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AT&T Readies Its 3G Network For Sony eBooks Device

The big news Sony’s press conference for its new line of eReaders was the deal with AT&T (NYSE: T) to provide its 3G wireless connection to the Daily Edition, Sony’s first wireless reader. Neither Sony (NYSE: SNE) nor AT&T would say what the revenue split is. But it’s probably not too different from the arrangement between Sprint (NYSE: S) and Amazon (NSDQ: AMZN), for the Whispernet wireless 3G system that lets Kindle users download books, blogs, newspapers and magazines. And if the Sony/AT&T exclusivity agreement is like its rivals, the revenues aren’t going to add up to much.

Best guess: Sprint told investors last May that Kindle drove most of the wireless carrier’s 394,000 new wholesale subscribers. Around that time, we focused on a best of what sort of revenues Sprint was getting, citing a blog post from Roger Entner, SVP, Nielsen’s Head of Research and Insights for Telecom, who estimated the average revenue per Kindle user was a meager $2 a month. That made our Tricia Duryee wonder whether Kindle-like devices could become a healthy new subscription model for Sprint, considering that direct postpaid Sprint subscriber has an ARPU of $56 a month.

In any case, Sony isn’t the only wireless eBooks device AT&T is powering. In July, AT&T said it would be handling the connection for Plastic Logic’s e-reader. So altogether, assuming eBooks really do start taking off, this could eventually become a meaningful business for AT&T, especially as the eBooks wars are really heating up.

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Posted In: E-Commerce, Media & Publishing, Books, eReaders, Technologies / Formats, 3G, Companies, Amazon.com, Kindle, AT&T, Sony

  • Sam K

    AT&T can't even get its 3G network ready for the iPhone 3G, and they are now saying they are ready for the Sony ebook?  AT&T is so full of crap!

  • Bart Szyszka

    I wouldn't mind selling my Kindle to get a Sony Reader if it seems better. Amazon hasn't earny my loyalty with the way they've operated their business. Especially not by locking the books onto the device (and conveniently not supporting other DRM-free formats). If I need to re-read a book (and assuming I don't decrypt the DRM on ones I paid for…), which I've never done in my life, I don't mind paying again for that rare opportunity (the book must have been good!).

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