Research In Motion Ltd. Tuesday unveiled the BlackBerry Tour smart phone for Verizon Wireless and Sprint Nextel Corp., breaking its pattern of releasing devices with an exclusive wireless carrier partner.
The device, which is able to tap faster 3G networks in the U.S and around the world, will give Verizon Wireless and Sprint a high-end business phone comparable to the BlackBerry Bold that RIM sells through AT&T Inc.At $199 after rebates, it is priced at the same level as the new Palm Inc. Pre and coming Apple Inc. iPhone 3G S. Unlike those devices, however, the Tour isn't tied to one carrier.
Carriers like to lock up buzz-worthy phones for a period of time because they are used as a lure to nab subscribers from rivals. AT&T's multiyear deal with the iPhone has been the best example, as 40% of new iPhone users come from other carriers.
Handset makers such as RIM benefit because their device gets marketed heavily and enjoys higher subsidies under what is known as a "hero program."
"From a consumer standpoint, they're fairly good," said Kevin Burdan, an analyst at ABI Research, of the exclusive phone deals. "What you get are carriers who are receptive to bringing the cost down as much as they can."
But the longtime industry practice has come under scrutiny. Four U.S. senators, including John Kerry (D., Mass.), on Monday called for a hearing to investigate whether the exclusivity agreements unfairly restrict consumer choice.
The senators sent a letter to the Federal Communications Commission urging the regulator to investigate and scheduled a hearing on the issue for Wednesday.
The Rural Cellular Association, a trade group for niche U.S. wireless players, has sought an end to the deals. Opponents claim the practice hampers innovation and stifles competition.
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