Verizon, AT&T Wage Netbook War

Verizon Wireless' plan to offer a Hewlett-Packard netbook starting Sunday seems a direct counter to the partnership that AT&T has with Acer to offer a discounted notebook in return for signing a two-year contract with the wireless carrier.

As the netbook market evolves, it's becoming clear that wireless carriers will help lead the charge as they look to bundle their broadband services while perhaps taking a loss on the hardware.

In this latest example, Verizon Wireless plans to offer beginning May 17 an HP Mini 1151NR netbook for $200 (after a $50 mail-in rebate for a debit card) and Internet access that begins at $39.99 per month for 250 MB of usage. Other plans include a $59.99 monthly charge for 5 GB.

Both plans charge per-MB fees for extra usage. The bundle is targeted toward "globetrotters and staycationers," according to the Verizon Wireless Web site.

The HP Mini 1151NR features 1 GB of RAM, an 80-GB hard drive, Intel 1.6GHz Atom N270 processor, 802.11b/g, 2 USB ports and an SD card expansion slot. The netbook runs on the Microsoft Windows XP Home operating system with Service Pack 3.

A netbook with similar components is available at HP's Web site for about $370.

The netbook phenomenon took off in 2008, with sales of 11.7 million units, led by companies such as Acer and Asustek Computer that were quick into the market, according to Reuters. Nearly every PC vendor offers an Intel Atom-based netbook, including Dell.

For several months, AT&T has offered an Acer netbook for a discounted price at Radio Shack for signing a two-year broadband contract. Radio Shack's Web site Thursday offered the Acer Blue 25-1114 for $50 with the AT&T contract, or $350 without the contract. That machine includes an 8.9-inch screen, Intel Atom processor, 1-GB of memory and a 160-GB hard drive with Windows XP Home operating system.