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Powerful phones can have powerful problems

T-Mobile USA Inc. suspended sales of the Hewlett-Packard Co. iPAQ h6315 smart phone due to unexplained software bugs, a move that illustrates the extremely advanced levels of technology packed into high-end devices as well as the risks carriers face in selling them.

Wireless stands head and shoulders above much of the rest of the consumer electronics industry when it comes to technical intricacy. Unlike plasma TVs, laptop computers, satellite radios or MP3 players, high-end wireless devices combine multiple radios, software platforms and hardware innovations into handheld gadgets smaller than most cordless phones. But wireless both benefits and suffers from its position on the razor edge of high-tech science and engineering. The sales cycle in the wireless industry has shrunk to a window of mere months, and industry players must constantly balance customer requirements against competitive concerns.

Nevertheless, the allure of a burgeoning market and the promise of bragging rights for a successful product have attracted numerous competitors. PalmOne Inc., Research In Motion Ltd., Motorola Inc., Nokia Corp., Sierra Wireless Inc., Samsung Electronics Co. Ltd., Danger Inc., Siemens AG and-most recently-HP have all jumped into the smart-phone market with hopes of achieving gadgetry greatness. Some have gained a modest amount of success, while others have struggled.

T-Mobile and HP said they are working on a software upgrade for the iPAQ h6315 “that will deliver an improved customer experience,” T-Mobile said in a statement. The companies did not say what ails the device. However, Internet posts on sites such as PhoneScoop.com indicate that the device suffers from a variety of bugs, specifically affecting the telephony and Bluetooth functions. One user in an e-mail to RCR Wireless News complained that the device had to be rebooted several times a day.

“T-Mobile customers who own an h6315 should continue to use their device as they normally would,” T-Mobile said in a statement. “As soon as the new software is available, we will alert our h6315 customers to the free upgrade for this device. We apologize for the inconvenience.”

T-Mobile did not indicate when the upgrade would be available.

The iPAQ h6315 is one of the most advanced wireless devices on the market in the United States. The GSM/GPRS device features built-in 802.11b Wi-Fi, Bluetooth, a camera and an SD card. The device runs Microsoft Corp.’s Pocket PC operating system and sells for $500 with a service plan.

“The problem of device failure is extremely impactive to the carrier,” said John Jackson, a senior analyst for wireless devices with research and consulting firm Yankee Group.

Unhappy iPAQ users likely won’t call HP (the company distributing the device) or Compal (the company that built the device) but will instead complain to the carrier selling it. Thus, carriers face significant hazards in selling high-end wireless devices, because their brand and success is tied to the performance of the gadget.

Wireless carriers generally certify every wireless device they sell to ensure it is bug free. The testing process involves laboratory research as well as real-world use and measures everything from the efficiency of the user interface to the precision of the antenna. Low-end phones from well-known suppliers like Nokia Corp. typically take far less time to certify than high-end devices from new wireless entrants.

“We test a lot of phones,” said Verizon Wireless spokeswoman Brenda Raney. “Some pass, and some don’t.”

Verizon Wireless has the reputation for lengthy, extensive testing. Raney said the carrier is content to let its competitors be the first to market with a new device if Verizon’s testing process is not yet complete.

“Most carriers have very stringent requirements in order to launch a smart phone on their network, primarily driven by the host of features and functionality a smart phone provides over and above a standard voice product. The net result is a solid user experience that provides superior performance for their customers, and for ours,” said Tim Roper, vice president of wireless sales for Treo maker PalmOne. “Certification testing varies from carrier to carrier. It can literally be measured in weeks or months, depending on the carrier and the underlying technology.”

Indeed, PalmOne recently lowered its fourth-quarter forecasts due to a delay in its device shipments. Those in the industry believe the delay is because Verizon is taking longer than expected to test the Treo 650 on its network. Verizon and PalmOne declined to discuss the situation.

Yankee Group’s Jackson said that some smart-phone makers are relying on original design manufacturers for their new products instead of building the devices in-house. This reduces the risk for the vendor in case carriers decline to sell the device, but also raises additional quality concerns.

“You lose something in the way of quality control” by using ODMs, Jackson said.

T-Mobile is not the first carrier to suffer from phone quality issues. Jackson said the Siemens SL56 was briefly pulled from AT&T Wireless Services Inc. store shelves, as was the Motorola V600 with Cingular. And T-Mobile’s Sidekick users recently suffered a glitch that affected their wireless data services. T-Mobile has offered to credit users’ accounts, as well as provide complimentary ringtones and games.

Although those in the industry generally decline to discuss the topic, software upgrades for wireless devices are becoming relatively commonplace. For example, Sony Ericsson’s Internet site offers software updates for the company’s various phone models, and PalmOne recently posted an upgrade for the Sprint Treo 650 to improve the device’s roaming capabilities and memory functions.

The need to distribute software upgrades has also given rise to over-the-air updating technology. Such technology allows carriers to remotely push bug patches and software updates to wireless users. Indeed, Sprint recently announced it had installed such OTA technology in several new devices. RCR

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