Garmin Device Reveals Cheap Data Plan
OLATHE, Kan., (
) --
Garmin
(GRMN) - Get Report
introduced a $500 GPS device that comes with two years of
AT&T
(T) - Get Report
data service for live traffic and other location-specific services.
The Garmin nuvi 1690 has the usual navigation features that also use phone network connections for so-called real-time information. This is a feature also available in some smartphones, including
Research In Motion's
(RIMM)
BlackBerry and
Apple's
(AAPL) - Get Report
iPhone.
Garmin 1690 GPS with AT&T service. |
The nuvi 1690 is not a phone. However, Garmin says it can be connected via Bluetooth to a phone in a vehicle for hands-free calling.
AT&T touts the nuvi 1690 as another product in its expanding emerging devices segment, which includes netbooks and
Sony
(SNE) - Get Report
eReaders.
Perhaps the most illuminating aspect of the announcement for investors is that AT&T has developed a data-only price plan for the Garmin device. Once the two-year service expires, users can sign on for continued data access at $5 a month.
Currently, AT&T charges $40 a month for data-only plans offered with discounted netbooks. The $5 monthly charge for the Garmin device suggests AT&T has some flexibility in data plan prices.
It's expected at some point that AT&T could roll out cheaper smartphones with lower-priced service plans in an effort to reach a broader consumer market. It's unlikely AT&T or any carrier would offer a $5-a-month plan, but the target range now seems to be somewhere between $40 and $5 a month.
Imagine, for example, the $99 iPhone 3G with a $20 a monthly data plan. The current rate is $30 a month.
--
Written by Scott Moritz in New York
.
