Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: marginmike who wrote (53680)	12/12/1999 6:27:00 PM
From: Jenne	Respond to of 152472

Wireless Knowledge sees no threat from Ericsson venture By Corey Grice Staff Writer, CNET News.com December 10, 1999, 12:35 p.m. PT update Wireless Knowledge executives are not fazed by Microsoft's recent wireless partnership with Ericsson, despite having formed a similar pact with the software giant less than a year ago. Executives said today the new venture, intended to develop mobile Internet access services, is "complementary" to Wireless Knowledge's deal and will only help generate demand for the venture's remote access service for businesses. Wireless Knowledge, a venture between Microsoft and wireless firm Qualcomm, is one of several companies aggressively targeting the wireless data market by offering services for business users on the go. Many analysts believe the mobile data market will explode in the United States in the next few years as technology improves and the cost of mobile phones falls. Wireless Knowledge offers mobile access to email, but does not yet provide wireless Net access or other e-commerce functions. Wireless Knowledge since its inception has been slow to get its services off the ground, and recently named a new chief executive. Although some could read Microsoft's new deal as a shot at Wireless Knowledge, executives see the alliance as helping their cause. "We see [the Microsoft-Ericsson deal] as very complementary to us," said Jinny Beneke, vice president of marketing for Wireless Knowledge. "It's just one more force that will drive the adoption of wireless data." Quote Snapshot MSFT 93.88 +1.12 ERICY 59.81 -1.19 QCOM 391.50 -3.50 Enter symbol: · Symbol Lookup More from CNET Investor Quotes delayed 20+ minutes Analysts hailed the Microsoft-Ericsson deal as a clear signal of the software giant's commitment to the wireless industry, but pointed out that a recognization of its plans to work closely with Wireless Knowledge were noticeably absent from the mid-week fanfare. "This announcement is the most significant manifestation to date of Microsoft's strategy for the mobile phone market. Interestingly, it includes no references to Microsoft's joint venture, Wireless Knowledge, established last year with partner Qualcomm," said market watcher Zona Research in a report this week. One explanation could stem from the fact that Wireless Knowledge's service works primarily with corporate networks powered by Microsoft software including the BackOffice family of products, while Microsoft's new Ericsson venture is intended to be more flexible, Zona wrote. Microsoft often invests in or partners with competing technologies, waiting for the market to shake out before striking with a decisive strategy of its own. However, many of Microsoft's forays into communications have been met with mixed results. Wireless Knowledge executives said ties between the Ericsson alliance and their own are obvious. Ericsson makes both mobile handsets and back-end wireless equipment, but Wireless Knowledge provides the optimization services that tie that hardware together. Wireless Knowledge works with wireless carriers to make sure their networks can support Revolv, a service that provides mobile remote access to corporate applications such as email, shared calendar and contact information, and other Microsoft Exchange server-based applications. "We provide the services, applications, integration and optimization that sits between the infrastructure and the handsets," Beneke said. "We see the Ericsson-Microsoft play as focusing on the two end-points that will drive the need for services in the middle." Indeed, the Ericsson alliance gives Microsoft a ready-made customer for its microbrowser software, which allows mobile handsets to carry Web sites and other Internet content. Qualcomm, in contrast, has announced its intention to sell its handset production business by the end of the year. In an interesting twist, newly installed Wireless Knowledge chief executive Eric Schultz, formerly Microsoft's director of wireless strategy, was instrumental in forming the Ericsson-Microsoft partnership. "Obviously he didn't see it as a big threat," Beneke said. "It just fills out the whole spectrum of wireless options for Microsoft and is great news for the wireless data industry. The more it raises awareness of wireless data the more it drives the need and demand for our services."

To: marginmike who wrote (53680)	12/12/1999 6:38:00 PM
From: 16yearcycle	Respond to of 152472

I hope you are right, MM. And if they are going to announce it, I hope they do it during expiry(this)week and smash the shorts.

To: marginmike who wrote (53680)	12/12/1999 6:48:00 PM
From: slacker711	Read Replies (3) \| Respond to of 152472

I've been trying to think of reasons why Nokia would NOT buy the handset division.... The engineers alone are probably worth a billion dollars....when you add in the manufacturing facilities and the current phone line-up it seems like a pretty easy deal to get done. The long-term ASIC deal would be tough for Nokia to swallow but it seems like it would be worth it to get out in front of the CDMA market. The issue that I think that Nokia would be having a tough time agreeing to is 3G royalties......I assume that this would be part of any deal that Qualcomm does for the division. I wonder if this could one of the reasons why the sale has taken so long.... Can you imagine how much Nokia would be paying out over the next 10 years if they agree to 3-5% royalties on the sale of every handset? If I was running Nokia and someone showed me that by agreeing to buy the division I would end up paying billions...Rationally I might know that this will happen anyway but it would be VERY hard to agree to..... From Qualcomm's perspective I think the deal is a no-brainer (unless there are some big non-traditional buyers out there egDELL/Compaq). Slacker

To: marginmike who wrote (53680)	12/12/1999 7:06:00 PM
From: limtex	Respond to of 152472

mm - Dr Jacobs did say that they had several potential buyers. My guess is that more than one buyer was seriously interested. Lets not focus on why the buyer would want it since that is another layer of unknown and we have the main one which IMHO is which buyer should the Q treat with. That is the main issue. I mean why not ERICY for instance. It would end once and for all any problems between the two groups and ERICY seems ot me like it needs some help whereas NOK is the alpha handset manufacturer. Also MSFT/ERCY deal would look even better if it were QCOM/ERICY/MSFT. All that wireless Internet stuff would develop quite well under that kind of grouping. Also there again in MOT. That also rolls off the tongue quite well. Looks like the Q is spoiled for choice. Seems to me it is both a decision of fundamental importance to the devlopment of the entire industry and one of the most difficult to decide upon. Still one thing you can bet the farm on and that is that whatever deal it is Dr Jacobs and the team will have made it very very well. If this is all turns out to be fact and not just a NOK thread wind up it is going to be quite a week this week. Best regards, L