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Verizon’s Turn for Smartphone Spotlight with BlackBerry Storm Launch
21 Nov, 2008
While it won’t match iPhone 3G mania, it’s Verizon’s turn for the smartphone launch spotlight with the pending launch of the BlackBerry Storm. AT&T is still riding the iPhone wave and even T-Mobile had their five seconds of smartphone fame with the G1 launch. Now it’s Verizon’s turn. They’ve been prepping the market for the past few weeks with an “anticipatory” marketing campaign. Early reviews have been mixed. The “sure type” feature, where the touch screen gives you a touch or click sensation, looks like it’s going to be a love or hate relationship. There have been leaked stories about shortages at Verizon stores for the November 21st launch . Makes you wonder if that’s all part of the hype machine.
Give Verizon their due. They’ve met the iPhone challenge head on, and really haven’t blinked. If the Storm is a hit, it may help them steal AT&T’s current fire. And it won’t have to match iPhone sales – won’t even have to come close. They’re already just a hair behind AT&T in terms of net new subscriber adds – without a smartphone hit. If the Storm catches any fire, it should put them over the top.
Discounted Google Phone Headed to WalMart?
27 Oct, 2008Looks like WalMart can’t get enough of telecom. The latest word/rumor is the G1, Google’s mobile phone, which is currently exclusive to T-Mobile’s network, will be sold at WalMart stores across the country. Rumor has it that WalMart will sell the device at a discount over comparable pricing at T-Mobile stores. All of this rumor is courtesy of Engadget Mobile, who cites an anonymous source. Engadget reports the G1 will be sold, beginning in November, for $148.88 on a two-year contract, which is about $31 less than retail pricing found at T-Mobile.
T-Mobile Ramping Up 3G for G1 Launch
19 Oct, 2008
T-Mobile announced an aggressive continuation of its 3G buildout, with 120 markets expected to be lit by late November. With 3G market additions in Sacramento, CA, Memphis, TN, and Tampa, FL, T-Mobile says it currently covers 92 markets. T-Mobile has some catching up to do, with their competitors having a significant 3G lead in markets and subscribers served. They have raised the stakes for themselves with the pending introduction of the Google co-branded G1 phone. Poor 3G coverage could prove to be disastrous for T-Mobile if word gets around that the G1 experience is lacking a credible 3G feel. That could drive lucrative 3G customers into the willing hands of AT&T and its iPhone.
Verizon Hopes to Rain on iPhone Parade with its Own Storm
08 Oct, 2008
Verizon is priming the pump with announcements about the upcoming BlackBerry Storm, their latest attempt to counter the iPhone craze. They have good reason to do so. Some recent research suggests that close to half of AT&T’s new iPhone subscribers in recent months came to them from Verizon Wireless. The Storm is RIM’s first touchscreen BlackBerry smartphone. No firm release date has been announced, but Verizon says the Storm will be out for the holiday season and will be “aggressively priced.” That means somewhere between $150 - $200. The other marquee touchscreen smartphones, including the G1, iPhone, and Instinct are in that range.
Some unique features of the Storm include a tactile touchscreen, compatibility with iTunes, and dual CDMA and GSM modes. The tactile touchscreen gives the user a subtle signal when touched. The dual mode functionality takes aim at probably the iPhone’s biggest weakness right now – being exclusively tethered to AT&T. Although, practically speaking, the Storm will be exclusive to Verizon Wireless for a while. And while the Storm is a smartphone that will appeal to BlackBerry’s entrenched enterprise user base, RIM and Verizon will aggressively target consumers in the hopes of slowing down the iPhone’s momentum with that larger market segment. First quarter 2009 will be an interesting one to watch because it will be the first full quarter for the smartphone competitive battle between Apple/AT&T, Google/T-Mobile, and RIM/Verizon.
Google Phone Accelerates Mobile Internet Future
24 Sep, 2008
The Google phone, or G1, is here and it’s certain to have the industry buzzing for the next few days and weeks. The $179 mobile Internet device (MID) goes on sale through T-mobile October 22nd, and aims to improve on the mobile Internet groundwork laid by Apple’s iPhone. It’s interesting how both these devices hang on to the term "phone," when the reality is the phone portion takes a back seat to the MID functionality that dominates them. Using the term phone is a great exercise in consumer relativity – everyone understands and relates to the term phone, but few people buy either device because it’s a phone. They will buy the G1 because it puts the Internet in their pocket, and Google is the defacto Internet guide. The G1 has all the standard smartphone features including Wi-Fi and Bluetooth connectivity, a 3 megapixel camera, QWERTY keyboard, touchscreen, GPS, email compatibility, and mobile browser functionality.
The G1 aims to beat the iPhone with openness – meaning one goal of Android’s open source mobile operating system is to unleash uncontrolled development. Google hopes to beat the iPhone Apps store by unleashing developers around the globe to do with Android whatever they please, unlike the very controlled Apple iPhone operating ecosystem. Google also hopes to meet Apple head on with Amazon’s help, by preloading Amazon’s music service to the G1. Amazon’s approach to music is analogous to Android’s approach to an operating system – openness. Amazon’s music service is virtually DRM free, giving users many more options with their music library than iTunes does. This approach allows consumers to take their Amazon downloaded tracks and play them on multiple devices, including an iPod.
T-mobile obviously wants to leverage the G1 in much the same way AT&T has done with the iPhone. They’ve announced some very aggressive data pricing plans, starting at just $25/month, and $35/month for unlimited data service. Combined with a T-mobile voice plan, customers can get a voice plan with unlimited data for $55/month, compared with $70/month for a comparable iPhone plan. "The idea is driving mass adoption of the mobile Web in the U.S.," Tom Harlin, T-Mobile USA's senior manager for public relations told Light Reading's Unstrung. The iPhone kicked off bringing the mobile Internet experience to the mainstream, and the G1 hopes to carry the torch even further. Now only if T-mobile can get their 3G network working beyond just a handful of markets.
cWatch
Competitive Watch - we watch the industry so you don't have to. cWatch lists the latest new competitive telecom offerings, providing you first hand knowledge of who is doing what. Check back regularly to gain competitive intelligence, ideas, and analysis. Give us your opinion - what is the impact of these new service offerings?
- Comcast Brings Wideband to the Northwest
- Muni-Wireless Not Dead Yet
- Is Three Screen Convergence a Pipe Dream?
- Verizon Joins CDN Movement
- iPhone 3G Coming to WalMart
- Verizon Business Teams With Nortel for Managed Telepresence Service
- Verizon’s Turn for Smartphone Spotlight with BlackBerry Storm Launch
- TiVo Adds Domino's Pizza to its Menu
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Should Telephone Service be Free?
12 Oct, 2008
Comcast announced a new promotion last week that offers 12 months of free basic cable service for new customers who also sign up for an additional service. Customers who don’t want an additional service can get Comcast’s basic service of about 20 -30 channels for $10/month. The promotion is tied to the digital TV transition of February 2009 and entices potential customers to avoid the transition “hassle” by getting “free” cable service. “The simple fact is that basic cable is the easiest path through the digital transition and now consumers can get it for free,” said Derek Harrar, General Manager and Senior Vice President, Video Services for Comcast in a company statement. This move is similar to strategies pursued by other video service providers, who are hoping to leverage the digital TV transition for new subscriber additions.
But is this strategy a leading indicator for the future? Should basic core services like basic cable and basic telephone service be offered for free, used as a “carrot” to entice customers to buy “more important” services like broadband? Maybe a very basic phone service, with no LD, access to landline 911, and maybe outgoing service only (to avoid telemarketers) should be a free component of a bundled offering. Such a wireline service may appeal to a customer who previously cut the cord for wireless only, but also needs broadband. There is a growing portion of the population who find the value of traditional wireline phone service elsewhere – either through wireless or broadband/IP services. But, if they could get the security of landline 911, and an extra dial tone in their home as a free value add for subscribing to broadband (or video from a telco’s perspective), maybe a telco’s bundled offering may look more attractive than a comparable cable offering. I realize this idea is not appealing to the hundreds of ILECs who are a part of the current access/settlement system (in fact, it couldn’t work in the context of today’s regulatory structure), but I wonder whether it’s inevitable. In this possible future scenario, the current settlement system adapts to broadband as the underlying service, as opposed to voice.
This scenario cuts both ways. From a cable company’s perspective, a growing portion of the population is turning to the Internet as a source for their video content, and no longer see value in paying for a broad package of video as a part of a traditional subscription pay-TV service. But, if they could receive basic TV (which includes local broadcast affiliates) as a free value add for buying broadband, maybe the cable bundle is more attractive. In a true IP/broadband world, very basic phone and video service is relatively easy to deliver, and has little impact on bandwidth and network performance. Maybe the digital transition is opening the door to a future where free basic services are a regular component of a bundled offering. Thoughts?

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