AT&T Acquires Wayport to add to Wi-Fi capabilities

AT&T Inc. announced yesterday that it had agreed, through one of its subsidiaries, to acquire privately-held Wayport, Inc., a leading provider of managed Wi-Fi services in the United States, for approximately $275 million in cash. The deal adds Wayport's focused capabilities and enterprise customer portfolio with AT&T's leading Internet Protocol (IP) and 3G networks, and broad consumer and business customer bases, to deliver enhanced broadband connectivity at home, in the office, on the road, and virtually anywhere in between.

The acquisition expands the AT&T Wi-Fi^SM footprint to nearly 20,000 domestic hotspots, takes the company's global Wi-Fi presence to more than 80,000 locations^*, and creates thousands of new ways for customers worldwide to stay in touch. Millions of AT&T customers — plus millions of other consumers needing to connect on the go — will benefit from access to new hotspot locations served by Wayport.

AT&T's global brand, marketing leadership and extensive enterprise sales force will complement Wayport's expertise in enabling and managing applications over an integrated network. Wayport will also extend AT&T's reach in the hospitality, health care, education and retail sectors.

"We're seeing exponential growth of Wi-Fi-enabled devices — such as smartphones — combined with a continued dependency on 24/7, anytime, anywhere Internet access across business and consumer market segments," said John Stankey, president and CEO, AT&T Operations. "Now is the right time for AT&T to affirm our commitment to Wi-Fi leadership. By acquiring Wayport, we're giving consumers more ways to stay in touch and building a more robust network management solution for businesses. We're bringing ready access to the nation's leading Wi-Fi, wireless and IP networks — on a global scale."

Truphone -the new Skype?

I'll be highlighting my choice of companies to watch ahead of the Mobile World Congress next month, and one that is worthy of attention is Truphone, founded by serial entrepreneur Alexander Straub in 2005.

Since then, the company has grabbed the headlines and has been labelled as the new skype, with its disruptive approach to the holy grail of cheap or free mobile calls. The Truphone wizard can be downloaded free from the company’s website or via text message, and ought to work on almost any Wi-Fi-enabled handset available on the market. Users of the Truphone service can make free calls and send free texts to other Truphone users. Since calls are carried via Wi-fi over the internet, the call need never enter a regular phone network – fixed or mobile – meaning no operator charges are payable.

Truphone is not without its critics though, some of whom cite the fact that there are innumerable issues with calls over wi-fi, such as service area, coverage and security that mean that Truphone may never make it into the mainstream, but whose main hope is to have its software incorporated within an existing platform.

In an interview in CNBC European Business this month, Alexander Straub exuded optimism and confidence that truphone is delivering on its business model and is here to stay. Given his successful track record with his prior ventures and a recent landmark victory against T-Mobile UK who were illegally blocking Truphone's software, it seems Straub's optimism is justified.

Snippets from First Tuesday Barcelona -08/01/08

BARCELONA 08/01/2008 - Interesting session yesterday night at FIRSTTUESDAY SPAIN where Bango CEO Ray Anderson gave some background to his entrepreneurial adventure at the company he founded in 1999 with €1.5m of his own money. He was very open in admitting that the venture required far more time and money to take off than he expected (he is still due to make an overall profit for the business) but that he was confident he would be in a position to exit via a buyout from a bigger group within 2 years should he wish to do so. The often repeated point about having to grow the company above all else in the first few years was backed up by Roberto Fernandez, founder of Spanish start-up Aztive Mobile (both Bango and Aztive will be exhibiting at the Mobile World Congress in Barcelona next month).

Ray voiced the opinion (that is being repeated by several commentators) that mobile operators are becoming less important, increasingly allowing new companies to enter the fray and offer services independently of the operator restrictions.As operators are more concerned with protecting their revenue streams than with competing between each other, they have traditionally adopted a 'wait-and-see' attitude and jumped on the bandwagon at the last moment.

He stated that it was an odd coincidence indeed that only once handsets were placed on the market with free wi-fi browsing capability that operators reduced their data transfer rates or how only once handsets with in-built GPS were launched that operators agreed to the release of location-related data for groups of customers.

He also stated that monetising revenues from the mobile web will remain an issue until operators are in a posiition to claim a substantial chunk of revenues from add-on services and he called for a Paypal-style new entrant to create a new global standard for payments that will stimulate new revenue models and open up new earning opportunities.

While talking about mobile site design, he stressed the need for developers to adapt web pages to the reality of the mobile screen (obvious but still not widely acknowledged!) with vertical navigation, simplified browsing, removal of flash-type graphics etc. Interestingly for me, he did not mention the whole dot.mobi movement spearheaded by the consortium of Nokia, Telefonica, GSMA etc. which is odd, as dot.mobi aims to do just what Ray preaches-viz.adapt web pages for mobile and create a 'gold standard' for mobile.

Ray also called for a simple and universally-accepted browser to be developed for mobile (i.e. Google for mobile) and circumvent some of the cumbersome browsers that are around today which reduce the quality of the user experience.