AT&T and Verizon Wireless Bet on Netbooks

For the country's two dominant wireless phone carriers, AT&T and Verizon Wireless, the arithmetic is clear. Cell-phone penetration in the U.S. is approaching 90% of the population, and the recession is damping enthusiasm for pricey new phones and services. So to avoid a slowdown in sales growth, both cellular giants are getting into a new game: personal computers. Some analysts say the chances of driving iPhone-like revenues are slim unless the carriers pull in millions of new users with cheaper data plans. That's what's happening in Europe, where service plans cost less and come in a variety of forms, including prepaid monthly and daily plans. As is, the U.S. approach—counting on well-heeled customers with little sensitivity to price—has "limited viability," says CCS Insight analyst John Jackson.