Verizon plans rival to Amazon Kindle
Published: 8 January, 2009
The growing success of the Amazon Kindle e-book reader is prompting a response from Verizon Wireless, which is likely to launch its own service for downloading books and newspapers to a mobile device. Tony Lewis, who runs the program to certify third party devices for the Verizon network, said in an interview that the recession will not delay the launch even of non-essential mobile products like e-book readers. "Competitors to the Kindle are out there and ready," he said, but would not name any e-reader partners, merely predicting they would come to market this year.
This highlights Verizon's stepping up of its Open Access Program, which has so far certified 29 devices, most of them application specific or geared to vertical markets. Though these do not grab the same headlines as unlocked smartphones in the open access campaign, they represent a potentially strong new source of revenue for operators, which can provide wireless connections to support single-function services geared to specific business or consumer tasks. Amazon's Kindle service has been an early example of this, generating revenue for Sprint, whose network powers the offering, though it is unseen to the end user.
Meanwhile, Amazon.com says that Kindle was the bestselling electronic device on its site during 2008, and the most popular gift item in the whole electronics category. However, the retailer did not reveal actual sales figures. "Turns out the Kindle is becoming the iPod of the book world," Citigroup analyst Mark Mahaney wrote in research note during the summer, as analysts became increasingly enthused by the open access device, whose cellular connection is free and invisible to the end user, with Sprint gaining a usage fee from Amazon. Mahoney predicted at that time that Amazon would sell about 380,000 Kindles in 2008, and the device and associated products would generate $1bn in revenue by 2010.
With e-book software like Stanza, a popular application that turns the iPhone into a reading device, growing in strength, there will be rising pressure on Amazon to form a deal with a European carrier to bring Kindle across the Atlantic. Vodafone was said to be in talks with the online retailer last year, but decided to announce its own service, showing how Europe's cellcos will be keen to tap into the e-book trend under their own brands.
More VERIZON COMMUNICATIONS News
More HANDSET News
More HANDSET News
COMMENTS
Carrier Broadband Performance: Africa & Middle East
Carriers are using mobile broadband as their weapon of choice in the fight against the commoditization of voice and falling ARPU. This...
Voice over LTE: Market Analysis and Forecasts
VoLTE offer unique advantages in lowering a carrier's voice infrastructure economics and promises to improve voice quality, device...
Satellite Phones: Will Dual Mode Help the Phoenix Rise from the Ashes?
Satellite phones have followed an arduous path since their much-hyped launch more than a decade ago. The hype was followed by an e...
