Mobile Phones Don't Just Talk The Talk

WASHINGTON (Dow Jones) -- David Chamberlain and his friends wanted to lunch on barbecue one day, but the nearest restaurant was a half-hour drive. So he flipped open his cell phone, checked his satellite-navigation service -- and found a tasty BBQ shack hidden just three miles away.

"We had no idea it was there," said Chamberlain, who analyzes wireless technology at the market-research firm In-Stat.

Satellite navigation is just one of many services now available on wireless handsets, which come in an endless variety of styles, shapes and colors such as pink, cherry and chocolate. Holiday shoppers can buy phones to play music, take pictures, watch live TV, find directions, surf the Web at ever faster speeds, and even monitor the location of their children.

More than ever, phone companies are trying to cater to the individual tastes of millions of Americans in a bid to attract more customers in a fiercely competitive market. A phone is no longer just a phone. It's a "lifestyle" or fashion statement.

"Phones are very personal," said Brenda Raney of Verizon Wireless. "Everyone has a different reason beyond just being connected."

What's best for you

Consumer advocates generally recommend picking a phone company first. The network of one carrier may work better in some areas than in others. Customers need to make sure their phone is going to work where they make most of their calls.

Each phone company, however, only carries a few dozen handsets, and they don't sell every brand. If shoppers like one phone much more than others, they may have to change providers. Just make sure a hefty termination fee isn't required to make the switch.

Most wireless phones these days are very thin and utilize the flip-open, or "clamshell," design popularized by Motorola's trailblazing Razr line of handsets. Motorola's rivals have followed suit.

The Razr is still a popular line, but the phones no longer cost a few hundred dollars. Shoppers can buy the newest version, the V3, for $50 from just about every carrier -- or for as little as $29 from Sprint, with a mail-in rebate.

Alternatively, shoppers might want to take a look at Motorola's latest high-end model, the Krzr, which is taller, narrower and thinner than the Razr. The phone is chock-full of features, including removable memory and Bluetooth wireless technology. It can surf the Web, play music and videos, snap pictures or map out directions with GPS satellite navigation.

"It's a beautiful phone," said Michelle Leff Mermelstein of Sprint Nextel, whose company began to offer Motorola's portfolio of thin handsets just last month.

Of course, that beauty comes at a price. The Krzr costs $200 and requires users to accept a two-year contract, a standard industry practice with heavily discounted phones.

What's more, some of the services aren't exactly cheap. Satellite navigation, offered primarily by Sprint and Verizon, costs $10 a month. And speedier Internet access begins at around $20 a month, depending on how often users surf the Web.

Technologies such as removable memory and Bluetooth also add to the price of phones, although the costs associated with including them have dropped sharply over the past year, and both will eventually become common features.

Bluetooth is a short-range wireless technology that enables phone users to attach a special earpiece for hands-free talking or use a cordless headset to listen to music. It has a range of about 30 feet.

For now, the Krzr is only available from Sprint and Verizon. Handset makers often offer new models exclusively through certain phone companies, but just for a limited time. Wait long enough, and popular phones are eventually offered by every carrier.

"Exclusivity is exclusiveness for about 20 minutes in this industry," noted Jane Zweig, president of the Shosteck Group, a wireless consultancy.

Thin is in, in, in

While Motorola spawned the trend toward stylishly thin phones, Samsung, LG and other competitors have been catching up. One notable example is the Samsung M610, less than a half-inch thick.

"It's the thinnest U.S. clam on the market right now," Sprint's Mermelstein said.

The phone is available from Sprint for $179, though a slightly thicker version, the M500, can be found for as little as $79.

Another thin model generating lots of buzz is the new Chocolate phone from Korean manufacturer LG. The handset is meant to rival Motorola's Krzr and is loaded with almost all the same features.

"The Chocolate is a fun phone," said Verizon's Raney, whose company is the exclusive provider. "It stops traffic." The handset costs $99 online.

Unlike most popular wireless phones, the Chocolate is a "slider," meaning the bottom slides out to reveal the handset's full features. The handset also draws some design aspects from Apple's iPod and is especially well-suited to playing music.

Tuning in to the music

Indeed, music is a big deal among handset makers and wireless carriers. They are all trying to make it easy for customers to play music and download songs for a fee. All of Motorola's new phones, for instance, include swappable memory chips to allow customers to store larger amounts of music. It's another industrywide trend.

Perhaps no company has combined the features of a phone and music player as well as Sony Ericsson -- no surprise given the histories of the two parent companies. In-Stat's Chamberlain, the wireless analyst, particularly likes the Sony Ericsson W810i ($100 from Cingular with a rebate.)

With dedicated music buttons, Bluetooth technology and swappable memory, the W810i Walkman makes it easy to listen to music and has good sound. The handset employs a more traditional candy-bar design and does not flip or slide open.

Other Cingular phones designed especially for music include the Sync ($50 with a rebate) and the Motorola V3i Razr with iTunes ($200).

Apple fans can even choose to wait until early next year, when the computer company issues its own music-centric phone.

A phone for everyone

The increasing specialization of handsets doesn't stop with music, video or Web surfing. Unique designs can be found for kids; grandparents; outdoorsmen; and, of course, the international jet set.

Verizon, for example, offers the G'zOne, a water- and shock-resistant handset ($300) that's thicker than most models on the market.

"That's a rugged phone. You can throw it. You can drop it in water. It even has a little flashlight," Raney said.

T-Mobile USA, for its part, carries the Dolce & Gabbana Razr V3i ($200), a gorgeous gold-and-silver phone designed by the famous Italian fashion house. The quad-band phone works all over the world.

The company also offers two unique Razr models called Dragon Tattoo and Cherry Blossom ($70 each), both designed by artist Ami James.

The growing sophistication of phones, however, means handset makers and network operators have to figure out how to make them easier to use. Before buying one, check a wireless company's Internet site or go to one of their stores to find out how they operate.

"You can have all the greatest features in the world, but, if it's complicated, no one is going to use it," said Sprint's Mermelstein.

Zweig of the Shosteck Group agreed: "User interface is key. Getting from multiple clicks to something a lot faster is the goal."

(END) Dow Jones Newswires"

Posted to the site on 18th December 2006