Lofty Wishes: AT&T To Offer $700 HTC 4G Tablet

AT&T on Wednesday announced the new HTC Jetstream, its first LTE-ready tablet, will become available on Sept. 4 for $700 and a two-year contract.

Jetstream’s price may be too steep for many customers, even with a fast LTE plus HSPA+ connection, given expected lower prices for tablets on the horizon. Amazon is expected to unveil a 9-in. tablet soon priced at $299, while Hewlett-Packard has begun a $99 fire sale for its soon-to-be-defunct TouchPad.

The 10.1-in. Jetstream runs Android 3.1 with an expandable storage capacity of 32 GB, but at nearly $700, it would be $100 more than the 32 GB Apple iPad 2 with its 9.7-in. screen.

That premium price for the Jetstream seems to based principally on its fast LTE (Long-Term Evolution) connection and a digital pen input capability that allows for drawings and signatures on the touchscreen.

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Dish Seeks To Add Cellular Services

Satellite TV provider Dish Network is aiming to build a 4G cellular network, if the U.S. Federal Communications Commission grants its permission, according to a filing the satellite provider made on Monday.

Dish, which earlier this year completed an acquisition of bankrupt satellite mobile operator TerreStar, asked the FCC to transfer TerreStar’s frequency licenses to a Dish subsidiary and to allow Dish to use the spectrum to build a broadband wireless network that it could then use to offer standalone cellular services.

Combined with spectrum Dish acquired in a separate deal to buy DBSD North America, the satellite provider wants to build a network using LTE, the technology of choice for most of the nationwide mobile phone operators, it wrote.

But it needs special permission from the FCC to offer standalone cellular service–as opposed to a service that is integrated with satellite service–and says it is crucial that it be allowed to do so.

“The requirement to make every device dual-mode severely limits a provider’s ability to enter into arrangements with multiple device and equipment manufacturers, thereby limiting consumer choice and severely impairing the business case economics,” Dish wrote.

The company also argued that customers want the choice of a smaller, lighter device with long battery life. Adding satellite capabilities to devices makes them heavier and reduces battery life. “Today, a mobile voice and data provider’s ability to attract customers depends in large measure on its ability to provide its customers with the types of devices that best suit their needs,” it wrote.

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Verizon Adds LTE Network To More U.S. Cities

Verizon Wireless announced 19 more cities that will get its faster 4G wireless network service starting Thursday, bringing the total to 74 metropolitan areas.

San Francisco and Detroit, already on Verizon LTE since last December, will also see the existing LTE network in those cities expanded, Verizon said in a statement.

The new 19 LTE cities include several state capitals such as Sacramento, Calif., Hartford, Conn., Boise, Idaho, Harrisburg, Pa., Indianapolis, Ind., Salt Lake City (with Ogden), Utah; and Madison (with Milwaukee), Wis. The full list of cities is on Verizon’s website.

This news comes as competitor AT&T is scheduled to launch LTE 4G service in five cities in the U.S. this summer: Atlanta, Chicago, Dallas, Houston and San Antonio.

Rumors have also surfaced that Sprint will begin adding LTE service to its existing nationwide WiMax 4G capability, partly to support a future LTE-ready iPhone, although Sprint has not confirmed those reports.

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Verizon Adds LG’s Revolution

Verizon Wireless announced the Revolution by LG, an LTE-ready smartphone, will become available for sale in stores and online Thursday for $249.99 with a two-year service plan.

The Revolution has a 4.3-in. touch screen and 1 GHz Snapdragon processor. It utilizes the Android 2.2 mobile operating system and comes preloaded with the Netflix application for access to movies and TV shows.

Verizon called the smartphone an “entertainment powerhouse” partly due to the Netflix capability, but the Revolution also runs the Adobe Flash player, provides Dolby Mobile sound and features high-definition video recording and playback.

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iPhone Gaining on Nokia’s Dominance

Apple’s iPhone is moving closer and closer  to Nokia’s top spot in smartphones globally, according to first-quarter 2011 results reported by IDC on Thursday.

With the iPhone in the second spot, BlackBerry maker Research In Motion dropped to third after finishing second a year ago, IDC said. 99.6 million smartphones shipped in the first quarter, out of 372 million mobile phones overall.

Nokia sold 24.2 million smartphones in the first quarter, holding on to its global smartphone lead despite announcing that it will move from Symbian to Windows Phone as its main smartphone operating system in next few years, IDC said. Nokia “may find itself in danger of ceding market share as the competition ramps up,” IDC said.

Apple shipped 18.7 million iPhones in the first quarter, IDC said, a new record for a single quarter, “and inched closer to market leader Nokia, with fewer than 6 million units separating the two companies,” IDC noted.

Apple also had triple-digit growth in the U.S., with the Verizon Wireless CDMA iPhone 4, and in greater China.

RIM, while down from second place where it was a year ago, remained in third place from the fourth quarter of 2010. The majority of RIM’s shipments are older, lower-cost devices, IDC noted, a trend that will continue in the second quarter.

Samsung finished fourth in smartphones for the first quarter, with 10.8 million smartphones shipped, while HTC finished fifth, with 8.9 million shipped.

Samsung grew the most of any vendor for the first quarter — 350% year-over-year. Samsung has a multiple-OS strategy and sells mostly Android smartphones, including Galaxy S phones, as well as Windows Phone 7 and Wave devices.

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Laptop Users Still Prefer USB Modems

Mobile data users still overwhelmingly prefer USB modems for keeping PCs and other devices connected while on the go, but they may turn more to built-in cellular radios and portable Wi-Fi hotspots over the few years, according to ABI Research.

Despite the growing market for connected tablets and the availability of laptops and netbooks with high-speed cellular modules built in, worldwide shipments of USB modems still surpass embedded 3G and 4G modules by three to one, ABI said in a report Monday. But by 2016, that ratio may change to near an even split, said ABI analyst Jeff Orr.

Mobile operators including AT&T, Verizon Wireless and Clearwire give consumers the option of buying a laptop or netbook with an integrated cellular module. Those computers let subscribers go online almost anywhere without using up a USB port or carrying around a separate piece of hardware that sticks out of the side of the system.

Built-in modems lock buyers into one carrier or network technology for the life of the device, which most consumers and enterprises don’t want, Orr said. They buy USB modems because they can be easily discarded when a better network comes along, he said. Prices are low and often there is no early termination fee for getting out of the carrier data contract.  “That device becomes almost disposable,” he said.

One problem with built-in modems is that wireless technology changes faster than most users want to change computers. For example, the past three years — a typical PC lifetime — have seen the construction of both a WiMax and an LTE network in many cities around the U.S., offering 10 times or more the speed of 3G networks.

The market for embedded modems is still fairly small, according to ABI. In 2010, only about 5% of laptops worldwide shipped with built-in cellular modems, Orr said. Among netbooks, 17% came with modems, but overall shipments were much smaller for netbooks than for laptops. Meanwhile, 40% of tablets came with such modems, but the overall tablet market was smaller still.

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Motorola Xoom Sales Better Than Expected

Motorola Mobility shipped 250,000 Xoom tablets in the first month the device was released, the company said on Thursday as part of their first-quarter earnings report.

The tablet, the first to run Google’s Android Honeycomb OS, went on sale in February. Within weeks, several analysts said early sales numbers were disappointing. By early April, one analyst estimated that Motorola had sold a total of 100,000 of the tablets.

Shipping a quarter of a million in a month isn’t quite the same as  Apple first iPad shipment, but the number appears to be better than most had expected.

For the full year, Motorola is expecting to sell 1.5 million to 2 million tablets, it said. It plans to introduce new tablets, including some with new form factors, this year, executives said during a conference call to discuss first-quarter results.

During the quarter, Motorola Mobility also began selling the Atrix, a phone that can be docked into a device with a full keyboard and monitor. Some analysts have also said sales of the Atrix are unimpressive.

The company did not release Atrix sales numbers separately. It said it shipped 9.3 million mobile devices, including 4.1 million smartphones, during the quarter.

Motorola expects to record an operating profit for the full year, but faces challenges ahead. It has delayed the launch of the Bionic, its first LTE device, and on Thursday said the delay is related to a software problem. That same problem is also pushing back the launch of LTE on the Xoom, which was initially expected for the first half. Both the LTE Xoom and the Bionic are now expected to come in “summer,” which in North America could be as late as September.

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Android To Control Smartphone Market By 2016

Android will be the operating system of choice for 45% of smartphones shipped by the year 2016. It will take up most of the market share vacated by the soon-to-be exiting of Nokia’s Symbian operating system, according to figures released today by ABI Research.

Although Android will come to be the dominant player in the smartphone market, this doesn’t mean that OSes will necessarily see a big cut in their own market shares, ABI said.

In fact, the firm projects that Apple’s iOS will see its market share rise from 16% in 2010 to 19% in 2016, while Research In Motion’s BlackBerry OS is expected to fall slightly from 16% in 2010 to 14% in 2016. Microsoft’s Windows Phone 7 and Samsung’s Bada will also be players in the 2016 smartphone market, as ABI projects those two operating systems to take 10% and 7%, respectively.

ABI vice president Kevin Burden says that although RIM stands to lose a bit between now and 2016, the company will carve a comfortable niche for itself in the enterprise market, as enterprise users will still need the security provided by RIM’s network operations center.

“RIM’s slight loss of share doesn’t mean falling shipments,” he says. “RIM has found its niche, but the consumer market will grow faster than its portion of it.”

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NY To Investigate AT&T’s T-Mobile Acquisition

The state of New York  has indicated that it will investigate AT&T’s proposed take over of T-Mobile USA for anti-competitive effects, including possible increases in mobile broadband costs for New York residents and businesses, Attorney General Eric Schneiderman said.

New York is the first state that has committed itself to probing the $39 billion deal, which was announced on March 20 but is expected to take 12 months to close. At their current sizes, the combined telecom companies would have 130 million subscribers, dwarfing the next-biggest operator, Verizon Wireless, with 93 million. In a press release on Tuesday, the attorney general’s office raised the possibility of Verizon responding with an acquisition of Sprint Nextel, which has about 58 million subscribers.

“The proposed merger could start a process of consolidation that would lead to two firms -AT&T and Verizon – controlling nearly 80% of wireless subscribers nationwide,” Schneiderman stated.

Schneiderman said mobile service has changed from a luxury to a basic necessity and T-Mobile currently is a low-cost option for many New York residents. People in some areas, including Albany, Rochester, Buffalo and Syracuse, already have limited wireless choices, he said.

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Playbook To Focus On Corporate Space

With the Playbook supposedly launching in April, it is expected that RIM will  a lot of their marketing budget on the corporate space. This is the best strategy for RIM since the company already has a strong presence in the enterprise space with companies that already use Blackberry services as part of their electronic communication infrastructure.

RIM is expected to leverage is clients existing investment in BES Blackberry Enterprise Server). RIM’s strategy gives Playbook a small advantage; since BES customers will be able to utilize functions like provisioning, configuring, applying corporate policies, application deployment/management and auditing PlayBook devices using the BES infrastructure that they already have in place.  Read More….

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