July 31, 2006

Verizon Wireless to End Music Download Fee
By THE ASSOCIATED PRESS

Filed at 1:39 a.m. ET

http://www.nytimes.com/aponline/technology/AP-Verizon-Wireless-Music.html?pagewanted=print


NEW YORK (AP) -- Verizon Wireless is eliminating the monthly $15 fee for 
its music download service in conjunction with the launch of a cell phone 
featuring an iPod-like click wheel and a memory card that can hold up to 
1,000 songs.

The new ''Chocolate'' handset, made by LG Electronics Inc. of Korea, 
features software that will let users play their own MP3-format music on 
the device in addition to songs purchased from Verizon's music store -- 
avoiding the mini-controversy that accompanied the launch of that service 
early this year.

The company is charging $150 for the phone with a new two-year contract, 
and an additional $100 to buy an insertable mini-storage card that can hold 
2-gigabits of music or other files such as photos.

Songs purchased from the V Cast Music store, priced at $1.99 each, can be 
downloaded twice: once over the cellular network to the phone, and once 
over the Internet to a computer.

Wireless music downloads are seen as a robust new source of revenue for 
cellular operators now that they are investing billions of dollars to 
upgrade their networks for speedier data connections. So far, carriers have 
been more inclined to create their own stores to capture more of the 
profits. Sprint Nextel Corp. also sell music through its own store, 
charging $2.50 per song for downloads to one phone and one computer.

Songs purchased from V Cast will be formatted to run with Windows Media 
Player from Microsoft Corp.

But the Chocolate phone also can play songs that users copy from their own 
music collections in the generic MP3 format.

Verizon drew some howls of protest in January when the software upgrade 
required to use the new V Cast music store disabled the MP3 player 
capability on the two compatible phones. Users could still convert their 
songs to the Windows format and play them on the phones.

At the time, Verizon asserted that the handicap was purely temporary -- 
merely the reflection of software integration challenges, rather than any 
ploy to force users to buy its songs or to weigh in on larger battles over 
digital copyright restrictions.

The company is still working on a software upgrade to restore the MP3 
capability to the two phones, one an LG and one from Samsung Electronics 
Co. Ltd., a spokesman said.

Verizon Wireless is jointly owned by Verizon Communications Inc. and 
Vodafone Group PLC.


================================
George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
antunes at uh dot edu



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