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October 31, 2008, 3:06 pm

Verizon mulls heavily-discounted BlackBerry Storm

By Scott Moritz

Free. That’s Vodafone’s (VOD) recently-unveiled price for the hotly-anticipated touchscreen BlackBerry Storm from Research in Motion (RIM) in the United Kingdom.

In a sign of just how desperate phone companies are to lock customers in to lengthy contracts, Verizon’s (VZ) wireless partner is willing to subsidize the Storm – which sells for about $500 without a calling plan – in order to lure subscribers in England.

Though a final decision has yet to be made, Verizon is considering the same strategy for the Storm’s U.S. debut next month, according to an industry source familiar with the discussions. Another person close to the company says it’s unlikely the Storm will be free.

Verizon declined to comment on its pricing plan for the Storm.

The fact that Verizon is even considering a free phone highlights the competitive pressure created when AT&T (T) started selling a heavily-subsidized Apple (AAPL) iPhone for $199.

Most industry analysts expect the Storm, which has received favorable reviews, to be priced at or below the iPhone.

While Verizon would like to use its exclusive Storm deal to gain an edge in the smartphone market, selling it for free “would be breaking new ground for Verizon,” said Roger Entner, an analyst with Nielsen IAG’s . “It’s likely that they will put it at $150 and maybe $99 if they want to ship massive volumes during the holiday.” At either price, the Storm would be heavily discounted.

Verizon has come up short on blockbuster phones over the past year and a half as the iPhone has become the icon of the smartphone market. AT&T has been a driving force in the U.S. wireless market thanks to the iPhone, which pulls in an average $95 per month. But that drive has also come at a steep price to Ma Bell, which forks over $375 upfront for every iPhone sold. That cost the company $900 million in the third quarter.

For RIM, the Storm represents its biggest step yet into the consumer market as it tries to derail the success of the iPhone. One major challenge is to get devotees of BlackBerry’s physical keyboard to embrace the clickable touchscreen keypad on the Storm. The iPhone’s onscreen keyboard has presented some difficulties for many typists.

So far, Verizon hasn’t had much success with its touchscreen devices. But the Storm, if it’s a hit, could finally establish Verizon as a player in the red-hot touchscreen market. What’s more, it could not only entice new customers, but also convert old lower-paying customers to more expensive contracts. Each Storm subscriber will have to sign up for a BlackBerry e-mail and calling plan, which currently starts at $80 a month.

Let me just start by making it known how extremely jealous I am of all of you who were able to get a Storm reserved for you. For some reason, the stores near me are not offering any type of reserving and they all said 1st come 1st serve. SO I guess I am going to have to go old school for this phone and get to the store early and wait it out.

For those of you that are in the same boat as me, what time are you planning on getting there. I am going to shoot for 5:30am since the doors open at 7am.

Share your stories at http://www.Storm-BlackBerry.com

Posted By New York : November 21, 2008 6:51 am

11/21/2008 release date

Posted By Davis NJ : November 18, 2008 1:51 am

My name is Maurice Parks and I with Vazcom Communications a telecommunications company that assist companies and individuals with leveraging today’s technology to fit their lifestyle optimally. We pay particular interest to business customers that use current technology; therefore any one that would like information on the newest BlackBerry devices and other mobile tools please feel free to contact me at mparks@vazcom.net.

We are taking orders now!!!!

Posted By Maurice Parks, Overland Park, KS : November 12, 2008 9:11 am

Hey “mazs” i work for verizon and this RIM phone currently supports both 3G 1xREV-A (CDMA) and the Global System for Mobile communications (GSM). It is a fully functional quadband world “phone”. The release of this device will truly revolutionize todays phone industry. Retail~499.99 release date~Nov.16th“America’s Fastest 3G Network”

Posted By AC, Atlanta Georgia : November 5, 2008 11:36 pm

Hey wstreetis4lovers, get educated on the game. RIM IS IN NOW WAY DESPERATE. RIM hates Apple and wants to tap the touchscreen market. All other touch screen devices have fallen short, the Storm will not disappoint. Vodafone offered the phone free on their own terms. CARRIERS decide how much they want to sell the phone for in order to generate income from mobile usage over the life of the contract. Cellular companies make up the subsidized cost in the first few months. AT&T subsidized the iPhone in order to sell a few million more units, it’s the business. And finally, $80 is the average cost for the mobile internet and calling plan combined knucklehead! Get it together, and one more thought AT&T 3G GSM is WEAK! Verizon is the real deal, steady, consistent and powerful!

Posted By Z. Nasty, 209, CA. : November 5, 2008 3:11 pm

verizon could pay me to have the phone and i still would not buy it. there no was i would have have a non GSM phone.

Posted By mazs, bethesda,md : November 4, 2008 6:49 pm

I was just at a Best Buy in MN, and they had the Storm available for pre-sale. I haven’t seen this anywhere else.

Posted By P. St. Paul, MN : November 4, 2008 2:27 pm

First of all the email calling plan on Verizon is certainly not $80 a month. Do you think people would really spend that much more just for mobile internet? Secondly, free just makes RIM look desperate. They need to price the phone at or below the iPhone to make it look like it has value and is a functional phone. Irregardless, the anticipation of this phone is proving good for RIMM. Sentiment is bullish (http://www.predictwallstreet.com/forecast.aspx?symbol=RIMM) and I predict they will close up today.

Posted By wstreetis4lovers : November 4, 2008 1:21 pm
Posted By ngoldfarb : November 3, 2008 9:21 pm

I support a large enterprise and will tell you that the Storm against Blackberry Enterprise Server is exactly what every large company wants that Iphone lacks. Apple better have a good plan B as the Storm is going to be selling like crazy with consumer AND businesses as we can confidently deploy it knowing we have all the security, management and reporting as every other Blackberry.

Of the handful of Iphone we deployed there are only 3 left being used and the users all went back to Blackberry after they found the Iphone pales in comparasion in everyday usage.

The question is can at&t afford to match or go lower then the Storm price?

Posted By Frank Smith, New York, NY : November 3, 2008 4:58 pm

The verizon interface is not slammed on your phone for blackberrys. A blackberry on the verizon network is probably the best stand alone phone available on any network, and now with the storm, it will be very hard to compete. Just watch and see.

Posted By Andrew, Seattle Wa : November 3, 2008 1:50 pm

Here are the facts!!! the 80 bucks a month is for buisness, all carriers charge this. for personal its 29.99 per month just like the iphone, THE STORM LOOKS LIKE IT WILL BE BETWEEN 249.99 & 299.99 WITH A 75 DOLLAR REBATE. VERIZON SAYS PROBABLY WILL BE RELEASED RIGHT BEFORE THANKSGIVIN.

Posted By Dave, Marlton, NJ : November 3, 2008 1:42 pm

Had to comment… I have 2 iphones and 2 regular phones on my family plan. me and my wife enjoy our iphones but have been let down a lot with service and hardware. upgraded myself to 3g. that was a joke. and still no actual nav. i heard about the storm and looked into pricing… they are running some great deals with verizon ecspecially when you have fios and fios tv already. bundles are great just wished i wasnt locked in for so long. research ppl

Posted By andrew, central pa : November 3, 2008 9:41 am

Verizons reception is hands down the best overall. ATT is so so. At least in Ohio. In my opinion the Instinct from samsung is the only phone to come close to compete with the iphone, being that the touchscreen is very responsive. However, sprints service is not as good as verizons ( at least in Ohio). As far as pricing, you could argue back and forth all day about different features with each network. But i think it basically all pans out within 10 dollars once you add on the minutes you need, text messaging plans and what have you. But i think what it boils down to is you being able to use the touchscreen without any problems with a service plan that you will never go over. The iphones touchscreen is great if you dont have fat fingers. You will always have pros and cons to every phone, but if the storms touchscreen ends up being good and responsive it will definitely be a huge hit for verizon being as blackberrys already established themselves as having great software running on there phones. If the storm is less then $200 and the touchscreen is great im definitely switching back to verizon. Verizons service is way better where I live as opposed to ATT’s sadly :(

Posted By Sonny. Cleveland, Ohio : November 3, 2008 3:38 am

my fiance and i are both eagerly waiting the release of the storm. we both have verizon curve right now. our bill is 211 a month for bb service, unlimited text, and 1400 mins with tax. it is the best money i spend every month. the service is excellent and i would never switch to another carrier.

i will pay up to 250.00 each for this device. i would like it cheaper but the network reliability is a serious concern so i will pay extra for the service i recieve.

Posted By steven, hammond, la : November 2, 2008 10:40 pm

“$80 per month? VS. AT&T’s $30-$35(?) for the iPhone?

Mmm, let me see…”

Are you kidding me? the iphone contracts ARE NOT that cheap, you must be on daddy or mommys shared family plan, only when you add an iphone to an existing shared plan do you pay that much, otherwise your looking at 70+ a month..

HMMMMM LET ME SEE.. idiot.

Posted By Kris, cleveland OH : November 2, 2008 8:52 pm

I have been a customer of Verizon for over 5 years using a blackberry for the past 2 years. I have 4 lines attached to my family share plan and the only amount I pay above and beyond my plan is $29.99 for the service and $15.00 for the tethering and this is by choice. I am eligible for an upgrade and I am eagerly awaiting the arrival of the “Storm” I love my blackberry. Verizon does not have the ability to block all applications when using a blackberry. In actuality, you are only using Verizon for the voice service when using a blackberry. I like the iphone as well but don’t like the “AT&T” service. I have tried all of the cellular phone companies with the exception of T-Mobile and Verizon has been the most reliable for me. I would not switch for nothing. Verizon may cost a little more but it is well worth the extra, it has worked every place I have ever been too even when others have dropped to the next city or roam to another service. I have yet to experience this problem.

Posted By KLJohnson, Porter, Texas : November 2, 2008 7:04 pm

I am thinking about buying the storm when it comes out but I am totally new to verizon and their plans. If you buy this phone, is it required to also have the blackberry data plan at $80 a month?

Posted By mjk22094, long island ny : November 2, 2008 5:32 pm

at&t plan includes unlimited data, but no text messages…$20 for unlimited text on iphone…

Posted By Brian, Casa Grande AZ : November 2, 2008 1:57 pm

The phone is free here in the UK for a £40 priceplan under vodaphone 900 mins and unlimited txz, inclused email and web browsing. This is a fantastic, deal cant wait for it to come out on the 11th!!

Posted By J Sandhu, Notts, UK : November 2, 2008 11:51 am

crackberry’s and also some apparently crackheads here.
The lowest voice plan is $39.99. For pop email accounts, small, probably the majority of users here $29.99 is the lowest data plan for vzw blackberry access. $44.99 on a corporate server. I’m not sure if the writer of this article is up-to-date on data pricing no offense. To anyone else that wants to compare this to their pda, smartphone, i-phone? You may wanna look a little closer at the specs. Give me a break. This is email in real time. Not wi-fi.

Stop stealing from your neighbors.

Posted By Ted. Berkeley Ca : November 2, 2008 1:23 am

i hate mail in rebates, i got put up the money upfront pay the extra sales tax and then beg for it back.

Posted By gc, nyc, ny : November 2, 2008 12:23 am

this is funny, so does it come down to the rates or the phone? no phone is better then another phone, it all comes down to each person. if you wanna end your contract soon just to get a different phone, so be it. this phone market thing is retarded. im perfectly fine with my iphone. i have no problems. rates will always pan out to about the same no matter what company it is. the only difference you will get is maybe 10$ but nothing more then that. anyone who is picky about there sell phone is probably someone who uses it a lot anyways so whats the fuss? moving on

Posted By The Truth, Midwest, Ohio : November 1, 2008 8:16 pm

I had both Iphones and dumped them both after my wife got the Instinct from Sprint. Watching LIVE NFL games will be fun. Forget GSM and Verizon, Sprint is the best choice especially for $99 all you can choke on!!

Posted By Chicago, IL : November 1, 2008 12:58 pm

The price for AT&T is 900 min for $89 while Verizon is $99.99 for the same 900 without the forced crappy interface that Verizon slams on your phone

Posted By TeRRy Jagger, Cincinnati, Ohio : November 1, 2008 12:32 pm

well. sprint offers the HTC Touch Pro. 299$ after 100$ mail-in rebate.

and all you pay is 99$ a month.

and it’s touchscreen.
slide out full qwerty 5 row keyboard.
16gb sd card support.
and it does everything any other phone on the market can do, and then some….

Posted By Marc, Philly PA : November 1, 2008 11:03 am

I want one…when will they launch in US stores?

Posted By Merinda, Kettering OH : October 31, 2008 8:52 pm

$80 includes 450 peak minutes and unlimited data/email. Just about the same as AT&T/iPhone plan. Look into it first people.

Posted By slimsocal, San diego, CA : October 31, 2008 8:17 pm

Les, the iPhone is not $35/MONTH total. it is a required additional amount above and beyond the $45 to $50 a month plan for phone use as a phone. That does not even inlcude Txting. When you add it all up, AT&T is raking in around $85 to $90 / month per iPhone… $35 /month = data package only… Verizon’s $80 per month looks good now with all included….

Posted By David, Parker, Co : October 31, 2008 7:49 pm

Blackberry data plan starts at $29.99

Posted By Brodie, Albany, GA. : October 31, 2008 7:48 pm

} Free is not a business model.

“Free” is a very good idea… if it
gets millions of new users to sign long contacts with billions of dollars.

Posted By Miami, FL, USA : October 31, 2008 7:02 pm

I love it that everyone bellyaches about the cost of the iPhone plan. Look at the price of the Blackberry e-mail and calling plan! That’s a big bummer.

The Storm will be a modest success but the die is cast, and it’s not for RIMM.

Posted By TimboM, Madison, WI : October 31, 2008 6:08 pm

Not buying all the rumors at all.

Verizon just re-affirmed in their conference call that they want to maintain profit margin of 41%-43% for the wireless group.

Posted By Jenn, Toronto Canada : October 31, 2008 5:28 pm

In today’s economic climate, “free” is a wise choice for a business model, particulary when that which accompanies “free” — rates/plans for cell phone use — provide such huge profits for companies like Verizon.

Posted By Steve, San Francisco, CA : October 31, 2008 4:39 pm

$80 per month? VS. AT&T’s $30-$35(?) for the iPhone?

Mmm, let me see…

Posted By Les, Los Angeles, CA : October 31, 2008 4:25 pm

When you get an extra $80 per month for 24 months out of a customer totaling $1920, it is a business plan.

Posted By nojo Kansas City, MO : October 31, 2008 4:19 pm

matt – free can absolutely be a business plan. it is similar to the gillette model, which pretty much gives the razor away for free and makes money on the blades.

Posted By paul, raleigh, NC : October 31, 2008 3:53 pm

Free is not a business model.

Posted By Matt, Boston, MA : October 31, 2008 3:23 pm
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