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The problem with this venture is that this e-reader won't be wirelessly connected to the largest book retailer on the planet, as is the Kindle.
Wireless is a good first step, but unless they come up with some sort of agreement with Amazon to provide content, which would clearly not be in Amazon's best interest, they are destined to be not much more than a footnote.
Of course, this is just my opinion, YMMV etc...
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