Wednesday, May 12, 2010

Google working on iPad competitor - reposted by Andre DiCioccio

Verizon Wireless is working with Google Inc. on a tablet computer, the carrier’s chief executive, Lowell McAdam, said Tuesday, as the company endeavors to catch up with iPad host AT&T Inc. in devices that connect to wireless networks.

Google has said it is working with hardware makers and carriers to create lightweight computers that run its software. As rivals such as Apple Inc. introduce tablets like the iPad, the Internet giant is seeking to spur the adoption of its online software and advertising system through its own partnerships.

The wireless business is still largely about phones. But devices such as tablet computers, netbooks and e-readers are a fast-growing, if tiny, part of carriers’ operations.

Consumers are increasingly interested in wireless devices that can surf the Internet or run software applications, and carriers are trying to tap that interest to offset falling revenue from phone calls.

Mr. McAdam acknowledged that Verizon has some catching up to do in the field. AT&T is the carrier for Amazon.com Inc.’s popular Kindle and the new iPad.

“They were able to get out of the box faster,” Mr. McAdam said. Verizon has been handicapped by its CDMA network technology, less common than AT&T’s GSM, but the executive said his company will have devices ready to show early next year once its new network is in place.

That new network promises much higher speeds for transferring video, for example. Verizon says it will be running in 25 to 30 cities by the end of the year.

The new network will likely bring a shift from current unlimited-use pricing plans.

“The old model of one price plan per device is going to fall away,” Mr. McAdam said, adding that he expects carriers to take an approach that targets a “bucket of megabytes.”

With multiple devices, customers are likely to end up paying more for connecting their gadgets to the next-generation network than they do today, he said. “It’s not out of the question,” he said.

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