News Blog

RIM BlackBerry Pearl 8220

(Credit: RIM)

While the fall CTIA show isn't really known for handset announcements, Research in Motion paid no mind and started the show off with a bang by introducing the RIM BlackBerry Pearl Flip 8220 on Tuesday night. While much of the attention has turned to the rumored BlackBerry Thunder as of late, the Pearl Flip 8220 shouldn't be forgotten, as it's the first BlackBerry to sport a clamshell design.

The flip phone, which comes in black or red, measures 3.9-inches high by 1.9-inches wide by 0.6-inch deep and weighs 3.5 ounces. It features a 65,536-color, 128x160 pixel external display and front-facing 2-megapixel camera, while you get a 65,536-color, 240x320-pixel TFT display on the inside. As part of the Pearl series, you get the SureType keyboard (groan) and trackball navigator. The BlackBerry Pearl Flip 8220 also comes equipped with a 3.5mm headphone jack and an external microSD expansion slot.

Moving onto features, the quad-band (GSM 850/900/1800/1900; GPRS/EDGE) Pearl Flip 8220 offers true world roaming, a speakerphone, smart dialing, and background-noise cancellation. Wireless options include Wi-Fi and Bluetooth 2.0 with A2DP support. There's no GPS, but the BlackBerry Maps application is onboard to at least provide you with maps and text-based directions.

Supported e-mail solutions include BlackBerry Enterprise, Microsoft Exchange, IMB Lotus, Novell GroupWise as well as POP3 and IMAP4 accounts. There's also an attachment viewer for Word, Excel, PowerPoint files, PDFs, and JPG images.

(Credit: RIM)

When you're done working, you can enjoy MP3, WMA, AAC, MPEG4, WMV, and other music and video formats with the built-in media player. In addition, the BlackBerry Pearl Flip 8220 has a 2-megapixel camera with flash and video-recording capabilities.

In all, there aren't a whole lot of surprises, as the smartphone keeps very much in line with the RIM BlackBerry Pearl 8120. Research in Motion was a little vague as to release date, but it will be offered by carriers worldwide sometime this fall and the company did confirm that T-Mobile will be one of the U.S. carriers. No word on pricing.

Now, here's the question: Will the flip-phone form factor work for BlackBerry? There's only been a handful of smartphones to come in the clamshell design, such as the Pantech PN-820, but they never seem to really take off. Will the RIM BlackBerry Pearl Flip 8220 be any different?

It's so hard to keep a good secret these days. Just ask T-Mobile. Word of its new Sidekick model, code-named Gekko, got out months ago and was all but confirmed about a week ago when the ruthless blogosphere got hold of some internal T-Mobile documents about the upcoming model.

(Credit: Corinne Schulze/CNET Networks)

Well, today, the wraps were officially taken off the new model. Simply called the T-Mobile Sidekick (more on this new, puzzling naming scheme below), it's the first Sidekick to debut since device manufacturer Danger was acquired by Microsoft.

The Sidekick isn't a revolutionary, new product, but we think there's enough there to attract the young, hip messaging fanatics. The big highlight is the new level of personalization, as you can add your own graphics, images, and designs to the outer shell for a one-of-a-kind model. You can read all about this as well as the handheld's other features and performance in our full review. The T-Mobile Sidekick is available in select stores and online today for $149.99 with a two-year contract and after discounts and rebates.

Finally, for those of you who are curious about why T-Mobile has reverted to simply calling the handheld Sidekick, here's the official statement from the carrier: "The T-Mobile Sidekick family is going to have two lines of devices, the T-Mobile Sidekick and the T-Mobile Sidekick LX. Both Sidekick lines will have their own unique set of features so that consumers can choose the one that best fits their lifestyle. The T-Mobile Sidekick will focus on personalization at an affordable price while the T-Mobile Sidekick LX will be a little higher-end and have more of a 'luxury' emphasis; it will also likely include future limited edition models."

(Credit: Apple)

Update at 10:08 a.m. PDT, with clarification on how users' e-mail will be handled.

Apple's MobileMe service is primed to be relaunched this week, ahead of the Friday launch of the iPhone 3G. That means subscribers to .Mac will find the service taken offline for a six-hour stretch as Apple makes the transition, according to a post in MacRumors.com.

The www.mac.com site will go down on Wednesday from 6 p.m. to 12 a.m. PDT, leaving .Mac subscribers unable to access the site or use .Mac services, except for .MacMail via their desktop applications, iPhone or iPod Touch. In fact, existing .Mac users may have already noticed the ability to receive and send e-mail at an @me.com address if they so request. Other mac.com subscribers will be grandfathered in, allowing them to continue receiving e-mail at their mac.com address, while also receiving a new me.com address.

When the site relaunches as MobileMe, users will find a few changes, according to MacRumors.com:

The revamped .Mac service will offer Web-based e-mail, calendar, address book, photo gallery, and storage capabilities as well as "Push" sync services.

A one-year subscription to MobileMe will cost $99, which is similar to the .Mac price, but purchasers of an iPhone 3G will be able to score a subscription for $69 on Friday, the report notes.

(Credit: Fring)

After so many announcements for this or that application's Facebook appearance, it's nice to see Facebook play a supporting role in kind.

On Tuesday, Fring, a VoIP and IM application for a range of mobile phones, added the ability to fold Facebook into the communicator, through a new Settings menu option called fringAdd-ons. Gmail Notifier, Orkut, vTap videos, and Yandex.mail are also in there, together representing the first extensions created by third-party developers using Fring's application programming interface.

Exactly how many add-ons join this handful will depend on Fring's popularity with casual developers. Fring is not the only mobile software company opening its API to programmers. In fact, crowd-sourcing software authors is now seen as integral to a mobile software publisher's strategy and success. iPhone is the biggest honcho to have more recently welcomed developers, and the success of Google Android as a mobile platform is tied to the mostly independent developers fighting to win big money for their grand ideas and edgy implementations.

So far, connector programs like the Facebook add-on are a good start. Relatively easy to make, programs like these help Fring close in on bragging rights for being the most far-reaching social networking hub out of all the multinetwork text and VoIP (voice over Internet Protocol) communicators without putting forth additional development dollars.

FringAdd-ons are currently available for the latest versions of Nokia Symbian 9, Sony Ericsson UIQ, and Windows Mobile.

Verizon Wireless has upped the ante in its efforts to take on Apple's iTunes store in the digital music market by offering DRM-free music for all purchased music plus a new subscription service. But will it be enough to make a dent in Apple's dominance?

On Monday, Verizon Wireless will announce the revamped V Cast music store, which will be loaded with digital music that is free of the pesky digital rights management encryption on all songs that are purchased through the store. Verizon is joining Amazon as the only other digital music distributor that will be selling DRM-free music from all four of the major record labels, including, Sony BMG, Universal Music Group, Warner Music Group, and The EMI Group.

The company is also offering its first ever music subscription service courtesy of its relationship with Real Networks' Rhapsody America service. Verizon announced it was partnering with Rhapsody last year. And through this partnership, the company has redesigned its music store and the V Cast user interface.

The new service clearly puts Verizon Wireless in a new category when it comes to digital music. Verizon cell phone subscribers as well as nonsubscribers can download the DRM-free music onto a PC and sync it to any MP3-enabled device for $0.99 a song. Songs can be purchased over Verizon's cell phone network onto a Verizon phone for $1.99 a pop. And the new V Cast service also allows Rhapsody subscribers to sync their phones to the subscription service, much the same way AT&T subscribers can access the Napster subscription service.

But even though it has potential to become a major player, it's still unlikely that the cell phone company's moves will have much impact on market leader Apple. Instead, experts believe that Verizon is much more likely to help grow an already underperforming market.

"The issue isn't whether Verizon can take down iTunes," said Russ Crupnick, a senior analyst at the NPD Group. "But rather, can it help grow the market? And I think the answer to that is yes. Verizon is very well-positioned for that."

The music industry is in dire straits. Sales of CDs have been plummeting over recent years, and the industry hasn't been able to make up for the losses through digital distribution. Apple is by far the leader in digital downloads, hitting the 5 billionth song download mark from its iTunes music store just a couple of weeks ago. According to Crupnick, over three-fourths of the full music tracks downloaded come from the iTunes store. Amazon is a distant second, with other players such as Wal-Mart trailing even further behind.

So far, freeing music downloads from DRM protection hasn't done much to move the needle. Amazon and Wal-Mart have been offering DRM-free music for almost a year, and they still lag behind Apple. The reason for this could simply be that Apple is so far ahead in terms of market share that few people have reason to see DRM protection as a problem.

"When you have 80 percent market share on Apple devices," Crupnick said, "there isn't much demand from people to get unprotected music. They don't seem to encounter any issues with it."

Ed Ruth, director of digital music for Verizon, said that the company is simply trying to offer customers choices.

"Of course we recognize that Apple has done a great job," he said. "They have helped tell the digital music story quite well, and they've tilted the ecosystem in one direction. But in some ways they have trapped people into one experience. And that's the problem we're trying to solve."

Meanwhile, Verizon could also have an uphill struggle in getting people to use the Rhapsody subscription service, which costs about $15 a month for unlimited access to millions of songs. In the online world, only a small niche of music aficionados use services like Rhapsody and Napster. And so far, the model hasn't proven to be much more successful in the mobile world. AT&T has been offering the Napster music service, and even though the company hasn't published figures on how many customers are using the service, analysts say it hasn't been a runaway success.

But some analysts think that a service that does a good job of integrating Verizon's V Cast with Rhapsody could help attract new users to the subscription model.

"If they can make the experience of Rhapsody on a handset complimentary to what they are already doing with V Cast, I think it will make Verizon a stronger player by attracting new music subscribers," said Susan Kevorkian, an analyst at IDC.

While Verizon may never be able to beat Apple in the online music game, there's reason to believe that the company could beat out its fellow cell phone carriers and other music downloading services for market share. And in such a nascent market, Verizon still has an opportunity to make a significant amount of money from its music store and help move the carrier away from simply being a phone company.

Verizon claims that record labels have told it that in terms of revenue, it is already second to Apple when it comes to the money that is made from full track downloads. And in a recent survey of Internet users conducted by NPD Group, Crupnick said that over half of the respondents had heard of the V Cast music service. This was higher than awareness for music services from other cell phone companies such as Sprint Nextel or AT&T. But it was also higher than some well-established music brands, such as Microsoft's Zune music store, Rhapsody, and Napster. Still, only about 7 percent of the respondents said they had ever used the V Cast music service to download songs.

But Crupnick believes this consumer awareness could someday translate into growth for Verizon's V Cast service. Verizon also has other attributes that some of these other music distribution channels don't have. In addition to selling full track songs, Verizon is also able to help the record labels monetize the same songs in multiple ways by selling ringtones, ring-back tones, and wall papers of the artists. The company has even begun working to help produce some albums using a mobile recording studio.

What's more, Verizon has access to a wide variety of music playing devices, something that Amazon and Wal-Mart don't readily offer themselves. And it already has an established billing relationship with most of the customers that will likely use its site to download music. All of this bodes well for Verizon. But is it enough to really challenge Apple's dominance?

The answer is probably no. But it could be enough to make it a strong alternative. At the end of the day, Verizon's Ruth said that it's all about forming good relationships with the music industry and providing a great service to customers.

"Our approach is to be as good a partner to the music industry as we can be, " he said. "And we always keep the customer experience and expectations in mind when designing and delivering the service. I think we've done that so far and as a result have earned the trust of our customers."

After talks broke down earlier this year between Apple and China Mobile over the (non-pirated) introduction of the iPhone, Apple's concession to non-U.S. carriers that they don't need to share revenue has apparently restored progress with the world's largest carrier.

This comes as China's government reports mobile accounts are nearing the 600 million mark. China Mobile alone has more than 400 million accounts. These numbers don't mean there are that many people with cell phones, however. I and many others have multiple SIM cards. I use one for visiting friends, but others use second cards, which can be purchased for under 10 USD, to keep various types of calls separate.

From AFP:

China Mobile said Friday the main obstacle keeping iPhone out of the world's largest mobile phone market had been cleared now that Apple has dropped its revenue-sharing demands.

Apple chief executive Steve Jobs said this week he would like to see the device introduced in China later this year, and a senior China mobile executive confirmed the two companies were back in talks.

"We've broken through the biggest obstacle and we are negotiating at the working level," Gao Songge, deputy director of China Mobile's general department, told AFP.

Now if only the U.S. iPhone would allow choice of carrier...

Virgin Mobile USA will pay $39 million in stock to buy operator Helio, the company said Friday.

The deal ends more than a month of speculation that the two troubled mobile virtual-network operators would combine forces.

As part of the purchase, Virgin Group, which owns Virgin Mobile USA, and SK Telecom, the South Korean phone giant that holds a majority stake in Helio, will each invest $25 million in the combined company. In exchange for its investment, SK Telecom will be given a 17 percent stake in Virgin Mobile.

Helio, which was created to bring advanced cell phones and services to the U.S. market, will add its 170,000 post-paid customers to Virgin's 5.1 million prepaid customer base.

Virgin Mobile hopes that Helio's offering will also help it retain existing customers. About 20 percent of those ditching Virgin Mobile's service leave for subscription services, said Dan Schulman, CEO of Virgin Mobile USA.

Helio's customers are considered to be among the industry's most valuable, spending on average about $80 per month on voice and data services.

I have said in previous blog posts that this merger simply makes good sense. For one, the companies each use Sprint Nextel's network to deliver service. In anticipation of this deal, Virgin Mobile has already renegotiated terms with Sprint to review the terms of its existing network contract. Virgin Mobile expects to achieve a minimum of an 8 percent reduction in cost per minute in 2009. And it anticipates further reductions over the next three years.

Virgin Mobile also anticipates that it can cut costs in other areas by more than 70 percent by combining the companies. Most of these savings will come from combining operations and reducing headcount.

The companies also have complimentary strategies that target the youth market. But Virgin Mobile, which is considered a hip brand, has targeted customers with little or no credit. The prepaid service allows them to get a cell phone with no credit check or contract. And it offers them great value. The company just introduced its $79.99 unlimited talk time plan, which beats similar plans from competitors.

Helio has gone after customers at the other end of the spectrum by targeting tech-savvy hipsters with cool new phones like the Ocean, and voice and data plans with unlimited usage. It also offers integration with popular Web sites, such as MySpace and YouTube. Other unique services allow subscribers to share or recommend music, and track their friends using GPS.

The cost savings and strategic synergies should help the combined company compete more effectively against the big four nationwide carriers: AT&T, Verizon Wireless, Sprint Nextel, and T-Mobile USA. These operators have been aggressively trying to meet the needs of value customers, such as the ones Virgin Mobile addresses. And they've also been introducing new phones to attract high-end data subscribers, such as the ones Helio has targeted.

"We believe that the acquisition of Helio, and the related strategic investments by SK Telecom and Virgin Group, are of enormous benefit to our business, both financially and strategically," Schulman said in a statement. "It provides us with a firm foundation to create a truly holistic, leading-edge product suite to service all of our existing and prospective customers."

UPDATE: This story was updated at 3:00 p.m. PDT with comments from Helio about its retail strategy and merger talks with Virgin Mobile USA.

Virgin Mobile USA is expected to announce a deal to acquire fellow mobile virtual network operator Helio as early as this week, according to a story in The Financial Times.

The report cites sources close to the companies that say Virgin Mobile and Helio's majority owner South Korean cell phone operator SK Telecom have agreed in principle to a deal. As part of this deal, Helio's subscribers will become Virgin Mobile USA-branded subscribers. And Virgin Mobile USA will give SK Telecom a 20 percent equity stake in the newly combined company. SK Telecom is also expected to invest a nominal sum in Virgin Mobile USA, the article said.

While the combined mobile virtual network operator will still be dwarfed by the four major wireless operators in the U.S., it will have a wider subscriber base that includes both prepaid customers as well as highly valuable post-paid customers. Since Virgin Mobile USA and Helio each buy wholesale capacity from Sprint Nextel to run their separate mobile services, a combined company could help them negotiate better rates with Sprint.

The companies have been rumored to be in merger talks since May. And last month, Virgin Mobile and Helio each confirmed they were in "strategic" discussions.

Earlier this week, Gizmodo reported that talks between Virgin Mobile USA and Helio's parent company SK Telecom had stalled. And Helio confirmed rumors that is closing its retail stores.

A spokesman for the company said that Helio has been reviewing its distribution channels.

"We will be putting our emphasis on the most profitable direct channels, Web and telesales, and stepping away from others," he said in an e-mail. "This means we have made the decision to close our Helio stores and kiosks in the short term. Each location will have its own timeline with most kiosks closing immediately and stores closing in the coming weeks."

A spokeswoman for Virgin Mobile USA declined to comment on the Times story. And the Helio spokesman reiterated that Helio, SK Telecom, and Virgin Mobile are in discussions about "potential strategic opportunities." He said the company would give an update when an agreement is reached. The Financial Times reported that SK Telecom representatives in South Korea declined to comment on the merger speculation.

T-Mobile USA plans to announce Wednesday that its new @Home voice service will be available nationwide starting July 2.

The cell phone operator has been testing the new Internet telephony service since February in Dallas and Seattle. And now the new service, which is meant to replace traditional home phones, will be offered to any T-Mobile cell phone customer.

Subscribers will be able to connect any regular home telephone to a T-Mobile router that will send calls over the Internet much the same way as services like Vonage operate. The service costs $10 a month plus taxes and fees for unlimited domestic local and long-distance calls.

Only T-Mobile wireless customers who subscribe to at least a $39.99 individual calling plan or families subscribing to at least the $49.99 monthly T-Mobile calling plan can get the service. The @Home service also requires that users subscribe to a separate broadband service from a cable operator or telecom provider. And they are required to use a special T-Mobile router, which also provides Wi-Fi Internet access throughout the home.

This router can also be used to provide T-Mobile's HotSpot @Home phone service. This service, launched last year, allows T-Mobile subscribers to use dual-mode cellular and Wi-Fi phones that switch between both networks. When subscribers are near their home Wi-Fi hot spot, they use the broadband network to make unlimited domestic calls. And when they are outside the home, the phone seamlessly switches to T-Mobile's cellular network.

The service, which also costs $10 extra per month, serves two purposes. It helps provide better in-home cell phone coverage and also helps reduce the number of minutes used on the T-Mobile cellular network.

Britt Wehrman, director of product development for T-Mobile says the service, which launched a little over a year ago, has been a big success. The company hasn't disclosed subscriber numbers for the service, but Wehrman said that 45 percent of the hot-spot customers are leaving competitors to get the T-Mobile service. T-Mobile currently has eight dual-mode handsets that work with the service, two of which were announced earlier this week. And it has four more to announce by the end of the year, bringing the total to 12 dual-mode handsets.

The @Home VoIP (voice over Internet Protocol) service is meant to work with the hot-spot phone service, Wehrman said. When the hot-spot service was first introduced, the company found that families were interested in the plan. But they weren't willing to cut the cord on their home phones.

"The hot-spot service offers parents a good way to limit overage charges, because the kids can talk on their cell phones while they're at home without eating up minutes," he said. "But we found that many families didn't want to get rid of their traditional phones. They still wanted one phone in the house for the whole family."

So the @Home VoIP service was created to give families who don't want to get rid of their traditional landlines a low-cost option for retaining that line while still using the hot-spot service. To ensure that E911 service works with the VoIP service, T-Mobile is requiring all users to register their home address before service can be activated.

But because it is an Internet-based phone service that is dependent upon a broadband modem for connectivity, families will still have to consider the risks of power outages and Internet interruptions that will make the VoIP service and E911 unavailable during those outages. But Wehrman said that the fact that T-Mobile requires that subscribers of the @Home service also have a T-Mobile cell phone subscription limits the safety concerns.