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CES offers front-row seat to battle of the phones

As in past years, the Consumer Electronics Show in Las Vegas was ground zero for a series of entertaining handset battles, with vendors firing off warning shots against each other and carriers blustering over new phone offerings for consumers.

Perhaps the most interesting display occurred between arch-rivals Cingular Wireless L.L.C. and Verizon Wireless.

On Cingular’s side, the carrier used the event to quietly show off its first W-CDMA phones. The phones, from South Korean vendors Samsung Electronics Co. Ltd. and LG Electronics Co. Ltd., are set to be available online and at select Cingular stores later this month.

Samsung’s new zx10 features a clamshell-style design and support for 1900/900/850 MHz GSM networks and 1900/850 W-CDMA networks. The phone features a 1.3 megapixel camera, a memory-card slot and support for Cingular’s video service.

Separately, LG’s new sliding-style CU320 supports the same frequencies as Samsung’s, and includes Bluetooth, a memory-card slot and support for Cingular’s video service.

Cingular launched W-CDMA/HSDPA networks in 16 markets across the country late last year. However, the carrier to date only has offered laptop PC cards in support of its new network.

Interestingly, neither the LG nor the Samsung device supports the HSDPA component of Cingular’s network. HSDPA technology offers speeds of around 400 kilobits per second to 700 kbps. W-CDMA technology supports speeds of 220 to 320 kbps. Although a range of device makers sell W-CDMA handsets, none sell an HSDPA-capable phone today.

However, Cingular doesn’t appear to be worried by the lack of HSDPA phones. At CES, the carrier demonstrated an HSDPA connection on its network running at 3.6 Megabits per second. The carrier said the design of its HSDPA network gives it the ability to “significantly increase data connection speeds as the market demands.”

As for Verizon, the carrier shot back at Cingular with a salvo of high-end smart phones aimed squarely at the business user. Most notably, Verizon released Palm Inc.’s Treo 700w smart phone into its retail channel. The gadget runs Microsoft Corp.’s Windows Mobile operating system and operates on Verizon’s CDMA EV-DO network. The phone costs $400 with a two-year service contract.

As if to emphasize its interest in the business market, Verizon released two other high-end smart phones-UTStarcom Inc.’s XV6700 and Samsung’s SCH-i830. Both devices also feature Microsoft’s corporate-friendly Windows Mobile operating system.

But Verizon’s device barrage wasn’t limited to the corporate market. The carrier also gained an edge from LG and Samsung, which both showed off phones for Qualcomm Inc.’s MediaFlo mobile TV network. Verizon plans to offer MediaFlo services to its subscribers at an unspecified future date.

Samsung’s upcoming MediaFlo phone features a clamshell design and a rotating screen, along with a 2-megapixel camera and an MP3 player. Samsung did not give a model number for the device, or say when it would be available. LG too declined to provide details on its phone plans, including when its MediaFlo-capable phones would be for sale.

That Samsung and LG plan to support Qualcomm’s MediaFlo plans comes as no real surprise. Both companies largely owe their success to sales of CDMA phones running on Qualcomm chipsets. Qualcomm is the sole vendor of MediaFlo chipsets. Further, both LG and Samsung are members of the Flo Forum, which was founded to support Qualcomm’s MediaFlo technology. Sharp Corp., Kyocera Wireless Corp., Sanyo Electric Co. Ltd. and others are also members.

Handset battles weren’t constrained to the nation’s wireless carriers. Motorola also used the CES show to show off its latest entry into the portable music space-its Rokr E2 device. The device can hold up to 500 tunes with a 2-gigabyte removable memory card, and will be available sometime in the first half of this year.

Interestingly, Motorola’s new Rokr stands as a snub to partner Apple Computer Inc. While the first version of the Rokr supported Apple’s popular iTunes music service, the Rokr E2 supports Motorola’s own iRadio service. The handset manufacturer said its upcoming music subscription service will launch nationwide later this year on the Rokr E2, with other handsets to follow. The iRadio service allows users to download streamed music, talk and podcasts from a PC to a phone via a USB cable, and then play the audio through a car stereo system with a Bluetooth connection.

Motorola’s disdain for Apple became clear last year when Motorola first unveiled its Rokr; Apple stole much of Motorola’s thunder by releasing its new iPod nano on the same day.

In other Motorola announcements, the company touted a new cordless home phone that doubles as a wireless phone; a home Wi-Fi device for users with weak coverage; and a home digital video recorder that lets users share video, pictures and music.

While Motorola used CES to make major waves, Motorola’s chief rival Nokia Corp. was surprisingly silent on the scene.

Nokia’s main push at CES involved Bluetooth. The company showed off several new Bluetooth accessories, including lightweight headsets, as well as updated handsets with Bluetooth included.

Nokia’s relative silence during the past several months has even led some to speculate on the company’s long-term prospects. Indeed, research firm Visiongain said that Motorola is nipping at Nokia’s heels, and eventually could challenge the company for the top spot in the worldwide handset market.

“Since 2004, Motorola’s profitability has improved, largely due to its innovations, which helped the company to distance itself from its closest competitor, Samsung,” said Prachi Nema, author of the report. “This strategy of product innovation also helped Motorola to position itself more favorably to challenge Nokia.”

RCR Wireless News Reporter Colin Gibbs and Copy Editor Kristen Beckman also contributed to this report.

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