A Foolish Week of Telecom: General Motors Company (GM), Verizon Communications Inc. (VZ), Ford Motor Company (F)

Page 1 of 2

Much of the world has become saturated with mobile devices. In many places there are more phones than people. However, emerging-market countries aren’t at that point yet, but eventually low handset prices will change things.

In the meantime, mobile operators are working like mad to connect their wireless networks to any and every possible device they possibly can, and not just phones, phablets, tablets, iWatches, or Google Inc (NASDAQ:GOOG) Glasses.

General Motors Company (NYSE:GM)So, it should not be surprising that Verizon Communications Inc. (NYSE:VZ)‘s longtime contract with General Motors Company (NYSE:GM) as the network supplier for GM’s OnStar service had become targeted by a competitor.

AT&T Inc. (NYSE:T) finally separated GM and Verizon Communications Inc. (NYSE:VZ), partners since the 1990s. Starting with the 2015 model year, AT&T will speed up OnStar connections when it hooks that service up with its 4G LTE network.

General Motors Company (NYSE:GM)’s vice chairman Steve Girsky told an audience at the Mobile World Congress in Barcelona, “People may question the need [for connected car services] at first … but it doesn’t take long [for] people to move from ‘I’ll never need that’, to ‘I can’t live without it.’”

Thinking outside the car
Ford Motor Company (NYSE:F), on the other hand, doesn’t think that locking a car into a particular wireless technology is a smart idea.

“The last thing we want to do is take this smartphone thing that updates every 12-18 months and bolt it into a car with a lifecycle of at least 10 years,” said Ford Motor Company (NYSE:F)’s global director of Connected Services Solutions, Doug VanDagen, at a FierceWireless event at the Mobile World Congress.

VanDagen also pointed out that why should people who are already paying for a data connection for their phones have to pay a second fee to access their networks in their cars?

If you can’t outsmart ‘em, undersell ‘em
Nokia Corporation (ADR) (NYSE:NOK) brought four new phones to show off to crowds at the Mobile World Congress. But none of them were in the top-of-the-line, mind-blowing, do-everything-but-walk-the-dog-for-you category. And only two of them are so-called smartphones.

What makes these phones stand out are their retail prices. Nokia’s Lumia 720 and 520 both run Windows Phone 8, but at $331 and $185 respectively, they are much more affordable than Nokia’s top of the line 4G LTE Lumia 920, which was introduced last year at $836.

The other two phones are the 301, a feature phone that can stream video and costs $86, and the 105, which can make calls, text, has a radio, and can be used as a flashlight — and which will retail for about $18.

Guess which phone one industry watcher thought was the show stopper?

Avi Greengart, an analyst at Current Analysis, told Mobile Tech Today it was the Nokia 105 that got his heart going.

“It’s designed for places like sub-Saharan Africa, India and China, where people are looking for the absolute lowest cost,” he said. “I thought it was, quite frankly, the most exciting product at the show.”

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

The 10 Longest Wars of All Time

The 13 Worst Looking Foods that Taste Great

The 6 Most Gruesome Injuries Suffered During a Sports Match

The 20 Biggest Contracts in MLB History

The 7 Worst Blown Calls in Sports History

7 Free Ways to Advertise Your Business Online

The 18 Best R&B Songs of the 90’s

The 10 Most Dangerous States to be a Cop

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!