AT&T beefs up the Web on feature phones

In its effort to convert all its mobile subscribers to valuable data users, AT&T (NYSE:T) today announced four new Quick Messaging Devices (QMDs) that will bring smartphone-like features to mass-market consumers, AT&T’s fastest growing segment. The new data services include enhanced messaging, contacts management and subscription-based video and photo sharing.

The first phone to feature the advancements will be the Samsung Strive, to be launched at the end of the week for a promotional cost of $19.99 with a two-year agreement and after $50 mail-in rebate. To further push its QMD line, AT&T is offering a 50%-off QMD promotion, which will also apply to its other planned launches from Samsung and Pantech. Samsung will also introduce the $40 Sunburst, a touchscreen, widget-enabled QMD on Sunday, followed by Pantech’s Link and touch-screen Pursuit, available in the coming weeks and in the summer, respectively.

At January’s Consumer Electronics Show, AT&T promised developers it would also bring a range of mobile applications to its suite of mid-range QMDs through Qualcomm’s Brew Mobile platform. Slated to begin in the second half of the year, all QMDs will be equipped with Brew so that by the end of the year, 90% of all AT&T devices will come adorned with the Qualcomm OS. AT&T CEO Ralph de la Vega called this segment the fastest growing for the carrier and a sweet spot for both developers and AT&T. Of its postpaid customers, 30% are purchasing QMDs and these users are hungry for applications, de la Vega said at the time.

AT&T’s overarching goal with its moves to beef up the Web and capitalize on the surge in app usage is to drive brand loyalty around a device other than the iPhone, as well as provide a “gateway device” to smartphones. The most valuable of customers for any wireless operator are data subscribers, especially as voice reaches saturation. By encouraging the uptake of data plans through attractive services, AT&T is giving its customers a taste of the benefits of a smartphone, but at a lower price. AT&T’s iPhone or other smartphone users pay $30 per month for data, on top of their chosen voice or text package. Data plans for its QMDs also cost $30 per month, but include text messaging. AT&T also offers a $20 per month option for texting only.

Specifically, AT&T’s four new QMDs will get access to the cloud-based AT&T Address book, which syncs to an online address book so customers can access and manage their mobile contacts from their handset or PC; group text messaging capabilities for up to 10 contacts with a consolidated inbox and threaded conversation format; and the subscription-based AT&T Mobile Share for photo and video transfer between the phone and PC.