Perhaps, like me, you've never really understood the curious ban some airflights and airlines have had on mobile and electronic devices during flights, take-offs, and landings. Perhaps, like our Jefe, Mike Masnick, you've dismissed the requests from flight attendants that those devices be fully powered down out of hand, because you too are a rebel the likes for which this world is wholly unprepared. And maybe you too cheered when the FAA summarily dismissed these silly rules way back in 2013, thinking that the madness of a few moments without our favorite devices had finally come to an end.
But then, as you may know, the Association of Flight Attendants sued the FAA in order to retain the ability to lord over your smart-phones, tablets, and computers on flights. Notably, the AFA's filing made essentially zero claims having anything to do with the safety of electronic devices on the flights. Instead, their argument centered on whether the power to decide whether flight attendants could treat passengers like children who hadn't finished their vegetables resided with the FAA, or if the AFA should have some input.
In this case, it really does not matter whether Notice N8900.240 is viewed as a policy statement or an interpretive rule. The main point here is that the Notice is not a legislative rule carrying “the force and effect of law.” Perez, 135 S. Ct. at 1204. A legislative rule “modifies or adds to a legal norm based on the agency’s own authority” flowing from a congressional delegation to engage in supplementary lawmaking. Syncor, 127 F.3d at 95.
That's court-speak for "nice try, now go away." Of course the FAA can make changes to flight rules as it pleases and, when it comes to the use of devices the ban for which has always been cast in the light of flight-safety, an association for flight attendants ought to have about as much input as a doctor's receptionist should have on medical policy. This tantrum of a suit, which is all it ever was, has been dismissed and we are finally free to play Angry Birds during takeoff. Free at last, free at last.
More seriously, it's somewhat nice to see some aspect of security theater being done away with regarding anything to do with airplanes and flights. If we could just take this same tact with the rest of airport security, we'd be making a world of improvements.
We've noted how AT&T and Verizon investors and executives have been terrified for some time that they would have to (gasp) compete on price as T-Mobile continues to disrupt the market with its consumer-friendly, faux-punk rock behavior. Ever since the AT&T deal was blocked by regulators, T-Mobile has been mercilessly (but entertainingly) mocking both companies, offering a bevy of promotions while eliminating a lot of "pain points" for consumers (like overage fees). It's working: T-Mobile's now signing up more subscribers each quarter than Sprint, AT&T or Verizon -- just by treating consumers well.
So far, outside of a few very time-limited promotions, Verizon's been unwilling to compete on price, insisting the company's high prices are justified by a "premium network experience." Verizon also recently tried to shoot down the appeal of T-Mobile's unlimited data offerings by insisting that nobody really wants unlimited data plans, they're just being driven by "gut feelings." With T-Mobile just having one of its most successful quarters ever, Verizon's increasingly under pressure to compete on price, yet the telco continues to proclaim it doesn't have to:
The company reported on Tuesday that it had lost 138,000 postpaid customers in the last three months. Francis Shammo, Verizon’s chief financial officer, apparently won't be missing customers who, he says, value price over quality. "If the customer who is just price-sensitive and does not care about the quality of the network—or is sufficient with just paying a lower price—that’s probably the customer we’re not going to be able to keep," he said in the company’s quarterly earnings call."
It shows you just what kind of competition Verizon's historically used to if the company honestly believes you have a choice of when you get to compete on price. And while the company is busy telling investors that it's not feeling any heat from T-Mobile, the growing, magenta-hued (TM) threat has Verizon simultaneously testing a number of new price promotions it hopes will help tip the subscriber scales back in its favor. Smelling blood, T-Mobile this week launched a new promotion that specifically takes aim at these "price sensitive" customers Verizon apparently doesn't want any more:
Of course Verizon's not entirely wrong. The company does come in first place pretty consistently in most customer service and network performance studies. Verizon's also well aware it enjoys an 80+% retail market share with AT&T, and an 85% market share of the special access (cell tower backhaul) market. The two companies also enjoy an estimated $171 billion in combined spectrum holdings, which certainly helps keep other competitors from market. Still, this belief that the company doesn't have to compete on price in the face of increased price competition seems like a pipe dream narrative they'll only be able to push for so long, especially if Sprint can manage to get out of its own way, fix its lagging network, and become a viable fourth wireless competitor.
Back when AT&T stopped offering unlimited wireless data, it grandfathered many of the unlimited users it had at the time. Unfortunately for those users, AT&T immediately started waging a quiet war on these customers as part of a concerted effort to drive them like cattle to more expensive plans. That included at one point blocking Facetime from working at all unless users switched to metered plans (but net neutrality is a "solution in search of a problem," am I right?) and throttling these "unlimited" LTE users after they'd consumed as little as three gigabytes of data.
Then, just about a year ago, the FCC (like it has on a number of consumer telecom issues like telco accounting fraud or municipal broadband) miraculously awoke from a deep, fifteen-year slumber and decided to do something about this kind of behavior. FCC boss Tom Wheeler started warning telcos that they can't use congestion as a bogeyman to justify cash grabs, and that network management should be used to actually manage network congestion -- not as a weapon to herd users to more expensive options. The FTC also filed suit against AT&T for false advertising over its "unlimited" claims.
"As a result of the AT&T network management process, customers on a 3G or 4G smartphone with an unlimited data plan who have exceeded 3 gigabytes of data in a billing period may experience reduced speeds when using data services at times and in areas that are experiencing network congestion. Customers on a 4G LTE smartphone will experience reduced speeds once their usage in a billing cycle exceeds 5 gigabytes of data. All such customers can still use unlimited data without incurring overage charges, and their speeds will be restored with the start of the next billing cycle."
As of this week, the policy now looks like this:
"As a result of AT&T’s network management process, customers on a 3G or 4G smartphone or on a 4G LTE smartphone with an unlimited data plan who have exceeded 3 gigabytes (3G/4G) or 5 gigabytes (4G LTE) of data in a billing period may experience reduced speeds when using data services at times and in areas that are experiencing network congestion. All such customers can still use unlimited data without incurring overage charges, and their speeds will be restored with the start of the next billing cycle."
In other words, gone are the references to throttling unlimited LTE users just because they hit a totally arbitrary threshold, and the company is now using network management to manage the damn network, not to make an extra buck. AT&T will of course find other, clever ways to annoy these users until they switch to more expensive plans, but it's at least good to see that the network congestion bogeyman (fear the exaflood!) isn't quite as effective as it used to be when it comes to justifying high rates, misleading consumers or conning regulators.
from the when-smart-devices-get-a-little-TOO-smart dept
We've long talked about how companies are only just starting to figure out the litany of ways they can profit from your cell location, GPS and other collected data, with marketers, city planners, insurance companies and countless other groups and individuals now lining up to throw their money at cell carriers, auto makers or networking gear vendors. For just as long we've been told that users don't need to worry about the privacy and security of these efforts, and we definitely don't need new, modernized rules governing how this data is being collected, protected, or used, because, well, trust.
Automakers (and the cellular carriers that control the on-board infotainment systems) for example are collecting and sharing an ocean of data with only a casual glimpse toward security and transparency. No worry, however, as they promise that they're totally thinking about consumers as they use this data for a litany of new, utterly non-transparent purposes you hadn't even thought about. Like your automaker taking your car's GPS and performance data and selling it to insurance companies to potentially impact your insurance rates.
"Daniel Björkegren, an economist at Brown University in Providence, Rhode Island, is working with EFL to predict whether someone will pay back a loan based on their cellphone data. He combed through the phone records of 3000 people who had borrowed from a bank in Haiti, looking at when calls were made, how long they lasted and how much money people spent on their phones.
The algorithm looks at this metadata to get a sense of a person's character. Do they promptly return missed calls and pay their phone bills? That suggests they might be more responsible. Are most of their calls made in an area far away from the bank branch? Then it may be hard for the bank to keep tabs on their whereabouts.
Björkegren found that the bank could have reduced defaults by 43 per cent by using the algorithm to pick better people to give loans to. The results were presented at the NetMob conference in Cambridge, Massachusetts, earlier this month."
It's worth noting that despite the collected data being anonymized, researchers were able to identify people 90% of the time with just 4 pieces of information. That's yet another example of how anonymous data isn't really anonymous, and if the data gets into the wild -- the fact that it has been "anonymized" doesn't really mean all that much. And with the security on everything from "smart" TVs to home IOT devices usually being relatively flimsy, there's going to be an awful lot of new data on you out there floating around the ether to include in analysis.
And while such a system might be great for the banks, it's probably not so great for you if you didn't want your cell data used in this way. And as the article notes, should you protect your privacy and opt out of your cell data being used in tangential business relationships, customers in the not-so-distant future might find themselves labeled as "suspicious" by companies -- simply for not being in a sharing mood.
Having written about the FCC for most of my adult life, I've grown cynically accustomed to an agency that pays empty lip service to things like consumer welfare and the painful lack of broadband competition. It doesn't matter which party is in power; the FCC has, by and large, spent the lion's share of an entire generation ignoring last mile competitive problems and the resulting symptoms of that greater disease. When the agency could be bothered to actually address these issues, the policies were so tainted by the fear of upsetting campaign contributors (read: regulatory capture) they were often worse than doing nothing at all (see our $300 million broadband map that hallucinates speeds and ignores prices or 2010's loophole-filled net neutrality rules co-crafted by Verizon and Google).
Whether it was former FCC boss turned cable lobbyist Michael Powell's claims that massively deregulating the sector would magically result in telecom Utopia (tip: that didn't happen) or Julius Genachowski being utterly terrified of taking any meaningful stand whatsoever, the broadband industry has spent decades governed by an agency that, at its best, is too timid to do its job, and, at its worst, is an obvious revolving-door lap dog to an industry it's supposed to regulate.
So in 2013 when it was announced that a former lobbyist for both the wireless and cable industries would be the next FCC boss, the collective, audible sighs of disgust unsurprisingly rattled the Internet. I, like many others, believed we were bearing witness to a twisted culmination of decades of regulatory capture, a giant, living, breathing middle finger to a public hungry for a more consumer and innovator-friendly FCC. John Oliver even put Wheeler's name in lights when he infamously compared hiring the former cable lobbyist to employing a dingo as a babysitter:
Most people (with a few notable industry exceptions) believed Wheeler was the final nail in a grotesque, campaign-cash stuffed telecom coffin long under construction. We were painfully, ridiculously wrong.
In fact, if you read profiles on Wheeler, he's turned out to be a complete 180 from the thinking of a traditional revolving-door regulator, basing his decisions on all available information -- even if that data conflicts with previously-held beliefs (a unique alien indeed in 2015). And while it's true that massive grass roots advocacy helped shift Wheeler's thinking on issues like Title II, his embrace of issues like municipal broadband required little to no shoving, since the lion's share of the public had no idea the issue existed. One of the biggest reasons Wheeler's willing to stand up to the broadband industry? He's 69, and no longer biting his tongue and biding his time for the next cushy lobbyist or think tank gig. Perhaps we should make a rule that all future FCC bosses must be on the brink of retirement to avoid what we'll henceforth call Michael Powell syndrome.
Still, watching Wheeler fills me with cognitive dissonance, as if my frequently-disappointed brain isn't quite sure what to do with an FCC Commissioner capable of objective thought free of AT&T, Comcast and Verizon lobbyist detritus. As a sure sign of the looming apocalypse, last week I watched an FCC Commissioner issue a statement about protecting competition -- and actually mean it:
"Comcast and Time Warner Cable’s decision to end Comcast’s proposed acquisition of Time Warner Cable is in the best interests of consumers. The proposed transaction would have created a company with the most broadband and video subscribers in the nation alongside the ownership of significant programming interests. Today, an online video market is emerging that offers new business models and greater consumer choice. The proposed merger would have posed an unacceptable risk to competition and innovation especially given the growing importance of high-speed broadband to online video and innovative new services."
Though his tenure's unfinished, it may not be a stretch to say that a man most of us believed would be the epitome of revolving door dysfunction has proven to be one of the most consumer- and startup-friendly FCC Commissioners in the agency's history. Granted that may not be saying much; caring more about consumers than Martin, Powell and Genachowski is like getting an award for beating a handful of lobotomized ducklings at a hundred yard dash. And none of this is to classify Wheeler as a saint -- the agency's net neutrality rules have some very concerning loopholes and the FCC still refuses to talk much about pricing, whether that's the problems inherent in usage caps, unreliable meters, or sneaky below the line fees.
Still, it's a lesson learned in letting your mind run on cynicism autopilot, and it's a reminder that even our very broken, campaign-cashed soaked government can still occasionally manage to give birth to consumer-friendly policies. So in short, the tl;dr version is this: I apologize to you, Tom Wheeler, for believing you were a mindless cable shill. I was wrong.
As you might have read, the American Legislative Exchange Council (ALEC) has been losing some major clients lately, including Google, T-Mobile and Microsoft. Those companies have been quietly distancing themselves from ALEC, after critics have illustrated its ties to legislative assaults on climate change science and meaningful pollution standards. Before Google announced it was leaving the group last fall, chairman Eric Schmidt went so far as to accuse the legislative grist mill of "literally lying" about its role in climate change denial. In a response letter to Google, ALEC proclaimed Google's departure was "based on misinformation from climate activists who intentionally confuse free market policy perspectives for climate change denial."
Apparently climate change isn't the only sensitive topic for ALEC as the outfit tries to stem the flow of client departures. The group has also been sending cease and desist letters to companies like wirelesss MVNO Credo Mobile, which in recent months has been sending its subscribers missives hammering ALEC for its role in fighting community broadband. The small company markets itself as having an activist, pro-consumer edge, and has scored exceptionally well on the EFF's privacy report card.
Credo's been busy pointing out to its subscribers how ALEC's model legislation, clearly visible on ALEC's website, has been used as the framework for roughly twenty state-level protectionist broadband bills nationwide. As we've frequently discussed, these bills are the worst sort of protectionist dreck, shoveled into the legislative bloodstream by the likes of AT&T, Comcast, Time Warner Cable and CenturyLink to protect its duopoly power from communities desperate for something better. Credo frames ALEC's participation in these efforts this way in a recent notice to subscribers:
"The American Legislative Exchange Council—a shadowy corporate front group that works to enact discriminatory voter ID laws, weaken gun safety laws and eliminate environmental regulations—is now pressuring state legislatures around the country to ban cities from offering broadband Internet access. ALEC is pushing its anti-municipal broadband agenda through model legislation it has developed, which one municipal broadband advocate described as “the kind of language one would expect to see if the goal is to protect politically powerful cable and telephone company monopolies.”
Many perennial funders and members of ALEC, including AT&T, Verizon, Comcast and Time Warner [Cable], stand to gain financially from these state laws because they eliminate the possibility of competition from city-run broadband services."
In its cease and desist letter to Credo, ALEC first proclaims it's a respected think tank, not a lobbying apparatus. It also insists it doesn't "block" municipal broadband, the group simply advocates encumbering towns and cities with "certain steps," should they be interested in building their own broadband:
"We demand that you cease making inaccurate statements regarding ALEC, and immediately remove all false or misleading material from the Working Assets and Credo Action or related websites and action pages within five business days," the letter, dated March 5, reads. "Should you not do so, and/or continue to publish any defamatory statements, we will consider any and all necessary legal action to protect ALEC."
ALEC contends that it does not oppose city broadband but only advocates that certain "steps" be required before a municipality can provide telecom services. Additionally, ALEC takes issue with Credo labeling it as an organization that lobbies state legislatures at all, arguing that it is merely a "think-tank for state-based public policy issues and potential solutions."
How exactly can you claim you don't oppose municipal broadband when you've played a starring role in opposing municipal broadband? Because many of the bills ALEC helps pass don't technically "block" municipal broadband. They are however usually saddled with language by ISP lawyers that effectively does the same thing. For example most of the bills prohibit communities from getting into the broadband business if their market is "served" by an existing provider. They then go on to define "served" to include satellite and cellular connections, while using extremely generous versions of zip code coverage analysis. Similarly ALEC doesn't lobby to pass these bills directly, their incumbent ISPs client do that.
"Not only does ALEC attempt to influence legislative outcomes, it clearly succeeds in doing so. As recounted in a 2011 Bloomberg News article, ALEC's model legislation on municipal broadband was the principal reason why cable companies were able to block Lafayette, Louisiana from offering high speed Internet access to its citizens (editor's note: Lafayette was ultimately able to offer gigabit connections via LUS Fiber, but only after a protracted legal fight against regional incumbents Cox and BellSouth (now AT&T)).
"Under these circumstances, the language used in the statements you challenge -- "working to make sure it never happens" and "pressuring state legislatures" -- is well within the bounds of political discourse in making the point that ALEC's model legislation and positions have the intent and effect of encouraging enactment of state legislation effectively banning cities from offering broadband Internet access."
It's not entirely clear what ALEC hopes to accomplish here, as its role in both climate change and municipal broadband is pretty clearly established by documentable history, news reports, and the legislative process itself. It's kind of like the town drunk, after months of being videotaped punching clowns in the face, becoming foul-mouthed and indignant at the mere mention of the odd number of clown black eyes around town. In fact the behavior is only bringing additional critical attention to ALEC's longstanding role as an organization that's useful to corporations looking to quietly shovel bad legislation through financially compromised state legislatures with the bare minimum of fuss or actual public debate.
from the these-are-not-the-droids-you're-looking-for dept
As we've made repeatedly clear, consumers really like the ease and simplicity of unlimited data plans. Whether that's on fixed-line or wireless networks, users don't really like having to guess if they'll make it in under the wire this month, and don't particularly enjoy being socked with $15 per gigabyte overages should they stream a few extra songs or watch a YouTube clip. However, when you enjoy the kind of regulatory and market power AT&T and Verizon do, you don't have to give a flying cellular damn what your consumers actually want.
As such, both companies decided to eliminate their unlimited data plans entirely a few years ago, replacing them with shared data plans laden with caps and steep overages. And while both companies did grandfather existing unlimited users, they made life as uncomfortable as possible for those users, whether it was by secretly throttling them after a few gigabytes of usage or restricting their access to specific apps unless they "upgraded" to a shared, metered plan. Meanwhile, competitors T-Mobile and Sprint have tried to differentiate themselves by continuing to offer unlimited data options.
Continuing the proud tradition of telling users what they want instead of giving them what they want, Verizon this week offered up an amusing blog post in which an analyst paints unlimited data plans as a public menace of the highest order. To hear analyst Jack Gold tell it, we should all agree that you can't have unlimited data plans, because they'll obliterate the network and leave us all weeping over our smart devices:
"The quality of connection is important to wireless users, and when connections become slow or disconnections occur due to overcrowding, users become disappointed. Let’s face it, if everyone had unlimited data and used it fully, the performance of the networks would suffer because of bandwidth restrictions and the “shared resource” nature of wireless. The bottom line is: users agree that degrading the networks is something that they don’t want to happen."
If I only had a nickel every time the congestion bogeyman was trotted out to defend anti-competitive pricing and policies. While spectrum is certainly a finite resource, Gold intentionally ignores the fact that offering unlimited data plans doesn't mean idiotically ignoring all network management and letting your network implode. While both Sprint and T-Mobile offer unlimited data, they still implement network management and throttling practices that ensure traffic loads remain relatively balanced and the consumer experience remains consistent.
In other words, most unlimited data plans aren't really unlimited anyway, or users have to pay a steep premium for the privilege of not having to worry about data thresholds. That's because AT&T and Verizon dominate 85% of the special access and cell tower backhaul market, resulting in Sprint and T-Mobile (and most everybody else) having to pay an arm and a leg too. It's all quite by design.
Gold knows this, but it's apparently much more fun to try and argue that unlimited data plans decimate the fabric of the space-time continuum and rip the very axle of the universe from its foundation. Disagree? Verizon's analyst proceeds to imply you're simply being overly emotional:
"So, while unlimited data may sound attractive, there is no practical effect of data limits on the majority of users. Understanding this should bring rationality to a discussion that is often held on a “gut feeling” level. Keeping adequate speed and performance while allowing all users to share the limited commodity we call wireless data is the fair way to deal with wireless connectivity. And ultimately, that is what is beneficial for wireless consumers."
Just so it's clear, it's "rational" to support Verizon's vision of internet pricing, in which you pay some of the highest prices among developed nations, but it's a "gut feeling" should you start to desire a better value plan. It's never quite clear to me who these telecom blog authors actually think they're speaking to. Surely the goal is to influence an overarching policy discussion, but all they generally wind up doing is having their brand mocked mercilessly by news outlets for being painfully out of touch with what consumers actually want.
Back in 2008, Verizon proclaimed that we didn't need additional consumer privacy protections (or opt in requirements, or net neutrality rules) because consumers would keep the company honest. "The extensive oversight provided by literally hundreds of thousands of sophisticated online users would help ensure effective enforcement of good practices and protect consumers," Verizon said at the time. Six years later and Verizon found itself at the heart of a massive privacy scandal after it began covertly injecting unique user-tracking headers into wireless data packets.
The headers not only allow Verizon to ignore browser privacy settings to track online behavior, it allows third parties to do so as well (something Verizon initially denied). Worse, perhaps, while users could opt out of the personalized ads delivered by the system, they couldn't actually opt out of having their online behavior tracked. Initially, Verizon responded to the controversy by repeatedly downplaying it, but as it became clear regulators and lawyers were contemplating action, Verizon stated in February that it would finally let users opt out.
As of last week, Verizon's mobile advertising FAQ now states that users can choose whether they want to let Verizon manipulate their traffic and spy on them:
"Verizon Wireless has updated its systems so that we will stop inserting the UIDH after a customer opts out of the Relevant Mobile Advertising program or activates a line that is ineligible for the advertising program. Government and enterprise lines are examples of ineligible lines. The UIDH will still appear for a short period of time after a customer opts out of the Relevant Mobile Advertising program or activates an ineligible line. If a customer chooses to participate in Verizon Selects, the UIDH will be present even if the customer has also opted out of the RMA program."
Users can either opt out of the company's snoopvertising via the privacy settings at the Verizon website, or by calling 866-211-0874.
So was Verizon right in that the public would keep the company honest? While that did ultimately happen here, it's worth noting that it took the nation's best security researchers two years to even notice that Verizon was embedding the headers. It took Verizon another six months (and a pretty merciless and sustained beating from the media and privacy advocates) before it finally allowed users to opt out of the traffic manipulation. And, while groups like the EFF would prefer the system be opt in, this is likely where Verizon's latest privacy scandal gets put to bed.
It makes you wonder just how long it will take the public to discover Verizon's next great innovation in snoopvertising?
Back in 2010, AT&T eliminated the company's unlimited data plans and began offering users only plans with usage caps and overage fees. While AT&T did "grandfather" existing unlimited wireless users at the time, it has been waging a not-so-subtle war on those users ever since in the attempt to get them to switch to more expensive plans. That has included at one point blocking video services from working unless users switched to metered plans (one of several examples worth remembering the next time someone tells you net neutrality is a "solution in search of a problem").
AT&T also switched some unlimited users to its metered plans without user consent, something the carrier received a whopping $700,000 FCC fine for in 2012. But the telco's primary weapon against these users has been to throttle these users to speeds of 128 to 528 kilobits per second should they use more than a few gigabytes of data in the hopes they'd switch to metered but unthrottled plans. AT&T was sued for the practice by the FTC in October of last year, the agency claiming AT&T violated the FTC Act by changing the terms of customers’ unlimited data plans while those customers were still under contract, and by "failing to adequately disclose the nature of the throttling program to consumers who renewed their unlimited data plans."
As we noted previously, AT&T tried a rather amusing defense to try and tap dance away from the lawsuit. It claimed that because the FCC was now classifying ISPs as common carriers under Title II, the FTC no longer had the authority to police AT&T actions under the FTC Act. In other words, AT&T hates Title II -- except when it allows them to skirt lawsuits for bad behavior. In a twenty-three page ruling (pdf), Judge Edward Chen says the law is "unambiguously clear" that only AT&T wireless voice, not wireless data, was classified as common carrier when the lawsuit was filed last fall:
"Contrary to what AT&T argues, the common carrier exception applies only where the entity has the status of common carrier and is actually engaging in common carrier activity."
In other words, no, AT&T can't have its cake (claim to loathe Title II with every shred of its being) and eat it too (run to Title II and common carrier protections when it suits it).
Roughly every gamer who grew up in the glorious eighties and who also owns a smart phone has been completely flabbergasted that Nintendo, that icon of our youths, had so steadfastly resisted getting involved in mobile-device gaming unless the hardware had its logo slapped on the back. Add to that the company's drumbeat against emulators on phones and tablets that would allow gamers to play the amazing back-catalog of games-gone-by while simultaneously refusing to release any of those games for those devices themselves and at times it appears that Nintendo hates money. Recently, we even covered Nintendo's odd decision to go the opposite direction and port common smartphone and tablet games to Nintendo handheld hardware. This whole refusal to get with the times has come off as downright crazy.
Nintendo announced today that the company has entered into a "business and capital alliance" with Japanese online giant DeNA. As part of this alliance, the two companies will team up (a press release specifically mentions "joint development") to release "gaming applications for smart devices". These games will use Nintendo IP.
You may be thinking, "Duh, why wouldn't they do this?", but that's the question Nintendo fans have been asking for several years now. The fact is that the gaming giant has completely ignored the very existence of these mobile gaming platforms everyone has these days. Still, developing new games using Nintendo IP for phones and tablets is a nice move, but if it really takes off and it's successful? Perhaps that's when we'll finally see the back catalog of games open up officially.
And, while the wording is a bit vague and Nintendo insists it will continue being in the hardware business, check this Nintendo statement out.
Nintendo and DeNA expect to develop a new core system compatible with a variety of devices including PCs, smartphones and tablets as well as Nintendo's dedicated video game systems, and are to jointly develop a membership service utilizing this system, with a launch targeted for the fall of 2015. The companies expect to further enhance their customer relationships through the membership service.
Nintendo games possibly on the PC? It'd be a bold move, and a massive departure from the Nintendo of the past... and it would be smart as hell. Perhaps the gaming giant of my youth is finally embracing the present, if not the future.