Wireless

LAS VEGAS--It seems there are going to be as many ways to run a mobile application store as there are stores themselves.

RIM's BlackBerry App World is a model of how mobile OS vendors are trying to balance consumer needs and carrier needs.

(Credit: Maggie Reardon/CNET)

One of the big topics this week at CTIA 2009 has been mobile applications, as Research in Motion unveiled BlackBerry App World and Microsoft talked about its forthcoming Windows Marketplace for Mobile. The dam has truly broken with mobile applications; for years, most consumers seemed indifferent to third-party applications, but now they are viewed as an essential part of any smartphone, just like they are on a PC or Mac.

Most of the credit for that trend has been prompted by the success of Apple's App Store, as both Apple's friends and enemies in the mobile world will readily admit. But few competitors are attempting to pull off Apple's my-way-or-the-highway approach, preferring to integrate the wireless carriers in a nod to the entrenched power those companies have in the mobile world.

Some might argue that's because they don't have devices with the consumer cachet of the iPhone. But it's clear after talking to several companies on the sidelines at CTIA that they think there's a way to make sure they offer quality software to their customers without cutting the carrier almost completely out of the equation, as Apple has done with AT&T.

Still, the burning question is whether the carriers and handset makers will permit software companies to do what they do best, or whether they will continue to try to put their stamp on mobile application development in order to avoid their possible fates as "dumb pipes" or widget makers.

"There's a big measure of trust there," said Morgan Gillis, executive director of the LiMo Foundation, which was created by a foundation of carriers and handset makers to develop software that provides a common underpinning for developers to write mobile applications. "We have to trust that the companies that build the devices and the operators that package this know what they are doing."

The idea of mobile application stores is not new, but the faster networks and more sophisticated devices available these days have created a way for users to download applications directly to their device, bypassing the PC altogether. There are various ways that mobile companies are approaching this new reality.

Apple's approach has been covered exhaustively. But Apple has a unique advantage compared with its competitors: its applications only have to support two devices that are essentially identical (the original iPhone and the iPhone 3G), and for the most part Apple works only with a single wireless carrier per country. Therefore, it can have a central application store and guarantee that those applications will work on any iPhone, and at the same time not have to worry as much about ensuring its carrier partners have unique ways to sell the same phone.

Billing strategies
But while RIM, for example, is launching BlackBerry App World with the money flowing outside of the carrier's control through an exclusive relationship with PayPal, co-CEO Jim Balsillie made it clear that he would find a way to make sure the carriers have a chance to participate in the billing for those applications. "Different carriers have different billing strategies, so it's quite frankly a bunch of work," he told The Wall Street Journal.

Microsoft is likewise steering a middle ground, with plans to let carriers offer their own "store within a store" inside Windows Marketplace for Mobile and giving users the option to choose how they want to be billed: directly via credit card or through their monthly wireless bill.

The idea that the carrier owns the billing relationship with the end user for almost all of the mobile experience is virtually sacrosanct for everyone but Apple and AT&T. But there is a concern among some in the mobile industry that carriers will extend that relationship to demand a role in creating software and services for end users marked with their own brand.

Verizon did nothing to assuage those fears by announcing plans to join the Joint Innovation Lab (JIL) this week, essentially signaling that it plans to make sure Verizon-stamped software appears on future handsets regardless of what operating system is running underneath the layer presented to a phone's user.

To be fair, there are valid reasons why carriers are so concerned about the types of applications that run on their networks. Modern wireless networks are more fragile than one might think, as demonstrated by the problems AT&T encountered when iPhone-bearing geeks descended on Austin, Texas, for SXSW 2009 and brought local AT&T data service to a crawl.

Still, Aaron Woodman, a director in Microsoft's mobile communications business, thinks carriers fundamentally understand the shift that has taken place in the mobile industry over the last several years.

Form vs. functionality
For years, the business of selling mobile phones was about making sure you had phones that looked good and ensuring distribution ran like a clock, Woodman said. But over the last decade, business phone users started to demand features in addition to style, and that trend has exploded with the consumer demand sparked by the iPhone.

"People all of the sudden were walking in and asking for core level of functionality, and that started to change the conversation from about sourcing devices to functionality," Woodman said. "That functionality is going to be very difficult for operators to provide with significant help from others. Expertise and experience (in one area) doesn't yield expertise and experience in another area."

Organizations like Symbian, which controls the world's leading smartphone operating system, believe the balanced answer is to create an "app mall" rather than an "app store," according to David Wood, executive vice president for research at the Symbian Foundation.

For example, Symbian will do the dirty work of processing, certifying, and hosting the applications, but will give its various partners their own storefronts within that mall to sell Symbian-certified applications as they see fit. Microsoft's approach is somewhat similar. This way, carriers can feel they still have the opportunity to sell their software and services to end users without operating system vendors having to cede control of the user experience on a modern smartphone.

As has been often stated, the beauty of the modern mobile computing market is that established business models and philosophies from the PC market or older cellular phone market aren't necessarily relevant: several executives will (privately) admit they are essentially making this up as they go along.

There's little doubt that Apple's iPhone has shaken up this market the way Apple's Macintosh shook up the personal computing market 25 years ago. But unlike the past, several companies--not just two--are going to dictate the future of the truly personal computer.

And since different people want different things from their mobile phones, there's room for more than one approach to selling smartphones and mobile applications. There is not, however, room for seven approaches, which means operating system vendors, handset makers, and carriers will have to be extremely vigilant about evolving customer perferences in a world where consumer tastes can change virtually overnight.

LAS VEGAS--In the-not-so-distant future, your cell phone provider will likely also be providing wireless Internet access for your digital camera, electronic book reader, or any other electronic gadget you may own.

During the CTIA Wireless 2009 trade show here this week executives from AT&T and Verizon Wireless described a new era in wireless in which their networks would be used not only for cell phones but also to provide network connectivity to everything from e-readers to personal navigation devices to heart monitors.

At a press event here on Thursday Ralph de la Vega, president for AT&T mobility, said that in a few years retail chains, such as Best Buy and Wal-Mart Stores, will be stocked with electronic devices that wirelessly connect to Internet.

"In the next few years, portable devices that aren't connected wirelessly to the Web won't sell," he said. "Wireless connectivity significantly increases the value of devices. And it's what people want."

De la Vega pointed to growth in the smartphone market as an indication that consumers are increasingly becoming more accustomed to always connected devices.

"It's like the PDA market," he said. "When you added wireless to a PDA, it became more useful. And the smartphone market was born. The same will be true of cameras, personal navigation devices or e-readers. And the companies that don't add wireless to their product won't be successful."

While an everything-connected world may sound cool, there are still lingering questions about how much this access will cost consumers and how users will actually pay for it. And if it wireless operators aren't willing to adapt their business models, it may be difficult to get consumers to sign up for pricey data services with lengthy contracts.

Glenn Lurie, president of AT&T's emerging devices business, said he realizes that that wireless operators will have to change how they do business.

"This is going to require a different business model," he said. "And we are going to have to break some rules to bring these devices to market in a customer friendly way."

An untapped market awaits
Today, nearly 85 percent of the U.S. population owns a cell phone. As this penetration rate approaches 100 percent, it's unlikely that cell phone operators will experience much new growth simply by adding new cell phone subscribers. Adding new devices, such as electronic readers and cameras, to the network greatly increases the addressable market. AT&T executives believe the market for connecting devices other than phones to their wireless networks could be as big $90 billion over the next five years.

Verizon Communications' CEO Ivan Seidenberg said during a press conference here this week that he believes people in the U.S. will own multiple wireless devices and that eventually wireless penetration could reach as much as 500 percent in the next few years.

"I'm not saying that people will be carrying around five mobile phones," he said. "But you might have something in your pocketbook that talks to a thermostat or any number of devices that are connected wirelessly across the global Internet."

AT&T has created a special business unit to identify and help get emerging consumer devices ready for its wireless network. Lurie heads up the new business unit and has spent the past five months talking to a wide range of device makers from garage start-ups to established consumer electronics makers.

Verizon Wireless is addressing this new market through its Open Network Initiative, which was launched last year and is designed to expedite the process of certifying devices for Verizon's network. Verizon has already certified some 36 devices, including a smart-grid device that monitors energy consumption and a wireless tablet for the health care industry that serves as a portable medical chart.

Tony Lewis, who leads Verizon's open network, said the company is also talking to consumer electronics makers.

One product category likely to make its way onto carrier networks first is the electronic book reader. Sprint Nextel provides wireless service for the Amazon Kindle. And the product, which allows people to download books, newspapers, and magazines over Sprint's 3G wireless network, has been a huge hit with consumers. Now other e-book manufacturers are looking for ways to wireless enable their devices.

Verizon is currently talking to five e-book makers about making their devices available on Verizon's network, Lewis confirmed. AT&T wouldn't provide details, but executives hinted that an e-book deal could be in the works its network as well.

New business models needed
The notion of providing wireless connectivity for consumer electronics devices has been around for a long time. Chipmakers like Qualcomm have been developing chips just for this purpose. And Wi-Fi is also finally making its way into many consumer electronics devices.

But connected consumer devices haven't taken off yet, mainly because the carriers' business models are too restrictive. Today, wireless operators typically offer wireless service for a single device. The phones are sold through the carrier. And the operator subsidizes the cost of the phone in exchange for consumers accepting a contract.

But if consumers are expected to own multiple devices that connect to a carrier's network, they're not going to be willing to sign up for multiple services. This means that mobile operators are going to have to change how they do business.

"We can't expect people to have five different accounts," Tony Melone, CTO of Verizon Wireless, said during an interview this week. "There needs to be a mechanism that allows people to have some kind of account for multiple."

Executives from AT&T and Verizon acknowledged that multiple business models will likely co-exist. For example, Amazon, which uses Sprint Nextel's network for wireless service on the Kindle, pays Sprint for the data access and bundles that price into the cost of the product. As a result, Kindle users don't sign up to for an account with Sprint Nextel nor do they pay a dime for downloading books over the Net.

"The Kindle has a great business model," said Verizon's Lewis. "But it's not the only one out there."

AT&T's Lurrie said that how the service is monetized will depend on the device that is using the network. For example, Lurie said that most consumers would not want to spend an additional $10 a month for wireless service to upload photos to a digital picture frame. But they might be willing to pay for one-time use or even pay for several uses.

For all its talk of new business models and breaking rules, so far, AT&T seems to be following its traditional business model when it comes to selling Netbooks. Just as it does with smartphones, AT&T is subsidizing the cost of these mini-computers in order to get subscribers to agree to a data service contract.

And it appears the carrier is willing to deeply discount these devices just to get people using the network. Earlier this week, it announced a pilot program in Atlanta and Philadelphia where it will sell Netbooks for the cost of $50 to consumers who already subscribe to its broadband service. In exchange for this rock-bottom price, subscribers must agree to a two year contract for its $59.95 per month data service, which also provides access to AT&T's 3G network as well as its 20,000 Wi-Fi hotspots around the country.

But Lurie said that the company will not rely on subsidies alone to fuel adoption of these services.

"I don't think the subsidy model will drive the business," he said. "We will provide some subsidies, but we will be experimenting with all kinds of different business models."

De la Vega said the company is still in the early stages of figuring out the best way to monetize its services. But he said the old model alone will not be enough to grow AT&T's business in the new era of wireless where every device will be wirelessly connected.

"We need to be more flexible," he said. "This is a new frontier. And we need to approach it with new ideas. We can't be forced to go down an old path."

(Credit: Mozilla)

LAS VEGAS--At CTIA 2009 on Thursday morning, I sat down with Mozilla's Jay Sullivan, vice president of mobile, to get a hands-on demo of Firefox's in-development mobile browser, code-named Fennec.

In addition to using Fennec on a Nokia N810 Internet Tablet with my own two hands instead of on a desktop emulator, I also saw a new feature in action that is poised to give Fennec the edge over rivals, when it enters the mobile-browsing marketplace.

During our meeting, Sullivan also dispensed with a few more details about Fennec's road map and hinted at a final name.

First, the name: I've been calling the app-to-be "Firefox Mobile" because for nearly everyone outside of the tech bubble, "Fennec" just won't cut it. When I asked for a clue, Sullivan replied that "mini" or "mobile" implies a watered-down browsing experience.

"We want to create something worthy of being called Firefox," Sullivan said. This means there's a good chance that Firefox for mobile phones may be named just plain "Firefox," with separate mobile builds being designated by operating system--Firefox for Windows, Mac, Windows Mobile, BlackBerry, and so on. Thinking about transition devices such as Netbooks or future phone-laptop hybrids, Sullivan said, makes you question the distinction between what's "mobile" and what's "standard."

Second, the edge: Mozilla's attitude toward Fennec's future name heavily hints at what it can do. A few weeks ago, Fennec took on support for Firefox extensions. One of these is Weave, an add-on that on the desktop backs up your "Awesome Bar" contents--bookmarks, passwords, and browsing history.

When used in conjunction with Fennec, Weave synchronizes these between your desktop and mobile phone, which can save you tons of typing when you're starting a search. It can also populate your bookmarks and commonly used search terms, so you don't have to spend an hour setting up your new Fennec browser to mirror Firefox.

What's more--and this was the slickest use case by far--whichever tabs you had up when you left the desktop, you can pick up again on Fennec. The Weave add-on is ready to try, if you have Firefox 3.5 beta installed on your desktop.

The Weave add-n sits just below the tabs when you swipe the screen to the right.

(Credit: Mozilla)

While Opera has already implemented a similar content-syncing service, Opera Link, to sync bookmarks, search history, and notes between all Opera browsers, on the mobile phone, Fennec's implementation of the concept looks faster and easier to work with when it comes to open tabs.

On Fennec, you'll slide the screen to the right, tap a small button, and see a list of your synced sites. Search bar content from the desktop will appear when you begin typing a term or URL.

Third, the road map: Fennec beta 1 is already available for Nokia N810 Internet Tablets, and Sullivan says he expects one or two more beta cycles before the application will be released for Nokia's Linux-based Maemo platform sometime in summer. After that, Mozilla hopes to kick off a beta version for Windows Mobile by the end of the third quarter, followed by a Symbian version later this year.

LAS VEGAS--The new 4G wireless broadband network that Verizon Wireless plans to launch in 2010 could be rural America's answer to its broadband access prayers. But extending the network to every nook and cranny in the U.S. will likely take years.

Tony Melone, senior vice president and chief technology officer for Verizon Wireless, said during an interview at the CTIA Wireless 2009 tradeshow here Wednesday that the new 4G network that the company is building will blanket the entire continental United States, including the far corners of rural America.

"The licenses we bought in the 700MHz auction cover the whole U.S.," Melone said. "And we plan to roll out LTE throughout the entire country, including places where we don't offer our CDMA cell phone service today."

If Verizon makes good on this promise, it will be helping to bridge a widening gap between broadband haves and have-nots in this country. While Verizon Wireless' parent company Verizon Communications and other broadband providers have concentrated on building wireline broadband infrastructure in densely populated areas, such as cities and sprawling suburbs, they have not done a good job of extending that infrastructure to rural America.

The problem has been that building infrastructure for land-based broadband networks is expensive. And companies, such as AT&T, Verizon and Comcast say they can't make profits by offering service in sparsely populated regions because the cost to build these networks is too high and the number of potential customers is too few. And even though the federal government has provided some $1.2 billion in loans aimed at helping operators in the private sector build broadband networks in remote areas, the money hasn't been stretched to reach every community.

While broadband penetration has increased in rural areas over recent years, it's still not nearly at the same level as more densely populated regions. Only about 38 percent of rural American households have access to high-speed Internet connections, according to a study published by Pew Internet & American Life Project in July. This compares with about 57 percent of city dwellers who have access to broadband and 60 percent of people living in suburbs.

The result has been small towns and communities throughout the country that still have no access to high-speed Internet services. These communities have been stuck in dial-up limbo, waiting for the 21st century technology revolution to reach them. It's made it harder for businesses to grow and compete in the increasingly connected and tech savvy market. It's meant that workers have had a harder time finding jobs. And it's left an entire population less connected to important news and information that is increasingly found online.

Melone said that the spectrum Verizon acquired in last year's Federal Communications Commission's auction is ideally suited to help solve this problem. The spectrum that is being used to build the new network is in the 700 MHz band. Up until now, it has been used to broadcast analog TV.

Because the spectrum is in a lower frequency, it can transmit signals over longer distances and penetrate through obstacles. And because the signals travel longer distances, Verizon can deploy fewer cell towers than if it used spectrum from a higher frequency band, which means it can provide coverage at a lower cost.

Even though Verizon is primarily building the 4G wireless network to provide faster service for mobile devices, Melone said the network could also be used to provide fixed broadband access to rural homes.

"I can't pre-announce any products or services," he said. "But I can envision offering devices that are geared toward putting wireless broadband in the home. And then people could use Wi-Fi to share the connection with multiple devices like they do today with router connected to their DSL or cable modem service."

President Obama's administration is well aware of the high-speed Internet divide that exists today, and he has vowed to do something about it. As part of the overall economic stimulus package passed by Congress, the government is allocating $7.2 billion for projects that bring broadband Internet access to rural towns and communities.

Melone said it's too early to say if Verizon will request money from the government as part of the package to fund building its network in rural communities. But he said that with or without government money, Verizon is committed to providing service in rural areas via its 4G network.

"At this point we haven't made any attempt to get stimulus money for the LTE build-out," he said. "But it's still early in that process and there's not enough clarity around the stimulus package. We don't know what strings will be attached to that money. Regardless, we plan to blanket the country over a period of time with 4G. We bought the licenses to cover the entire continental U.S., and we plan on building the network where ever we have a license."

Still, rural Americans may have to wait years before Verizon's 4G network comes to them. Dick Lynch, CTO for Verizon Communications, said in February during an interview that the 4G network deployment would likely follow the plan used to build Verizon's 3G network. Under that plan, Verizon started with large metropolitan areas and filled out coverage from there. Verizon has said it plans to reach 20 to 30 markets by the end of 2010. And it will continue to add more coverage steadily after that, Melone said.

Internet Explorer Mobile's sexier look.

(Credit: Microsoft)

I sat down with Microsoft on Wednesday at CTIA 2009 to take a closer look at the Windows Mobile 6.5 operating system first previewed at GSMA Mobile World Congress. As part of a much riskier design that users will probably either appreciate or hate, the smartphone operating system includes a complete overhaul to Internet Explorer Mobile.

IE Mobile will sport a cleaner design, with icons large enough for you to put down the classic touch-screen stylus and start using your fingers. Round navigation buttons line the bottom of the screen and then fade from view until you tap them. The hideaway menu is similar to that of Opera Mobile 9.5 and the forthcoming Firefox for Mobile.

While IE Mobile will be sleek indeed, it's also weak on features, at least if your goal is to replicate the trappings of desktop browsing on smartphones. In the initial release, there will be support for Flash Lite for videophiles to enjoy, as well as copy and paste features, but there won't be text searching within a document, image downloading, tabbed browsing, or support for browser add-ons.

What Microsoft is offering, however, is a promise of performance that encompasses swifter rendering speeds and better follow-through on complex Internet tasks, like checking into a flight online without the browser crashing. With the next Internet Explorer build, Microsoft says it will focus on increasing its success rate of completing complicated tasks.

Whether this back-to-basics model will be able to grab some of the excitement mounting around feature-rich mobile browsers like Opera Mobile and Firefox Mobile (code-named Fennec) will remain to be seen until Internet Explorer Mobile ships on the first Windows Mobile 6.5 smartphones in the latter half of 2009.

LAS VEGAS--Wireless industry executives at the CTIA Wireless 2009 trade show here say that despite the economic meltdown, the cell phone industry remains strong. And they're confident that it will be a driving force in pulling the nation out of the current financial crisis.

Verizon CEO Ivan Seidenberg

(Credit: Marguerite Reardon/CNET )

Verizon Communications CEO Ivan Seidenberg and Robert Dotson, CEO of T-Mobile USA, which is owned by Deutsche Telekom, took the stage on Wednesday, the opening day of the trade show, with a similar message.

These executives said that despite the economic troubles facing the nation and the world, the wireless market is thriving and innovation is flourishing. They also agreed that as the nation moves through the current crisis that the wireless industry could play a significant role in the economic recovery of the country. But they also warned that reluctant investors and overzealous regulators could stunt its potential and harm the recovery.

"I do not mean to minimize the challenges we face--as an industry or a country--as we try to get our economy going again," Seidenberg said during his speech. "But wireless innovation has been a foundation of our country's prosperity for the last 25 years, and I'm confident that this great and vibrant industry will continue to be a leader as we put our economy back on the path to growth."

Indeed, Seidenberg went so far as to say that the rest of the economy could take a lesson from the wireless industry. Instead of companies and investors pulling back and hoarding their money as they've done thus far, he said that businesses should be continuing to invest.

"I wish everybody in America could taste the wireless special sauce," he said. "It seems the rest of the country has forgotten how to grow, but the mobile industry keeps reminding us."

Seidenberg emphasized that the way the communications industry has done this is by investing in building new infrastructure. Verizon Communications, which has a majority stake in Verizon Wireless, has already begun spending billions of dollars to lay new fiber for its fiber-to-the-home broadband service known as Fios.

And now it plans to invest in improving its wireless network. The company is about to embark on another major infrastructure project to build a new 4G wireless broadband network. The wireless operator announced its network suppliers and strategy for building the network in February at the GSMA Mobile World Congress in Barcelona, Spain. It plans to start testing the network this year, and it will have 4G wireless deployed in 25 to 30 markets by the end of 2010.

"Our country can't afford to slow down growth and momentum," Seidenberg said.

Even though Seidenberg emphasized the need for investment, he tried to quell worries that the company is over-spending. During a press conference after his speech, he insisted the investments the company is making to build its 4G network are not much more than what the company was already spending to upgrade and maintain its existing 3G network.

"It's not that expensive," he said. While he wouldn't get specific about the company's spending plans for the new network, he said the overall budget would not be increased too much. Instead, he said that spending would shift from the current network, known as EV-DO, to the new network.

Dotson, T-Mobile USA's CEO, had the same message during his keynote speech. Dotson said that the wireless industry must be the driving force to get the economy moving again. And he urged the financial community to open its wallets to keep innovation moving. He also warned the new presidential administration to not over-regulate the industry.

T-Mobile USA CEO Robert Dotson

(Credit: Marguerite Reardon/CNET )

"Now more than ever we must make certain that financial fuel flows to the wireless innovators, entrepreneurs and the garage geniuses, who will drive the next economic business cycle," he said during his speech. "In these times of needed financial regulation, we should be united to ensure the light regulatory touch that has successfully guided this highly innovative and vibrant industry for the past 26 years continues."

Seidenberg added that the government should reduce taxes on wireless services. And he called for a five-year moratorium on adding new taxes to wireless services so that the industry can work with local and state authorities . He said that from 2003 to 2007, taxes on wireless services rose four times faster than taxes on other goods and services. And he said that in some states taxation on cell phone service is over 15 percent.

"All of us understand the pressures that policymakers face in an era of big deficits and slow growth," he said during his speech. "But we need to be very careful that government does not to try to fix short-term needs at the expense of long-term growth, which happens every time it raises taxes or imposes new regulations."

Still, the wireless industry is facing its own troubles. Handset manufacturers, in particular, are hurting. Nokia, the world's largest maker of cell phones, has drastically reduced expectations for 2009 and has already begun laying off workers and shutting down production facilities. Motorola, which was already on shaky ground, is also suffering, as are other manufacturers such as Samsung and LG.

But the operators themselves have actually fared much better. AT&T has laid off some employees and Verizon has admitted that it is shedding workers who have worked on its traditional landline businesses. But these companies saw big growth in their wireless businesses during the fourth quarter of 2008. And that growth is expected to continue.

Seidenberg pointed out during his speech that more people are buying higher-end smartphones and signing up for more expensive data plans that allow them to surf the Net, check e-mail and connect to social-networking sites. And he said the new innovations around application stores, for example, would only help the industry become more efficient. He also emphasized the need to consolidate standards and operating systems to make the industry even more efficient.

But he admitted things could be better.

"My guess is that the industry as a whole is doing fine," he said during the press conference. "But if GDP were at 5 percent, we'd be that much better."

Verizon executives Lowell McAdam (left) and Ivan Seidenberg plan to keep Verizon on a software development path.

(Credit: Maggie Reardon/CNET)

LAS VEGAS--Verizon Wireless doesn't care who emerges from the coming mobile operating system wars because no matter who wins, Verizon will make sure its software runs on top of that operating system.

"I don't think I need to bet on an operating system," said Lowell McAdam, CEO of Verizon Wireless, in a question-and-answer session at CTIA 2009 Wednesday. "I need to bet on layers that will bridge those operating systems."

McAdam was referring to the news announced Wednesday that Verizon Wireless will join the Joint Innovation Lab (JIL) created by its corporate parent, Vodafone, along with China Mobile and Softbank. JIL plans to build "mobile widgets" for future phones that will apparently run on whatever operating systems Verizon decides to support on its future smartphones.

Seven organizations are currently jockeying for the inside track to run the mobile computer of the future. Symbian, Research in Motion, Apple, Google, Microsoft, Palm, and the LiMo Foundation are all fighting to get their software established as the platform of the future, and not all of them are going to make it: choice is a good thing, but too many choices overwhelms developers and carriers, not to mention users.

Earlier in his keynote address, Verizon Communications CEO Ivan Seidenberg predicted that the current list would get whittled down as the industry coalesces around "an open operating environment." He did not, of course, say which ones Verizon is eyeing, and neither Seidenberg nor McAdam took that bait in the Q&A session following the keynote.

McAdam did say, however, that "three, maybe four" would survive. Verizon's plan with JIL appears to be an extension of its historical strategy of putting its own software--things like VCast--on its phones, which gives it the ability to tightly control what applications run on its network and extend its brand into software and entertainment. For example, Verizon, as part of JIL, will create games for future phones on its network, McAdam said.

It will be interesting to see how Verizon's software works with the applications created by other developers, such as the ones that will appear on the BlackBerry Storm now that BlackBerry App World is up and running. Widgets by definition are pretty lightweight applications, but how Verizon chooses to prioritize those applications on its devices could determine how widely they are used versus applications created by third parties.

This probably also means that barring a major change on strategy, Apple and Verizon are unlikely to hook up any time soon. Right now, there's the obvious barrier in the different networking standards used by the iPhone and phones on Verizon's network, but the companies seem very philosophically opposed when it comes to software: it's hard to imagine Apple agreeing to let Verizon run its own widgets on the iPhone.

It also means Verizon is still bent on avoiding a fate as a "dumb pipe," leaving the software development to others and just making sure its network is running smoothly. As usual, it all comes down to money: people will spend a fortune over the next ten years on mobile software and services, and Verizon wants to make sure it is part of the action.

LAS VEGAS--Full-length TV shows are coming to BlackBerry devices as QuickPlay Media has announced it will offer a new TV download service for the smartphones via the just new Research In Motion applications store.

BkackBerry Bold

(Credit: Research In Motion)

QuickPlay is one of the first companies to offer an application through RIM's BlackBerry App World virtual store. RIM announced the new applications store Wednesday morning. And co-CEO Mike Lazaridis is expected to show off the new storefront during his keynote speech Wednesday here at the CTIA Wireless 2009 trade show.

The QuickPlay video service called Primetime2Go will cost $7.99 a month. It will provide full episodes of popular TV shows from several TV networks including NBC, MTV Networks, CBS, and the CW. (CNET News is owned by CBS.)

As previously reported, the service will only download shows over a Wi-Fi connection. And currently the service will only be available on the BlackBerry Bold, which is sold by AT&T and the BlackBerry Curve 8900, which is sold by T-Mobile USA. The service will likely be available on future BlackBerry devices that also run the company's latest version of its operating system, Mark Hyland, vice president of marketing said.

The only other requirement for the service is that users must have an SD memory card for the phone. The Bold comes with a 2GB card and the 8900 has a 1 GB card, which Hyland said can provide about five hours of recording time.

For now the TV shows that are downloaded will not have advertisements in them. But Hyland said this may change as the service evolves.

There are already several mobile TV services available for phones. Apple's iTunes store delivers full-length TV shows. But users must pay on a per-show basis instead of a subscription. Qualcomm's MediaFlo offers live TV programming. And MobiTV, which is available through a variety of operators, delivers a mix of full-length TV shows, live programming, and made for mobile video. MobiTV has developed a special application for business users that tailors business news and information and is available on the BlackBerry Bold. It will soon be offered on other BlackBerry handsets such as the BlackBerry Storm.

Even though there is no shortage of options for watching TV on phones, the service has been slow to take off. But experts believe that mobile TV is on the rise and will grow over the next few years. Of course, the economic downturn could affect adoption. Hyland said his company is conscientious about consumers looking for value.

"Of course we understand there is concern over the economy," he said. "That's why we priced it at $7.99. So for the cost of two lattes in a month people can have access to great programming. And we think that's a good value."

LAS VEGAS--On the eve of the CTIA Wireless 2009 trade show here, Clearwire has announced a portable Wi-Fi router that will use Wi-Fi to connect devices such as smartphones and cameras to its new 4G wireless network.

(Credit: Cradlepoint)

On Tuesday, network operator Clearwire, which is building a nationwide WiMax network, announced the Clear Spot, which is made by CradlePoint.

The compact, battery-powered device connects up to eight devices to the Clearwire WiMax network via Wi-Fi. It costs $139 and is expected to go on sale later this month.

Clearwire said the Clear Spot will work with most Wi-Fi-enabled smartphones, including the iPhone, some BlackBerry devices, Windows Mobile phones, the T-Mobile G1, and the Palm Pre. It will also work with Wi-Fi-enabled game and music devices, as well as Wi-Fi-ready digital and video cameras.

The purpose of the device is to extend and provide access to Clearwire's WiMax network. Intel has already started manufacturing WiMax chips. And some laptops have the technology embedded in them.

Eventually, other consumer electronics devices will also get WiMax connectivity. But until then, there aren't many devices that can connect to the Clearwire network. By contrast, there are millions of devices already on the market that have Wi-Fi connectivity. The Clear Spot router allows these Wi-Fi devices to access the Clearwire WiMax network.

"While many (consumer electronics) devices will eventually include embedded WiMax technology, our customers can now easily use their existing Wi-Fi-enabled phones, cameras, game systems, or laptops in compelling new ways," Scott Richardson, chief strategy officer for Clearwire, said in a statement.

Clearwire currently offers WiMax service in Baltimore and Portland, Ore. The company has plans to add service in another eight cities in 2009, and it expects that by the end of 2010, it will be able to offer its WiMax service to 120 million users. The service is available for $10 a day, or consumers can sign up for a monthly service starting at $30.

Clearwire isn't the only service provider tapping into the power of Wi-Fi to reach more consumer devices. Verizon Wireless is also reportedly getting ready to launch a new device known as the MiFi 2200, which is made by Novatel. This device also creates a personal Wi-Fi hot spot that uses Verizon's 3G wireless network to connect to the Internet.

Verizon isn't commenting on the new device. But Novatel is showing off the device here at CTIA.