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  • AirAsia launches three new routes for Jakarta flights

    AirAsia launches three new routes for Jakarta flights

    Low-cost carrier AirAsia is launching three new routes for direct flights from Jakarta to Sorong, West Papua; Lombok, West Nusa Tenggara; and Semarang, Central Java. These flights will start operating on Sept. 1 using the Airbus A320 plane with a 180 seat capacity.

    The airline is offering a special price for a one-way ticket for these flights starting from Rp 2.7 million (US$193.97) for Jakarta – Sorong, Rp 634,000 for Jakarta – Lombok, and Rp 341,000 for Jakarta – Semarang. All of these flights are available through airasia.com or the AirAsia mobile apps. The offer is available starting from July 20 to 28 for flights from Sept. 1 to Oct. 26.

    AirAsia Indonesia CEO Dendy Kurniawan said that his company was currently focusing on expanding its domestic and international routes.

    “We showed our commitment to provide affordable and high-quality flights through this offer,” Dendy said through a written statement.

    According to Dendy, the ticket includes 15kg checked baggage for passengers.

    “We hope that our service will be able to boost economic growth, especially in tourism,” Dendy said.

  • Zara parent fast-tracks online expansion

    Zara parent fast-tracks online expansion

    Clothing retailer Inditex has announced the launch of online platforms in nine new markets and says it will open in 10 more this autumn to meet its 2020 vision.

    Zara launched an online store in Brazil during the first quarter, and has recently inaugurated its platforms in Morocco, Egypt, Lebanon, Israel, Serbia, Indonesia, the United Arab Emirates and Saudi Arabia.

    This autumn, Inditex said it will launch Zara online platforms in South Africa, Qatar, Kuwait, Bahrain, Oman, Jordan, Colombia, Philippines and Ukraine.

    Last year, Inditex chairman and outgoing CEO Pablo Isla announced all products from the company’s brands will be made available online by 2020, including markets where it does not have any stores.

    Inditex posted a 5 per cent increase in net sales in the first quarter from February 1 to April 30, which, according to the company, has reached a new record of €5.93 billion ($9.48 billion), driven by the ongoing digital transformation of its integrated store and online sales platform.

    Store and online sales increased by 9.5 per cent in local currencies from May 1 to June 7 and from February 1 to June 7, sales increased 6.5 per cent in local currencies.

    During the first quarter, the company has opened new physical stores in 23 different markets and is also in the process of expanding, refurbishing and absorbing stores as part of the process of differentiating its sales footprint.

    “Among the stores worth highlighting are the Zara store that opened in Hudson Yards in New York, in the US, one of the world’s highest-profile retail developments, the new store on Rue Jean de Rouiffe in Cannes, France, and the store in the Time World Mall in Daejeon, South Korea,” Inditex stated.

    Massimo Dutti also opened a new store in Ibiza fitted with ‘scan-and-shop’ technology and click and collect. The store also features the brand’s new ‘style advisor’ and ‘express alteratrions’ services with same-day collection or delivery in three hours.

    The brand also opened a new store in the Manama shopping centre in Bahrain and flagship stores in Seoul, South Korea and Vladivostok, Russia, in the Kalina Mall, which also welcomed Bershka, Stradivarius, Oysho, Pull&Bear and Zara Home stores during the quarter. Oysho made its debut in Latvia and Singapore and opened a huge flagship store, spanning over 2200sqm, in Mallorca, on the emblematic Paseo del Born, while Stradivarius opened its doors on France’s Cote d’Azur, specifically in Cagnes-Sur-Mer, and Zara Home opened its maiden store in Bulgaria.

    According to Inditex, all of these new stores are fitted with the latest customer-oriented technology and all of the breakthroughs on the eco-efficiency front, bringing the store count meeting the group’s green criteria to 90 per cent of the total, in line with its commitment to making the platform fully sustainable by 2020.

    Isla had said earlier all of the group’s brands will be adopting an integrated stock management system by 2020 in all the countries where there is a physical store presence.

    Other than Zara, the world’s largest clothing retailer also sells the brands, Massimo Dutti, Pull & Bear, Bershka, Stradivarius, Oysho and Uterque across its network of almost 7,500 physical shops. It also operates online in 49 markets.

    Underpinned by sales growth in all geographies and at every brand, the group’s solid operating performance lifted net profit to €734 million, a growth of 10 per cent year-on-year.

    Excluding the effect of IFRS on leases from February 1, EBITDA grew 9 per cent, EBIT 7 per cent and net profit 7 per cent.

    “The recent figures demonstrate solidity of the company’s model, whose profitability and cash flow generation continues to grow owing to the group’s commitment to customer-driven quality fashion,” Isla said, emphasising the “strong momentum in the digital transformation of the integrated store and online sales platform and in sustainability as a key pillar of the company’s strategy.”

  • Flybuys tops loyalty programs

    Flybuys tops loyalty programs

    Flybuys remains the top ranked loyalty program according to Australians, though the distance between it and second-place Woolworths Rewards narrowed significantly in 2019, according to the 7th annual For Love or Moneyreport.

    Flybuys dropped from a 35 per cent share to 30.4 per cent in the latest report, while Woolworths Rewards grew from 20.2 per cent to 21 per cent, based on survey respondents stating the programs were “doing a very good job.”

    While much of the list of top loyalty programs appears the same, there are some notable additions and subtractions, with Myer One and Commbank Awards falling off the list to make room for Event Cinema’s Cinebuzz Rewards, and Mecca’s Beauty Loop program.

    The most important considerations by program members surrounded how secure their data is, how it’s being used, and the reputation of the company itself – with 57 per cent of survey respondents noting they are worried they will be hacked or subjected to fraud based on information gathered by a loyalty program.

    “With numerous data breaches being reported world-wide… loyalty programs are at a pivotal point with member data protection, collection and use,” report author and chief executive of The Point of Loyalty Adam Posner said.

    “To maintain members’ trust and ongoing engagement with their loyalty programs, brands with programs should prioritise a proactive and transparent approach to clearly highlight to their members how their data is being protected and used.”

    Despite concerns surrounding the use of data, 62 per cent of loyalty program members take advantage of the rewards and benefits available to them. Millennials were the most likely to utilise these rewards, with 68 per cent indicating they utilise the advantages of a loyalty program.

    Additionally, the report found that loyalty programs tend to stimulate extra purchases from its members, with 28 per cent of members indicating purchased something they didn’t need in order to earn points, or maintain program benefits – an increase on the 16 per cent first measured in 2015.

    “The incremental purchases that a well-structured loyalty program can stimulate is where business who invest in loyalty programs really succeed,” Posner said.

  • Abercrombie & Fitch Closing Shops

    Abercrombie & Fitch Closing Shops

    Fashion retailer Abercrombie & Fitch is continuing to shutter Hollister and A&F flagship stores across the globe, with its Fukuoka store in Japan one of the next three on the list.

    Starting with the high-profile Pedder Street store in Hong Kong’s Central in the first quarter of the 2017 financial year, Abercrombie & Fitch embarked on what it describes as a “global store network optimization” program.

    Overnight, the company said it will close its SoHo Hollister flagship store in New York City and has exercised kick-out clauses for its A&F flagship locations in Fukuoka and Milan, Italy.  “Today’s announcements build on the closures of the Hong Kong and Copenhagen, Denmark A&F flagship locations. These actions represent important ongoing steps in the company’s global store network optimization efforts as it continues to pivot away from large format stores to smaller, omnichannel-focused brand experiences,” the company said in an earnings statement.

    While the Pedder Street store was vacated two years ago – and remains empty to this day – it took until this year for the company to close its second, in Copenhagen, Denmark. Now the flagship-closure program is gaining pace.

    The Hollister store will close in the second quarter of the current fiscal year and the Milan store by year’s end. The Japanese store will close in the second half of next year.

    “In aggregate, the Copenhagen, SoHo, Milan and Fukuoka locations represented less than 1 percent of total net sales in fiscal 2018. The SoHo and Fukuoka closures are expected to result in pre-tax lease-related net charges in the second quarter of fiscal 2019 of approximately US$45 million. The charges related to the Copenhagen and Milan closures are not expected to be significant in fiscal 2019,” the company said.

    But Abercrombie & Fitch stressed it was not reducing its store network.

    “The company remains on track to deliver approximately 85 new experiences through new stores, remodels and right-sizes this year.”

    First-quarter loss reduced

    Meanwhile, the company reported worldwide net sales rose by 2 percent to $734 million in the first quarter to May 4. Comp sales rose by 1 percent following a 5 percent increase in the same period last year and the company posted an operating loss of $27.3 million, less than half that of last year’s first quarter.

    “We achieved our seventh consecutive quarter of positive comparable sales fuelled by ongoing strength at Hollister and a return to positive comps at Abercrombie,” said CEO Fran Horowitz.

    “This contributed to top-line growth, operating margin improvement and a net loss reduction compared to last year.”

    Horowitz said the company remains focused on its transformation initiatives, with global store network optimization a key priority.

    “We continue to believe in stores and are committed to delivering intimate, omnichannel brand experiences that closely align with our customers’ needs.”

  • Rimowa opens store in Singapore, Raffles

    Rimowa opens store in Singapore, Raffles

    LVMH’s luggage brand Rimowa Singapore has opened a new store at the newly refurbished Raffles Hotel.

    The 600sqft store features a greenery space with the floral walls which provides an immersive conceptual experience to visitors and shoppers alike.

    Customers can find the latest Rimowa luggage collections there, including the Rimowa Original, Rimowa Classic, Rimowa Essential, Rimowa Essential Lite, Rimowa Essential Sleeve, and Rimowa Hybrid.

    The store also includes a sticker wall featuring classic, new and exclusive luggage stickers from the Rimowa Sticker Collection.

  • WhatsAp will start having ads starting next year

    WhatsAp will start having ads starting next year

    Facebook is a for-profit organization and some form of ads inside WhatsApp has been inevitable since the day it bought the messaging platform. Now, after previously confirming plans for monetization, the social media giant has announced that WhatsApp ads will begin rolling out in 2020.

    Corroborating previous information, it was confirmed during the annual Facebook Marketing Summit that the first ads will be implemented into the Instagram Stories-like Status feature. Like regular posts, the ads will occupy the entire screen, but rather than displaying the contact’s name WhatsApp will showcase the name of the company. Also, a swipe uplink will be included.

    It’s unclear at this point if Facebook has any further plans for advertisements within WhatsApp, but eventually, the company could introduce smaller alternatives that display between chats on the conversations list.

    In order to boost the usefulness of WhatsApp Business, it was also announced that new ads which link directly to these accounts will soon be making their way over to both Facebook and Instagram. While on this topic, it’s also worth pointing out that WhatsApp Business users will soon be able to benefit from “richer message formats” which involve pairing images or PDF files with a short piece of text. Eventually, when messaging about products, users will also be able to view the product within WhatsApp and then access the entire catalog.

  • Spotify introduces Instagram-like Stories

    Spotify introduces Instagram-like Stories

    Back in 2016, Spotify teamed up with song lyrics database Genius to bring “Behind the lyrics” annotations to the Spotify app. They appeared as cards and displayed interesting tidbits about various songs, sourced from the Genius platform. Now, Spotify has decided to outright launch a dedicated “Storylines” feature that allows the artists themselves to share behind-the-scenes insights on their songs.

    Similar to Instagram Stories, Spotify’s implementation gives artists complete freedom to share interesting facts about the process of making songs. Storyline cards will appear peeking from the bottom of the Now Playing screen, allowing you to pull up on the card and read it while listening to the song. The card will disappear after some time, though you can stop it from going away by pressing and holding on the screen. Spotify Storylines may be made up of numerous cards containing text, lyrics highlights, and images. Tapping the right side of a card will move to the next part of the story while tapping the left will go back.

    Storylines are going live in the latest update for the Spotify app (version v8.5.5.853, to be exact). Seeing as how the feature is still in its infancy, not many artists seem to be using it. Give it a couple of weeks, though, and you’re sure to see those cards start popping up in songs all over the place.

  • Tata Motors’ Passenger Car Sales Felt Last Month

    Tata Motors’ Passenger Car Sales Felt Last Month

    The Tata Motors Group global wholesales in April 2019, including Jaguar Land Rover, were at 79,923 units. This number is lower by nearly 22 percent when compared to April 2018. The sales of the company’s commercial vehicles too were lower in April 2019 compared to the same period last year. The company sold 31,726 units of its commercial vehicles lower by 20 percent.

    The passenger vehicle side of the story was no different as the company’s global wholesales of all passenger vehicles in April 2019 were at 48197 units a drop of 23 percent lower compared to April 2018.

    Global wholesales for Jaguar Land Rover were 35,451 vehicles. Jaguar wholesales for the month were 13,301 vehicles, while Land Rover wholesales for the month were 22,150 vehicles.

  • Macpac expands more with Adventure Hubs

    Macpac expands more with Adventure Hubs

    Super Retail Group’s outdoor retail chain Macpac has opened nine new ‘Adventure Hub’ stores, further expanding the brand’s reach across Australia to 34 locations.

    Five of the new format stores are located in Victoria, and are buoyed by a new store in NSW, South Australia, Queensland and the ACT.

    The Adventure Hub format combines Macpac’s full range with a curated selection of apparel, equipment and accessories from brands such as Patagonia, Yeti and Merrell.

    Macpac chief executive Alex Brandon said the business was excited about the potential the Adventure Hubs format offers.

    “We set out to create Australia’s premium destination for outdoor product and adventure advice, and I think we’ve achieved that aim in these first nine stores,” Brandon said.

    “The Adventure Hubs offer the full range of Macpac gear alongside other world-class outdoor brands…supported by a friendly, knowledgeable team ready to give everyone adventure advice.”

    Macpac’s Adventure Hubs also feature services to make preparing for a trip easier on customers, such as providing packing lists to ensure they don’t forget anything they might need, expert pack-fitting by Macpac team members, world maps to help envision the next big trip, as well as a mini-library providing further travel inspiration.

    Former Super Retail Group chief executive Peter Birtles previously said there was potential for the Macpac brand to grow to 75 locations across Australia and New Zealand, with an additional 20 larger format locations.

    However, Birtles also noted there was a significant future for the business online, rather than through constant store roll-outs.

    “We certainly see that this is a market that has strong opportunity in terms of digital, and so we’d anticipate a high component of the business coming from a digital channel,” Birtles said.

  • HTHKH to buy full control of mobile business

    HTHKH to buy full control of mobile business

    Hutchison Telecommunications Hong Kong Holdings (HTHKH) has arranged to buy out Japan’s NTT Docomo‘s share of its mobile businesses for $60 million.

    Under the agreement, HTHKH will acquire Docomo’s 24.1% interest in Hutchison Telephone Company Limited (HTCL) and its 24.1% stake in Hutchison 3G Hong Kong Holdings (H3GHK), making both companies wholly-owned subsidiaries.

    In an announcement, HTHKH said acquiring full control of its mobile business will increase the value of HTHKH shares, enhance operational efficiency and save costs by eliminating resources expended on shareholder communications.

    The transaction is expected to close on May 31. HTHKH plans to use the proceeds from the disposal of its fixed line business in 2017 to pay for the purchase.

    HTHKH and Docomo have agreed to discuss potential ways of extending their mutually beneficial relationship despite no longer being tied through a shareholder relationship.

    The companies have agreed to enter a consultation and cooperation agreement upon the closing of the transaction to explore the feasibility of collaboration in the field of mobile telecommunications products and services.

  • China Mobile Hong Kong holds 5G experience showcase

    China Mobile Hong Kong holds 5G experience showcase

    China Mobile Hong Kong (CMHK) and property company Sino Group have jointly held what they are calling Hong Kong’s first in-mall 5G experience showcase at the Olympian City 2 mall.

    The Future is Now 5G Experience Showcase, which was held over four days ending yesterday, comprised six experience zones intended to introduce ad demonstrate 5G technology.

    These zones were based around concepts including autonomous vehicles, smart glasses and a machine that purports to be unbeatable at janken (also known as rock paper scissors) by using 5G leased lines and a sensory system to detect gestures as they are thrown.

    Other zones highlight the speed improvement between 4G and 5G, the potential of 5G technology in smart city development and a start-up exhibition based on IoT technology.

    “Out of Hong Kong’s many mobile carriers, CMHK is the first network provider to receive the 5G trial permit, and has succeeded in engineering Hong Kong’s first end-to-end 5G network testing as well as the first Commercial Equipment Field-Testing of 28GHz 5G base stations,” CMHK chairman Dr Li Feng said.

    “In the future, CMHK will continue to adhere to the concept of ‘4G changes lives, 5G changes society’ by presenting “5G+ Project” in three agendas: firstly, to complement the existing 4G network with 5G infrastructure; to promote 5G with new networking technology; and develop more comprehensive 5G ecosystems to maximize the value of 5G.’

  • Update to the Google Camera app adds a new popular feature

    Update to the Google Camera app adds a new popular feature

    The update to version 6.2 of the Google Camera app comes with Dark mode and a few other changes, and it is rolling out to Pixel handsets via the Google Play Store. According to Android Police, the settings on the updated camera app will go into Dark mode when the Battery Saver is enabled. The report says that this works consistently with the Android Q beta installed, but not so much with Android 9 Pie.

    Since the camera app already uses a black background, why add this feature? Well, if you’re in a dark room or out at night and need to go into the Google Camera app’s settings, you’ll instantly be blinded by the white background used for that page. Why did Google have Dark mode enabled when the Battery Saver is turned on? Because if you have a phone with an AMOLED screen, a black background means fewer pixels need to be activated, which means that the phone will consume less battery power.

    Another change can be seen when moving between the camera, video, portrait, and panorama settings in the app. Previously, when a user switched between camera and video, for example, he would see a black transition screen with the icon of the selected setting in the middle. With version 6.2, when switching between settings, the screen no longer turns black and instead shows what your camera is looking at. There is also a zoom in and out effect while the selected setting’s icon remains in the middle of the screen. And there is one last change. When the flash is turned on for the front-facing selfie camera, the flash icon will appear on the display

    Remember, you need to have version 6.2 of the Google Camera app and a Pixel handset to enjoy all of these new goodies.

  • Tower market to grow at 4.56% CAGR from 2019-24

    Tower market to grow at 4.56% CAGR from 2019-24

    The global telecom tower market is on track to grow at a CAGR of over 4.56% between 2019 and 2024, according to Research and Markets.

    In a new report, the research firm stated that tower sharing has become one of the major growth drivers for the telecom industry as the tower leasing concept takes hold.

    This leasing concept has enable mobile operators to invest heavily in developing their infrastructure in rural areas, which is in turn bringing in new revenues to tower operators.

    Major market trends include expected significant growth in demand for lattice telecom towers, designed to manage heavy loads making them suitable for central communication hubs and backbone sites in disaster-prone areas.

    The primary purpose of a lattice tower is to support more than one antenna for communication purposes.

    The report also notes that the telecom tower market is currently highly competitive, with several major players dominating the market in terms of total share. These include India’s Bharti Infratel, China Tower – the joint venture established to operate the towers of China’s big three mobile operators, Helios Towers Africa and American Tower Corporation (ATC).

  • How to quickly turn your smartphone into a desktop PC

    How to quickly turn your smartphone into a desktop PC

    Today’s smartphones are incredibly powerful. From replying to emails, to checking out your daily feed on social media, and uploading the occasional selfie to share to the world, smartphones can do a bunch of imaginable things. They fit snuggly in our pockets, but don’t let their small and compact sizes fool you because they can do many things that our everyday laptops and desktops offer us.

    Quite simply, we all have portable mobile computing devices in the palm of our hands – capable of helping us to stay productive and get work done! As much as they’re endowed with incredible power, productivity can still sometimes be limited due to their diminutive sizes. Some smartphones, however, can even transform into versatile desktop PCs of sorts with the aid of some additional accessories. In order to achieve that, we’re going to dive into how you can achieve this possibility with your own smartphone, assuming it’s still a few years old at the most.

    Transforming the smartphone into a desktop PC naturally requires the following main components below to imitate the experience, which we’ll go through in detail below.

    Getting your smartphone to connect to a display

    With the smartphone acting as the brains behind the scenes, the components listed above help to reach the fundamental desktop PC experience. The external display is needed to give users a more pleasing viewing experience working on a desk or something, as opposed to trying to get stuff done on the tiny screens on our smartphones. Whether it’s an over-sized television, your traditional PC monitor, or one of those newer portable external displays, the most convenient way to connect your smartphone to them is by using a Chromecast if you own an Android smartphone (or Apple TV for iOS devices).

    Yes, a Chromecast is by far the simplest and most convenient solution, not only for the fact it’s a wireless solution, but because it’s the most compatible solution among Android smartphones. You can essentially use the screen mirroring function of Android to cast your phone’s screen to the connected external display/TV. Conversely, the process is pretty similar with iOS devices using an Apple TV. You’re simply leveraging AirPlay to achieve this, which is done by simply toggling on the Screen Mirroring function within Control Center.

    Once you’ve gotten everything connected and working properly, your smartphone’s display is being projected to your connected display. The only issue here is that latency can be hindered, so watching videos can be accompanied with choppy connections because of this. That’s the only downside, but the vast majority of Android smartphones are compatible to project their displays using a Chromecast.

    Wired connections: Direct with no latency, but not as convenient

    The single reason why going the wired route is more difficult than wireless is because of all the different ports found in smartphones. Even though the Lighting port is the single standard among iOS devices, Android smartphones have slowly transitioned from microUSB to the newer USB Type-C format. Due to these varying ports, getting a smartphone connected to a display may be trickier.

    In the case of Android smartphones with USB Type-C connections, you may still need to buy an adapter if your external display doesn’t feature USB Type-C ports. Alternatively, if you have one of those handy USB Type-C adapter hubs that may have come with a newer laptop, you could use that to connect to an external display using an HDMI connection.

    Now, the issue lies in the fact that not all smartphones offer the mirror display function using a wired connection. Phones like the LG V40, Google Pixel 3, and OnePlus 6T don’t work at all using this method. And even if you have older Android smartphones with microUSB ports, using an MHL adapter as the connector, doesn’t always work because they may not even be MHL-compatible.

    As for those with iOS devices, you have to give Apple credit for following one standard that applies to all of its devices. Using a Lighting to HDMI adapter, you can just about easily connect your iOS device to your television in a cinch! It’s really a testament to Apple’s effort to standardized things with its products. As the saying goes, “it just works.” And in this particular case for iOS devices, it does exactly that.

    Custom desktop experiences on some phones

    For some newer phones like the Samsung Galaxy S10 series or Huawei Mate 20 series, they have their own custom desktop experiences when they’re connected to an external display. Better yet, they don’t require any sort of special cable or dock to access. You simply connect them to your external display, and bam, you’ll be instantly transported to their respective desktop-like experience.

    Unlike the mirrored experience that most devices offer, these desktop-like experiences do a great job to emulate the feel of interacting with a real desktop operating system – much like having multiple windows running simultaneously. Huawei’s interpretation, in particular, seems like they’ve simply masked the traditional Windows experience. Still, it’s unbelievable that some of these smartphones are capable of offering these experiences. When they said that you have the power of a computer in the palm of your hands, they’re not kidding because some of them really do!

    Some smartphones even feature their very own custom desktop experiences, such as the case for some Huawei and Samsung smartphones. Shown here is the Huawei Mate 20 Pro and its EMUI 9.0 Desktop Mode.

    Connecting a mouse & keyboard

    In order to achieve that true desktop experience, the last pieces to the puzzle are connecting a mouse and keyboard into the mix. We’d recommend relying on Bluetooth enabled ones, just because connecting them is done much like any other Bluetooth accessory. Once they’re paired and connected, they’re pretty much good to go! For Android smartphones, the process in getting them connected is no different from laptops and desktops. However, you can’t connect any sort of mouse to an iPhone – it’s just not possible, but Bluetooth keyboards aren’t a problem.

    Conversely, if you still prefer going down the wired route, you’ll need to purchase additional adapters in order to achieve that – including a USB hub to connect both the mouse and keyboard simultaneously. Again, the process is pretty simple with Android smartphones, but there’s no way to use a wired keyboard or mouse with an iPhone. Therefore, if you’re an iPhone user, your only option is to use a Bluetooth keyboard.

    Real on-the-go mobile computing

    As we’ve shown, you can quickly and easily transform your smartphone into a versatile desktop PC! Even though this solution won’t totally replace the desktop experience, it’s an option worth checking out when the situation presents itself. If you’re on-the-go and really need to get some serious work done, you can even get yourself acquainted with a mobile setup that you can get up and running in a jiffy. Take a Bluetooth keyboard and mouse, along with one of those portable external displays, and you can basically get your desktop setup situated just about anywhere!

    All we’re trying to say here is that today’s smartphones are more advanced than ever before. The beauty in all of this is the heightened level of productivity that can now be achieved by our smartphones. We’re limited in our engagement when using the smartphone by itself, but with the addition of these peripherals and accessories to help them transform into desktop-like experiences, we can do even more in the same amount of time.

  • US FCC’s 24-GHz auction passes $1.5b in bids

    US FCC’s 24-GHz auction passes $1.5b in bids

    Round 29 of the US FCC’s 24-GHz auction closed Wednesday with $1,592,755,155 in gross proceeds, with the nation’s biggest cities garnering millions of dollars in bids. New York topped $41 million and Los Angeles tallied over $31 million.

    It’s the little town of Van Horn, Texas, that’s setting the record so far for price per MHz-POP, at just over 10 cents as of the end of Wednesday.

    But wait a minute. Van Horn, a town with a population of just over 2,000, is about 118 miles northwest of El Paso—seemingly in the middle of nowhere if you’re not from there. Its total price as a market so far is just $63,000. So, what gives?

    What’s happening is bidders appear to be moving into some of these smaller markets in parts of western Texas and Iowa to “park” (i.e., maintain) their eligibility even while reducing exposure in top markets that are increasingly expensive, according to Sasha Javid, COO at The Spectrum Consortium. He told  that “maintaining eligibility is important as carriers seek to optimize their portfolio of licenses nationwide.” Javid is tracking each round of the auction on his website and sending daily updates via email.

    The strategy is perfectly legal and just a part the auction process. “It’s just a cheap place to maintain a little bit more eligibility,” Javid told.

    Much of the auction process is secretive—there are anti-collusion rules and bidders can’t talk to one another, for example. The FCC isn’t releasing the names of the winners of the 28-GHz or 24-GHz auctions until both are concluded. But as a data analyst, Javid can glean some insights into the trends he’s observing.

    The 24-GHz auction kicked off on March 14 and unlike its predecessor, the 28-GHz auction, it includes many more markets, both big and small. Much of the 28-GHz spectrum was already controlled by Verizon before that auction even launched last year; it ended up raising just $700 million.

    Auction 102 is following the “clock phase” format, which enables participants to bid on between six or seven 100 MHz generic blocks within the FCC’s designated Partial Economic Areas (PEAs) across the country, in a series of successive bids. The 28-GHz used a standard multiple round format.

    However, Javid, a former chief data officer to the FCC’s Incentive Auction Task Force, said he still believes that using Auction 101 for a price per MHz-POP comparison is fair even as total proceeds in Auction 102 appear to be flattening over the past few rounds.

    “This would have Auction 102 close at roughly $2.5 billion,” he said. “From a timing perspective, we are probably talking another 2 weeks and up to a month should bidding prove to be more robust than expected or if a few products remain contested. It is safe to say, however, that Auction 102 will have a far shorter ‘long-tail’ than Auction 101,” which was not a clock auction.

    Under these assumptions and assuming a relatively straightforward assignment round, “we are likely looking at mid-May to June for an end to the quiet period,” he said.

    All of this is prefaced by the fact that it’s very difficult to predict exactly how any auction turns out. It depends on a lot of things, like carrier budgets and the intensity of competition over the most coveted products. Even the auction design can affect the results. “It’s a guess,” he said. One fact that Javid said is clear is that “nationwide bidders want more than 2 contiguous 100 MHz blocks.”

    All this is happening as the FCC gears up for yet another millimeter wave auction later this year. At its April 12 meeting, the commission will consider teeing up the upper 37-GHz, 39-GHz, and 47-GHz spectrum bands, making it the third major spectrum auction to take place in 2019.