Verizon was right. The truth does hurt. And it is especially painful when it’s meted out by a court of law. A U.S. District judge on Wednesday denied AT&T’s request to force Verizon to pull its “There’s A Map For That” and “Island of Misfit Toys” commercials, saying that while the ads might be “sneaky,” they are they are not misleading.
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Since 2008, AT&T’s network in and around San Francisco has experienced an increase in 3G data traffic of 2,000 percent. If you find this metric as astonishing as I do, consider this: The increase in Bay Area data traffic is actually below the national average–significantly below. According to AT&T CTO John Donovan, 3G data traffic on the company’s wireless network has risen nearly 5,000 percent nationally in the past 12 quarters.
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Verizon, though it refuses to divulge sales numbers for Motorola’s new Droid handset, says it has been “very pleased” with demand for the device so far. And no wonder: According to Mark McKechnie of Broadpoint AmTech, Verizon is on track to sell 600,000 Droids during the fourth quarter of 2009.
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For Palm, 2010 will be a year of channel expansion, with its new webOS handsets coming to more carriers. Top among them, Verizon, which has been rumored to be getting a device “like the Palm Pre” since Palm launched it. In a research note to investors today, Kaufman Bros. analyst Shaw Wu says a Palm smartphone from Verizon is pretty much inevitable.
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“AT&T did not file this lawsuit because Verizon’s ‘There’s A Map For That’ advertisements are untrue; AT&T sued because Verizon’s ads are true and the truth hurts.” So begins Verizon’s response to AT&T’s complaints about its new ad campaign and as you can see, it pulls no punches. For 53 pages, the new filing mercilessly thrashes AT&T, proving over and over again that the carrier’s carping over Verizon’s ads has transformed a no-win situation into a horrific PR disaster.
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After nearly three years of rumor and speculation, Dell is finally entering the smartphone market–in China and Brazil. Later this month, China Mobile and Brazil’s Claro will begin selling the company’s Mini 3, a handset designed around Google’s Android mobile OS.
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As clever as it is, Verizon’s reimagining of a Rankin/Bass animated Christmas television special as a criticism of AT&T’s wireless network coverage did not go over well with Ma Bell. On Wednesday, the carrier amended its complaint against Verizon, asking a federal court in Atlanta to force its rival to immediately pull the ad and two other holiday-themed spots that debuted with it.
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The Pixi, the Palm Pre’s diminutive smart-phone sibling, arrives at market a few days from now (Nov. 15), and despite some potential pricing confusion with the Pre, analysts expect it to be another catalyst for the company’s comeback. In a note to clients today, Bank of America/Merrill Lynch analyst Vivek Arya said Palm is well-poised for growth in 2010.
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How quickly Sprint has gone from cutting jobs to cutting checks. Not 24 hours after announcing plans to sack between 2,000 and 25,000 employees, the company said it has agreed to invest another $1.18 billion in WiMax provider Clearwire. That’s a big check to be writing, but then, Sprint is Clearwire’s majority shareholder and the carrier’s plans for differentiated 4G services rely heavily on the outfit’s success.
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The Droid invasion appears to be going according to plan. Motorola’s new Android-based handset arrived at Verizon Wireless stores last Friday and analysts say it’s selling quite well. Indeed, Broadpoint AmTech analyst Mark McKechnie estimates Verizon sold about 100,000 Droids in its first weekend.
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If AT&T took offense at Verizon’s “There’s a Map for That” ad campaign, wait until it gets a load of its rival’s newest ad spots. Unfazed by AT&T’s litigious reply to its first effort, Verizon rolled out a trio of new anti-AT&T ads over the weekend and they are brutal in their criticism of the carrier’s network coverage.
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Well, this is a first, I think: Google is promoting a consumer electronics device on its front page. Surf over to Google.com right now and you’ll find this pitch plugging Droid, Motorola’s new Android phone: “The Droid is on sale now. Learn more.”
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