Top stories N51

Market consolidation: Qwest started first to talk with MCI on merger deal, but Verizon remained close.  While Qwest and MCI have overlapping businesses, a Verizon/ MCI proposition looks more complementary for analysts. In addition, Verizon financial power is out of reach for Qwest, which will be limited to upgrade its current offer. So analysts and press are considering highly probable a Verizon victory in coming days. But it isn't the first time the two have engaged merger talks.   Wait and see!!

3G pricing strategies:  Flat rate pricing (or unlimited access) was the strategy to attract high-value business customers. The main advantage of the solution is simplicity in billing and financial planning, so most operators adopted it (KDDI, DoCoMo, Verizon, …), following fixed broadband and cable TV operators. But if massive demand for bandwidth increases (for new services -internet and video- even driven by only a fraction of users), production costs will increase too. A threshold will occur where capped fees will not recoup costs. Flat rate does appear to be effort minimizing rather than profit maximizing for a company. So, more and more mobile operators are searching alternative pricing strategies. Several alternatives are explored. KDDI is moving to a tiered pricing strategy to account for different levels of usage. 3 in Europe is offering a similar approach with thresholds, according to the used services. Vodafone is charging on a per-use basis, and Verizon has introduced download fees for specific services.

HP CEO Carly Fiorina has resigned, stepping down as chairwoman and CEO of the company at the board's request. During her term, Compaq purchase was widely contested internally, and internal clash of interests have led to mixed results.  Analysts believe the company needs a new direction and changes to strategy, not just a change in execution. Carly Fiorina left with a $21m worth of severance.