One of the hottest topics at CTIA last week wasn’t much of a mobile device at all. But a tremendous amount of attention was focused on netbooks, the mini-laptops that allow users to surf the Internet, email and manage digital files, including photos and music. For handset makers, it represents a new form factor that can attract a wider customer base, and for operators it provides the opportunity to sell more high-priced wireless data plans for those seeking to be always connected.
Last week, AT&T was the first U.S. carrier to announce that it was launching a netbook trial in Atlanta and Philadelphia, where residents could buy one for as little as $50 with the purchase of an AT&T (NYSE: T) wireless data plan and wired DSL plan. For those not interested in DSL, the laptops would cost between $100 and $350. Wireless plans range between $40 and $60 a month. Without those services, typically cost between $450 and $600. Last month, it was rumored that Verizon Wireless will begin selling subsidized netbooks as early as next quarter, but no plans have officially been announced.
Microsoft’s Robbie Bach, who keynoted at CTIA on Thursday, also focused a disproportionate amount of time on PCs, and its upcoming Windows 7 computer operating system. The one connection was that Windows 7 will be able to run on a netbook, unlike the company’s current Vista operating system. Bach: “We think the world is moving toward a three-screen environment that’s connected by cloud-based services. You’ll see what we are doing with netbooks and Windows 7, and what we are doing phones, but also what we are doing with TVs and XBox…Operator partners have taken on the idea that they can sell netbook PCs, like they are selling phones. We are seeing more engagement of retailers. The story for netbook PCs gets better with Windows 7.”
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