Phones

Not clear whether this leaves Verizon a big opening.

The analysts conclude that Cingular is simply over-committed right now and does not have the resources to meet its original 3G schedule. If Cingular is scaling back its 3G plans, it could lose even more ground to rival Verizon Wireless, which launched 3G in the US at the end of 2003. Verizon is aggressively building out its EV-DO network and will likely remain the US 3G market leader, especially if Cingular pulls back on its 3G plans.

Opportunities for cross-promotions abound but are unlikely to take off on a big scale until more sophisticated multimedia messaging supplants today's simple texts. The reason is economics. Say the Boston Red Sox teams up with Verizon Wireless in a promotion to get fans to vote for their favorite player on an ESPN telecast. Today, those three companies would have to divvy up the text revenues, which average only 3 cents to 10 cents apiece in the U.S. But within two years, say analysts, multimedia messages, complete with color video and music, might...

If users switch to EDGE/3G data rapidly, this could hurt Cingular. Otherwise, it's probably a good move.

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