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: GO*QCOM who wrote (54120)	12/15/1999 9:29:00 AM
From: Ruffian	Read Replies (2) \| Respond to of 152472

12/15/99 - Is Microsoft The Big Wireless Gorilla? Dec. 14, 1999 (WIRELESS INSIDER, Vol. 17, No. 48 via COMTEX) -- Giant's Pact With Ericsson Has Industry Wondering By Malcolm Spicer and Gregory Twachtman Bill Gates is continuing his foray into the wireless world. While the Microsoft [MSFT] chairman's latest move is drawing raves from analysts, it isn't likely to engender affection from companies that will compete in the wireless data space. Microsoft notched the second wireless notch on its belt in just over a year Wednesday by joint forces with Ericsson [ERICY] to develop applications for wireless access to the Internet. "We see it as very positive for the whole mobile data industry," says Merrill Lynch [MER] analyst Sherief Bakr. "This partnership will drive mobile Internet space providing easier and faster access." However, William Frezza, general partner of Yardley, Pa.-based venture capitalist firm Adams Capital Management, is not as quick to spin the joint venture. "People need to moderate their expectations," Frezza says. "We are in the middle of another cycle of enthusiasm for wireless data," he adds. "The services that are being promised cannot be fulfilled on today's networks. Real broadband data access is years and years away." And while 3G may be the answer to some of the network deficiencies that exist, it may be a while before networks are deployed to make the results of this joint venture marketable. "People who get excited about this don't know the [wireless data] industry," says Alan Reiter, president of Bethesda, Md.-based consultancy Wireless Internet and Mobile Computing. Meanwhile, Microsoft is pushing its Mobile Explorer platform designed to provide mobile phone users with wireless data services, including secure corporate data access, e-mail, Internet access and electronic commerce. The mobile browser will be available for use in mid-2000. As a precursor to last week's move, Microsoft struck a deal November 1998 with Qualcomm [QCOM] to form Wireless Knowledge. Once the service available, San Diego-based Wireless Knowledge will provide end-to-end Windows data access to corporate clients. Wireless Knowledge was supposed to commercially launch its Revolv service, which has not seen the light of day. The software giant also invested in SMR giant Nextel Communications [NXTL] and wireless broadband technology vendor Teligent [TGNT]. A Much Needed Boost For Ericsson Ericsson stands to gain particularly strong benefits, says Evli Securities Helsinki analyst Martti Larjo. But the Swedish telecom manufacturer's rivals won't be idle. "Ericsson previously had trouble keeping up with Nokia's [NOK] pace, but now this could give them the chance to catch up," Larjo says. "However, Nokia has its own products and research and will not be standing still. We knew that there would be competition for Nokia in the mobile Internet field, and this gives us a better picture as to who that will be." Ericsson will hold a majority share in the yet unnamed company, which will be based in Stockholm and will focus on deploying applications that use Microsoft's Windows and server software applications and Ericsson's mobile Internet technologies. The joint venture's value and the partners' stakes are still being negotiated. Execs also agreed to collaborate in developing open industry standards like Universal Plug and Play, Wireless Application Protocol and Bluetooth. In addition to embracing open standards, the duo will look to evolve WAP technology to become more compatible with the Internet. End-user products from this joint venture aren't expected to be available until 2001. Ericsson top brass said the pact with Microsoft won't influence the vendor's involvement in the Symbian wireless-technology venture, or in projects based on the EPOC portable operating system, which competes with Microsoft's Windows CE operating system. However, London investors appear to be wary. In first-day trading, many dumped shares of handheld computer vendor Psion [PSIOF] on news of the Ericsson-Microsoft tie-up. Symbian is owned by Ericsson, Motorola [MOT], Nokia, Psion and Matsushita Electric Industrial. Just as Microsoft has no intention of joining Symbian, Symbian has no need for it to, Bakr says. "It's positive for all the leading players in this space, including Psion and Nokia," he says. "Microsoft will be looking for partnerships with other players in the area, whether it's wireless or cable. It is driving the whole Internet phenomena and is positive for all players." However, Palm Computing [COMS] and Symbian should keep a watchful eye on all activities involving Microsoft. "This should serve as a warning to Palm and Symbian that Microsoft is serious about capturing mind share, especially in the operating system side of the wireless data industry," Reiter says. -0- Copyright Phillips Publishing, Inc.