October 31, 2008 11:35 AM PDT

To beat Apple, RIM must stop favoring AT&T

by Dave Rosenberg
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I was checking out the Gizmodo review of the new BlackBerry Curve 8900 (formerly Javelin) and wondering why Research In Motion insists on putting the majority its new devices into the clutches of AT&T, the exclusive iPhone provider, first.

RIM recently announced an application store, as well as the new Storm, which is the BlackBerry rival of Apple's smartphone, and plans to soon release this Curve 8900. The products (and soon services) have never been better, and yet it would seem logical to use one of the carriers that doesn't have the iPhone as the point of entry.

Wouldn't it make more sense to launch the majority of devices on Verizon Wireless or Sprint, where there is no iPhone competition? Or at a minimum create some exclusivity like AT&T has with the iPhone?

Verizon is getting the Blackberry Storm first, but that's still not enough. Network issues (GSM, CDMA, etc.) can all be resolved if RIM wants them to be. This seems to be more of a marketing and product strategy issue than a technical one.

I suppose the argument is that in order to compete with the iPhone, BlackBerrys have to also be available from AT&T, but I'm not sure that such a strategy makes sense.

Anyway, Giz likes the new Curve, but the Bold still seems like a better device.

The Bold is more substantial, exuding "executive" to the Curve 8900's "middle manager," or "normal person." It's clearly more powerful, and has a bigger screen. The keyboards are way different, too--personally, I prefer the Bold's larger, squishier keys to the Curve's smaller, stiffer ones. But obviously, the biggest thing is 3G. The Bold has it; the Curve 8900 doesn't, and we missed it sorely.

Storm aside, the Bold will be on AT&T first. And users will be stuck with GSM as their only option (which I've found to be surprisingly bad in the US.) Verizon announced the BlackBerry Storm, with global 3G, to be launched this fall, there is no word on when it will actually land.

Meanwhile, the iPhone continues to get better, and people care less and less about switching to AT&T just so they can have the device. When was the last time someone switched to Verizon or Sprint to get a BlackBerry? I am sure the Storm will do well, but I doubt Verizon will get the iPhone uplift that AT&T saw in the last quarter.

Dave Rosenberg dishes up "Software, Interrupted" with nearly 15 years of technology and marketing experience that spans from Bell Labs to multiple start-up IPOs to open-source enterprise software companies. He is co-founder of MuleSource and currently serves as the general manager of Hardy Way. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure. You can contact Dave via e-mail at softwareinterrupted@gmail.com or follow him on Twitter @daveofdoom.
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by stigmattaman October 31, 2008 8:27 PM PDT
Ummm, AT&T is the biggest GSM provider in the states. RIM primarily makes GSM devices because there are far more GSM providers worldwide. Please, please, know something about what you're talking about. I know, things are easy to posite, but there are other factors.
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by lukedavidjohnson November 1, 2008 2:44 AM PDT
Wow, seriously. The Storm is the biggest Blackberry news right now and the "word" is that its out next month, stupid. And the device is released on Verizon only, NOT AT&T. So there goes everything lame point you tried to make about Blackberry putting their coolest stuff in AT&T's clutches. By the way, just so you can understand Verizon and Sprint do run 3G networks. What the hell would BB be releasing non-3G devices for, paper weights? I think you are looking for the term non-GSM devices (Verzion and Sprint are CDMA). As stigmattaman commented before me, GSM is a larger standard and its natural to find many Blackberry phones come to the giant GSM AT&T first. Reading this made me laugh out loud: "When was the last time someone switched to Verizon or Sprint to get a Blackberry" - you have terrible timing. You are going to sound so lost when a butt-load of people switch to Verizon next a week for the BB Storm. Why must a reader have to correct a CNET contributor about technology and technology news? Absolute craziness. I also don't understand how someone can compare a revolutionary device like the iPhone to old news like the BB Bold or BB Curve. The only known true competition to the iPhone (yes thats right, the G1 is NOT even close people) is the BB Storm. What an obsolete and ignorant article. This article shames CNET's blog approach. Get with the times.
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by John B. Kendrick November 1, 2008 2:39 PM PDT
Currently there just is no competition for the iPhone. The 3G with GPS and the app store, along with massive sales have cinched the market for the time being.

If you're interested, you can read about my experiences with many of the web and native apps I've used since my original iPhone and more recent iPhone 3G purchases on my blog at http://johnkendrick.wordpress.com Just click on the index for a complete listing. John
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by Vegaman_Dan November 5, 2008 6:06 PM PST
If you wish to advertise here on CNET, please go through proper channels instead of posting such things here.

Thanks.
by brucecamp4 November 1, 2008 5:22 PM PDT
I hate posting negative stuff on blogs like this, but it is a shame when people that are supposed to be "experts" about wireless post things like this. The bottom line is that at the end of the day, Verizon is much more concerned with device certification than AT&T ever will be. GSM based network have an inherent ability that allows any device with the proper GSM radio, and a provisioned SIM card to access the network. No other work necessary. However Verizon has very strict certification rules that have to be met before a device can be allowed on the network. So even if BB released the same phone to both networks at the same time, the Verizon version on CDMA would still fall behind the AT&T GSM version by at least 10 weeks.
The bottom line is that the it is easier for BB, Apple, LG, and all other manufacturers to release a phone on AT&T first and thus start making some profit on their R&D for the phone.
Lastly, I have been a loyal Verizon customer for years, and if the IPhone were available on Verizon, I would surely consider it. But to be honest, here on the east coast in the NY Metro Market, Verizon has AT&T beat in terms of coverage, and lets not even discuss customer support. Bottom line is that I would never consider leaving Verizon for a phone. Phones come and phones go, but Verizon is the far better carrier and they have my loyalty for that.
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by AppleSuxLeo November 2, 2008 11:35 AM PST
RIM is ripe for aquistion by MSFT...as is Yahoo.
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by Kabeeo November 3, 2008 8:29 AM PST
I have twice left AT&T after having gone there for a "cool" phone. The service is absolutely awful Cool Phones aren't that cool when the service drops off on 25% your phone calls. I am a gadget geek and believe me the Storm, which (trust me) can be in some of our hands by next week is going to be a craze and will absolutely impact the iPhone in a negative way.
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by ballmerisanape November 3, 2008 9:14 AM PST
But Steve Ballmer said that the iPhone would be insignificant. Was he wrong?
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by shycelticwitch November 3, 2008 9:29 AM PST
I think you have to get up pretty early in the morning to beat Apple at ANYTHING... : )
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by jcantwell November 3, 2008 9:59 AM PST
Even the Bold couldn't get me to leave Verizon Wireless for AT&T after talking with iPhone and other heavy users on the "world's largest 3g network". Most savvy users told me they regretted switching just for the phone. RIM had better be extracting a very large premium from AT&T for the technology edge it is giving the carrier.
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by professionaladventurer November 3, 2008 10:27 AM PST
Are you a business consultant or blogger? Do you make big money for a tech company in discovering new markets or in how to capture a market share. Clearly folks with much more experience and knowledge then you are making these important decisions and you are writing about what "you" think they should do. This sort of blog can be much better written when you stop implying that "you" know better then the market leaders (even those in 5th or 6th place) and you take your personal prepositions out of it. Work on you writing. Of course this is coming from a guy (me) who makes $37 on my blog in the last year.
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by gsmiller88 November 3, 2008 11:04 AM PST
I've been saying this since the iPhone clones began hitting the market. If they want to take down the iPhone they need to be offered by a different carrier other than AT&T. That plus this "exclusively at AT&T" crap just kill a phone for me because even the iPhone couldn't get me to switch to AT&T, so nothing offered by any other company will.
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by Heebee Jeebies November 3, 2008 5:44 PM PST
It would make sense to use one of the other carriers if they were close to the size of AT&T. They aren't, if you want failure go with someone small with fewer customers.

What you should be asking is why don't they just offer them to all carriers at the same time?

Robert
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by dwayyne November 3, 2008 8:08 PM PST
Quite honestly, AT&T isn't as bad as you guys make it out to be. Almost 100% of my calls are extremely good quality, frankly... Verizon has extremely horrible call quality, constantly dropping calls. It could be just here(Hawaii, US) or not but whatever the case RIM will never beat apple until they start manufacturing computers, MP3 players, and any other electronic devices that Apple produces. I say this being a true RIM supporter and a blackberry addict, it's fact and that's that.
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by bassboat8 November 3, 2008 8:09 PM PST
I have an iphone and each time I use it I am reminded that I am forced to use at&t. If I weren't such an apple nut I would never consider using at&t but trust me on this one, the minute I get a chance to switch I will as will tens of thousands of iphone users. This is a huge marketing error that steve has made. He does not realize how much apple people dislike at&t. There will be a way to leave at&t when some enterprising person comes up with a fix on the software.
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by Vegaman_Dan November 5, 2008 6:08 PM PST
RIM is primarily focused towards enterprise level customers.

The Apple iPhone is a consumer only device and not meant for enterprise use.

AT&T wants to keep that enterprise business where they are very big. Since they can't do that with the iPhone, it's not surprising that they would keep RIM producing new units for them.
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About Software, Interrupted

In "Software, Interrupted," Dave Rosenberg discusses disruption in the software market, as well as the products and services that keep business technology norms in perpetual flux.

With nearly 15 years of technology and marketing experience spanning from Bell Labs to multiple start-up IPOs, Dave co-founded open-source software company MuleSource and now serves as general manager of Hardy Way. He also happens to be a U.S. patent holder and a workaholic. Technology is his best friend and mortal enemy.

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