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Nexus One Joins iPad With Delayed UK Launch

By Richard Wray: Google’s attempt to break into the mobile phone market has hit serious problems in Britain with the launch of its flagship Nexus One device understood to have been delayed until the middle of next month.

The setback means that by the time Google’s first own-branded foray into the market this side of the Atlantic is available to consumers, its local network partner Vodafone (NYSE: VOD) will have launched a competing product, which analysts say is better, called the HTC Legend.

While Google (NSDQ: GOOG) has been working with the industry on the Android mobile phone software for several years, the Nexus One, made by Taiwan’s HTC, is the first handset over which the search engine group has had complete control. But launching a new phone has proved more difficult than Google expected.

It was released in the US in January, but Google’s decision to sell it solely through its website immediately came in for criticism as buyers struggled to get help with technical problems, and Google, which has traditionally relied on email for consumer contact, was forced to introduce telephone helplinessupport and the problems it has experienced in the US has given it reason to pause over the phone’s launch outside the US, to make sure it has its customer service operations in place. Last week Goldman Sachs slashed its estimate for Nexus One sales this year from 3.5m units to 1m worldwide.

In the UK, Google will not only sell the phone at full price to any customer who wants to put their existing sim card into it, but it has also teamed up with Vodafone, which will offer the device free to anyone willing to sign a £35 monthly contract.

But the delay in the launch of the Nexus One, which under Google’s original plan would have been available earlier this month, means that it will come after the launch of rival Android devices that analysts reckon are at least as good, if not better. Vodafone, for instance, will be offering the HTC Legend in April which has the same operating system as the Nexus One but is more stylish: being built from a single piece of milled aluminium. Orange and T-Mobile, meanwhile, will both be stocking the HTC Desire – which is exactly the same as the Nexus One, but has an optical trackpad instead of a trackball – from next month.

The delay also means the Google device will be available in the UK only weeks before another hotly anticipated gadget, Apple’s iPad. Several of the UK’s mobile phone companies are finalising deals with Apple (NSDQ: AAPL) to sell the tablet computer to British consumers. Unlike its last mobile device, the iPhone, which was offered through just one exclusive partner for the first two years, the iPad is expected to be available through multiple network operators from the start.

Apple will ship two versions of the iPad in the UK, one that can access the internet using short-range wi-fi networks and one that can also access 3G mobile phone networks. But Apple needs to sign deals with at least one UK mobile network, because the iPad makes use of micro-sims, meaning that buyers cannot just put the sim card from their existing handsets into it. In fact, it will be the first device launched in the UK that uses micro-sims.

Apple said earlier this month that the device will go on sale in the UK towards the end of April but the mobile phone companies believe that the 3G version of the iPad will not be available until May. Orange, T-Mobile, O2 and Vodafone all expect to be selling the iPad to customers and they are all locked in talks with the Californian company. Apple, however, has made it plain that it does not want iPad users to be tied to long-term contracts with any mobile phone operator. Instead it wants users to be able to pay for mobile network access on a pay-as-you-go basis.

Mar 15, 2010 4:51 AM ET

Google's VP of Product Management Mario Queiroz Shows Off The Nexus One For The First Time Photo: Tricia Duryee

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Posted In: Mobile, Companies, Google

  • Sue

    I can show you how to get out of a Verizon Wireless contract! Get out while you can! Watch videos of Verizon employees sleeping on the job at my website http://www.verizonwirelessliestocustomers.info

  • Something tells me Verizon wouldn’t have done this if they had any chance of getting the iphone next year. Yes, AT&T sucks, but would have Verizon been able to handle the explosion in data requirements of the iphone any better? Doubtful. The iphone is 4 percent of market but it’s using 50 percent of AT&T bandwidth. I doubt any carrier could or would be able to handle the crush in demand.
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  • Verizon Dominates 318

    AT&T sucks so much! They have a slower and smaller network, but for some reason they see the need to cry to courts when Verizon smacks them in the face with it. They need to do one of two things: 1. suck it up and stop crying for breast milk or 2. actually devote some of that commercial budget to building a better network.

  • Verizon wireless SUCKS!! WHY IS YA CHOOSING VERIZON OVER AT&T?? AT&T IS THE MOST FASTEST 3G NETWORK!!! AND PLUS AT&T IS A GREAT PHONE COMPANY U CAN USE
    1-MOST FASTEST 3G NETWORK
    2-U CAN TALK ON THE PHONE & USE THE WEB AT THE SAME TIME!
    ```````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````````
    AND THESE ARE THE REASON YOU SHOULD SAY NO TO VERIZON WIRELESS
    1-THEY SUCK

    2-THEY MIGHT HAVE THE LARGEST 3D NETWORK,BUT NOT AS FAST AS AT&T

    3-THEY PHONE BILL IS VERY HIGH

    REMEMBER SAY NO TO VERIZON!!

  • Gerald Jones

    I think the answer to this problem lies in customers.  There are many customers that don't have a problem with AT&T's coverage but there are others depending on their location are not experiencing true 3g speed and have calls dropped more than they would like.  This is a touchy subject.

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  • joe

    I used to have ATT and had to switch to Verizon because of two reasons.  The first reason was that there was absolutely NO coverage whatsoever, where Verizon has coverage.  The second reason was because ATT claimed to have 3G coverage in where I live, but my iPhone would lose calls continuously.  Then that whole ad campaign came out where ATT claimed to have "The fewest dropped calls, blah, blah, blah."  Bottom line is that I hope that Verizon can crush ATT this holiday shopping season.

  • James _ Florida

    To bad every thinks 3G is the same its like comparing apples to oranges and calling it all fruit. VZ is tapped out of speed with thier old version of 3G while ATT can push speeds 4-5 times faster than VZ and only on T network can you talk and surf or email at the same time. I wish someone with a little knowledge of both business and technology would explain this…..... As for coverage T's network still has EDGE and GPRS to cover 303 million people and can be used in Europe and otherparts of the world try that with a VZ phone.

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