a video viral. Save yourself the trouble and get your audience to do the work for you.

Ask your fans or customers to send in videos of themselves using your product. For some, this can be a guaranteed hit. Such is the case with Michael Di Pippo, inventor of Pen Fishing Rods, a telescoping fishing rod that collapses to the size of a large pen. If that didn’t spark your interest, check the above video of someone actually catching a fish with it. Di Pippo bet that the shock value of it actually working would inspire customers to take videos using his product. The result was a motivated user-base and free publicity.

You might not be selling something as unique, but you can still encourage your clients to send in videos of them using whatever you’re selling. It’s a good way of extending the relationship past the point of sale and building a community.

Alternatively you can try to create a viral sensation like Blendtec’s Will It Blend? series. Rather than testing their blenders on tomatoes and walnuts, they started blending strange products like glowsticks, an iPad, and a crowbar. As a result, the videos (and Blendtec’s product) received millions of views and all it took was a little creativity. And a crowbar.


2. Replace Content


Try making a video instead of writing out your business updates. It’s easier for people to click play on a ~5 minute video than read a 500-word news brief. It helps to have some experience with basic editing and a decent camera, but people will ultimately tune in because your content is interesting or useful. Try offering deals or discount codes through your videos, while also talking about your product or service.

Using video to share business news or deals will help your business feel more personable as customers get accustomed to seeing you speak. This choice isn’t for everyone and every business, but it can help make your updates easier to digest and give your homepage a boost of personality.


3. Teach Them and They Will Come


student image

Product demos are fun, but may not work for every type of business. For example, it could be tough to do a “demo” if you sell quilts or home garden supplies. Instead think of ways to teach and give back to your customers while also using your product. Selling quilts? Try a “How To” video on how you sew your quilts. Garden supplies? Make a video on how to plant a variety of bulbs and seeds using the products you sell.

If you’re business isn’t based around a physical product, think about doing a webcast or video on how to use your advanced features or set up the service.


4. Make Some Face Time


skype image

If you’re a small business, you can make your size work for you with video services, like Skype or even video calling on Gmail. Huge corporations like PepsiCo and Virgin are constantly trying to make their outreach more personal by attaching real people and real names to their customer service and social sites.

To get even more personal, create a business Skype or Gmail address (or any other service that allows you to video chat). Let customers know they can call you for some digital face time if they have any questions about your product or need help troubleshooting it. Doing so will help you build a stronger relationship with your customers and make your business feel more approachable at the same time.


More Business Resources from Mashable:


- Why Permission Marketing Is the Future of Online Advertising
- Why Influencer Marketing Needs to Go Beyond Follower Counts
- 10 Online Strategies for Your Next Product Launch
- What to Look For When Hiring a Community Manager
- 8 Ways Entrepreneurs Can Get More Out of Twitter

Image courtesy of Flickr, svennnn, tim ellis*

More About: business, small business, video, web video, youtube

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How Cloud Computing & Web Services Are Changing the IT Job Market

As cloud and web services continue to gain speed, the upfront cost of launching a product is decreasing. Businesses can create more for less money –- and with less people.

Though in the long run this likely means fewer IT positions, it’s currently changing a different aspect of the tech job market: desired skill sets.

Unlike traditional software products, cloud and web services revolve around content, monetization and data. Much of the installation, configuration and maintenance work done by traditional data center employees is becoming automated. This means desired skill sets will move away from hands-on technical work to include managerial talents, user-experience knowledge and more.


Emerging Skill Sets


“The cloud and online services are new and different from traditional software products and, therefore, require a new type of talent,” says Eugenia Sawa, a recruiter for Bing. “It can take more than just a traditional engineering background and computer science degree.”

So what does it take? Here’s a breakdown of three emerging skill sets IT professionals should focus on to remain competitive in the job market.

  • Data Mining – The online space is immense. If you’re able to combine statistics and artificial intelligence methods to spot patterns in huge data sets, a multitude of job opportunities await you. Data mining helps businesses gain an informational advantage over competitors, making the field an essential area of expertise.
  • Web Analytics and Statistics – Search and driving traffic to sites are becoming more and more important as the web continues to be monetized. Advertisers are looking to get the most for their money, which means companies will need people who can analyze user interactions and trends to find weak points and identify new needs.
  • Business Intelligence – As companies hire more data miners to sift through and organize information, there will come a need for people to look at that data and translate it into business speak. It requires someone with a passion for both engineering and competitive intelligence, who can help his or her team members understand their customers.

How to Prepare


These emerging skills are complements to a traditional computer science or electrical engineering degree, Sawa says. Nowadays, most university programs are shaping the curriculum to give students sufficient depth in core knowledge.

“Computer science has become so broad that it’s hard for a student to walk out with knowledge of each specific skill set to do any job in the industry,” says Justin Cappos, a University of Washington Computer Science & Engineering research associate. “The best bet is to teach detailed information at different levels of the stack, so when students go out, they know enough from top to bottom that they can figure out whatever gets thrown their way.”

That said, it’s important to get practical experience with real tools. Most cloud environments have low-cost resources, especially for students. It’s easy to get going independently and do interesting things on your own initiative. You can also seek out learning opportunities through university research projects or internships. Though you may not be keen on all the tasks you’re asked to do, the outside validation of working on an established product speaks volumes, Cappos says.

In terms of languages for web applications, the most practical choices are javascript and flash. Cappos recommends a solid knowledge of javascript. “It’s the dominant technology, and it’s not going anywhere,” he says.

Still, each job candidate has a unique combination of experience and education — and each company looks for something different.


Master One or Strive for All?


There is something to be said for both mastering one knowledge area and having an overall understanding of everything. It really depends on where you want to work.

The cloud allows companies to get much farther with just a few end-to-end developers. This is particularly important for startups that are moving rapidly to launch smaller, often niche products with just few staff members. “At a small company, you’re going to be their one stop IT guy,” Cappos says. “You might not need to be world class in one area, but have an understanding of all.”

For larger businesses, knowing how to scale up to more advanced computer science concepts is very important, Cappos says. With significantly more resources than many startups, big tech companies are able to hire for more specialized positions. At the same time, it’s good to have a deep understanding of how the overall system works. Software trends change, which makes hiring people who can adapt easily to new technology a better investment for most companies.


Conclusion


Career opportunities in cloud and web services are growing, and likely to continue on that path for at least a few years. A 2010 IBM survey shows 91 percent of 2,000 IT professionals surveyed believe cloud computing will be the primary IT delivery model by 2015. Needless to say, those poised for cloud and web development can expect job security for at least the next four years.

Like the concept itself, gaining skills for cloud and web services requires thinking outside the box. If you have a passion for it, move beyond traditional IT career preparation and be proactive about tapping into these emerging skill sets. Whether you choose to master one discipline or strive for general knowledge, you’ll have a competitive advantage in the job market by having the new and necessary skills for web development.


Tech Job Listings


Every week we put out a list of social media and web job opportunities. While we post a huge range of job listings, we’ve selected some of the top tech job opportunities from the past two weeks to get you started. Happy hunting!


More Job Search Resources from Mashable:


- Top 5 Tips for Creating Impressive Video Resumes
- Are Cover Letters Still Relevant For Social Media and Tech Jobs?
- HOW TO: Land a Job at 9 Hot Startups
- Top 5 Online Communities for Starting Your Career
- HOW TO: Land a Business Development Job

Image courtesy of iStockphoto, jamesbenet

More About: analytics, careers, cloud computing, computer science, data mining, information technology, job search series, jobs, skills, Web analytics, Web Development, web services

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This Is Why You Always Pay Your Web Designer

The cattier corners of the web have been tittering over a certain chiropractor’s website gone awry, courtesy of a disgruntled and allegedly unpaid web designer.

The designer in question, whose identity is currently (and fortunately for said designer) unknown, created a website for a chiropractic firm, Winona Chiropractic Center, provided hosting services the site. When the firm allegedly “failed to pay any of their total web design bill, despite repeated attempts by their web design agency to collect,” the designer, who claimed to have “a childish sense of humor,” hijacked the site as his or her own personal billboard of bitterness.

“Please note that I have waited years for this business to pay,” stated the “new and improved” version of the site. “I have hosted their site for free since about 2007. This is me giving up.”

The rant continued, “Personally, I wouldn’t trust a doctor of any kind who couldn’t pony up for what, in the grand scheme of things, is a small charge for their web design. Do what you will, though.”

The site gathered some attention starting with a Reddit thread or two; but apparently, the piqued digital creative responsible suffered from an acute fit of remorse late in the afternoon because the page has now been entirely removed.

The Internet being the slice of magic that it is, we’re able to reproduce the page here:

Click for large version.

We certainly do agree that the designer’s actions were childish, but the long-simmering rage that builds when deadbeat clients refuse to pay their bills can cause folks to go a little bonkers after a few months, to say nothing of a couple years.

Web devs and designers, we want to know, has a client ever refused to honor your invoice? Vote in the poll, and in the comments, let us know how you handled the situation — especially if your solution was particularly mature, effective or at least funny.


Image courtesy of iStockphoto, clintspencer

More About: clients, web design, winona chiropractic

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ConcisePC of Commerce Twp. Enjoys the Growing Pains of its Computer Trouble Shooting Services

Concise Computer Consulting, LLC, is a computer consulting firm that services small to medium sized businesses as well as the technically challenged homeowner.

Our staff has a wide range of computer and technology experience. Our team of professionals is dedicated to providing a total solution for businesses and homeowners. We specialize in on site computer service, computer virus repair, data storage solution, computer technical support, and offer a wide array of other services.

When you are experiencing computer problems, the time and money lost in productivity grows by the minute. Give us a call if you are having technology troubles and let us get you back up and running …often within hours.

Running a computer consulting company is done with the goal to improve a business over the Internet as a result of the application and use of the most adequate computer technology practices out there.

As such the objective of IT consulting firms is to set up a marketing plan for initiation into the online website solution of a business. This marketing plan includes such activities as identifying the market situation, the threats and opportunities, marketing objectives, marketing goals, and controls for tracking effectiveness.

Together these elements of the marketing plan, when correctly identified and initiated into the website solution, can provide great results in the overall success of a business over the Internet. There are a number of benefits that an IT consulting firm can enjoy from getting aid from a computer consulting business and the marketing plans which they are able to write. These benefits include:

lists the ultimate goals to work towards can function as a chart to success gives effective instructions for the operation of an online business solution acts as a reminder for what has been agreed upon can be used for reflection for analysis of achievements or failures occurring after a specific period of time

Even a small business IT consulting firm is able to help your business fulfill the following objectives through the development of an effective data backup solution as placed on the Internet:

Introduce your company and new products to the global market Extend or regain the market for existing products Enter into new business territories Boost sales by attracting more potential clients through Internet visibility and accessibility Gain long-term contracts with customers who are likely to stick around Use the Internet as a cost-effective tool for marketing and company promotion Refine your company image and products by going online Enhance the purchasing options and delivery of products with ecommerce solutions for online website shopping

This article was prepared and written by Jeff Atto of Concise Computer Consulting, LLC, located at 2150 Franklin Road, Bloomfield Hills, MI.  Please contact us for any question about your home computer or laptop.  248-745-8255

My email address is i...@concisePC.com and our website is http://www.concisePC.com

This article was submitted by Right Now Marketing Group, LLC

Concise Computer Consulting, LLC http://www.concisepc.com focuses on supporting the technological needs of small businesses, as well as the technically challenged homeowner. We support a wide range of clients in every field imaginable. We are quite familiar with popular software packages, and are able to also assist you with industry-specific or custom software issues. Concise is your one-stop-shop for all technological related needs.

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