Recs

2

Apple to Aussie Fans: iPad Is Still a 4G Rose

What's in a name? That which we call a rose
By any other name would smell as sweet …
-- "Romeo and Juliet" by William Shakespeare, 1595

Consumers in Australia caught Apple (Nasdaq: AAPL  ) selling the new iPad with 4G branding even though the device actually can't connect to the 4G LTE services there. Complaints and regulatory investigations followed, and the government agrees that Cupertino is misleading the Australian public. Similar scenarios are playing out in other places where the iPad is incompatible with regional 4G LTE networks, such as Sweden and the U.K.

Apple's response? It's all just semantics. In today's National Poetry Month tribute, we're reminded that a rose is a rose is a rose no matter what you call it. The same logic should apply to network speeds.

Wherefore art thou, Apple?
According to court papers filed in Australia, Apple argues that Telstra's 4G LTE services may not work with the iPad but the carrier's HSPA+ network does. That network standard is faster than the networks we typically think of as 3G. Therefore, Apple says, it's perfectly fine to market the iPad as a 4G device.

Purists will fume over this argument, but Apple has plenty of precedent to fall back on. In America, T-Mobile USA insists on marketing its fastest devices, like my own Samsung Galaxy S2, under the 4G moniker although the network is really just a souped-up 3G standard -- the same HSPA+ protocol that Telstra uses.

I'm a fuming purist, of course, but even so, I have to concede that Apple's marketing message is pretty much on point. If consumers think of 4G service as "whatever's faster than 3G," then the Australians have nothing to complain about.

Everybody else is doing it, so why can't Apple and Telstra? Of course, this tactic might backfire if the elegant fruit decides to make a truly compatible iPad or iPhone that would play well with international technology choices, or if Telstra rolls out another LTE frequency that's in the iPad's supported range. What would they call it -- 4G+? 4.5G?

A slippery slope by any other name would feel as slick
The whole marketing circus undermines the value of defining international standards at all. The lines blur faster than Lady Gaga's mascara in a Bangkok monsoon. At some point, a 5G device from France might just be a 4G phone in America or a 6.2G+ in Japan. In a world like that, would you ever feel safe that your phone will work with other networks on overseas vacations or business trips?

A few mobile-service providers have the power to make a difference thanks to their global reach. Vodafone (NYSE: VOD  ) runs mobile networks nearly everywhere you look, including a barely minority interest in Verizon (NYSE: VZ  ) Wireless. France Telecom (NYSE: FTE  ) manages the Orange brand on four continents. Telefonica (NYSE: TEF  ) runs the gamut in South America, touches all the major markets in Europe, and is the only Western company with a foothold in the Chinese market thanks to its stake in China Unicom. These and a handful of other operators with worldwide ambitions could end the naming confusion at the drop of a hat, alone or in concert.

There's no doubt that high-speed smartphone and tablet connections have created a massive market for device builders and network operators alike. Isn't it time to end the confusion before it gets out of hand and starts to damage the business opportunity? Discuss in the comments section below and make sure to add Apple to our My Wathchlist service. It's a free and easy way to keep track of all the latest Apple news and analysis. Get started today!

Jeff Fischer and team have demystified options. And they can rack up income like $1,030... $2,626... and $3,228 on a schedule you can set your watch by!
That's why we're glad to announce every single one of their closely guarded strategies is available to YOU during May and June – 100% FREE, no strings attached! Just enter your email address in the box below...

Fool contributor Anders Bylund owns shares in France Telecom but holds no other position in any of the companies mentioned. Check out Anders' holdings and bio, or follow him on Twitter and Google+. The Motley Fool owns shares of France Telecom and  Apple. Motley Fool newsletter services have recommended buying shares of Apple, France Telecom, and Vodafone Group and creating a bull call spread position in Apple. The Motley Fool has a disclosure policy. We Fools don't all hold the same opinion, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


Read/Post Comments (2) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 20, 2012, at 8:58 PM, Melci wrote:

    You have two choices:

    Either NO carrier supports 4G as defined by the original International Telecommunications Union (ITU) definition because all are running LTE Release 8/9 3.9G which only has a theoretical maximum of 84mbps and fails the minimum of 100mbps requirement of the original ITU 4G definition.

    Or you accept the modified definition of 4G as of Dec 2010 when the ITU accepted LTE 3.9G, WiMax and HSPA+ DC as 4G as defined by next generation speeds.

    The media needs to stop getting all stuck up on technicalities. The consumer on the other hand only cares about the main marketing message of 4G - speed.

    DC HSPA+ achieves 42mbps with real world iPad speeds demonstrated of 20mbps here in Australia on Telstra's network (branded "NextG") equal to real world LTE 3.9G speeds in New York. In contrast, competing WiMax networks such as Vivid Wireless in Australia are advertised with a top speed of only 5mbps.

    So what do you want - the original definition of 4G which means no carrier or manufacturer has a "4G" device, or the modified ITU definition of 4G which includes the current iteration of LTE, WiMax and DC HSPA+ and means that all devices and networks running at these next generation speeds are 4G?

  • Report this Comment On April 20, 2012, at 9:32 PM, TMFZahrim wrote:

    Carriers sold a 2.5G service once upon a time when EDGE was the hot new thing. Shoulda called our current mishmash 3.5G and be done with it, but no. At this point, the correction will have to come later I guess. But first, there has to be some kind of agreement, either negotiated between global service providers or mandated by the standards bodies.

    Anders

Add your comment.

Compare Brokers

Fool Disclosure

DocumentId: 1867507, ~/Articles/ArticleHandler.aspx, 5/24/2013 5:25:46 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 8 hours ago Sponsored by:
DOW 15,294.50 -12.67 -0.08%
S&P 500 1,650.51 -4.84 -0.29%
NASD 3,459.42 -3.88 -0.11%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

5/23/2013 4:00 PM
AAPL $442.14 Up +0.79 +0.18%
Apple CAPS Rating: ****
VZ $51.89 Up +0.42 +0.82%
Verizon Communicat… CAPS Rating: ****
TEF $14.03 Up +0.08 +0.57%
Telefonica S.A. (A… CAPS Rating: *****
FTE $10.46 Down -0.02 -0.19%
France Telecom (AD… CAPS Rating: ****

Advertisement