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Price of Motorola Xoom Tablet

Monday, February 28, 2011 | , , , , , ,

Is $600 - $800 is too Expensive?
Is the Price of the Motorola Xoom too expensive?  $800 for a unknown, first generation tablet from Motorola just doesn't make any sense when the Apple iPad WiFi only version is priced at $500.  It seems like a terrible marketing error to do this without the firepower of someone like Google or Apple behind it.  Just because its a Verizon tablet doesn't lend it any more credibility and actually hurts the brand in my opinion.  Technically everything about the device is very appealing except for the fact I don't want to pay extra for a CDMA or GSM chip to connect to the cellular networks. A cheap WiFi only chip is just fine because tethering a WiFi only tablet to your existing smartphone data plan is easy.   If it was 4G I might consider it but its not.  The most appealing aspect about this device is that it is built on Google's Android operating system.  I have been waiting for a Android tablet for a long time but this one is too expensive.  I am disappointed that Motorola and Google did not jointly collaborate on the pricing of this device because it hurts the Google Android tablet brand a bit.   I will be patient because there are many other cheap Android tablets priced from $150 - $500 on Amazon already.

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Republicans Think "Not All Internet Traffic Should NOT be Treated Equal"

Are Republicans being hypocritical or are they just uninformed?  Do Republicans know what is Net Neutrality?  Do they realize the US is behind the curve on wireless compared to the rest of the World?  All this lobbying and protectionism is coming from the same big businesses who were lobbying to ban cell phone signal boosters?  I am a very conservative person but the Republicans have it extremely wrong on this topic and are only thinking about their lobbyist pocketbooks on this topic.  Where is Rush Limbaugh when you need him to clean up the air on this topic?

It surprises me that one of the largest proponents of free markets in business are opposed to free markets on the internet.  Net neutrality is the basis for all entrepreneurs being able to thrive creating their business on the internet.  I think what republicans are doing is simply listening to lobbyist from AT&T, Verizon, Comcast and other cable operators who are against net neutrality for obvious reasons.  Net Neutrality limits carriers and internet providers control of the dumb pipes and gives them the ability to grant special access and preferential download speeds to certain content.  Therefore, giving more control to big business.  Is this what free markets are all about?  The internet is about freedom of information and the republicans want to control it.

"We're simply saying that certain conduct by the companies that do control access to the Internet aren't consistent with Internet freedom and shouldn't be permitted," said FCC Chairman Julius Genachowski.  Republicans of the House of Representatives are calling on the FCC Federal Communications Commission to rescind its network neutrality order from last year. The Democratic majority at the FCC has defended the rules as needed because the Internet has traditionally functioned without gatekeepers, noted Representative Mike Rogers, a Michigan Republican. "Aren't you merely making the government the gatekeeper in this particular case?"

China Mobile is making a huge investment for the people creating the largest free public Wi-Fi hotspot network. In a desperate move to find ways to offload data traffic from congested mobile networks, mobile operators are looking at all options including WiFi. China Mobile announced they planned to triple the number of public China wi-fi hotspots from around 300K to over 1 million. China will use the Fon.com business model where users are incentives and paid to open up access to their Wi-Fi in return for being able to roam elsewhere.  Pretty ingenious and you wonder when Google will offer free ad supported WiFi?  It all makes sense to me.  I open up my WiFi network in my home and Google subsidizes or pays me for those who access it.  How does Google or Fon.com get paid?  They sell the location based WiFi advertising on the access point very similar to how Ad Sense started to pay publishers who visited their web sites.

China Mobile is building 1,000,000 WiFi hotspots, including 20,000 to blanket Beijing. China realizes that building out the Wi-Fi network is the fastest way to meet rising Web demand by smartphone users. Each China mobile subscriber gets a Fonera WiFi router or femtocell, designed to allow part of the landline bandwidth to be shared with other wireless users. The customer can turn off the sharing, but most allow it in return for being allowed to roam themselves. Result: nearly all the usage at home, and much of the use out of home, is quickly diverted to the landline network with 10x or more the capacity.

Fon.com is the world's first global WiFi network built by people who have WiFi in their homes. We think of it as crowdsourced WiFi network or open access. As a member of the Fon.com community, you agree to share a little bit of your WiFi at home, and get free roaming at Fon Spots worldwide in return. Sharing WiFi with Fon is safe and secure, and you won't even notice when others are connected because Fon only uses a tiny portion of your bandwidth. Fon has over three million Fon Spots across the globe. Just buy a Fonera router and connect it to your ADSL/broadband, or activate Fon through one of our partners. Once your Fon Spot has been connected and registered, you're ready to enjoy all the benefits Fon has to offer!


Samsung release its news Galaxy Tab, which has a larger, 10.1" screen plus a few other useful new features. The tablet runs on the latest version of Android operating system 3.0 (Honeycomb). The Galaxy Tab 10.1 also incorporates surround sound speakers and plus a high resolution rear facing camera at 8 MP and 2 MP front facing camera for video chat. It has a dual core processor and 3G HSPA+ options in addition to WiFi. Storage will be 16 or 32 GB capacities.

The Galaxy Tab 10.1 will NOT be launching immediately in the U.S., and Samsung isn't saying yet when it will be available in the States and on which carrier if any.  There is no word on pricing but it seems that the $500 price point is stick that the iPad is setting. Read more on the Business Insider.

Samsung is also ditching their 7-inch screen size on future Galaxy Tabs. At Mobile World Congress the company revealed that none of their Samsung Galaxy Tabs are going to be a 7-inch devices.  This might be disappointing for a few of the Galaxy Tab early adopters who enjoyed the hand holding experience for ease of typing.   Read more

Hip hip hooray!  The U.S. government will work with the FCC to free up 500MHz of wireless spectrum for commercial and unlicensed uses over the next 10 years. Obama's wireless spectrum plan will greatly enhanced speeds and the economics of providing low cost access for most of the US population.  We believe that wireless access will be free and widely available just like drinking water out of a public fountain.  However, it will not happen overnight and the process is going to painful.  There are some major telecom companies who want to stand in the way of the FCC and Obama from preventing this to happen.  So, it will be a long and painful process that will eventually disrupt the large wireless monopolies who hoard spectrum and only care about their own profits.

This free wireless will help create jobs and enhance service for the struggling carriers who will have a hard time monetizing their customer base with their new 4G and LTE technologies.  Free WiFi hotspots are  growing 25X faster than cell phone towers and provides sufficient data access for frugal wireless users.  Carriers are expecting their existing customers to pay upwards of $1000 per year for high speed LTE and Wimax access. Other companies like Google would like to subsidize wireless with free advertising thus cannibalizing big carrier subscription based business models.

Mobile carriers are spending billions of dollars to build out 4G networks and most insiders thing that this service will compete with paid. A government driven solution will help bring broadband to rural areas and may become a low-cost alternative to fixed broadband. Despite the coverage maps that AT&T and Verizon hype there are thousands of rural customers who do not have any wireless access. These areas throughout the US and world have been known as "dead zones".


Despite the Verizon hype claiming that the new iPhone 4 would not have the AT&T iPhone 4 antenna issues they are wrong. AT&T unfortunately took the brunt of the blame for the poor antenna launch.  Apple's publicity and marketing spin doctors went into full damage control to remedy the situation with free iPhone bumpers.

Verizon is once again "full of shit" and despite what they told in a press conference last month that they made significant changes in the antenna design. This design included a design for CDMA use and the antenna design would be changed. So once again if you hold your Verizon iPhone 4 like the death hug you could see a significant drop in not just 3G and WiFi.  The only ways to fix Verizon iPhone reception problem is to pinch the phone and hold it in the center or add an iPhone case or bumper to the phone.  Don't hold your phone as you see in the picture on the rights.   For a more detailed explanation on how to fix it watch the video below.

Verizon customers are waiting for the iPhone 5 as it appears at Apple and Verizon retail stores.  Today, was the first day of the Verizon iPhone 4 being available at stores and it was greeted with a luke warm response.  There were no lines and the crowds were very small at all of the stores I visited in Southern California and it appears to be the same elsewhere around the Country.

No Lines at the Verizon Stores on Opening Day
This is not surprising and is not the first time that Verizon has hyped the marketing for a product.  It will be interesting to see how Wallstreet responds to the excess inventory of iPhone 4 phones that will likely be building up in stores this Spring.  The real question is weather the huge demand for iPad's will make up for the difference?  We suspect that Verizon and iPhone executives have grossly over forecasted the demand for the iPhone 4 for the following ten reasons.

1) Consumers have moved on from the iPhone and are now interested in the Verizon iPad vs Verizon iPhone.

2) Wireless users are using their phones for primarily data now and it is well known that CDMA is not fast.

3) iPhone 5 LTE is probably going to be out later this year and so the iPhone 4 will be quickly obsolete.

4)  iPhone AT&T dropped calls are frustrating but its old news and customers have learned how to deal with it by turning off 3G when making calls.

5)  Android phones and applications have caught up to the iPhone

6)  Android phones have 4G and there are many better alternatives using HSPA+.

7)  The iPhone 4 is too expensive and has jumped the shark.

8)  Verizon's customers are already using the Droid Pro which is a better phone.

9)  CDMA does not work overseas.

10)  Multi-tasking on CDMA does not work unless on WiFi


Verizon customers should most definitely wait for the iPhone 5. There really isnt any compelling reason to purchase an iPhone 4 that will be obsolete within a few months. Its highly likey that the iPhone 5 will be LTE enabled and therfore 10x faster than the iPhone 4 3G CDMA version. As frustrated as many AT&T customers are with there any so many better alternatives to this phone. Android is proving to be a superior operating system and is growing much faster than IOs. Stay tuned for futher information on this development as I beleive stock analysts have wildly overforecasted the upcoming sales.

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