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Article

Title: 'Passionate Subset' Seeks Unlocked Phones

Author: Carson, Phil Article Type: Product Analysis
Source: RCR Wireless News, v26 n42 p1(2) Publication Date: Nov 5, 2007
  ISSN: 1533-0796
URL of Publication: http://www.rcrnews.com

Only a small number of Americans are interested in unlocked phones, and it is an open question as to whether the number of people interested will grow significantly. The question was raised when some among those who bought the iPhone complained that the device was 'locked' and only ran on AT&T's network. The passionate interest of hackers and bloggers and their ability to express themselves online led to a louder outcry over the issue than would be expected given the limited number of people interested in it. This outcry, however, has begun to raise consumer awareness about the issue. CDMA phone subscribers are still not very interested, with most unlocked phones being GSM. Apple was taken action to stop people from unlocking the iPhone including refusing to accept cash for the phones, as it appears that some 250,000 iPhones were unlocked and resold overseas. Interest in unlocked phones as measured by online searches seems to be small and is not growing. Handset makers must balance the desires of the vocal few clamoring for unlocked phones, with the needs of its carrier partners. Nokia and Motorola Inc. both face the problem of promoting their unlocked phones, which compete with their carrier partners' products, though interest is focused on Nokia and its 'Ovi.' It is unclear whether carriers will agree to activate an account for a subscriber that purchased an unlocked phone. Nokia claims it wants to promote choice for consumers not undermine the carriers' dominance. Carriers warn that they can't guarantee the quality of service for unlocked phones.

Companies:
Apple Inc AT&T Inc
Motorola Inc Nokia Corp

Products:
Apple iPhone Ovi

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