Most people don’t give too much thought to the tiny components which form such an integral part of almost all modern communication devices, from PCs to mobile phones.

Indeed, mobile chips get almost no public recognition in a world which seems to care more about screen size, shiny aluminum casings and apps – yet without powerful application processors, our handsets and devices would be nothing more than bricks.

Making chips, however, is no easy task, nor is it a cheap one, resulting in many firms choosing to outsource their manufacturing to dedicated “fabs” to feed the almost insatiable modern appetite for smaller, faster processors.

In Singapore recently, RCR was privileged to be able to get a glimpse behind the chipmaking curtain at GlobalFoundries’ fab 7, where wafer upon wafer of chips are churned out daily from within the impressive maze of cleanrooms.

GlobalFoundries’ expertise is in producing very small, very power efficient chips based on the ARM architecture and   Fab 7 manufactures mobile products for many of the world’s largest wireless chip companies including Qualcomm, Broadom, Atheros and many others.

Getting a grand tour of the facility, VP of Fab 7 Peter Benyon explained the magic behind the process as well as the inherent paradoxes of balancing the need for increased performance with lower power and heat, larger die sizes at lower costs and how increased complexity can have a negative impact on wafer yields.

The process of making a wafer can take two to three months and involves a number of steps including film deposition (Oxidation, DCVD & PVD), chemical mechanical polishing (CMP), photolithography, etching, cleaning technology, implantation and diffusion.  Each of these is a process in and of itself, and can be repeated several times in fixed order.

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Editor's Note: This article is an excerpt from RCR Wireless News' May Special Edition, "Enabling the Mobile Revolution: Mobile Chips, Devices and Accessories." The 80-page special edition is available here.

WiMAX operators around the world are facing a dilemma – do they consider themselves to be alternative broadband providers like Clearwire Corp., which touts itself as a DSL replacement that is cheaper and portable, or do they take a more traditional approach like Sprint Nextel Corp., which is selling a 3G/4G handset combination that runs at faster speeds where it has network coverage, and drops down to carrier's CDMA system in places where WiMAX coverage is still being deployed. For Sprint Nextel and Clearwire, perhaps, the go-to market strategies are simple: Clearwire has been building its network without handsets (yet) because it doesn't have a traditional wireless network to drop down to, and Sprint Nextel does. But the decisions aren't so simple for other WiMAX providers around the world.

Vividwireless is an Australian-based WiMAX operator that just deployed service in Perth in March. The operator has only been commercial for a few weeks but already said it has been surprised by how many of its customers – half – are buying its services as for broadband replacement. It has also been surprised at how many of its customers are buying the home gateway product, geared to customers who plan to use the service primarily in the home. Further, 25% of its customers who buy the home gateway product are buying a VoIP plan offered by a sister company of vividwireless – even though the operator hasn't spent a penny on advertising its VoIP service. Vividwireless CEO Martin Mercer said the operator is billing itself as a DSL replacement, touting the simplicity of its wireless offering. As such, vivid is debating whether to offer handset-like devices on its network once they become available. The operator doesn't want to compete head on with cellular operators, pointing out that once you give someone a handset, the user expects coverage and abilities that work like they do on a handset.

For its part, Clearwire plans to introduce two 3G/4G handsets this year. How the carrier markets the devices will be interesting to watch. Sprint Nextel touts cost advantages, quality customer service with a no-questions-asked return policy and its Simply Everything plans for its cellular network. The carrier's ad campaign for its 4G service centers around the experiences that can take place on a 4G network, whether it is connecting gaming systems in the woods or downloading a movie from the airport. Price isn't mentioned. As Sprint Nextel introduces the HTC Evo 4G device, it will have to balance the cool things the device can do with more traditional handset advertising, like showing its sleek design and large-screen display.

In the LTE space, both Verizon Wireless and AT&T Mobility likely initially will sell data cards and dongles, and offer dual-mode handsets later. In such a competitive marketplace, Clearwire may find it's easier to differentiate as an alternative broadband provider, and put less emphasis on its handset offerings.

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Editor's Note: This article is an excerpt from RCR Wireless News' May Special Edition, "Enabling the Mobile Revolution: Mobile Chips, Devices and Accessories." The 80-page special edition is available here.

If I have uncovered anything while putting together this issue it is that mobile devices remain the predominate driver of the mobile industry. Sure, new technologies and aggressive rate plans are key components, but it looks to me that we are now at a stage where from a consumer point of view, any decision related to purchasing of mobile services has come down to which device do people want.

And I think this is a good thing. The wireless industry has never done a good job selling consumers on technology. Whether it was the move from analog to digital or from 2G to 3G, consumers were never going to make the switch just because some engineer with a pocket protector full of pens used charts and graphs to tout the advancements of new technology.

This also applies to network coverage, as for the most part every carrier has basically the same coverage, give or take a few million pops. And even in those markets blanketed with a carrier's network coverage color of choice, I think most people know that those coverage maps need to be taken with a grain of salt.

In the same way, while rate plans were indeed a big driver for the increased adoption of mobile service during the first 20 or so years of the industry, we have come to a point where for the most part carriers are all offering basically the same price for the same plans, give or take a few bucks. There has definitely been some more aggressive moves recently in the no-contract space, but even that has almost flattened around a few key price points.

So that leaves the mobile device as the true differentiator in the market and really the only selling point most carriers can lean on.

AT&T Mobility has shown by hooking its wagon to Apple that it can continue to drive customer growth despite “cough, cough” questions “cough, cough” about its network coverage caused by those same devices.

Verizon Wireless, which has been the most successful carrier in touting its network advantages, is throwing its considerable weight behind Google Inc.'s Android operating system, using devices powered by the OS on its marketing front against the AT&T Mobility/Apple juggernaut.

Sprint Nextel, after a failed attempt to revive its lagging sales to Palm's WebOS train, has along with T-Mobile USA also latched onto the Android express in their attempts to staunch the flow of customers to their bigger rivals.

This reliance also has carriers pushing harder for exclusivity deals that have customers confused (why can't I get an iPhone from Verizon?) and smaller carriers fuming (why can't we get any of the hottest smartphones?).

All of this should portend to new opportunities for handset makers looking to garner more control of their products in a U.S. market that remains dominated by carriers. Hit the right combination of form factor, user interface and feature set that attracts the eyes of consumers and carriers will be sure to come knocking.

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Verizon Wireless (VZ) posted second quarter results that showed that while the industry’s largest carrier fell just short of the customer growth reported by rival AT&T Mobility (T), the operator did manage to add more direct customers willing to sign a contract, often viewed as the most valuable in the industry.

Verizon Wireless said it added 1.351 million customers during the quarter, which was an 18.3% jump from what it added during the same quarter of 2009, but short of the 1.562 million AT&T Mobility said it added. Verizon Wireless did note that it added 665,000 direct postpaid customers, which was well ahead of the 496,000 contract customers AT&T Mobility attracted during the quarter. A loss of direct prepaid customers during the quarter cut Verizon Wireless’ total direct customer growth to just 454,000 subscribers during the quarter.

As in previous quarters, a majority of new activations on its network were through third-party channels with Verizon Wireless reporting 896,000 customer additions through its partners. The carrier also subtracted 2.1 customers from its network during the quarter due to divestitures that resulted in a drop in total customers from 92.8 million at the end of the first quarter to 92.1 million at the mid-point of the year. The results kept Verizon Wireless about 2 million customers larger than AT&T Mobility.

Verizon Wireless also said that it added 264,000 “other connections” to its network during the quarter, including e-book readers, machine-to-machine devices and telematics devices propping up that segment to 7.7 million total connections on its network.

Customer churn dropped year-over-year from 1.37% to 1.27%, which the carrier said was its lowest in 2 years. Average revenue per user from direct customers increased nearly 1% year-over-year to $51.56 during the quarter with data services accounting for $17.85 of that total.

Wireless service revenues increased just over 5% from $13.349 billion during the second quarter of 2009 to $14.046 billion this year, with total wireless revenues up 3.4% to $16 billion for the quarter. Wireless expenses increased just 1.6% year-over-year, which pushed operating income up 8.6% to $4.842 billion.

Verizon Wireless also reported that capital expenditures surged 21% year-over-year during the quarter to $2.262 billion and that wireless capex spending topped $4 billion for the first half of the year. The carrier is in the process of building out its LTE network with plans to cover 100 million potential customers by the end of the year.

Overall, Verizon Wireless’ parent company Verizon Communications Inc. posted mixed results as flat year-over-year revenues combined with a $2.3 billion charge associated with workforce reductions resulted in the company posting loss of 7 cents per share for the quarter compared with a return of 52 cents per share in 2009. Despite the drop, Verizon’s stock was trading up more than 4% early Friday at $28.14 per share.

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Nokia Siemens Networks should be able to increase its presence in the United States and Japan with the announced acquisition of Motorola Inc.'s networks business. The $1.2 billion acquisition was hinted at last week. Motorola will retain its iDEN networks business.

Nokia Siemens will pick up Motorola's CDMA, GSM, wideband CDMA and LTE business, which counted sales of about $3.3 million in 2009. ”We like to think we are buying at least part of the history of innovation at Motorola,” said Rajeev Suri, CEO of NSN. “First and foremost, this deal is about customers,” Suri noted. “We expect to gain an incumbent position with many of our customers. … Second the deal is about scale and building our presence in some regions.” Suri noted that the merger will move NSN from the No. 5 in North America to No. 3, as well as strengthen its position in Japan, including a contract with KDDI Corp. Motorola also counts contracts with Verizon Wireless and Clearwire Corp., among others.

About 7,500 Motorola employees will move over to NSN, and NSN will retain its presence in Illinois, where about 1,600 employees reside, Suri said. No layoffs are anticipated. The acquisition is expected to close at the end of this year. NSN will finance the purchase with its internal cash reserves and existing third-party financing solutions. “It's a beautiful addition to our customer portfolio.”

Motorola Solutions will keep its iDEN business, which counted $400 million in sales in 2009, as well as its enterprise, government and public-safety business. Motorola Co-CEO Greg Brown said the sale will enable the Solutions business to be a pure-play company. Indeed, Motorola's Enterprise Mobility Solutions business is predicting a compounded annual growth rate between 5% and 8% over the next few years, with opportunities to sell equipment and services into public-safety and vertical market enterprises.

A handful of CDMA patents will go to NSN under the deal, but Motorola will retain most of the intellectual property rights. NSN will be able to cross-license that IPR without paying for the IPR.

Amid speculation last week, Daryl Schoolar, principal analyst, wireless infrastructure, at Current Analysis, said a link-up between Motorola and NSN would be a great way for NSN to get a better toehold in the North American market. It's no secret that NSN wants a stronger North American presence, having tried to buy Nortel Networks Ltd. previously. Along with Motorola's CDMA and GSM assets, an acquisition would also give NSN Motorola's existing business relationships, as well as its LTE and TD-LTE assets, Schoolar noted.

Motorola had been trying to sell its networks business as part of its plan to separate the company into two pieces in 2011. Huawei Technologies Inc. was also rumored to be interested in the equipment business.

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The Federal Communications Commission is moving forward with plans to remove barriers in wireless backhaul, announcing it plans to address the issue at its Aug. 5 meeting.

The commission is issuing a Notice of Proposed Ruling and a Notice of Inquiry regarding backhaul. Previously, the agency noted as part of its National Broadband Plan that federal laws need to be implemented to help spur broadband deployment.

“Currently, access by service providers to poles can be slow, costly, and mired in long disputes. The National Broadband Plan recognized that one way to lower the costs of telecommunications, cable and broadband deployment and promote competition is to reduce the cost of access to infrastructure,” the FCC said in a press release announcing the further notice of proposed rulemaking as well as an order clarifying some aspects of pole attachments. “The plan found that the impact of utility pole attachment rates on broadband can be particularly acute in rural areas, where there often are more poles per mile than households.”

The FCC ruled that communications providers have a statutory right to use the same space- and cost-saving techniques that pole owners (utility companies) do, and that “attachers” have a right to timely decisions.

As wireless carriers and tower companies deploy DAS solutions to get better coverage, they often run into deployment delays because approving another piece of equipment on a pole is not a priority for utility companies.

Utility companies generally have to allow DAS providers access to the utility pole, but issues crop up around timelines and lease rates. Utility companies can try to charge DAS providers more than they do other tenants on the pole because the DAS provider usually wants to be at the top of the pole. Also, if the pole needs to be modified to accommodate the weight of new equipment, the utility companies can charge the DAS provider to pay for the new pole.

The FCC also released its formal NPRM and NOI on freeing up more Mobile Satellite Services spectrum, also part of the goals of the National Broadband Plan. The agency is planning to add co-primary fixed and mobile allocations to the 2 GHz band and expand secondary market policies and rules.

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Sprint Nextel Corp. managed to find another prepaid niche it had not already covered with the launch this morning of its PayLo offering through its Virgin Mobile subsidiary. The service brings a voice-focused component to what has been a data-centric menu from Virgin Mobile.

The new offering includes a 400-minute voice plan for $20 per month, or a per-minute rate of 5 cents per minute. Or for those that talk even less, the plan allows customers to pay $20 to “maintain” an active account for up to 90 days with voice calls during that time charged at 20 cents per minute.

Virgin Mobile's Chief Marketing Officer Neil Lindsay said the service is targeted at customers looking to keep their wireless spend at $20 or less per month.

“It's the perfect complement to our multibrand strategy,” Lindsay said in a press release.

Virgin Mobile said the service would roll out in retail locations this month, including RadioShack and Best Buy locations as well as at other “drug and convenience stores.”

Devices for the service will initially be limited to the LG Electronics Co. Ltd. LG101 at $20 and the Samsung Electronics Co. Ltd. M340 at $40, both of which are available at the same price for Sprint Nextel's recently launched Common Cents offering. In addition to the voice plans, customer can also send or receive text messages for 15 cents each, picture messages for 25 cents each or access data services for $1.50 per megabyte. In other words, if you are looking to access messaging or data services, Sprint Nextel has better offerings for you.

The PayLo service joins Sprint Nextel's cavalcade of prepaid options that include the data-centric services from Virgin Mobile, unlimited voice and data offering from Boost Mobile, the Common Cents pay-as-you-go service and its federally subsidized Assurance Wireless plans.

In addition to bolstering its prepaid line up, Sprint Nextel also reported that its Assurance offering has expanded to Florida and Louisiana joining its continued availability in Maryland, Michigan, New York, North Carolina, Tennessee, Texas and Virginia.

The service provides a free phone and 200 free minutes of voice service each month to eligible customers. Customers can then pay an additional 10 cents per minute for calls over their allotted bucket and 10 cents for text, e-mail or instant messages. Subsidies for the service are supported by the Lifeline Assistance program, which is part of the Low Income Program of the Universal Service Fund.

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Following years of instability, Alltel Wireless looks to have found its footing in the mobile market having recently put into place all of the pieces necessary to re-establish the veteran brand into the market.

The “new” Alltel Wireless is operated by Allied Wireless Communications Corp., which is staffed by former Alltel Communications L.L.C. and is a wholly-owned subsidiary of telecom company Atlantic Tele-Network Inc. ATN closed on its $223 million acquisition of the Alltel assets in late April after having gained government approval earlier that month.

As part of its acquisition, ATN also picked up the Alltel name and accompanying service marks, like My Circle, for use in its current markets an initial term of 14 years and a total term of up to 28 years.

“We feel like it's putting the band back together here in Little Rock,” explained Wade McGill, chief administrative officer for Alltel Wireless and AWCC. The original Alltel Corp. was headquartered in Little Rock, Ark., before being acquired by Verizon Wireless for $28 billion in early 2009. As part of the acquisition, Verizon Wireless was forced to divest some markets, a majority of which were acquired by AT&T Mobility for $3 billion, with the rest picked up by ATN.

Those markets picked up by ATN included functioning networks in six states – including portions of Georgia, Illinois, North Carolina, South Carolina, Ohio and Idaho – and nearly 900,000 customers.

“I think the trust did a very good job of keeping the brand going,” McGill noted. “So many people were just so committed to the brand and the markets.”

While its local markets are diverse geographically, the carrier maintains a nationwide footprint through roaming agreements.

Perhaps more important for ATN was its ability to secure the Alltel brand, which had built up tremendous brand equity in its markets.

“The ability to retain the brand was key in these markets and you can't underestimate the value of that,” McGill noted, adding that more than 50% of its current employees have been with Alltel for more than six years.

In addition to maintaining the Alltel brand, the new operations plans to maintain many of the services offered by the “old” Alltel, including continued promotion of its MyCircle plans that were one of the first to incorporate a select number of phone numbers for unlimited calling, regardless of carrier.

The brand acquisition also allows for possible expansion beyond current markets, though McGill and AWCC are keeping any expansion plans close to the vest, noting the company was more focused in the short term on reestablishing itself in the market.

“We need to have a laser focus on the customer experience and being local,” McGill explained, citing a common mantra of rural carriers forced to compete against large, nationwide operators. “That's how we want to think about our plans moving forward. … I think our plan is to grow organically at first and just focus on providing excellent customer service and support.”

McGill said the carrier will also maintain its current CDMA-based 3G network, but added that LTE was in the carrier's future, though he was unable to provide any details on those plans. Alltel's previous incarnation had committed to the LTE technology before being acquired by Verizon Wireless.

Microwave box

McGill noted that one of the biggest challenges facing the new Alltel is that while its leadership has a start-up mentality, operationally the carrier is hitting the ground with nearly 900,000 customers that expect their wireless carrier to act as it always has and 500 employees in the field looking towards headquarters for direction.

“In one sense we are still a start up here in Little Rock, but are a functioning wireless carrier in our markets,” McGill noted. “I still have a printer in my office sitting on an empty microwave box. It's not that we can't buy a stand or anything, it's just that that's where we are at this point.”

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Despite claims that the WiMAX market is set for rough waters, one analyst firm noted in a recent report that new specifications for the technology and overall growth in fixed/portable WiMAX deployments around the world are creating a “sizable” market for WiMAX equipment for the next 10 years.

Visant Strategies noted in its report, “Fixed, portable and mobile WiMAX: Building a market today and influencing choices tomorrow,” that new specification for 802.16m, also known as mobile WiMAX, will address a number of shortcomings with the 802.16e WiMAX standard, including improving costs and providing a more appealing business model.

“Most mobile carriers have committed to LTE for 4G, sometimes after HSPA+, but WiMAX equipment makers will still enjoy a vigorous market” said Andy Fuertes of Visant Strategies. “Low-cost PC initiatives, falling WiMAX costs and the global availability of the 3.5 GHz band for basic fixed broadband services presents a very large opportunity for WiMAX equipment vendors.”

Visant forecasts that WiMAX equipment revenues will surge to more than $35 billion by 2016 fueled by mobile WiMAX subscriber growth increase more than eight times current levels to more than 1 billion customers worldwide.

“There will be a very large fixed broadband audience by 2016, over one billion according to the findings in the report, and fixed/portable WiMAX will account for a good share of this audience and help seed mobile WiMAX use as these same carriers expand their coverage area in many emerging regions,” said Larry Swasey of Visant Strategies. “We are already seeing WiMAX deployments in emerging economies that allow intra- and inter-city portability, the beginning of the seeding.”

In-Stat noted in a report last month that WiMAX could be in for some challenges as competing technologies like LTE begin coming to market. The firm did note that it expects worldwide WiMAX subscription revenues to approach $30.2 billion in 2014, though major hardware vendors have announced they planned to stop WiMAX product developments.

Maravedis expressed similar concerns, noting that its research has shown carriers are concerned about the lack of support for the 802.16m standard, which could dampen enthusiasm for greater WiMAX deployments.

The firm added that carriers that have recently acquired spectrum licenses in markets like India may be forced to move ahead with WiMAX due to a lack of options in the short-term, but that eventual migration to the TD-LTE standard could prove a “significant challenge emerges regarding how to manage the millions of WiMAX device users.”

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Editor's Note: This article is an excerpt from RCR Wireless News' May Special Edition, "Enabling the Mobile Revolution: Mobile Chips, Devices and Accessories." The 80-page special edition is available here.

The Subscriber Identity Module – that standard little chip that houses all of a subscriber's information for GSM-based networks – is changing. Long Term Evolution technology is advancing the smart card, while the potential of machine-to-machine communications is evolving the size and form factors for SIMs.

The SIM card is evolving from a simple card that can store and authenticate a user to the network to a Universal Integrated Circuit Card, said Sebastien Cano, Senior VP Telecommunications for Gemalto NV, the world's largest SIM card manufacturer.

Going forward, the prospects for SIM deployments are great as CDMA providers like Verizon Wireless and MetroPCS Communications Inc. deploy LTE services, thus increasing the potential marketing base for smartcard solutions in the United States, said Heather Klein, director of marketing communications at Giesecke & Devrient, which also makes SIM cards. Operators will want to ensure interoperability between their CDMA and LTE networks.

In developing countries, the SIM has a visible role to play in that it keeps contacts with the user, not the phone, and that it authenticates the phone to the network. In advanced markets like North America, it is not so much involved in the user interface, but in monitoring network behavior. Once operators deploy LTE service, the SIM card will be able to more easily conduct over-the-air updates, Cano said. Today's SIM cards are limited to sending commands in 160-character text messages. Sending advanced commands via the technology has been cumbersome, he said. “You can do remote maintenance, but it's not as reliable as it will be going forward.” With the movement to an IP protocol, the card can perform a lot more functions.

The SIM card is now offered in three standard formats – as a SIM card, as an embedded secure element of a device and as a secure micro SD, G&D's Klein noted. Rugged form factors for SIM cards are appealing to companies that want an embedded M2M solution, Cano explained.

Going forward, some of the best areas of growth will be in the NFC (near-field communications) space and in the growing vertical market sectors that need M2M communications. As NFC gains traction around the globe, both SIM manufacturers expect financial institutions, which already use smart cards, to embed wireless technology in them. However, one of the problems with the intersection of wireless services and financial services is who owns the customer, Cano said. Having a third-party solutions provider is one way to solve that problem. Both Gemalto and G&D have been acquiring companies in recent years to expand their presence in the smart-card space.

Motorola Inc. is introducing what it calls an Intelligent SIM platform that lays over the SIM card. The four millimeter-thick wafer connects the mobile device and the SIM, which can enable operators and enterprises to write applications on the SIM and manage security protocols, said Venkat Eswara, Motorola's director of marketing for its Applications and Mobile Video Services division. Today, Motorola's iSIM is geared for 3G networks, but the company plans to move into LTE technology. The platform is available in three chip configurations – as a low-end microcontroller chip, as an NXP Java applet and as an NFC chip. The iSIM platform can store up to four different SIM profiles, which is important for people who travel internationally and need to roam, and for enterprises that are security-focused, like mobile banking applications. Motorola is targeting large enterprises with the platform, noting that large companies can use the iSIM platform to manage the work environment applications of employees who use different networks and different carriers. Bipper Communications is the first company to launch Motorola's platform to offer parents a way to manage their child's mobile-phone use, including a safety alarm and location-based service from a Web portal.

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The telecommunications segment continues to lose jobs, declining 2,300 from May to June, and a whopping 47,100 jobs from June 2009 to June 2010. Employment in the wireless subsector was down 2,700 jobs from May 2009 to May 2010, the latest figures available from the U.S. Bureau of Labor Statistics. A total of 192,200 jobs exist in the wireless sector. On the wired telecom side, 39,300 jobs were lost from May 2009 to May; the sector now counts 597,600 jobs.

The number of people employed in the computer and electronic products sector stood at 1.097 million in June, down 33,800 from a year ago, but up 1,100 from May. Increased employment in the communications equipment and semiconductor subsectors were reasons for the increase in jobs. Employment in the computer and peripheral equipment subsector continues to decline, although communications equipment saw an increase of 500 more jobs year over year. Employment in the semiconductor and electronics components subsector was down 7,100 jobs year to year, to 367,100 jobs, but showed a monthly increase of 1,900 jobs. All figures are preliminary and not seasonally adjusted..

Total nonfarm payroll employment declined by 125,000 in June, and the unemployment rate dropped to 9.5%.

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Consumers are increasingly tapping into the advanced features of their mobile devices, according to a new report released by Compete Inc. as part of its Quarterly Smartphone Intelligence Survey.

The firm noted that during the first quarter of this year nearly one in three smartphone owners has called or stopped into a local business after discovering the information using a local search application on their mobile device. The survey also found that close to one-third of consumers with either an Apple Inc. iPhone or a smartphone powered by Google Inc.'s Android operating system “discovered at least two new businesses that they were not previously aware of as a result of using local search applications.”

“With the increasing popularity of local search, retailers should ensure their sites are optimized for mobile browsers," said Danielle Nohe, director of technology and entertainment for Compete. "Making it easy for consumers to discover businesses via their devices opens local companies up to a whole new customer demographic, and savvy businesses should make sure they're maximizing this opportunity."

Social is mobile

Compete's survey also found that a growing number of consumers are turning to their mobile devices to stay in touch with their social networks. The company noted that 33% of Twitter users with a smartphone primarily send tweets from their mobile device and that a similar percent prefer to read others' tweets on their phone.

Compete's survey noted that of consumers that access their Facebook accounts from their mobile device, 66% also read news feeds, 60% post status updates, 59% read or reply to private messages and 44% post photos from their smartphone.

"Given the increasing popularity of Facebook, Twitter and other social sites, it follows that users are eager to access these outlets on their phones," continued Nohe. "Based on our findings, I recommend marketers start thinking about new ways to maximize consumers' use of smartphones on social sites, as mobile adoption will likely only increase with time."

The iPhone is a game

Finally, Compete found that 51% of iPhone users have at least five games loaded onto their device, and that they play games more frequently that do owners of other smartphones with 37% of iPhone users reporting they play games at least daily on their device. Consumers with Research In Motion Ltd.'s Blackberry devices are at the other extreme with 46% of Blackberry users surveyed saying they have no games on their device.

"It's evident that iPhone owners have embraced mobile gaming," commented Nohe. "Developers should turn their attention to targeting other smartphone users in an effort to even out the discrepancies in mobile gaming adoption."

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T-Mobile USA Inc. (DT) closed a chapter on its Sidekick franchise last Friday as the industry’s No. 4 carrier stopped selling the iconic device, though it said it will continue to support product services and support.

The carrier hinted that while the current lineup of Sharp Corp.-built and Danger/Microsoft Corp. (MSFT)-powered devices has seen its last days, it could be developing a succeeding lineup in the coming months.

“As T-Mobile looks to further innovate and raise the bar for the next generation of the T-Mobile Sidekick, as of July 2, the Sidekick LX and Sidekick 2008 will no longer be available through T-Mobile, including retail stores, care, telesales and online,” noted T-Mobile USA spokesman Peter Dobrow in a statement. “While we work on the next chapter of our storied Sidekick franchise, T-Mobile will continue to provide our loyal Sidekick customers with product service and support. Stay tuned for exciting updates in the months ahead, which we expect will provide customers with a new and fresh experience.”

Despite a near cult-like following, the Sidekick devices have been overshadowed in T-Mobile USA’s lineup by an increasing number of devices powered by Google Inc.’s (GOOG) Android operating system that provide many of the same functions of the Sidekick models with greater access to an increasingly-important applications store.

Last October the Sidekick service suffered a near-meltdown that stranded consumer data that was normally stored on servers whenever a consumer turned their device off. T-Mobile USA and Microsoft were eventually able to restore user data.

The demise of the Danger/Microsoft-powered Sidekicks came just days after Microsoft discontinued its Kin devices that were developed using expertise the company picked up when it acquired Danger Inc. in 2008 and were also built by Sharp. The Kin lineup was launched in May exclusively at Verizon Wireless (VZ), but reportedly met with dismal sales as consumers were confused about the devices’ positioning as more than a quick-messaging device, but not quite a smartphone. The not-quite-a-smartphone issue was more pressing as consumers were forced to pay $30 per month for Verizon Wireless’ smartphone data package even though the Kin’s lacked much of the functionality seen as standard in smartphones.

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