ZDNet Must Read:
HP vs. Dell: Showdown at the Windows 7 upgrade corral
Here's a tale of two PC titans: HP and Dell. One executes well every quarter. The other doesn't. Both see big PC upgrade cycles ahead. Both are looking to ride... Continued »
Category: Verizon
November 19th, 2009
AT&T launches Verizon counter-punch ad, keeps digging that hole
AT&T may have lost the legal battle with Verizon Wireless over a marketing campaign that compares the 3G coverage of both carriers. But that doesn’t mean AT&T is going away quietly.
The company is airing a commercial of its own, which features actor Luke Wilson inside what appears to be a warehouse, standing in front of an orange magnet board with a checklist that compares AT&T and Verizon. (Techmeme)
When it comes to the fastest 3G network, AT&T wins, Wilson says. If you want to talk and surf at the same time, AT&T wins. Who has the most popular smartphones? AT&T, of course, home of the iPhone. Who provides access to more than 100,000 apps? You guessed it. Then, in the category, he asks which has a name that starts with the letter V.
I’ll give AT&T credit for making the attempt to even the playing field but - and maybe this is just me - the commercial felt sort of low-budget, like something thrown together in haste. Cheap set. Cheap props. Marketing messages in place of statistics. What is it telling me that’s new? I’ve been hearing that “Nation’s fastest 3G network” for some time now. As far as that “talk and surf” feature, I’m assuming that refers to tethering - mostly because Mr. Wilson doesn’t elaborate - but last time I heard, AT&T still wasn’t offering that for the iPhone.
November 18th, 2009
AT&T loses lawsuit over Verizon's map commercial
It was almost a gimme. The lawsuit that AT&T filed over a Verizon commercial that compared the 3G coverage maps for the two providers in the U.S. was such a joke from the beginning, it was hard think that a judge would rule against Verizon. 
Today, a federal judge in Atlanta declined AT&T’s request for a temporary restraining order that would have forced Verizon to pull the ads, according to a CNET report.
AT&T had argued that timing was critical because the holiday season, which is a sales period for mobile devices, was approaching quickly and AT&T felt that the commercials were misleading consumers. At issue was the colors on the maps to represent 3G coverage - the AT&T map had a lot of “blank space’ to represent areas in the U.S. that didn’t have 3G coverage.
AT&T didn’t dispute the accuracy of the maps and, in a court filing earlier this week, Verizon argued that the restraining order be denied because the maps were not factually incorrect. In short, Verizon said the ads were true and that the truth hurts.
Related coverage: Memo to AT&T: When you’re in a hole, stop digging
November 18th, 2009
The Big Question podcast: Handicapping the Verizon vs. AT&T marketing war
In this episode of The Big Question, Jason Hiner, Andrew Nusca and I handicap the entertaining marketing scrum between Verizon and AT&T. Who’s right?
The Big Question is a joint production from ZDNet and TechRepublic.
You can play this 18-minute episode from the Flash-based player at the top of the page or:
Stories discussed in this episode:
- AT&T sues Verizon Wireless, calls map ad “misleading” but doesn’t dispute accuracy (ZDNet)
- Verizon to AT&T: ‘Our ads are true and the truth hurts’ (ZDNet)
- Memo to AT&T: When you’re in a hole, stop digging (ZDNet)
- AT&T: The iPhone’s anchor (ZDNet)
- Verizon Droid: Doesn’t match iPhone, but brings Android out of beta (TechRepublic)
- With Motorola Droid, Verizon puts doubts about Google Android platform to rest (ZDNet)
November 16th, 2009
Verizon to AT&T: "Our ads are true and the truth hurts"
Verizon Wireless responded today to a lawsuit filed by AT&T earlier this month that accused Verizon’s “There’s a map for that” marketing campaign of misleading consumers about AT&T’s 3G coverage in the United States.
In a nutshell, Verizon said AT&T’s request to have the ads pulled is without merit. From the court filing (PDF):
AT&T did not file this lawsuit because Verizon’s “There’s A Map For That” advertisements are untrue; AT&T sued because Verizon’s ads are true and the truth hurts… AT&T now is attempting to silence Verizon’s ads that include maps graphically depicting the geographic reach of AT&T’s 3G network as compared to Verizon’s own 3G network because AT&T does not like the truthful picture painted by that comparison.
In the court filing, Verizon outlines the reasons that AT&T’s arguments are without merit. They include:
- Because the ads are truthful, AT&T is attacking them under faulty theories, including a claim that they are misleading. But Verizon says there’s no real evidence - aside from an AT&T commissioned survey - that proves that consumers are misled by the ad.
- There is no emergency that would require the court to issue an immediate restraining order - as AT&T has requested - without giving Verizon the opportunity to conduct its own research and present evidence to prove that consumers are not being misled.
- The harm to Verizon and the public, in general, caused by pulling the ads is greater than any alleged harm being inflicted on AT&T.
Those are all fine-and-dandy arguments about why the courts should deny AT&T’s motion but the main reason comes back to the headline statement: The ads are true. Period. But regular readers already know my thoughts on this AT&T-Verizon back-and-forth. Instead, I offer one more excerpt from Verizon’s filing that I think sums it up best:
AT&T seeks emergency relief because Verizon’s side-by-side, apples-to-apples comparison of its own 3G coverage with AT&T’s confirms what the marketplace has been saying for months: AT&T failed to invest adequately in the necessary infrastructure to expand its 3G coverage to support its growth in smartphone business, and the usefulness of its service to smartphone users has suffered accordingly. AT&T may not like the message that the ads send, but this Court should reject its efforts to silence the messenger.
I couldn’t have said it better myself.
Related coverage: Memo to AT&T: When you’re in a hole, stop digging
November 13th, 2009
Memo to AT&T: When you're in a hole, stop digging
Somewhere in the telecommunications afterlife, Ma Bell is hiding her face in shame. The company that was once the powerhouse of American communications has been reduced to being more like that crybaby little kid who sits in a corner of the playground pouting because the other kids beat him at his own game.
AT&T has posted on its Web site an open statement to its customers to whine - again - about those Verizon Wireless TV commercials that paint a sad picture of the wireless 3G coverage that AT&T offers in the United States. (see image on right, video below) The statement is really sort of pathetic, an act of desperation that attempts to paint Verizon’s ads as “blatantly false and misleading” even though AT&T has already acknowledged that the ads are not, in fact, false.
We already knew that AT&T considered the ads to be misleading - that was clear in the lawsuit it filed over the ads. But false? AT&T clearly said before that what Verizon is advertising in these maps is not factually incorrect. Let’s repeat that once more for emphasis: what Verizon is advertising in these maps is not factually incorrect.
AT&T’s beef is that the Verizon isn’t comparing all data coverage, only 3G data coverage (though I would counter that with a “Why should Verizon have to make that comparison?”) In its letter to customers, AT&T attempts to clarify the points by breaking out the coverage of its different data offerings. In total, the company’s wireless data coverage reaches 303 million people – or 97% of the U.S. population, it said, with three different types of technology. (Here’s where we start splitting hairs), Those technologies are:
November 5th, 2009
Will business users get onboard with the Verizon Droid? [podcast]
The Verizon Droid launches Nov. 6 amid a lot of hype and anticipation. It’s also being aimed at business users. We discuss how it measures up.
The Big Question is a joint production from ZDNet and TechRepublic. Larry Dignan is on vacation this week, so I have two guests: Bill Detwiler, Head Technology Editor for TechRepublic, and Andrew Nusca, an editor for ZDNet and SmartPlanet.
You can play this 25-minute episode from the Flash-based player at the top of the page or:
Stories discussed in this episode:
- With Motorola Droid, Verizon puts doubts about Google Android platform to rest (ZDNet)
- Verizon Droid: Doesn’t match iPhone, but brings Android out of beta (TechRepublic)
- Five interesting details about the new Verizon Droid smartphone (TechRepublic)
- What’s new in Android 2.0? (ZDNet)
- Can Droid mask iPhone envy? Or will Verizon iPhone rumors keep users guessing? (ZDNet)
- Will Droid do damage to the iPhone’s mojo? (ZDNet)
November 3rd, 2009
AT&T sues Verizon Wireless, calls map ad "misleading" but doesn't dispute accuracy
AT&T has filed a lawsuit against Verizon Wireless over those “There’s a map for that” commercials - but not because AT&T is disputing the accuracy of those 3G coverage maps. (PDF of complaint) Nope, AT&T thinks that consumers are too dumb to differentiate between 3G and non-3G coverage and it wants those maps changed - specifically, the colors. (Techmeme)
The Verizon map is largely covered by red, meant to represent its 3G coverage areas. The AT&T map, by contrast, is sparsely covered by blue - meant to represent its 3G coverage - and has vast sections of the nation covered in white, representing areas without 3G coverage.
AT&T argues that the maps are confusing and that consumers are led to believe that there is no AT&T coverage of any kind in those white areas. From the complaint:
AT&T does not seek to stop Verizon from running its advertisements, nor does it seek to change the words Verizon uses in its advertisements. At this time, AT&T seeks only an order prohibiting Verizon from displaying, in the “Bench” advertisement, or in any other advertisement, a map of AT&T’s “3G” coverage in which AT&T’s non-”3G” coverage areas are depicted by white or blanks space. This limited relief is necessary to prevent consumers from being misled by the maps into believing that AT&T offers no wireless service in large parts of the United States. The Court should enter a temporary restraining order because Verizon should not be permitted to benefit from its misleading use of coverage maps while the Court sets a schedule for a preliminary and permanent injunction hearing, especially in light of the fact that we are approaching the busiest time of year for the purchase of wireless services.
Sure, Verizon could have been more creative with the colors - maybe using light blue for 2G coverage and dark blue for 3G, but why should Verizon go out of its way to advertise AT&T’s 2G coverage when it’s a commercial about 3G coverage? I could see if the commercial were about all of the services - but these commercials clearly show people doing things that need 3G, such as watching streaming video.
The funny part is that AT&T previously complained that a line about customers being “out of touch” and the ad was changed. But the company says it remains misleading.
So what have we learned here, from the filing of this lawsuit? Well, I know I’ve learned that AT&T’s 3G coverage in the U.S. looks a lot worse than I thought it did. I know I would be pretty upset if I were an iPhone owner living in middle America. And it appears that I made the right call when I decided to stay with Verizon Wireless.
You know what confuses me about this lawsuit? No one seems to be disputing the factual part of the ad - the 3G coverage areas. So the only thing AT&T really stands to accomplish with this lawsuit is to raise awareness about the spottiness of its 3G service outside of major metropolitan areas.
October 28th, 2009
Can Droid mask iPhone envy? Or will Verizon iPhone rumors keep users guessing?
I have made no secret of my iPhone envy - or my refusal to switch to AT&T just to own one. I also have been pretty forthcoming about how much I like Google’s Android mobile OS. Seriously, in my opinion, if there’s going to be a real contender for the iPhone, it’s going to be an Android device.
Today, there’s a bunch of excitement surrounding Droid, the Motorola Android phone gearing up for a Nov. 6 release through Verizon Wireless. Just reading Andrew Nusca’s initial look at the Droid, which was previewed at a press event in New York today and has landed in his hands for a review, has made me jealous.
The beauty of all of this is that my contract with Verizon is up, leaving me free to jump ship, get a promo price on a new device or just hang out month-to-month until I’m ready for the next plunge. Suddenly, Droid hits the scene and - just days after being out of contract - I’m suddenly ready to re-up and run out and buy a Droid when it hits the stores.
But wait… What’s this about an iPhone on Verizon?
October 28th, 2009
Five interesting new details about Verizon's Moto Droid
This morning I did a call with Greg Haller, Verizon Wireless president of the midwest region, and he revealed some more information about Verizon’s Moto Droid smartphone. Here are the five most interesting details:
1. Will cost $199, available on Nov. 6
Verizon has set the price of the Droid at $199, the same price as the 16GB iPhone (the 32GB iPhone costs $299). The Droid comes with a 16GB memory card. But the user can pop that out and upgrade to 32GB themselves, if they choose.
2. HTML5 and hi-res Web experience
Droid has an HTML5 Webkit browser, compared to HTML4.1 on the iPhone and the Pre. The Droid features an 854×480 screen — compared to 480×320 on the iPhone — and so the screen will show about twice as many pixels as the iPhone (of course it will be much smaller on the screen). The image below (a slide from Haller’s presentation) shows how much more of a Web page you’ll be able to see on the Droid versus the iPhone.
3. Exchange push support
Verizon officially revealed that the Droid will have built-in support for Microsoft Exchange messaging, including push capability for email, calendars, and contacts. Since it’s still mostly business people that are buying smartphones, this is critical — and it was missing from the G1, the first Android smartphone.
4. Voice-activated search
Another feature that Verizon touted was Google-powered voice search. Haller described the Droid as a “true search monster.” He said, ”One button, talk to the phone and you’ll find what you’re looking for… The voice service works very well.”
5. Verizon isn’t closing the door on the iPhone
Verizon’s ad campaign for Droid has being almost exclusively been aimed at the iPhone (and Halller confirmed that more ads are coming), but that doesn’t mean that the door is closed on the iPhone coming to Verizon. Haller said, “We continue to talk to more manufacturers, including Apple. We’d love to have to the iPhone.”
Other details, based on Haller comments:
- Wi-Fi is included (unlike other high-end Verizon smartphones)
- Verizon won’t load a bunch of its own software on the Droid. ”The only thing we’re going to load on here is visual voicemail.”
- The hi-res screen will do “DVD-quality video”
- Has 550MHz Cortex-8 processor
- It’s an ounce heavier than the iPhone
- Haller called it the “thinnest qwerty slider in the world”
- Verizon does not expect to have any capacity problems like AT&T has seen with the iPhone. ”We’ve literally spent millions of dollars nationwide to increase our capacity,” said Haller. “We’ve put ourselves in a very favorable position for data capacity.”
October 28th, 2009
RIM's second Storm: Not enough to erase memories of the first
I lug around the Research in Motion’s BlackBerry Storm and find it to be a device that can be useful but generally annoys you a little bit every day. The touch screen doesn’t quite work right, the browser is iffy and there are numerous little flaws that bum you out over time. So after checking out a review copy of the Storm 2 I really only had one question: Could the Storm 2 erase the taste the first Storm left in my mouth?
The short answer: No.
I’ve made my decision about the Storm before I took Storm 2 for a spin. There’s little chance that I’ll get a BlackBerry the next go round with Verizon Wireless. I’m all about the latest iteration of the Droid when it comes around. But the second version of the Storm, which is available today, was at least worth a look and I was open to going another round. If RIM hit a home run maybe I’d forget the first flawed version.
Andrew Nusca: With BlackBerry Storm2, RIM wins the battle but loses the smartphone war [review]
Rest assured, RIM improved a lot with the Storm 2. The display is nicer, the virtual keyboard works well and overall it feels snappier (review).
What I liked:
- The keyboard was much better.
- The Wi-Fi option was nice to have.
- Overall, the OS seemed more tuned.
Simply put, if I was new to the Storm the latest incarnation would be a worthwhile device. But here’s the rub with smartphones: You don’t often get a second chance. If the first rollout is flawed you never quite get over the experience. Add it up and the Storm 2 not only faces competition from the iPhone but the bevy of Android devices lining up at Verizon Wireless.
Also: RIM BlackBerry Storm2 coming to Verizon on Oct. 28; $179
Verizon preps fourth quarter device barrage; Droid will ’stimulate demand’
October 26th, 2009
Verizon preps fourth quarter device barrage; Droid will 'stimulate demand'
Verizon delivered a solid third quarter courtesy of its wireless business, which added 1.2 million net customers excluding acquisitions. The company also said it is set up for the fourth quarter with the launch of Research in Motion’s Storm 2 on Wednesday, two Motorola Android devices and 12 other handsets.
However, AT&T added customers at a faster pace in the third quarter on the strength of the iPhone. Verizon is hoping to change that equation via a partnership with Google. John Killian, CFO of Verizon, characterized the company’s wireless performance as strong and said there “are plenty of revenue growth opportunities” ahead. It’s clear Verizon is betting big on Android.
“We think our new device lineup will stimulate demand,” said Killian, on a conference call with analysts. Killian said that the Storm 2 will be available Wednesday and the Droid device “will be groundbreaking.”
Verizon on Monday reported third quarter net income of $2.88 billion, or 41 cents a share, on revenue of $27.3 billion, up 10 percent from a year ago. Non-GAAP earnings were 60 cents a share, a penny better than Wall Street estimates (statement, quarterly presentation).
As usual, the quarter was all about the wireless business. By the numbers:
October 22nd, 2009
CIO Sessions: Verizon Telecom's Shadman Zafar on Internet TV
Shadman Zafar, CIO of Verizon Telecom talks to ZDNet correspondent Sumi Das about the company’s promise to deliver the Internet to television with its new Fios platform. The service will include social media widgets like Facebook and Twitter. Zafar describes the company’s approach to innovating in an economic downturn and where he stands on the net neutrality debate in Washington.
October 15th, 2009
First look: BlackBerry Storm 2 review
CNET’s Bonnie Cha does the walkthrough of Research in Motion’s BlackBerry Storm 2, which aims to fix the flaws of the first version.
Here’s the video:
October 6th, 2009
Verizon-Google changes mobile landscape; Customers have real options again
I had to take a moment to pause and think about this new Google-Verizon chumminess and their common, yet unspoken, quest to go after the Apple-AT&T relationship with the iPhone that includes today’s partnership news and a new ad campaign.
For those who don’t know, I am a Verizon Wireless customer who is currently using a loaner Blackberry Tour. I am also one of the Apple faithful who would rather be using an iPhone but refuses to pay more than $100 a month for the hit-or-miss AT&T service. (But that’s a rant you can read in a previous post.)
What really clouds the issue for me is that I also like Google’s Android mobile OS. I have been carrying around an HTC MyTouch device running pre-paid T-Mobile service for a couple of months now. The service is OK, at best, but the user experience with the software - and the deep integration of Google’s services such as mail, maps and search - is second only to the iPhone (Blackberry has a long way to go, in my opinion).
Yes, I’m a bit torn now - but here’s the good news. I’m torn because I suddenly feel like I have options. Real options.
As my colleague Larry Dignan pointed out in his own post this morning, there has been a trade-off between cutting-edge devices and reliability as a Verizon Wireless customer. (Sorry, the Blackberry Storm didn’t make the cut as a cutting-edge device for me.) Like him, I also stuck by Verizon Wireless and its reliable service over the flashiest new devices. And, in all honesty, I’ve just been holding my breath, waiting for Verizon and Apple to bust out with an iPhone announcement the second that the AT&T-Apple exclusivity deal ends, rumored to be sometime next year.
October 6th, 2009
The Android army: Verizon Wireless, Google ink collaboration pact; Google Voice support on tap
Updated: Verizon Wireless and Google said Tuesday that they will partner to co-develop a bevy of Android-based devices. Verizon Wireless also said that it will tightly integrate its network with Google apps—including Google Voice.
The terms of the deal (Techmeme) weren’t disclosed, but the companies are looking to create innovative devices “pre-loaded with innovative 
applications from both parties as well as third-party developers.” On a conference call, Verizon Wireless CEO Lowell McAdam said the deal will be a boon to mobile customers across the U.S. “Both companies are devoted to bringing the latest applications to third generation and fourth generation networks,” said McAdam, who added that the partnership will enable Google and Verizon to accelerate device development.
Among other notable nuggets from the call:
- Verizon will support Google Voice. McAdam said “the device is either open or it’s not.”
- The Android market will be preloaded on Verizon devices.
- The deal covers phones and netbooks.
- McAdam said new Android devices would be announced shortly with two devices, which were described as the first installment of a multi-year roadmap. There is no hard target for the number of Android devices, but there will be a wide range of them.
- There were some subtle hints about ad revenue, but it’s unclear what the Google-Verizon split is. Safe to say it’s likely favorable to Verizon.
Credit: Cybermen from Dr. Who, BBC.
A tight partnership between Verizon and Google is clearly aimed directly at the AT&T/Apple/iPhone juggernaut. Verizon and Google are forming an Android army designed to tackle a common foe. Android is aiming at the iPhone in terms of applications, usability and the sheer number of devices. And Verizon is looking to hit AT&T in the chops by wrapping itself in network reliability and open devices.
Google CEO Eric Schmidt took aim at AT&T indirectly and did some of McAdam’s bidding. “It’s an absolute fact that Verizon’s network is the best by far,” said Schmidt. “We had known about that reach. We didn’t know that they’d take a lead in openness. This is a network engineering company that makes it work and makes it scale. This is a major milestone in the Android platform. ”
The two parties started talking 18 months ago, executives said.
According to the companies, the aim is to develop unique applications and get them to consumers quickly. The two companies also say they are committed to collaborating for years to come.
For Verizon Wireless, which historically has trailed other carriers with bleeding edge devices, the deal with Google could help it be more of a leader in the buzz department. Meanwhile, a tight partnership with Google should give Verizon Wireless more clout with the developers it is trying to woo.
And for Google the pact with Verizon Wireless means there will be more Android devices in the field.
In the end, this Google-Verizon partnership is really about economies of scale. Google wants to scale Android and mobile search. Verizon wants a developer footprint and cutting edge applications.
My take: It’s a bit hard for me as a Verizon Wireless customer to not be excited a bit about this deal. Typically, there has been a trade-off with Verizon Wireless between cutting edge devices and network reliability. Given the way my phone is used (mostly as a tethered wireless modem) I went with the reliability. Meanwhile, I was seriously leaning toward the Android platform for my next mobile phone, currently a BlackBerry Storm, and checking out the new Motorola devices. As a Verizon customer, the Google partnership is well timed. The proof will be in the execution, but my initial take is positive. Given the joint enemy, Apple/AT&T, it’s in the best interest of both parties to follow through.
Verizon made sure that it said that the Google deal doesn’t mean that it isn’t chummy with other partners. After all, RIM and Verizon are tight. However, you have to wonder whether this Google deal takes any potential iPhone partnership off the table.
More:
- Verizon Wireless to developers: ‘Our success is tied to you’
- Could Apple really dictate iPhone terms to Verizon Wireless?
- It’s official: Google and Apple are competitors (especially in mobile)
- Motorola bullish on Android, Motoblur rollout in 2010
- Cliq builds on iPhone idea, pushes away from smart”phone” category
- Motorola: Android devices get us back in smartphone game
October 5th, 2009
Stay tuned: Google-Verizon Wireless announcement on Tuesday
Google and Verizon Wireless issued an alert tonight for a news conference in the morning, the day before the kickoff of the CTIA Wireless IT & Entertainment show in San Diego. There were no details on the nature of the news but taking a few guesses isn’t too tough.
Update: The Android army: Verizon Wireless, Google ink collaboration pact; Promise ‘innovative applications’
We’ve been expecting news of Google Android phones on the Verizon Wireless network, but I can’t help but think that that a device manufacturer - maybe Motorola or HTC - would be in the mix of that news, too. There’s also been some buzz about a netbook powered by Verizon Wireless but I would expect a Dell or HP type to co-host a press conference, not Google.
I also can’t help but wonder if we’ll see Verizon partner with Google to change the way add-on features and services are treated by Verizon. As developers write popular third-party apps for mobile phones - basically setting the new standard for the way consumers interact with mobile phone programs - the company behind the operating system, not the carrier, seems to be the ones calling the shots these days. That certainly goes counter to Verizon’s VCast strategy.
Of course, all of this is speculation. Google and Verizon Wireless will make us wait until morning for the headlines.
October 5th, 2009
Verizon reshuffles units as operating chief retires
Verizon is reshuffling its units as chief operating officer ahead of the retirement of chief operating officer Dennis Strigl.
Among the moving parts (statement):
- Verizon’s two wireline businesses—Verizon Telecom and Verizon Business—will become one unit Verizon Wireline. The aim will be to optimize performance. Both units are more mature businesses relative to Verizon Wireless.
- Strigl will retire.
- Verizon’s two units—Wireline and Wireless—will report to CEO Ivan Seidenberg.
- Lowell McAdam, CEO of Verizon Wireless, remains in his role, but he gets a new chief operating officer. Daniel Mead, president of Verizon Telecom, will become operating chief of Verizon Wireless. Mead replaces Jack Plating, who is retiring as chief operating officer of Verizon Wireless.
- John Stratton, chief marketing officer for Verizon, is now chief marketing officer for Verizon Wireless and reports to McAdam.
- Fran Shammo, vice president of Verizon Business, is now president of Verizon Wireline.
- Richard Lynch, Verizon CTO, and Shaygan Kheradpir, Verizon chief information officer, now report to Seidenberg.
September 24th, 2009
Report: Verizon says no to Palm Pre
If a report on TheStreet.com is to believed, things just took a turn for the worst for Palm.
TheStreet, citing “people close to the discussions,” is reporting that Verizon has had a change of heart about carrying the Palm Pre, a smartphone that was scheduled to arrive in January. Currently, the Pre is sold exclusively through Sprint - but the carrier’s struggle to compete with powerhouses AT&T and Verizon hasn’t helped Palm sell enough Pre smartphones to make an impression.
The sources also told TheStreet.com that Verizon may order a small number of Pres but offer little marketing of them. Instead, Verizon is focused on new Blackberry products as well as those built on the new Google Android operating system.
For Palm, the news could be devastating. The company said in its last earnings call that it was focusing all of its efforts on the new WebOS, which so far consists of the Pre and smaller Pixi. Part of its growth strategy included bringing its devices to other carriers.
Shares of Palm plummeted in the final minutes of regular trading, shortly after TheStreet’s report was published. Shares closed at $16.16, down nearly 5 percent.
Also see:
September 22nd, 2009
FCC's Net neutrality push: Is wireless access different?
The Federal Communications Commission forged ahead with its Net neutrality proposals and invited industry players to comment on six principles. It didn’t have to wait long. The big question: Would Net neutrality regulations hamper the wireless industry?
FCC Chairman Julius Genachowski on Monday outlined six Net neutrality principles including two new ones focused on network management transparency and non-discrimination against content and applications (Techmeme, FCC speech).
The reaction from Comcast, AT&T and Verizon was mixed. To wit:
- Comcast says: “Before we rush into a new regulatory environment for the Internet, let’s remember there can be no doubt that the Internet has enjoyed immense growth even as these debates have gone on. The Internet in America has been a phenomenal success that has spawned technological and business innovation unmatched anywhere in the world. So it’s still fair to ask whether increased regulation of the Internet is a solution in search of a problem.”
- AT&T says: “We are concerned, however, that the FCC appears ready to extend the entire array of net neutrality requirements to what is perhaps the most competitive consumer market in America, wireless services.”
- Verizon also raised the wireless issue, according to CNet News’ Maggie Reardon: “Our customers want an open experience,” David Young, Verizon’s vice president of regulatory affairs. “They want more choices, which is why we allow third-party developers and are providing developers complete access to our network. But our concern is that these new regulations, which apply regulation to the Internet for the first time, could have unintended consequences.”
- The CTIA, a wireless industry group, says: “As a justification for the adoption of rules, the Chairman suggested that one reason for concern ‘has to do with limited competition among service providers.’ This is at the core of our concerns. Unlike the other platforms that would be subject to the rules, the wireless industry is extremely competitive, extremely innovative, and extremely personal. How do the rules apply to the single-purpose Amazon Kindle? How does it apply to Google’s efforts to cache content to provide a better consumer experience? How about the efforts from Apple and Android, Blackberry and Nokia, Firefly and others to differentiate the products and services they develop for consumers? Should all product and service offerings be the same?”
Reading the tea leaves it appears that the big network providers aren’t going to fight a whole lot over landline access. Wireless will be a different story entirely.
And that makes a lot of sense. Think about it: There’s limited bandwidth in wireless; there’s unlimited data plans in theory; and wireless networks aren’t nearly as developed. If the FCC goes too heavy on new regulations there could be unforeseen wireless repercussions. Meanwhile, the FCC’s take on transparent network management requirements may be more of an issue in the wireless industry. Simply put, network management—and making sure there’s enough access to go around—is really the entire game in the wireless industry.
Smart Planet: Net neutrality: When does transparency collide with competitive edge?
September 21st, 2009
Wireless service boosters: A good idea but we shouldn't have to pay extra
You would think that the news of an AT&T Femtocell product - basically, a network extender that can help boost a weak cell phone signal in homes and buildings - would be a welcome product, especially for the iPhone users who regularly have to deal with dropped calls.
But could there be some backlash over the MicroCell 3G product - which is currently being tested in the Charlotte, N.C. region - because of the pricing? I couldn’t help but nod in agreement as I read blogger Adam Frucci’s rant in Gizmodo, who argues that the device and service for these network extenders should be free. Consider the reasoning in this excerpt from Frucci’s post:
Basically, AT&T didn’t have a strong enough network to handle the iPhone. It still doesn’t. Yet they still charge about $100 per month on average to iPhone customers, who have to deal with dropped calls, delayed voicemails and unreliable 3G speeds. If you are in a particularly bad spot, the 3G MicroCell will let you run your calls and data through your internet connection rather than over their shit network.
Where do they get off charging for this? Femtocells will actually reduce the load on their networks. It shifts the traffic over to the internet provider you’re already paying for (which I’m sure ISPs will just love). How does this earn AT&T $20 per month?
Amen, brother.
Sam Diaz is a senior editor at ZDNet. See his full profile and disclosure of his industry affiliations.
Subscribe to Between the Lines via Email alerts or RSS.
SponsoredWhite Papers, Webcasts, and Downloads
- Email Security and Archiving - Clearer in the Cloud Google The time is NOW for businesses and organizations of all sizes to implement ... Download Now
- Five Steps to Determine When to Virtualize YourServers VMware Server virtualization isn't just for big companies. Entry-level ... Download Now
- The Impact of Virtualization Software on Operating Environments VMware Today's use of virtualization technology allows IT professionals to ... Download Now
Essential Topics 
Recent Entries
- DreamHost customers hit with nightmare
- The Big Question podcast: Will News Corp. really pull its content from Google?
- SaaS and cloud computing: A look at the due diligence
- News to know: Thanksgiving tech support; Apple; Silverlight; Facebook; Black Friday
- Microsoft CFO Liddell to leave; Klein named new finance chief
Blogs From Our Sponsors
Most Popular Posts
- Verizon to AT&T: "Our ads are true and the truth hurts"
- My scareware night and how McAfee lost a customer
- Netbooks dead? Not when sales are up 264 percent
- Intel to pay AMD $1.25 billion as companies end litigation war; Is it a new chip era?
- Live from Googleplex: Chrome OS details revealed
- Memo to AT&T: When you're in a hole, stop digging
Top Rated
- Verizon to AT&T: "Our ads are true and the truth hurts"+44 votes
- Yes, Ubuntu can absolutely be the default Windows alternative+42 votes
- L.A. votes to "Go Google"; pressure shifts to Google and the cloud+31 votes
- Intel to pay AMD $1.25 billion as companies end litigation war; Is it a new chip era?+27 votes
- My scareware night and how McAfee lost a customer+25 votes
- New York AG files antitrust charges against Intel; alleges bribery, coercion+24 votes
- Netbooks dead? Not when sales are up 264 percent+21 votes
- AT&T launches Verizon counter-punch ad, keeps digging that hole+14 votes
Premier Vendor Content Whitepapers, webcasts & resources from our Power Center Sponsors
- New Online Dashboard for IT Leaders
-
Read about top issues IT decision-makers face every day, plus get cost-effective solutions to real-life IT problems.
- Learn more >>
- The best support in the Linux business
-
If Linux is going to power your mission-critical applications, you'd better have the best support known to business. Novell was rated the top provider of Linux technical support.
- Learn more >>
- Save time with automated shipping solutions
-
The Business Essentials Guide provides you useful tools and templates to help grow your business and save you time with automated shipping solutions.
- Visit the UPS Business Essentials Guide
- Microsoft Dynamics CRM Online - Free Six-Month Trial for Eligible Organizations
-
Microsoft Dynamics CRM Online provides fast online access, simple contact management and better sales performance for a low monthly cost - the best value on the market today.
- Learn more about the free, six-month trial offer>>
Archives
Favorite Links
Favorite Sites
- Ars Technica
- Deal Journal
- Engadget
- Enterprise Irregulars
- GigaOm
- Google Blogoscoped
- Horses for Sources
- Mac Rumors
- Mashable
- Official Google Blog
- Read/WriteWeb
- Scobleizer
- Seeking Alpha
- TechCrunch
- Techdirt
- Techmeme
- The Ponderings of Woodrow
- The Unofficial Apple Weblog (TUAW)
- Valleywag
- ZDNet: Latest blogs and news
ZDNet Blogs
- All About Microsoft
- The Apple Core
- Between the Lines
- BriefingsDirect
- Collaboration 2.0
- Dev Connection
- Digital Cameras & Camcorders
- Ed Bott's Microsoft Report
- Emerging Tech
- Enterprise Web 2.0
- Forrester Research
- Googling Google
- GreenTech Pastures
- Hardware 2.0
- Home Theater
- iGeneration
- Irregular Enterprise
- IT Project Failures
- Laptops & Desktops
- Lawgarithms
- Linux and Open Source
- Managing L'unix
- The Mobile Gadgeteer
- On Sustainability
- Rational Rants
- The Semantic Web
- Service Oriented
- Smartphones and Cell Phones
- Social Business
- Social CRM: The Conversation
- Software & Services Safari
- Software as Services
- Storage Bits
- Team Think
- Tech Broiler
- Technology and the Global Supply Chain
- Tom Foremski: IMHO
- The ToyBox
- Virtually Speaking
- The Web Life
- ZDNet Education
- ZDNet Government
- ZDNet Healthcare
- Zero Day
White Papers, Webcasts, and Downloads
- Three Steps You Need to Know to Stop Data Loss Varonis Sensitive data exposed to misuse or loss... it is the stuff of nightmares ... Download Now
- Five Steps to Determine When to Virtualize YourServers VMware Server virtualization isn't just for big companies. Entry-level ... Download Now
- Reducing Server Total Cost of Ownership with VMware Virtualization Software VMware VMware virtualization enables customers to reduce their server TCO and ... Download Now
Enterprise Applications
- Check out some of the easiest and most powerful ways to boost productivity while saving money on your application infrastructure. See ZDNet's comprehensive Enterprise Application resource center, now!
- New Online Dashboard
-
- Read about top issues IT decision-makers face every day, plus get cost effective solutions to real life IT problems. Oracle Topline
-
