UPDATE 1-AT&T to sell LG's first smartphone for U.S. market
(Adds detail on rebate, rival offering, share price)
NEW YORK, Nov 18 (Reuters) - AT&T Inc (T.N), the No. 1 U.S. mobile service, said on Tuesday it would sell LG Electronics Inc's (066570.KS) first smartphone aimed at the U.S. market in time for the holiday shopping season.
AT&T plans to charge $199.99, after a rebate, to customers who sign a new two-year contract for LG's Incite phone, which runs on the Windows Mobile operating system from Microsoft Corp (MSFT.O).
The pricing is in line with the iPhone from Apple Inc (AAPL.O), which AT&T sells exclusively in the United States.
Like iPhone, the Incite has touch-screen controls and supports services such as location-aware driving directions, mobile e-mail and mobile Internet. It also supports Wi-Fi, short-range wireless Web connections found in cafes.
While LG has already made a big splash with touch-screen phones such as the Venus and the Voyager, the company said this is its first U.S. smartphone as it is LG's first to use a computer-like operating system such as Windows.
Service providers, such as AT&T, Verizon Wireless and Sprint, are looking for ways to encourage customers to use cell phones for more than just talking. They see smartphones as an increasingly important segment as users often spend more on data services.
The news came days before No. 2 U.S. mobile service Verizon Wireless, a venture of Verizon Communications (VZ.N) and Vodafone Group Plc (VOD.L), is set to start selling the highly-anticipated BlackBerry Storm from Research In Motion (RIM.TO) for a similar price.
AT&T shares were down 34 cents or 1 percent at $26.43 in morning trade on New York Stock Exchange. (Reporting by Sinead Carew, editing by Matthew Lewis and Derek Caney)
