Oh we've all known that Apple will eventually come out with a 3G iPhone, but when AT&T's Chief Executive Officer Randall Stephenson says, "You'll have it next year," we're all going to listen.

Stephenson doesn't give an indication as to how much it'll cost, that's up to Apple CEO Steve Jobs who "will dictate what the price of the phone is."

Jobs plans to sell 10 million iPhones worldwide in 2008, and so far Apple had sold a "mere" 1.4 million handsets through the end of September. Even with 10 million iPhones in everyone's pockets, that would give Cupertino only 1% of the mobile-phone market.

Of course this is all part of Apple's grand plan.

Introducing a 3G iPhone will still allow for the slower EDGE iPhone to penetrate the market - just at a lower price (and subsequently a faster pace). The 3G iPhone will likely also pack more features, which will make it the must-have mobile phone/music player once again.

And who wants to make bets that a "Mobile iTunes" will be part of the package? At 3G speeds, and unlimited bandwidth packages, streaming music (and talk, and sports) on your iPhone will be commonplace.

Long live planned obsolescence.

[Bloomberg via Engadget]

Verizon Wireless said yesterday that it'll open its network to any phone, device or software application by the end of 2008. It's a move that surprised many wireless industry watchers because of Verizon's voracious opposition to "open" access.

The company said they'll publish the technical standards for developers to meet for access to its network, sometime in early 2008. Any device meeting its standards would work on its network and any application the customer chooses will be allowed on these devices.

Some (like Reuters) might assume that this is some sort of reaction to Google's plans for buying up spectrum (not to mention their common wireless operating system). But this likely has been in the works for sometime.

"We as Verizon Wireless place our bets on what applications and devices will be a hit," Verizon Wireless CEO Lowell McAdam said during yesterday's conference call.

"At the same time, customers' needs are increasing and diverging. Soon Verizon Wireless will not be able to meet every customer's needs with our specific portfolio of devices and applications," he said.

The #2 wireless carrier said devices would be tested and approved in a lab, which received additional investment of $20 million this year in anticipation of increasing demand. This allows Verizon to still maintain control over what devices are permitted to access its network, but the intention is to ensure manufacturers have some level of standards to comply to.

And then there's this piece of info from McAdam [via Gizmodo]:

"This isn't just phones - it could be a very small module in a gaming station, a home appliance, something that goes into your car. It doesn't have to have the traditional distribution or volumes. [Traditionally] if a device is not going to sell hundreds of thousands, it's hard to decide because of our scale. But now, if something only sells five, now it can be on our network."

This "opening up" of their network to small players reduces the barrier to entry. If your device tests out, you can go to market. Folks in the satellite radio biz better be watching this, and watching it closely.

It's always better to manage change, than to react to it once it's too late. Verizon seems to be recognizing that by fostering an environment for development and innovation. If the gates are truly opened, then we could be on the cusp on revolutionary change.

[more on the New York Times]

And so it begins...

Introducing iRadio, an application for the iPhone that essentially brings the SHOUTcast internet radio player to your iPhone. Thousands of radio stations are now available for playing and browsing... literally at your fingertips. It works over WiFi and can work of AT&T's EDGE network as well.

A year ago, no one was talking about Apple or Google in terms of the wireless landscape. Now, these two companies are the forefront of every wireless discussion out there. And both have a vested interest in bringing every possible functionality to your pockets - including "radio."

"...barely a day passes without the introduction of a new competing device or service." (David K. Rehr, 2006 NAB Radio Show, September 21, 2006)

Ain't that the truth.

[Gizmodo via Hear 2.0]

AT&T will soon be making available Samsung's newest lightweight mobile phone with music and multimedia capabilities - the Samsung SLM.

The Samsung SLM is also the first phone to sport Napster Mobile functionality and also includes AT&T Video Share, mobile banking, stereo Bluetooth technology, a 2.0-megapixel camera with video capture, external microSD slot and advanced messaging options.

If you'll recall, AT&T and Napster announced a partnership late last month, to bring Napster's mobile service to the masses. Ironically, for a service that built its name on providing access to digital music for free, Napster Mobile is ridiculously expensive - running about $2/song or $7.50 a month for 5 songs. (Pssst, note to digital music providers: no one wants to pay a premium just to download songs over the air.)

But the flippy-phone Samsung SLM and its music capabilities aren't just about buying and downloading songs over the air (thankfully).

The SLM (which will cost roughly $150 in a special introductory offer) also supports the full AT&T Mobile Music suite of services, including XM Radio Mobile, Pandora, MusicID song-recognition service, and VIP access (a mobile "fan club" and music-discovery service).

I like the fact XM Radio Mobile is popping up more and more in various AT&T phones, but it still irks me that it's a crippled service. Adoption of both XM and Sirius' mobile services will continue to be slow as long as they keep offering a dumbed down selection of channels.

[Press Release, photo courtesy of Engadget]

Microsoft said yesterday that it's entered into talks to buy mobile music service company Musiwave.

The acquisition by Microsoft would bring Musiwave's relationships with music labels, device makers and mobile operators together with Microsoft's Windows Mobile platform, the Zune and of course MSN. It's all part of what Microsoft music chief J Allard calls a "Connected Entertainment" vision.

Over 1 billion mobile phones with music capabilities are expected to be shipped by the beginning of next decade, according to BetaNews. This provides a significant user base for companies like Microsoft to tap into.

Musiwave's software is already found on many mobile devices sold in Europe, and its likely that with this acquision we would see the mobile technology brought here to the States.

In addition, Microsoft said today that it'll begin sales of the new Zune starting tomorrow. Microsoft unveiled the three new versions of its digital media player last month. The new Zunes can wirelessly and automatically update their music, photos and videos when placed near the user's computer. Read a round-up of the new Zune reviews on Gizmodo here.

Microsoft has sold 1.2 million Zunes since introducing their single 30-gig unit last year.

[via Reuters]

Google has joined forces with T-Mobile, HTC, Qualcomm, Motorola and 30 other major technology and mobile leaders to announce the development of Android and the Open Handset Alliance.

There's a press call at noon, but the basic gist can be summed up here from their press release:

With nearly 3 billion users worldwide, the mobile phone has become the most personal and ubiquitous communications device. However, the lack of a collaborative effort has made it a challenge for developers, wireless operators and handset manufacturers to respond as quickly as possible to the ever-changing needs of savvy mobile consumers. Through Android, developers, wireless operators and handset manufacturers will be better positioned to bring to market innovative new products faster and at a much lower cost. The end result will be an unprecedented mobile platform that will enable wireless operators and manufacturers to give their customers better, more personal and more flexible mobile experiences.

This open, common platform will essentially reduce the barrier of entry for developers to create applications for mobile phones.

The significance of this for the satellite radio industry - at least from my initial take - is that the mobile audio industry is going to see far more rapid growth in terms of applications, and in turn services. So if we thought mobile audio was a growing threat before, wait until this takes hold.

Removing the need to do individual deals with wireless carriers in order to get onto a phone breaks down a HUGE barrier to entry. Not only that, but this move by Google will ignite carriers who are not participating in the Open Handset Alliance to make similar moves in "openness" (albeit, each with their own twist for profit).

In a few years, mobile phones won't be "phones" - they'll be mini-computers (they pretty much are already). And just like there's a whole generation who thinks of "radio" as streaming audio coming out of their computer speakers, look for the next generation to consider "radio" as streaming audio coming out of their pockets.

[Google via Engadget]

UPDATE: If you're looking for a good overview of this, check out the write in The Grey Lady.

AT&T may have just inadvertently let the cat out of the bag regarding a possible upcoming "iTunes radio" service coming to the iPhone.

Here's the story -- apparently some iPhone folks were going nuts with their data plans while overseas, and were returning home to phone bills ranging into the thousands of dollars. So AT&T has decided to appease the international-surfing-masses by creating an "iPhone International Data" package.

Now here's where it gets interesting.

On AT&T's site, it explains a bit about the new data plan:

While using data on iPhone is free within the U.S., Puerto Rico, and the U.S. Virgin Islands, International data roaming can get expensive quickly. Consider that just 20 minutes of iTunes® radio takes 20MB of data. That's why AT&T has created two iPhone International packages with more reasonable rates in 29 countries*. (emphasis added)

Hmmm... iTunes radio?

Engadget super-sleuth Ryan Block is quick to point out that this can't be the iTunes WiFi store, because that's, well, over WiFi.

Smells like something is cookin' over there in Cupertino.

[Engadget]
Thanks Luke!