Barnes and Noble's new e-reader sets its sights on Amazon's Kindle

Real competition is emerging for Amazon's (AMZN) Kindle. A few days ago, bookseller Barnes & Noble (BKS) announced a deal with Plastic Logic to supply a Kindle-like reader. B&N's catalog of 700,000 titles, twice that available for the Kindle, should be a major attraction for consumers, as should the new device's cell-network based Internet connectivity, which will be provided through AT&T (T).

Barnes & Noble's device will apparently work much like the Kindle, which uses the Sprint network. Users will be able to download reading material anywhere within the AT&T network, including its Wi-Fi network in locations such as Starbucks (SBUX). Amazon bundles the cost of the Sprint (S) connectivity into the price of the device and books purchased. It seems likely that B&N will do the same.