Lost in the hype behind Verizon's
Verizon's CFO didn't give Bloomberg details on when the new iPads would hit the market. He also didn't reveal whether the tablet would be surfing on 3G or the wireless giant's nascent 4G LTE platform. Either way, this is bad news for Novatel Wireless
Shares of Novatel plunged 19% yesterday, as investors absorbed the news.
For now, Verizon's workaround to counter Apple's 3G iPads running exclusively on AT&T
In theory, this shouldn't be a big deal for Novatel. Verizon only began offering these bundles three months ago. MiFi portable hot spots are popular as stand-alone gadgets that power several surfing sessions at the same time. Who cares if Verizon will eventually be offering a self-contained iPad connectivity solution?
Well, the trend is more damaging than the news. Remember yesterday's Verizon iPhone 4 announcement? One feature of the smartphone on Verizon's network is that it will be able to serve as a mobile hot spot for customers upgrading to a tethering plan. We'll have to wait until we get official data plan pricing to weigh the value proposition, but at the very least it will become more convenient to just carry a smartphone that does it all.
This is the nugget that is apparently lost on Sierra Wireless
Novatel's drop may have been extreme in the near term, but Sierra's immunity from the malaise is downright puzzling.
Do you have a mobile broadband subscription? What are you using, and what do you think about the MiFi, Overdrive, or smartphone tethering? Share your opinions in the comment box below.
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Longtime Fool contributor Rick Munarriz really has been a mobile broadband customer since 2005, with the worthless PCMIA broadband card to show for it. He does not own shares in any of the companies in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.