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— Verizon ( NYSE: VZ ) and AT&T ( NYSE: T ) claim wireless market is competitive: The two largest U.S. wireless carriers responded to U.S. lawmakers, who are concerned that the four largest cell phone companies doubled their text message rates from 10 cents in 2006 to 20 cents in 2008. Verizon and AT&T said the price increases affected only 1 percent of text messages sent because most consumers bought bundles, which lower per-message costs. ( Reuters ) — Mobile ad revenues and 3G growth: Park Associates said that revenues for mobile advertising in the U.S. and Canada will grow from $208 million in 2009 to about $1.5 billion by 2013. Smartphones, 3G networks and applications are driving the growth. Parks Associates projects U.S. 3G network data plans will reach 95 percent penetration by 2013, with Canada achieving 70 percent penetration. ( Release ) — MapQuest takes on Google ( NSDQ: GOOG ) Search on iPhone: AOL's MapQuest has launched an iPhone app. The free app allows you to view a 3D view of the route in landscape mode. That way driving directions can be easily read while driving, although you must swipe to the right to advance to the next turn—the app does not provide turn-by-turn navigation yet. The app also features icons in a carousel that has categories for theaters, gas, etc. That's where future advertising options may be available. For now, brands listed include Walmart, Best Western and others. (Available here ). — Mobixell teams up with Polish operator: Mobixell will be deploying its Wap-based advertising platform called Ad-It on Poland's Play 3G wireless network. The platform includes inventory management, trafficking, campaign management, business operation and the ad server functions. ( Release ) — Taptu launches iPhone app: Mobile search engine Taptu today launched an iPhone app that only delivers users with iPhone-friendly and relevant results. The app is available for free and can be found here .

Apple's price cut of the iPhone 3G to $99, largely overlooked at the launch of the iPhone 3GS last week, will not just "kneecap" the Palm ( NSDQ: PALM ) Pre, but will kneecap the entire industry, and most importantly carriers and cellphone makers, according to Roger Entner, Nielsen's Telecom Practice research head. In a very persuasive post, Entner writes that the new $99 price point for the iPhone 3G "completely changes the value proposition of every handset at every carrier in the US." Now that the price of the iPhone 3G has been halved, any device over $49 looks "outright overpriced, spelling immediate trouble for the raft of smartphone devices expected later this year. Their price tags will either look seriously expensive next to the iPhone, or "extremely margin-challenged" if priced competitively. But what does this mean for the industry? Entner's main points after the jump: — Higher subsidies looming: Entner believes that handset susbsidies can only go up, since "the price to consumers has to go down to maintain a relative value proposition." Carriers, of course, will have to absorb the higher subsidies, whom they will no doubt try to share with cellphone makers, whose margins, already under pressure, will be further compressed. — Tinkering with monthly plan costs: Carriers could just shift the upfront cost of a phone to the monthly charge by making it more expensive. But Entner says it "remains to be seen" how willing consumers are to paying the higher monthly charges. — Scorched-earth data pricing: AT&T ( NYSE: T ) could "scorch the earth" for competitors by cutting its iPhone data plans below $70—another reason people don't get an iPhone. But this writes Entner would be as "value destructive" as when Verizon ( NYSE: VZ ) introduced its $99 unlimited plan, and the entire industry followed to match the price bringing everyone back to the status quo, with even more pressure...

Clearwire ( NSDQ: CLWR ) launched WiMax in Atlanta today, getting the Kirkland-based company one step closer to its goal of reaching 120 million Americans by the end of 2010. The Atlanta network covers nearly three million people across 1,200 square miles, making it the largest market yet. Clearwire also offers WiMax in Portland, Ore., Baltimore, which Sprint ( NYSE: S ) launched before merging with Clearwire, and Las Vegas, which will officially launch this summer. Cleawire still has a long way to go with plans to roll out in seven more cities this year, and four more in 2010. Clearwire's service, which it calls "CLEAR," offers download speeds of 4 to 6 Mbps with peaks exceeding 15 Mbps. In a release , it drives home who it believes the competition is—the 3G wireless carriers. The company bragged that the speeds will far surpass "even the peak theoretical speeds of 7.2 Mbps in upcoming 3G upgrades." It also pointed out that it will allow users to watch TV using Hulu, which would be a typical high-bandwidth application blocked by a cellular network. The plans start at $10 for a day pass, $20 a month in the home, and $40 a month for on the go. Users will also have to buy a modem. Related Clearwire's New CEO Bill Morrow Tackles Anti-WiMax Sentiments Head On Earnings: Clearwire Expects Eight Major Mobile WiMax Markets, 100 Devices By Year-End Clearwire Launches "Clear" In Portland—Its First Mobile WiMax Network

How competitive is the smartphone market becoming? Following last week's launch of the Palm ( NSDQ: PALM ) Pre and the iPhone 3GS comes the roll out of Samsung's touchscreen Jet, RIM's 3G Blackberry Tour, and Nokia's E72 and 5530 XpressMusic. RIM: The 3G-enabled Blackberry Tour 9630 will go on sale in the US through Verizon Wireless ( NYSE: VZ ) and Sprint ( NYSE: S ) Nextel. Sprint said yesterday the phone will go on sale this summer priced at $199 after rebates and on a two-year contract, the same price as the Palm Pre and the latest iPhone (for new subscribers and eligible upgraders). Some analysts have fretted that the number of smartphone releases are eating into RIM's profit margins, and will spell long term trouble for the company that currently, has 50 percent of the US smartphone market. But one analyst believes that the Tour could add 5 cents to earnings and $175 million to sales in RIM's Q2, which ends in August, Bloomberg reports. Broadpoint Amtech analyst Mark McKechnie wrote in a note yesterday that RIM ( NSDQ: RIMM ) may sell 400,000-600,000 Tours through the end of August. "We expect solid margins at launch for the Tour," said McKechnie. Nokia: The Finnish cellphone maker, the biggest in the world, launched the E72, an updated version of its well-received E71, a super slim QWERTY phone, and a new touchscreen music phone, the 5530 Xpressmusic phone, a follow up to its 5800 music device. Both phones will ship in the third quarter. Gartner analyst Carolina Milanesi told Reuters , "Nokia ( NYSE: NOK ) is trying to address the very competitive mid-range space given the prices of the Pre and the new iPhone." Samsung: The South Korean electronics giant, currently the second largest cellphone maker after Nokia, is confident that it will increase its market share in 2010, boosted by the sales of smartphones, touchphones and messaging phones, reports Bloomberg . Its current share of the market is 19 percent, which it...

AdMob, the mobile phone ad network that has been riding high on the success of the iPhone, expects its sales to double this year, which Bloomberg reports has piqued the interest of potential acquirers. CEO Omar Hamoui told the newswire that two suitors approached the company this year, and though none of the discussions "have gotten really serious," it's "definitely had conversations." But Hamoui said he won't sell the company just yet, especially given that it is currently a buyer's market. "It's not a good time to sell a house, it's not a good time to sell a car, it's not a good time to sell a business," he told Bloomberg. Similarly, Hamoui doesn't expect the company to go public in the next two years. AdMob, he said, is "growing fine on its own," and is "getting close" to generating positive cash flow. AdMob was one of the first ad networks to see the potential of iPhone ad sales, and just recently introduced special ad units for the device. So far, the company's sales have grown 30 percent faster than expected this year. AdMob has raised around $50 million in funding from VCs that include Sequoia and Accel Partners. Hamoui said it hasn't had to touch any of the $12.5 million it raised in November from Draper Fisher Jurvetson and Northgate Capital.

Several U.S. senators urged the FCC to examine the widespread use of exclusive arrangements between handset makers and carriers to see if they negatively affect competition and choice in the marketplace. Reuters reports that the Senators voiced their concerns in a letter to Michael Copps, acting chairman of the FCC. The letter said: "We ask that you examine this issue carefully and act expeditiously should you find that exclusivity agreements unfairly restrict consumer choice or adversely impact competition in the commercial wireless marketplace." For better or worse, the industry currently revolves around exclusive agreements. Every major U.S. carrier has its flagship device: AT&T ( NYSE: T ) has the iPhone, T-Mobile has the G1, Verizon Wireless ( NYSE: VZ ) has the BlackBerry Storm and Sprint ( NYSE: S ) has the Palm ( NSDQ: PALM ) Pre. The deals likely make the devices cheaper for consumers, but also limits choice when it comes to picking the carrier. But it is not the big four in the U.S. that are complaining. The Rural Cellular Association, which represents more than 80 small town wireless providers, filed a petition with the FCC to look into whether consumers benefit from exclusives. It's particularly difficult for a smaller carrier, or a discount provider, like Leap or MetroPCS, to get their hands on a popular handset when the larger carriers get first pick. The letter sent to the FCC was signed by such Senators as Democrats John Kerry, Byron Dorgan of North Dakota; Amy Klobuchar of Minnesota and Republican Roger Wicker of Mississippi. The senators will hold a hearing Wednesday to see if legislative action is necessary.