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Research In Motion Unveils Device for U.S., Europe (Update3)

By Ville Heiskanen

April 25 (Bloomberg) -- Research In Motion Ltd. and Verizon Wireless will start selling a BlackBerry device next month that makes it easier for U.S. customers to send e-mail and make phone calls abroad.

The product, called the 8830, is the first BlackBerry that combines the different wireless standards used in the U.S. and Europe, Research In Motion Chief Executive Officer James Balsillie said. Verizon Wireless will begin selling the device May 14 for $199.99, after rebates, with a two-year contract.

Research In Motion aims to fend off growing competition from Nokia Oyj and Motorola Inc., which have introduced devices and acquired wireless e-mail service providers over the past two years. The company, based in Waterloo, Ontario, also is banking on the 8830 to capture market share outside the U.S.

``This definitely addresses a broad range of business executives,'' Balsillie said in an interview. ``This will undoubtedly increase our lead.''

Research In Motion had 45 percent of the U.S. market for advanced phones -- devices with features such as e-mail -- in the fourth quarter, according to research firm IDC in Framingham, Massachusetts. Palm Inc. was second with 18 percent, and Motorola had 12 percent.

Verizon Wireless customers who buy the 8830 will be able to send e-mail in more than 60 countries for a flat rate, starting at $64.99 a month. The device will work as a phone in more than 150 countries. Other carriers will start offering the 8830 in the future, Balsillie said.

Research In Motion shares rose $3.50 to $135.53 at 4 p.m. New York time in Nasdaq Stock Market trading. The stock has advanced 73 percent in the past 12 months.

Crowded Market

The 8830 is based on the 8800, the company's slimmest BlackBerry model, which started selling in February. It will compete against a Samsung Electronics Co. device that is already offered by Verizon Wireless and can be used in different regions.

Motorola in February introduced versions of its Q e-mail phone, which competes with the BlackBerry. Nokia the same month unveiled three e-mail phones for business use.

The companies are banking on the new products to gain a bigger share of e-mail phone sales, a market that will soar 43 percent this year to almost $6 billion in the U.S. alone, according to Strategy Analytics, a Boston research firm.

Basking Ridge, New Jersey-based Verizon Wireless, owned by Verizon Communications Inc. and Vodafone Group Plc, is the second-biggest U.S. wireless carrier. The largest is AT&T Inc.'s wireless unit, formerly known as Cingular Wireless LLC.

To contact the reporter on this story: Ville Heiskanen in New York at vheiskanen@bloomberg.net

Last Updated: April 25, 2007 16:13 EDT

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