Here come the netbook, wireless bundles

AT&T has cut the first deal with a US retailer to bundle mobile broadband data service with a so-called netbook, a popular new class of computer built for affordable portability.

Radio Shack will offer the Acer Aspire One netbook for $99.99 if users also sign up for a two-year AT&T DataConnect mobile broadband service agreement starting at $60 per month. The deal is available through December 24 but is a likely precursor to similar bundles.

With netbook retail prices dropping quickly – it isn’t difficult to find a netbook available for full retail price of $300 or less – it’s conceivable that netbooks soon may be available essentially for free with bundled service. But at $60 per month for data service, the device is priced more for road warriors and power users who want to always be connected, rather than as a consumer value offering.

Such offerings ostensibly compete with smartphone/wireless data bundles, though in those combos, data service tends to be priced more cheaply. For instance, data service with the iPhone offered via AT&T is $30 per month for unlimited usage. Service prices for Netbook bundles, like notebook cards, will likely remain higher because a computer typically consumes much more mobile bandwidth – in the form of downloads, streaming media and more -- than a smartphone.

The trend toward netbook/service bundles has been expected for months, but the AT&T/Radio Shack offering looks to be the first formal retail offer.
The Acer Aspire One netbook includes built-in 3G and WiFi (802.11b/g) radios. It weighs in at just 2.44 pounds, runs on a low-power Intel Atom processor and includes 1 gigabyte of memory, a 160-GB hard drive, built-in memory card readers and Windows XP software. It also includes a built-in Web cam, which could potentially be used for conferencing or VoIP service.

“No question about it, netbooks could drive data usage,” said Avi Greengart, an analyst with Current Analysis. “PC cards are already a significant driver of mobile broadband for carriers, and with a lower cost of entry, consumers who would not have even considered [wireless wide area networking] in the past – or even known it existed – may be enticed to jump in. That said, there are a lot of drawbacks to this offer. It’s not free, and psychologically, a free offer would make this more exciting. [Plus], the discount of $200 or $300 pales next to the $1500 you’ll spend on service over a two-year period.”