News Scan: Mobile ad spending to reach $13B; Globalstar to broaden satellite's appeal;
>> Gartner: mobile advertising spending to reach $13 billion this year
Global mobile advertising spending is forecast by Gartner to reach $18 billion this year, up from around $13 billion last year, according to a report by TechCrunch. Gartner expects the mobile advertising market to reach $42 billion by 2017. The research firm says the market will be spurred by provider consolidation, measurement standardization and new targeting technologies. Video mobile ads will see the highest growth rate, while display formats will generate the most revenue. Read more on the Gartner report.
[More on mobile advertising: Tablets will become increasingly important in-app mobile ad platform | Mobile advertising hot bed of M&A, investment activity]
>> Globalstar's bid to broaden satellite telephony's appeal
Satellite telephony provider Globalstar says it is offering a pre-paid phone service at a rate of 65 cents per minute. Until recently, satellite telephony has been too expensive for most users, confining its use to niche markets where a cellular network is not available and customers could afford the high price of handsets and service, such as oil and gas workers on offshore rigs or organizations with remote workers. With the lower price, Globalstar is hoping to open up satellite telephony to a broader market. Read more on Globalstar's pricing plan.
[More on satellite communications: When lives are at stake, proceed cautiously | Satellite providers Inmarsat, ORBCOMM team on M2M alliance]
>>SoftBank, Deutsche Telekom hammer out T-Mobile deal
Japan's SoftBank, which acquired Sprint last year, is talking directly with Deutsche Telekom to buy the Germany carrier's 67 percent stake in T-Mobile, according to a report by Bloomberg, citing sources familiar with the talks. Deutsche Telekom reportedly wants an all cash offer for T-Mobile, which has a current market value of around $26 billion, according to the report. SoftBank is trying to raise $20 billion from a number of banks. Should SoftBank succeed in buying T-Mobile, it would combine T-Mobile with Sprint, forming a potent mobile challenger to AT&T Inc. and Verizon in the U.S. market. Read more on the T-Mobile talks.
>> AT&T opposes FCC on disaster recovery plan
AT&T Inc. has come out against a Federal Communications Commission proposal to measure how well wireless networks provide service during emergencies and disasters, according to a report by Wireless Week. The FCC proposal would quantify the percentage of network sites in each county that are operating during and after an emergency and publish a score for each carrier as a way to spur them into improving their network resilience. AT&T argues that the proposal is "well intended" but ultimately "unnecessary, counter-productive and potentially harmful." Read more on the AT&T's opposition to the FCC plan.
>> B2B marketers to up mobile ad investment this year
Nearly half of business-to-business marketers say that mobile advertising is extremely important to their organization, and 42.8 percent say they will increase their investment in mobile advertising this year, according to a survey by Advertising Age cited by eMarketer. However, only 38.6 percent say that they currently use mobile in their advertising strategy. Of those respondents who said they use mobile, close to half use mobile apps, the survey finds. Read more on B2B marketer's plans.
[More on mobile advertising: Retailers beef up mobile ad spend | Australia's mobile ad market to reach $682 million in 2018, says Frost]