Palm's Treo Pro unlocked in bid to lower roaming costs

Two very different tales are circulating about Palm Inc. and its new Treo Pro smart phone these days.

One story, from Palm and some analysts, is that the new Treo Pro's unlocked feature offers a cost-effective way for international business travelers to dramatically lower roaming costs. Travelers can insert a SIM card into the Pro from the carrier in the country they're in, potentially cutting those costs by 90%, Palm officials said.

The other story, from a different group of analysts in recent weeks, is that Palm had to unlock the phone because it could not find a carrier willing to sell it. One analyst on Friday went further, saying that the inability to find a carrier to sell the Treo Pro is a sign that the troubled Palm is facing its ultimate demise.

"Palm loses a major distribution channel and any subsidy by not going through the carrier," Gartner Inc. analyst Phillip Redman said via e-mail today. Having to sell the smart phone unlocked "looks like the final death sigh" for Palm and follows years of struggles finding effective products to sell fending off financial difficulties, he said.

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