Friday February 25 5:36 PM ET
IBM, AT&T to Offer Wireless Web Access
NEW YORK (Reuters) - International Business Machines Corp. (NYSE:IBM - news) and AT&T Corp. (NYSE:T - news) said on Friday they plan to provide wireless Internet access for large business customers, in what analysts called the largest wireless Web push to date.
``This is the biggest from both a scale and an impact perspective,' said Yankee Group analyst Berge Ayvazian. ``It's right at the top. These applications are going to start at the business level and go right from there.'
By the end of the year, the companies expect to develop a system to enable business customers to access the Web, as well as corporate networks and databases over cell telephones, laptop computers and hand-held devices.
The pact between the two companies, the No. 1 U.S. telephone carrier and the world's largest computer maker, combines IBM software and services with AT&T's wireless Internet Protocol network.
The two companies will co-market the service, but will charge separately for the services and software from IBM and the wireless connection from AT&T, IBM said.
``E-business is going mobile. Over the next five years, more than 80 percent of new corporate applications will be designed for non-PC devices, such as wireless phones,' said Gary Cohen, General Manager, IBM Global Telecommunications Industry.
Ayvazian said he expects similar deals creating a network of alliances between AT&T and IBM, offering specialized services and content within industries and geared toward employees and mobile executives.
The partnership is the latest in a trend of software and communications companies teaming up offer wireless Internet access.
Database software company Oracle Corp. (NasdaqNM:ORCL - news) said earlier in the week it would spin off a unit that created a wireless Web access service over cell phones, a service already up and running.
In 1998, Microsoft Corp. (NasdaqNM:MSFT - news) announced a joint venture with Qualcomm Inc. (NasdaqNM:QCOM - news), which was said to be supported by several of the biggest U.S. carriers.
Piper Jaffray analyst Ashok Kumar said the AT&T-IBM deal stands out for the wide range of services and products offered by both companies.
``I think increasingly people want a single-stop shop for both wireline and wireless infrastructure,' said Kumar.
Wireless services customers will be able to use these devices for electronic mail, personal scheduling, contact information and access to other business programs, the companies said in a statement.
Such wireless services are forecast to have 50 percent penetration in the United States by 2002 and 75 percent penetration by 2010, according to Yankee Group.
AT&T shares closed up 1/8 at 45, and IBM shares fell 4 3/4 to 105 3/4 in composite New York Stock Exchange trade on Friday.
dailynews.yahoo.com
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Still waiting for NOVL's move into this wireless infrastructure. Mr. Ledbetter, are you out there cutting deals?? |
