BlackBerry being offered for Abroad Use by Verizon Wireless
Verizon Wireless is set to launch a BlackBerry e-mail phone that’s compatible with the cellular technology that’s more widespread in other countries, apart from the standard used on the company’s U.S. network.
The new device, which will be a modification of the 8800 line first introduced in February by BlackBerry maker Research in Motion Ltd. through AT&T Inc., will be available for $400. However, customers who sign up for both voice and data service with a two-year commitment will have to only pay $200 for the device.
The BlackBerry is being launched by Verizon with an international data plan priced at $20 per month for unlimited e-mail access in about 60 countries on top of the regular BlackBerry subscription fee of $45 to $50 a month. Occasional travelers have an option of paying as they go for their data usage. Furthermore, the device also can be used as a phone in more than 150 countries at a cost of $1.29 or $2.49 per minute, depending on the market.
RIM developed the dual-mode capability to suit Verizon’s circumstances.
Even though, the New York City-based company applies what some experts consider a superior wireless technology known as CDMA, the vast majority of the world’s cellular networks run on a standard called GSM, including those owned by Vodafone Group PLC, which also happens to own 45 percent of Verizon Wireless.
Though a dual-mode phone is an obvious solution, the disadvantage is the extra cost of the additional components and the engineering challenge of jamming them into a handheld device without making it bulky.
RIM prevailed over the second problem, squeezing in the dual capabilities without increasing the 8800’s size.
In the meantime, Verizon has apparently addressed the first problem by offering a steep discount _ a point driven home by its decision to “lock” the device, preventing users from using it with a rival carrier’s service abroad.
It has yet not been known how much RIM is charging Verizon for each device. But after the various discounts, Verizon’s 8830 is being offered for $100 less than AT&T’s GSM-only version. In fact, Verizon’s 8830 is also equipped with a speedier technology for wireless Internet access than AT&T’s version.
Verizon said it locked the new BlackBerry as part of its emphasis on ensuring network quality for customers, this time outside the United States.
But that policy disables one of the most popular attributes of GSM phones, all of which feature a slot for a removable, postage-stamp sized card that stores a user’s account information.
The ability to remove that card, called a SIM, enables a user to buy multiple GSM phones and use whichever one suits the occasion.
More importantly in this case, GSM also enables a traveler to use a single phone, but buy wireless service from different providers in different countries. Then, by slipping the appropriate SIM into the phone in a given country, the user can cut back on the steep international roaming fees charged by carriers.
By locking the BlackBerry 8830, in order to make it only work with a Verizon SIM, the company is certain to grab the revenue from any calls made with the device from another country.
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