Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Voltaire who wrote (10967)	11/1/2000 7:39:24 PM
From: Mannie	Read Replies (1) \| Respond to of 65232

Interesting RNWK news... Wednesday, November 01, 2000, 12:00 a.m. Pacific Sprint PCS to offer MP3 cell phone by Monica Soto Seattle Times technology reporter A cellular phone is no longer just that. Sprint PCS Group, a subsidiary of Sprint, has partnered with Seattle-based HitHive and RealNetworks, plus phone-maker Samsung, to offer the nation's first wireless MP3 phone. The device, which allows consumers to make phone calls, access the Internet and play digital music, is hitting the market today at $399 apiece. Beforehand, accessing digital music on a hand-held device was possible mostly through a stand-alone MP3 player. A player comparable to the Sprint PCS model would cost between $250 and $300. Offering this new feature is part of a larger effort by wireless companies to expand use of cellular phones, especially as they relate to access to the Internet. Wireless applications developed by the industry are booming, including instant messaging and games. Sprint PCS, based in Kansas City, happens to be the first out of the gate to offer a phone that allows playback of MP3 music files, one of the most popular uses enabled by the Internet. Todd Rethemeier, a wireless analyst with New York-based J.P. Morgan Securities, said the new service would not have an immediate impact on Sprint PCS' revenue. Like other wireless-industry players, the company has yet to determine how to make money off of wireless data, such as accessing movie times or stock quotes via a cellular phone. "What all of the companies are doing now are trying different things, offering data services across the board," Rethemeier said. "Eventually it will be determined which (services) are going to make money for them or not." Pragnesh Shah, senior director of e-commerce at Sprint PCS, said the company is seeing a big demand for a product like an MP3 phone. "This obviously is the starting point," he said. The announcement is a big boost for HitHive, which developed the technology that will allow Sprint PCS customers to build and store music collections on the Internet and access that music using wireless devices. Sprint PCS will package the phones with RealNetworks software, RealJukebox, which enables consumers to transfer compact-disc tracks into an MP3 format, so they can download the music on their phones. The phone has roughly 64 megabytes of storage space, which equals roughly an hour of music. Consumers who purchase the phone before Jan. 14 receive a free subscription to the music service for a year. After that, the service is expected to cost about $120 a year, although Sprint PCS has not determined its pricing model - subscription or pay-per-play. The premise behind offering digital music is that customers will soon be able to download music from their cellular phones instead of their PCs - a potentially lucrative proposition since it would generate more air-time revenue. The company recently announced its Sprint PCS Wireless Allowance service, which allows an adult to set up wireless phone service for someone under 18 for a set monthly payment. Minutes are deducted off the user's balance each time they use the phone. Underage consumers can replenish minutes using their own money. "If you look at holiday wish lists, the things they're going to be buying or asking for are wireless phones, MP3 players, DVDs and digital cameras," Shah said. "Two of these four get knocked out with the player we're launching (today.)"