BellSouth to Carry CNN Mobile

When you think of news services for people on the move, you tend to think of the granddaddy of quick, frequently updated, bite-sized news -- CNN. Now, the news service and BellSouth have teamed up to offer U.S. wireless subscribers CNN's latest twist -- the more technologically friendly CNN Mobile.

The deal may mean more customers, more airtime usage and more money for BellSouth. However, BellSouth probably will not see a jump in revenue from monthly subscriptions because of the licensing fee.

Tole Hart, Wireless Data Quest analyst, said BellSouth might see an increase in airtime from customers wanting to share breaking news with friends, and that added features also could entice new subscribers.

BellSouth isn't the only carrier to have added features such as wireless news services. AT&T and Omnipoint already offer news-type information to their subscribers, but the trend has yet to catch on. BellSouth is hoping the name CNN will be a step in the right direction. Although the carrier is the first in the United States to offer CNN Mobile, the service launched in Europe earlier this year and is available in nine countries.

CNN Interactive spokesperson Kerrin Roberts said CNN Mobile also is working on deals with other U.S. carriers.

Hart said the U.S. market for wireless news services still is relatively small, but as WAP phones become more prevalent and news services more specialized, the demand should increase.

Bob Borroughs, BellSouth director of customer segmentation, agreed, saying the news service was just the beginning. If they find there is a market for it, BellSouth eventually may add more sports, stocks, weather and location-finder services.

"I think wireless data services in themselves have some place in the marketplace, and we definitely want to be there," he said.

Will Americans really want to read their phones for the news instead of a newspaper?

Roberts said yes. CNN Mobile's goal isn't to do away with traditional news-delivery services such as radio, television and newspaper; instead, it's meant to complement them. Roberts also pointed out a wireless phone is sometimes more accessible than a newspaper.

"The aim of CNN as a whole has always been to bring the news to people, whenever they want it and by whatever means they want it."

Roberts said CNN Mobile will use a special application to make words fit correctly on standard-sized handset screens so as not to interrupt the flow of reading.

According to BellSouth, the service will be operating by the late third quarter or early fourth. Pricing has yet to be determined, but Borroughs said similar services are offered to subscribers for about $5 to $10 a month, and BellSouth will try to stay in that range.