Barnes & Noble working on their own e-reader?

Rumor has it that Barnes and Noble is jumping into the e-reader mix, developing a Kindle-like e-reader of their own. Unlike many other potential e-readers out there, the B&N reader would reportedly take advantage of a Whispernet-like technology via a celluar service (Verizon or Sprint, perhaps). I'm not sure having such a similar device would be competitive, unless B&N could undercut Amazon with a price cut.