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Technology Stocks : wirelessknowledge -- Ignore unavailable to you. Want to Upgrade?

To: Bob Zacks who wrote (31)	2/9/1999 6:27:00 PM
From: Greg B.	Read Replies (1) \| Respond to of 85

Microsoft Partners BT for Worldwide Wireless Internet By Christine Harper at Bloomberg News 08 February 1999 Microsoft Corp., the world's biggest software company, and British Telecommunications Plc, Britain's No. 1 phone company, said they will develop wireless Internet and corporate data services outside North America. The companies will begin testing the services in the U.K. within the next few months and plan to make them available around the world in early 2000. BT, Microsoft and Concert, a BT venture that targets global corporate clients, will market the services. Microsoft's first wireless venture outside North America gives it access to BT's more than 13 million mobile phone customers in 10 countries. The partnership challenges the Symbian software being developed by Psion Plc with Motorola Inc., Ericsson AB and Nokia Oyj, which make 58% of the world's cellular phones. "Microsoft is intent on not missing this particular boat," said Seamus McAteer, an analyst at Jupiter Communications. "Forging a deal with BT helps them prove the point that they are a serious contender." Microsoft is aiming to make inroads into the global market for wireless Internet access and data services and its alliance with BT gives it a boost, analysts said. "Mobile Internet is the single biggest story out there," said Keith Woolcock, an analyst at Nomura International. Microsoft has been "boxed out of this and they need to do something. The only place they can go is to the operators." Mobile Internet access is expected to grow rapidly as computers shrink and phones perform more computing functions. Executives from Nokia and Microsoft have predicted that more mobile phones with Internet access will be sold than laptop computers next year. Psion shares fell 52.5 pence to 876p., while BT's shares rose 7.5 pence to 935p. Microsoft's shares rose 2 1/4 to 161 1/4 in midday U.S. trading. BT, whose Concert service reaches more than 40 countries outside North America, will ask manufacturers to use Microsoft's Internet browsers in their handsets. BT and Microsoft will also join on pushing for wireless products based on Microsoft's operating system. "One of the reasons why we've chosen Microsoft is it builds on existing applications" used in home and office computers, Sohail Qadri, BT's director of mobility, said in an interview. "You could be in the home or in the office or on the move and get these services in a standard way." Qadri said BT and Microsoft will immediately begin internal testing of the new services, followed by trials with some of BT's "key corporate customers" in the U.K. during the spring and summer. The service will be offered to corporate customers before individual customers. The companies are installing "data centers" that will support Microsoft's Windows NT operating system, its Internet Information Server and the Microsoft Exchange Server. They are also negotiating with all makers of wireless phones, pagers and portable computers about installing the Microsoft software on those devices, Qadri said. "We want to use the Microsoft browser on the handset and we're working with a number of handset manufacturers," he said. The companies didn't provide any details on how much money they plan to spend on developing and marketing the new services. Qadri said the costs involved in testing the services are "not major amounts in the grand scheme of things." Qadri said BT will seek U.S. partners to offer the new services in North America. He said AT&T Corp., with whom BT is creating a $3 billion global joint venture, "might be one partner, but there may be other ways of distributing it." In the U.S., Microsoft has already created a joint venture with Qualcomm Inc. to offer wireless Internet access to cellular phone companies.