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Ruslan Kogan took on ispONE and won

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Ruslan Kogan

Quintessential Aussie entrepreneur – Ruslan Kogan

Last month the online retailer faced backlash from consumers who were unceremoniously dumped from the network with little warning because they ‘used up too much data’. It turned out the the dumping was not being done by Kogan Mobile, rather by their wholesaler ispONE.

Kogan Mobile follows the MVNO model under which they own the end customers but not the infrastructure. The infrastructure is supplied by Telstra via the wholesalers like, you guessed it, ispONE. Legally the wholesaler should have nothing to do with the end users, but in this case ispONE communicated directly with users who exceeded a monthly data limit and kicked 600 of them off the network.

While customers railed against Kogan, the MVNO hauled ispONE to court for breach of contract. And won. The judge ruled the wholesaler did not have the authority to suspend user accounts. As a precautionary measure Kogan have modified their end user terms of service for all users to limit daily data usage to 400 MB on ‘Unlimited’ plans.

Mobile wholesale business runs on the assumption that most people don’t use up all their available quota. But usage patterns are changing. According to Cisco average data usage is already 342 MB a month and expected to hit 2.6 GB in 5 years. Businesses will have to work out alternatives if they want to remain profitable in the long run.

Click to see all Kogan Mobile plans starting from the free SIM with $100 in credit to Unlimited plans with 6GB data valid for 365 days.

Whats up at WhatsApp?

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WhatsApp

Rumour: WhatsApp may be Google’s next billion dollar acquisition

WhatsApp is the popular cross platform messaging service with subscribers in over 100 countries and 700 carriers. Rumour has it that Google is looking to buy the company to fast track growth in the messaging space.

The app’s popularity stems from the fact that it uses cheap data to send messages rather than expensive SMS. And it is surprisingly robust with little down time and near-instant communication. To give you and idea of the numbers involved, almost 7 billion messages were sent over WhatsApp on New Year’s Eve.

The four-year-old company is based in Santa Clara, Calif., was founded by Brian Acton and Jan Koumis, both former Yahoo employees.

So why would Google want WhatsApp?

1. The search giant is expected to launch Google Babble or Babel – a mashup of all its messaging tools across devices and platforms. Google’s own messaging app GTalk is limited to Android devices and doesn’t have the reach of WhatsApp. But the underlying technology driving WhatsApp is very similar to GTalk making it likely that Google will eventually want to merge the two services under a single Google brand.

Plus with a huge established user base across mobile platforms, WhatsApp will give a much needed boost to make the service immediately relevant on mobile.

2. Like Google Maps, WhatsApp can give Google access into non-Android devices particularly iOS.

3. WhatsApp uses the device phone number as the default password and that can be valuable information for Google when paired with personal data.

Compelling reasons no doubt, but does this make WhatsApp worth the billion dollar price tag? Hmm…

 

 

Samsung Galaxy S4 launch: Live from Radio City Music hall

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Samsung Galaxy S4

Samsung Galaxy S4 launching now at the Rdio City Music hall, NYC. Live blog below.

Final thoughts: Clearly the phone is packed with features, some useful some just a bit of novelty fun. Bit this Broadway themed keynote was just strange and the phone will sell inspite of the song and dance, not because of it. We saw no ‘killer’ apps, and no truly compelling reason to upgrade from the S3 which is a very good phone.

Stay tuned for a full review once we’ve erased the memory of this event.

Galaxy S4: cast and crew on stage

10:58: Oh its over! Cast and crew on stage. That was the weirdest launch ever…what were Samsung thinking.

Galaxy S4: S-health

10:52: S Health tracks basic body performance and produces reports. Calorie counter, weight tracker etc.

10:52: Group Play demonstrated via a strange campy dance featuring flirty socialites in a some kind of a weird reunion. Apparently the only women that will buy this phone are those with more money than sense. Why would Samsung do that? Alienate 50% of the population.

10:50 : Knox splits phone into separate sections on the phone. Targetted to soothe corporate security concerns. Samsung making a big push into the corporate market now that Blackberry is on it last legs.

10:46: How do they gush out all that marketing speak with a straight face!

10:44: System to switch data from any phone to S4. Clever.

Galaxy S4: S Voice

10:43: S-Voice Drive designed for in car use. Bigger display, voice recognition, personal assistant.

10:39: Story Album lets you specify a cover and template and then build an album plugging in pics and stories. Samsung has included the option to have it printed bound and sent. As always product guys at Samsung are way smarter.

10:35: Galaxy S4 S-translator. Speaks 9 languages and translates on the fly. Works with audio and text.

10:33: Earser! take out unwanted people from the photo. And now another show and tell with backpackers.

S4: Dual Video call10:30: Dual Camera looks interesting to include the photographer in the pic. And pictures with sound. Once again the audience isn’t impressed.

10:28: Oh Goodness! A show and tell featuring live actors.This is cheesy to see the least!

10:25: Samsung’s Biden runs through the connectivity options. 13 MP camera and 2 MP on the back. 2 GB builtin RAM. New sensors for infrared, temperature and humidity!

10:23: 5″ full HD SuperAMOLED screen. 441 ppi. Polycarbonate in black mist and white frost

10:21: There will be a 4G and 3G version. It will support both FD-LTE and TD-LTE. Will available end of April.

10:19: Shin pulls out a couple of S4 from the box Jeremy’s carrying. The audience finally clap! They have not been very enthusiastic thus far.

10: 17: “Life is a journey. What’s the device that you want to accompany you on that journey.”

10:16 am: JK Shin, Head of Samsung Mobile, on stage at Radio City Music Hall asks the audience to imagine a world with promised S4 features.

Images source: CBS Interactive

Regular, Micro, Nano, Combi – not cheeseburgers, just SIM card sizes

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SIM card sizes

SIM cards, short for Subscriber Identity Module, are little pieces of plastic that determine your phone number, your plan and carry identifying information about the owner of the phone. They are rather like license plates to a car, the thing that makes all the hardware eligible for use.

When mobile phones were first invented they didn’t have SIMs. All user information was stored  directly in the phone itself. Some CDMA phone still use the same system. But this made it really hard when it was time to change phones as all that data had to be re-programmed into the new hardware. Interchangeable SIM cards made the job a lot simpler.

But now instead of one standard size for all phones, phone makers in their quest for smaller, lighter phones have started introducing SIMs in ever smaller sizes. Infact there is a strong push by Apple to go back to the original embedded SIM design of old, bringing back the control from carriers to handset makers. It may be sometime before we see that, but already the SIM is shrinking rapidly.

iPhone 4 was the first to require the micro SIM and carriers scrambled to oblige. The new size spawned a whole cottage industry dedicated to converting standard SIMs to a smaller size.

The Micro SIM maintains the same memory and security features of a standard SIM despite ite smaller size.

 

combi_simNext phase, also pushed by Apple, was the even smaller Nano SIM for the iPhone 5 that did away with all plastic surrounding the smart chip. Not surprisingly more phone and tablet makers are following the lead. Now we have Combi SIMs and adapters that can be popped out of a frame to match the device requirement.

Are we getting ever closer to ‘embedded SIMs’? Most likely yes. Carriers will fight tooth and nail before handing over control to device makers. But that seems to be where the future lies.

 

Apple sold 47.8 iPhones last quarter

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IMG_0285-L[1]Apple proved naysayers wrong with a stellar end to 2012 selling 47.8 million iPhone 5s. But it may not be easy to keep up the rockstar results and analysts fear the Cupertino giant may have reached its peak.

This week Apple announced a reduction in orders for iPhone displays, possibly due to lower demand, lending further weight to these fears. Once the unmistakable leader in the smartphone race, Apple is losing its edge in mobile innovation and design, even as the Samsung/Google juggernaut plows steadily onward.

Apple will need to up its game in 2013 as competition throws up newer devices, designs and form factors. NFC, Wireless Charging, large high res screens, faster processors and customizable design all make the iPhone 5 look, well, a bit long in the tooth. Keep watching.

Does your 13 year old need her own phone?

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“But everyone in my school has one!”

Do you give in to pester power or hold out until they are older? In these times of mobile phone addiction, cyber-bullying and sexting, would you rather not give them a phone at all?

On the flip side for you as a parent, having a phone means peace of mind when they are out and about, while helping them form stronger social networks and be included at school.

So, what is the right age for a child to have their own phone?

kidsandcellphones[1]

Kids of different ages use phones differently. Younger kids, between 5 and 10, are more likely watch YouTube videos and play games on the phone. Your phone or a shared tablet should be good enough at this age. However 31% of Australian kids already own a phone by the time they are 10.

 

As they get to 12-13 the mobile starts becoming more of a communication tool with texts being the form of conversation. This is also when they start becoming more independent and the phone is useful for organizing the inevitable pick ups and drop offs. You could get them one, but the level of flexibility would have to depend on the emotional maturity of  your child. Consider a prepaid cheapie with restricted credit instead of a full blown smartphone. Research shows 80% of kids in this age group own a phone.

Teenagers[1]

The phone becomes a perceived necessity in teenage years when the online world becomes as, if not more, important as the real world. Kids have access to a lot when they are on the computer anyway, so mobile phone or not depends entirely on your relationship with your child. This Mum gave her 13 year old an iPhone for Christmas along with an 18 point contract that included terms like restricted hours, no porn, responsible use and no phone to school. Not many parents can enforce such rules but it is a good idea to discuss responsible use sooner rather than later. Perhaps make them earn the phone by saving their own money.

So should your 13 year get her own phone? The answer as we see it, is a qualified yes.

Kogan vs Amaysim. The battle of the SIMs.

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Are we finally seeing the end of these ridiculous Cap plans? No, not yet. But Australian MVNOs like Amaysim, and now Kogan are a step in the right direction. Pay an access fee and get a fixed amount of voice/text/data.

SIM only contract free plans are becoming more popular as new handsets are released faster than ever. 2 year contracts make no sense when the attached phone is obsolete within 6-12 months of signing.

Amaysim was one of the first resellers to tap this market. It launched in Oct 2010 with aggressive no contract pricing and a big ad campaign reminiscent of a Willy Wonka chocolate factory churning out SIM cards.

Kogan Mobile is the newest kid on the block. This hugely successful online retailer, quietly released SIM only prepaid mobile plans over the new year. Plans start at $29 and come with unlimited calls and 6 GB data.

Let us see how they compare.

1. Plans

Both Kogan and Amaysim offer 3 plans each, but structured in very different ways. Kogan is prepaid while Amaysim postpaid.

Kogan Access 30 costs $29, comes with unlimited calls and text plus 6 GB data over 30 days. Anything else like international calls, texts, MMS requires a premium bolt-on for an additional $14.99.

 

Amaysim  Unlimited plan costs $39.90, comes with unlimited calls and text plus 4 GB data over 30 days. Anything else like international calls, texts, MMS is charged on top of the plan cost and shows up in the bill.

 

Plan name Cost Calls Data Term
Kogan Access 30 $29 Unlimited Calls 6 GB Data 30 days
Access 90 $79 Unlimited Calls 6 GB Data 90 Days
Access 365 $299 Unlimited Calls 6 GB Data 12 months
Amaysim As You Go PAYG 12c/min 5c/MB 90 days
Flexi $19.90 9c/min 500 MB, then 5c/min 30 days
Unlimited $39.90 Unlimited 4 GB, then 5c/MB 30 days

Kogan gets our vote for plan value and longer term options.

2. Network coverage

Kogan uses Telstra’s 3G network, not to be confused with Telstra Next G or 4G networks. Telstra’s 3G network is slower with typical download speeds of 550kbps-3Mbps and upload speeds of 300kbps-1Mbps. Telstra have been quietly migrating their own users to NextG from the slower 3G network. For Kogan subscribers a slower network would mean that using up the full 6GB of included data may be a challenge.

Amaysim runs on Optus’ 3G network. While speeds aren’t that much better than Telstra, at least it is the same as network as used by Optus’ own 3G customers. Optus is in discussion to open up its new 4G network to resellers, which means Amaysim may get access to Optus 4G sometime.

Kogan and Amaysim tie on this one. Kogan for Telstra 3G coverage and Amaysim for slightly better speeds.

3. Customer Service

Good customer service has always been a challenge for low cost providers. But thanks to budget airlines, mobile customers too have been trained to put up or shut up. That said, Kogan have a particularly poor record when it comes to service. For mobile users there is a phone number but response times are extremely slow and the best way to get a response seems to be their Facebook page.

Amaysim customer service has generally been decent, mostly online but well supported by an Australian call centre. Facebook is always the best option in a pinch.

Amaysim get our vote for customer service.

In the end it comes down to what you need. Kogan’s Access 30 with unlimited calls and 6 GB data will be more that enough for most. But if you are looking for customer service and potential 4G speeds, Amaysim would be the way to go.

Compare mobile plans from all Australian providers over at our main site.