Motorola aims to lead wireless Internet market
By Emily Kaiser
ROSEMONT, Ill., Jan 13 (Reuters) - Technology firm Motorola Inc., whose earnings and
reputation were hurt when it was slow to switch to digital phones from analog, said on
Thursday it intends to lead the next telecommunications revolution.
''In this business, if you miss one cycle, you can jump on the next cycle,'' Bo Hedfors, president of Motorola's Network
Solutions Sector, told Reuters in an interview during a presentation to employees in this Chicago suburb.
''Motorola missed the cycle going from analog to digital, but we've overcome that and jumped into the next cycle, which is IP
(Internet protocol),'' Hedfors said.
Schaumburg, Ill.-based Motorola's (NYSE:MOT - news) profits tumbled in 1998, in part because it was late in introducing
digital wireless phones. Motorola, now the world's second-largest wireless telephone handset maker, had been a leader in
analog technology. Analysts said the company missed the shift to digital, which provides a clearer signal than its predecessor.
The wireless telephone market is changing again now as wireless Web-enabled phones, handheld computers and other devices
become increasingly popular. Existing networks that were designed to carry voice traffic may be strained by the massive
amount of data involved as customers use wireless phones to surf the web or check stock quotes.
Hedfors, who took over Motorola's network sector in 1998 soon after the company announced major restructuring plans, said
Motorola was better prepared to compete in a changing environment because it has shed its conservative reputation in recent
years and become more nimble and innovative.
''We did a major corporate culture change at Motorola,'' said Hedfors, who had been chief executive officer of Swedish
telecoms company Ericsson's U.S. division before coming to Motorola.
''When I joined Motorola 1-1/2 years ago -- or 11 Internet years ago -- (Motorola Chairman) Chris Galvin told me, 'You're
allowed to change everything except our ethical way of doing business and the way we treat our people with respect.'''
Hedfors said Motorola's new communications platform Aspira, which integrates voice and data service, would position
Motorola in the forefront of the wireless Web world.
He said cellular phone operators would likely prefer Motorola's system over its competitors' offerings because it allows them to
gradually migrate from existing circuit-based networks to the faster, more powerful packet-based systems, instead of switching
over all at once.
Packet networks are ideal for data transmission and can also carry voice, while circuit-based networks are more suited to
voice only.
As part of its wireless Internet plan, Motorola partnered last year with leading data networking equipment company Cisco
Systems Inc. (NasdaqNM:CSCO - news). and computer workstation, server and software maker Sun Microsystems Inc.
(NasdaqNM:SUNW - news). Those alliances should also help Motorola build dominance, Hedfors said.
''We are leading the (wireless Internet) market now through our partnerships with Cisco and Sun,'' Hedfors said.
Shares in Motorola closed up 4-12/16 at 138-9/16 in New York Stock Exchange trading on Thursday, more than double the
$52 per share where it was trading after its restructuring in July 1998.
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