Verizon Preparing to Launch Voice Over LTE Network in September

Verizon today announced that it is preparing to launch its voice over LTE (VoLTE) service sometime in September, reports CNET. The new service will be available nationwide on supported phones that are connected to the carrier’s LTE network.

VoLTE will provide high-definition quality voice and video calls that will significantly improve the overall calling experience. Not only will customers notice an enhancement in voice call quality, they also will be able to initiate a FaceTime-like video call right from the dialer app.

Once you experience the HD quality voice, you don’t want to go back,” Greg Dial, executive director of mobile services for Verizon, said in a pre-briefing and demonstration of the new service with reporters. “The tight integration of the video calling feature is also significant. You can launch it right from the dialer. There’s no opening a separate app.”

These new HD VoLTE calls will be considered voice calls and will count against a customer’s available minutes. Video calls will be counted as data and will subtract from the customer’s data allotment. There will be no extra charges for using this service, and it will be optional for customers.

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Verizon has not specified which phones will be updated to support its new calling service, but the iPhone may be included on this list. The current generation iPhone chipset supports this feature, and it can be enabled with a software update. Rumors have suggested that Apple has plans to support VoLTE with the launch of iOS 8 and the iPhone 6. Along with Verizon, AT&T and T-Mobile have announced plans to add VoLTE to their networks in the near future.

iOS 8 will also bring a WiFi calling feature, allowing customers to place higher-quality voice calls over WiFi instead of using a cellular network. T-Mobile is the first carrier to confirm that it will support Apple’s WiFi calling feature when it launches this fall along with iOS 8.



L.A. Unified School District Suspends $1 Billion iPad Contract with Apple

Los Angeles school district superintendent John Deasy halted the district’s iPad contract with Apple in mid-rollout, reports the LA Times. The $1-billion multi-year contract would supply LAUSD students with iPads that were pre-loaded with curriculum from Pearson.

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The contract was administered in phases with an initial $30-million investment to equip a pilot group of students with iPads. Additional payments totaling almost $1 billion would expand the project to additional students and build out the wireless infrastructure to support tablet usage at the district’s schools. Each phase was subject to approval with the option of canceling the project if it no longer met the district’s needs.

Deasy’s suspension follows criticism of the project rollout and its bidding process, which some claim was modified to favor Apple and Pearson. While issues with securing the iPads surfaced shortly after rollout, the contractual complaints were detailed in a district technology committee draft report that was obtained recently by the LA Times.

Among the findings was that the initial rules for winning the contract appeared to be tailored to the products of the eventual winners — Apple and Pearson — rather than to demonstrated district needs. The report found that key changes to the bidding rules were made after most of the competition had been eliminated under the original specifications.

In addition, the report said that past comments or associations with vendors, including Deasy, created an appearance of conflict even if no ethics rules were violated.

While Deasy responds to these criticisms, the technology program at LAUSD is moving forward with other devices and alternative curriculum being adopted by schools in the district. The district is expected to purchase up to 18,000 laptops with Apple and Pearson invited to bid on this new contract.



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Steve Jobs’ Vision of Widespread Free Public Wi-Fi Guest Networks Yet to Take Hold

airport_80211ac_wifiIn a commentary piece arguing for users to open up free guest networks on their Wi-Fi access points to the public, Re/code‘s Walt Mossberg shares the story of how Steve Jobs saw such networks as the future of Internet access, supplementing cellular networks to allow for faster and broader access for users.

Mossberg notes that Jobs envisioned the open Wi-Fi networks during development of the original iPhone, which was hampered by a “lousy, sluggish cellular-data network.” An open Wi-Fi network built on the cooperation of both business and private citizens who were wiling to share their Wi-Fi connections with strangers would have addressed this problem by offering another connectivity option for iPhone users.

His idea was to get as many wireless router makers as possible to build in a “guest network” option — essentially a second Wi-Fi network, securely walled off from the rest of the home network, and with its own name. Then, he hoped that the industry would encourage people to share their bandwidth with strangers via these guest networks. That way, a smartphone user could walk around, moving from one Wi-Fi hotspot to another, without logging in — much like people using cellular data move from one cell tower to another.

While there are certainly potential issues with security and bandwidth hogging by guest users, Mossberg argues that these issues are not insurmountable, and in fact some companies have made strides in this area. On a micro level, Apple’s AirPort base stations have supported guest networks since 2009, and on a broader scale, some Internet service providers such as Comcast have been working to turn customers’ home routers into Wi-Fi access points available to other customers as a public network.

Use of Wi-Fi to supplement cellular coverage is also growing, with one example being T-Mobile’s effort in the U.S. to route phone calls over a more reliable Wi-Fi network instead of the cellular connection. Apple is adding iPhone support for the feature as part of iOS 8 later this year.



Apple’s Supply Chain Diversification Hitting Samsung’s Chip Business Hard

Apple has been expanding its supply chain, bringing in companies like Taiwan Semiconductor Manufacturing to produce components for its iPhone and iPad devices. This supply chain diversification may benefit Apple, but it is having a negative effect on rival Samsung’s chip manufacturing business, reports The Wall Street Journal.

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Since 2007, Samsung has enjoyed the coveted position of being the only manufacturer of Apple’s Ax series of processors and their predecessors. But after several years of negotiations and technical work as the popularity of Apple’s iOS devices has soared, Apple has brought TSMC on board to produce A-series chips for the next generation of devices. This transition away from Samsung as the sole supplier of the main chip for iOS devices is cutting into the Korean company’s logic chip business.

“Sales and profitability from System LSI (logic chip business) worsened as demand from main customers continued to decline,” Robert Yi, Samsung’s head of investor relations said last week.

Samsung’s logic chip division struggled in the just-ended quarter, and the outlook for the business is equally bleak with Samsung acknowledging the continued low demand from customers will remain an issue going forward.

The sharp turnaround has led to analysts such as IBK Securities’ Lee Seung-woo predicting losses of approximately 877 billion won ($848.5 million) for the division in 2014, compared to operating profits of 203 billion won ($196.3 million) in 2013 and 1 trillion won ($967.8 million) in 2012.



Rumored iWatch Supplier TPK’s Q3 Forecast Falls Flat Amid Reports of Production Issues

Details discussed during a recent earnings conference call by Apple supplier TPK Holdings suggest the production of the iWatch is behind schedule, reports UDN via GforGames. According to earlier rumors, the iWatch may debut in late 2014 with the latest report claiming it will launch alongside the 5.5-inch iPhone 6.

Based on reports from Asian sources, TPK executives spent a portion of the company’s Q3 2014 earning conference call explaining why it sees poorer than expected financial projections for the current quarter. TPK is allegedly supplying Apple with flexible displays that use silver nanowire touch screen technology for inclusion in the iWatch wearable.

Balogh-iwatchiWatch concept based on TRIWA’s Havana Nevil Brown watch, by Gábor Balogh
Though the iWatch was not mentioned in the call, pundits believe TPK’s shortfall is the result of a slip in the production schedule for the iWatch, which had been expected to be in production and contributing to TPK’s bottom line during the third quarter. Now, the company is projecting an increase in profits during Q4 2014, suggesting the iWatch rollout may be slated for closer to the end of this year.

Shares of TPK stock dropped significantly late last week on the outlook.

At an investor conference Thursday, TPK forecast flat quarterly growth, or at best a 5 percent sequential increase, of its consolidated sales for the third quarter, citing decisions by its customers to postpone the launch of their new products. […]

Sales growth, however, could pick up in September, TPK said, forecasting a break-even operating margin in the third quarter on higher operating costs.

This late start in production may result in Apple shipping fewer iWatch units than expected in 2014, claims analysts at CSLA, a leading Asian investment banking and asset management firm. Instead of shipping 20 million iWatch units by the end of the year, Apple may only be able to deliver a significantly smaller 6 million units. It is unknown if this lowered estimate will translate into a shortage of the device at launch.