PCs

Leap Wireless gets its day in the sun

q&a Leap Wireless is finally in the right place at the right time.

The company, which sells its prepaid service under the Cricket and Jump Mobile brands, has been in the wireless service market since 1998, when it was spun off from mobile chipmaker Qualcomm. It filed for Chapter 11 protection in 2003 and was restructured and emerged from bankruptcy protection a year later.

Now the company is strategically expanding its network into 14 new markets with spectrum it won in two recent Federal Communications Commission auctions. It now operates in 29 states and holds licenses in 35 of the top 50 U.S. markets, including Chicago and Philadelphia, where it recently launched service, and in Washington, D.C. and Baltimore, where it plans to launch soon.

And all of this happening as Americans are getting fed up with lengthy and expensive wireless contracts from national carriers, such as AT&T and Verizon Wireless. And as finances tighten, people are looking to reduce their monthly expenses by finding cheaper options for phone service. Prepaid service plans, which allow customers to pay in advance for service without signing a contract, provide a good alternative. Low-cost unlimited plans, from Leap and others, make it an easy choice even for wireless subscribers who talk and text a lot.

I recently chatted with Leap CEO Doug Hutcheson to get his take on the prepaid wireless market and get his thoughts on the future of the industry. Below is an edited version of our conversation.

Q: Prepaid cell phone plans are getting a lot of attention lately. Why do you think that is? Hutcheson: The prepaid cell phone market is in its third or fourth phase of development right now in the U.S. And it's at the same phase that the European market entered about five or six years ago. Prepaid really started to take off in Europe as wireless penetration started to reach 100 percent. And of course the economic realities of today are also a factor. For a number of people, prepaid wireless is the best value.

Do you think prepaid carriers, such as Leap Wireless, are in a position to threaten the nationwide incumbents, such as AT&T or Verizon Wireless? Hutcheson: I don't think we are a material threat to either AT&T or Verizon Wireless. They have built great, broad franchises with 80 million customers. What we are trying to do is focus on our customer base, which tends to be younger and more ethnically diverse with people at the median to below median household income level. We serve this market really well. And this is a customer base that others aren't as interested in serving or aren't able to focus on. These operators have their own prepaid products, but I think AT&T's primary focus is on selling iPhones and two-year contracts. And Verizon is focused on its 4G rollout and combining those services with its Fios fiber network.… Read more

Report: China to require censorship software

China's government plans to require all PCs sold in that country as of July 1 to be shipped with software that blocks certain Web sites, according to a report in The Wall Street Journal.

The move, which is expected to give government censors heightened control over how China's citizens use the Internet, is intended to protect young people from "harmful" content such as pornography, according to the software's main developer.

The software, called "Green Dam-Youth Escort," would block access to banned Web sites by connecting to a regularly updated database of banned sites … Read more

Verdiem dashboard displays PC power savings

Verdiem on Monday is expected to release an add-on to its PC power-management software that gives people a customizable view of energy savings and carbon emissions reductions.

The Seattle-based company said that the software, called Sustainability Dashboard, offers a visual display for a number of metrics, such as savings over time, and translates that into the equivalent of cars removed from the road or trees planted.

It works with Surveyor, a program that lets IT departments automatically put computers on standby mode on a schedule. For example, it can turn off PCs at night that are left on or put … Read more

Dell earnings down 63 percent from last year

Updated at 1:55 p.m. PDT with information from the earnings call. Also corrected decline in operating expenses.

The quarter that ended on May 1 was a rough one for Dell.

The PC maker announced Thursday it recorded a net income of $290 million for the first quarter of fiscal year 2010, and earnings of 24 cents per share, or 15 cents per share when accounting for write downs from severance pay and factory closings during the quarter. That's down 63 percent from the $784 million, and 38 cents per share recorded a year ago. Revenues were also … Read more

Lenovo gets real with new lineup

It's the time of year when PC makers start announcing their new lineups for the summer and fall. One thing is very clear: Lenovo is stepping up its game.

The Chinese PC maker that has enjoyed much success from the iconic ThinkPad business notebook has faltered when it has come to consumer PCs in the U.S. But the new Netbook, notebooks, and all-in-one desktop that the company plans to announce Tuesday show it has had a reality check on pricing and the kind of features consumers are looking for.

Probably the product most indicative of Lenovo's shifted approach to consumer computing is a 13-inch notebook called the IdeaPad U350. As is the trend with notebooks now, it measures just an inch thick, weighs 3.5 pounds, and sports an attractive metallic finish. But the inside is more interesting: The U350 will come loaded with an Intel CULV (consumer ultra-low voltage) chip.

The CULV is Intel's newest chip, a low-voltage dual core chip for mobile PCs. It promises better battery life (the U350 says it will get four hours). But Lenovo is one of the first to use it. So far the only other company to announce using it is Acer, in its TimeLine notebook series.

And while getting one of these out ahead of Hewlett-Packard or Dell is aggressive, so is the price: the U350 starts at $649. For a full-featured notebook PC, that's a huge departure for Lenovo, noted Bob O'Donnell, PC analyst at IDC.

"$649 is good. Acer is at $599 (with its 13-inch TimeLine notebook), but Lenovo is in the ballpark and that is critical for them," he said.

While Lenovo certainly knows how to make a thin and light notebook--see the ThinkPad--it hasn't quite translated its expertise to pricing of consumer-oriented notebooks. But now Lenovo is clearly getting real: Without stating it directly, Lenovo has basically said that the U350 is going to take the place place of the IdeaPad U110 in terms of its importance to Lenovo's overall lineup.… Read more

Microsoft may lift application limit for Windows Starter

With Windows 7, Microsoft may lift one of the biggest limitations of its Starter edition--the restriction that the operating system run no more than three applications at a time.

Blogger Paul Thurrott said in a posting Friday that Microsoft plans to remove the restriction, without elaborating.

Microsoft neither confirmed nor denied whether such a move will take place.

"We continue to work on developing Windows 7 and have nothing new to share at this time," a Microsoft representative said on Friday.

With Windows XP and Windows Vista, the Starter edition was sold only for use on new PCs … Read more

Virgin Mobile faces stiff competition

Correction: Virgin Mobile began selling its $50 unlimited plan in April after the first quarter had ended.

Competition in the prepaid cell phone market is heating up, making it more difficult for companies, like Virgin Mobile USA, to hold onto subscribers in an increasingly crowded market.

Virgin Mobile USA, a longtime player in the prepaid cell phone market, reported Monday it had lost a total of 133,292 net customers during the quarter to end the period with 5.2 million subscribers. Even though subscribers were up 2.8 percent compared with last year, the company's losses during the … Read more

Boom times for prepaid cell phone operators

Prepaid wireless providers are scooping up subscribers as cash strapped consumers downgrade to lower cost cell phone service.

First quarter earnings reports from MetroPCS Communications and Leap Wireless on Thursday provided further evidence that consumers are flocking toward no-contract, unlimited prepaid services. These carriers, which operate primarily in smaller urban areas, each reported they had nearly doubled their subscription rate compared to a year ago.

MetroPCS said its new subscriber additions increase 51 percent compared to the same quarter a year earlier. In total it added 684,000 new subscribers, bringing its customer base to 6 million. This was the … Read more

Dear PC Industry: Please overclock responsibly

Dear PC Industry:

During the past two weeks we've tested three desktops with ambitiously overclocked Intel Core i7 920 chips. Two of those have failed Prime95, a publicly available benchmark designed to test CPU stability. One desktop last week blue-screened within two minutes of a Prime95 run. This afternoon, a PC that came overclocked to 3.73GHz throttled down to 2.4GHz (below the 2.66GHz stock speed for the 920 chip) after about 10 minutes.

We've seen the Core i7 920 chip overclocked successfully. A chip bumped up to 3.88GHz in a system from AVADirect passed … Read more

Acer exec: Windows 7 available on Oct. 23

Windows 7 will be ready a bit early, according to an executive at the world's third-largest PC maker, Acer.

On Thursday Acer UK marketing director Bobby Watkins told tech blog Pocket-lint.com to expect the new operating system by fall:

"23rd October is the date the Windows 7 will be available. There is a 30 day upgrade time so that customers don't wait to buy a new computer, so if you buy during that 30 day period, you'll get a free upgrade to Windows 7," Watkins is quoted as saying.

That's also the day … Read more