Microsoft: Internet Via Mobile Phones To Up Sales (via Q* thread)
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To: JGoren (36402 ) From: michael piturro Wednesday, Jul 21 1999 1:22PM ET Reply # of 36438
Q & MSFT>
Wednesday July 21 12:20 PM ET
By Paul Carrel
FRANKFURT (Reuters) - Microsoft Corp. (Nasdaq:MSFT - news) said Wednesday it expected to provide Internet services via mobile telephones beginning in the second half of next year and that the fresh revenue would complement its existing sales.
''We don't see this as a substitute. It's more of a complement,'' Kevin Dallas, group product manager of Microsoft's productivity applications division, told Reuters in a telephone interview.
Microsoft, the world's largest software maker, warned Monday that profit and revenue growth would slow in the year ahead because of slowing demand for personal computers and concerns about the Y2K computer bug, among other factors.
''We see it as a major opportunity for us, and also for the carrier and the handset vendor,'' Dallas said about the providing of Internet services via cellular phones. ''It's an increasing revenue opportunity for Microsoft.''
Dallas was speaking after Microsoft earlier Wednesday announced its acquisition of STNC Ltd., a small British company whose technology the U.S. software giant aims to use to help it provide Internet applications via mobile phones.
The move by Microsoft comes as other Internet leaders such as Yahoo Inc. (Nasdaq:YHOO - news) work to offer their Web contents over mobile phones by late this year in the next stage in the development of Internet access.
Sector projections showed that by 2004 there would be some 1.2 billion mobile phones in operation worldwide, of which between 700,000 and 800,000 would be able to access the Internet, Dallas said. Microsoft earlier this year teamed up with British Telecommunications Plc to develop a range of Internet and corporate data services for cellular phone customers.
Dallas said that in both Britain and the United States, Microsoft was engaged in trials to develop the technology required to access the Internet via mobile phones.
''If you were to talk to British Telecom, they would be very aggressive on this,'' he said. ''They would like to see this on the market by the second half of next year. We're working hard to make that a reality.'' He said the same timeframe applied in the United States, where Microsoft is in a joint venture, Wireless Knowledge, with telecommunications equipment maker Qualcomm Inc. (Nasdaq:QCOM - news) to expand the availability of information over wireless devices.
Mobile phone users would be able to send and receive e-mail, access the Internet and company Intranets with the software provided by Microsoft, Dallas said. Further down the line, they could also engage in e-commerce via their handheld phones. The U.S. software producer did not say how much it had paid to acquire STNC, which employs around 40 people and is based in Bury St. Edmunds in eastern England. |