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AT&T Wireless Launches Wireless Device That Connects to Messaging Services

Posted on: Monday, 27 September 2004, 06:00 CDT

Sep. 28--In a bid to hook younger consumers with a penchant for chatting via messaging, AT&T Wireless launched a wireless device Monday that can interconnect with the nation's top messaging services.

The Ogo, priced at $99, is novel in many regards.

The device was designed by AT&T rather than a cell phone maker such as Motorola Inc. or Nokia. More importantly, the Ogo isn't a phone; it communicates only through words.

Ogo's launch comes shortly before AT&T Wireless is due to be acquired by Cingular Wireless, the wireless venture owned by SBC Communications Inc. and BellSouth Corp.

The ploy clearly indicates that AT&T Wireless, the nation's No. 3 cell phone carrier, has been competitive and independent through the many months that its merger with No. 2 Cingular has been pending.

"This has taken us 10 months -- that's very fast to market -- and we saw no reason to stop after our merger was announced," said Andre Dahan, president of AT&T Wireless Mobile Multimedia. "Until the merger closes, we are competitors and we pride ourselves on our innovation."

Dahan said the Ogo should appeal to teens who regularly use the family computer to send instant messages to friends.

"We want to make that experience mobile," he said. "Parents should love it because they can give their teen an Ogo and free up the family computer."

Ogo's service will be priced at about $18 a month.

One reason the Ogo doesn't include voice service was so it could get to market quickly at a low price, said Dahan. Plans call for a future iteration of the device to include voice.

Ogo costs about a third as much as keyboarded messaging devices available from other carriers, said Linda Barrabee, an analyst with the Yankee Group.

"Our research shows that teens put a high priority on messaging," Barrabee said. "This product has potential legs within that segment."

But whether Ogo will be promoted enthusiastically once Cingular takes control of AT&T Wireless is unclear, she said.

"It could be absorbed by the new organization or become a victim of the merger," she said. "The acquiring company will have to decide if this is a good product in their line-up."

Ogo's fate could depend upon how soon the merger closes, which is expected next month.

"How successful AT&T Wireless will be with this device depends on how long they have to market it before the merger," said Jeff Kagan, an Atlanta-based telecom analyst.

"One thing is sure. AT&T Wireless isn't just sitting back awaiting the merger, they're actively introducing and marketing new services."

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