Who said that the Consumer Electronics Show was just meant to be a showcase for technology and consumer electronics companies? One of this week's biggest presentations came from none other than dowdy old AT&T (NYSE:T). Ma iPhone announced its support for a slew of new smartphones that will become available over the course of the year. These devices include five Android models, one of which will be Dell's (NASDAQ:DELL) first North American offering, and two unnamed Palm models.
AT&T clearly meant for its presentation to be a feel-good event showing its commitment to consumer choice. But for me, at least, it raised more questions than it answered. The biggest ones are:
Is AT&T trying to reduce its iPhone dependence? Going into the week, there was no shortage of rumors about a CDMA version of Apple's (NASDAQ:AAPL) popular device hitting Verizon's shelves once the AT&T exclusivity agreement ran out, and AT&T's presentation at the show is just more grist for the mill. Especially because the handset announcements were accompanied by plans to support app stores on platforms from Google (NASDAQ:GOOG) (Android), Palm (WebOS), Microsoft (NASDAQ:MSFT) (Windows Mobile), and Nokia (mainly Symbian). If Verizon does get its hands on the iPhone, this sure looks like a good way for AT&T to limit the fallout.
Is the unnamed HTC Android phone mentioned by AT&T the Nexus One? Google's "superphone" is manufactured by HTC, and it looks like Google is trying to get it on as many networks as possible. So it wouldn't surprise me if the country's second-biggest carrier has been added to the partner list.
Should Research In Motion (NASDAQ:RIMM)start worrying? The company already has its hands full competing with the iPhone. The presence of seven other smartphones on the network of one of its largest customers can't be something it relishes. To be sure, Research In Motion's BlackBerrys should remain an important part of AT&T's lineup for some time. But you have to wonder about whether the company's phones can hold onto their current mindshare in the smartphone space as they face a deluge of new competitors.
Can AT&T's network handle seven more smartphones? As you might've heard, the iPhone's success has put quite the stress on AT&T's wireless infrastructure. Whether or not AT&T's service is as inadequate as public perception, adding a slew of new devices that can also stream video and browse HTML Web pages isn't going to help matters. In the short term, AT&T's obvious response is to increase its capital spending to make the quality of its 3G service respectable. Over the long run, though, the answer might be to accelerate its investment plans for 4G, which will deliver some major capacity gains. If capacity-constrained carriers start looking to 4G for relief, it could provide a boost to wireless infrastructure giants such as Ericsson and Nokia Siemens.
How successful will all these Android manufacturers be in differentiating themselves? This could end up being a serious, overlooked issue. Sure, the Motorola (NYSE:MOT) Droid has a slide-out keyboard to stand out, and the Nexus One has its OLED display and noise-canceling microphone, but as more and more Android devices arrive, truly one-of-a-kind features are going to be harder to spot. And that might drive some of Android's numerous supporters to proprietary smartphone platforms as well -- even if they are desperate to create a popular rival platform to the iPhone.
The wireless industry has never been short of business intrigue. And it looks to me as if AT&T just added some more fuel to the fire.
