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Technology Stocks : Alcatel (ALA) and France -- Ignore unavailable to you. Want to Upgrade?

To: bertrand bidaud who wrote (592)	4/16/1999 7:56:00 AM
From: Dave Sullivan	Read Replies (2) \| Respond to of 3891

April 16, 1999 AOL to Unveil Online Devices That Shake the Need for PCs By THOMAS E. WEBER and KEVIN J. DELANEY Staff Reporters of THE WALL STREET JOURNAL America Online Inc. plans to unveil its first wave of Internet-friendly devices that don't require personal computers. The country's largest online service is expected to introduce a variety of gadgets, including a screen phone, in the next several weeks, according to people familiar with the company's plans. The goal: to make AOL a pervasive presence in consumers' lives, cementing member loyalty and expanding revenue opportunities for advertising and electronic commerce. These gadgets would offer AOL members quick access to electronic mail and Web pages via a sleek, streamlined device about the size of a dictionary. Screen phones look much like a standard desk telephone, but include a screen and a small keyboard. Company Profile: America Online Alcatel SA, the French telecommunications concern, is seen as a likely partner in the screen-phone effort. Unlike personal computers, which are often placed in a den or home office, the phones could be easily stationed in a consumer's living room or kitchen. And while PCs must run all kinds of software, screen phones are designed specifically to hook up to the Internet -- meaning that they can get online in seconds without a lengthy boot-up process. So far, screen phones haven't caught on in the U.S. and have been largely seen as a technology without a practical use. However, Minitel, an early screen phone, has been hugely popular in France. With a mass market of U.S. consumers already addicted to e-mail and Web surfing, AOL is betting that some will jump at the chance to get online without a PC. AOL doesn't expect screen phones to take the place of PCs. As with other "AOL Anywhere" devices in the works -- such as hand-held computers -- the company sees the screen phone as giving consumers a means of getting online at times when using a PC isn't convenient. For instance, AOL members would probably continue to rely on PCs for extended chat sessions or lengthy ventures onto the Web. But they might turn first to a screen phone for a quick check of e-mail, or for brief Web tasks, such as trading a stock or ordering a book. Alcatel confirmed that it plans to market its WebTouch screen phone in partnership with U.S. companies but declined to discuss specific partners. "There will be some announcements in coming weeks," said Patrick Liot, president of Alcatel's consumer and professional division. As for any deal with AOL, "Ask Barry Schuler," Mr. Liot said, referring to AOL's No. 3 executive and the architect of its consumer-device strategy. Mr. Schuler was unavailable for comment. AOL's backing would give Alcatel the Internet's most powerful brand in its effort to sell screen phones in the U.S. If the devices catch on, they would underscore how the industry landscape could shift if surfing moves away from PCs. Alcatel's phone, like several other Web gadgets in the works at various manufacturers, doesn't use Microsoft Corp.'s Windows operating system. Instead, it uses Java software from Sun Microsystems Inc. -- AOL's new partner in an alliance formed around AOL's Netscape purchase.

To: bertrand bidaud who wrote (592)	4/17/1999 11:31:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 3891

Surf the Net on Your ... Phone? AP Online, Friday, April 16, 1999 at 17:47 By DAVID E. KALISH AP Business Writer NEW YORK (AP) - Futuristic devices that offer brand new ways of surfing the Internet are hitting the market, promising a nifty alternative to the personal computer. But do enough consumers want to check out Web pages on their telephone? Gadget makers will soon find out. The French telecommunications company Alcatel is talking with U.S. companies about introducing a ''smart'' home phone this fall that would give Americans quick access to the Web and electronic mail without a PC. One potential partner reportedly is America Online, the largest Internet service with 17 million subscribers. Alcatel's phone, called WebTouch, is about the size of a hardcover novel. It has a 7.5-inch touch-sensitive screen, a pull-out keyboard and up to 10 special buttons that can be programmed to jump the user to weather updates, stock quotes or order pizza from the corner restaurant. Elsewhere, makers of mobile phones such as Qualcomm, Motorola and Nokia are soon coming out with nearly a dozen new Web ''companions'' that add e-mail and Internet access to wireless phones. The pitch in upcoming marketing campaigns will be relatively simple: Why bother booting up your computer to surf the Internet when you can just reach for the phone? Currently, less 1 percent of the 69 million cellular phone users in the nation have Web phones, according to the Yankee Group, a Boston-based research firm. But that is expected increase to about 21 percent by 2003 as prices come down and technology improves. But the devices face obstacles. Vendors must simplify Web information and graphics so they don't clutter relatively small screens. Some analysts say the gadgets could confuse consumers by combining Internet and phone functions. To be sure, the beauty of the home phone is its simplicity. ''The main drawback is this converged idea -- Let's glue a phone and a Web browser together,'' said Tom Rhinelander, an industry analyst with Forrester Research, a Boston-based high-tech consulting firm. ''How are you going to get people to understand how to use this?'' Alcatel is betting it can. The Wall Street Journal reported Friday the company is a probable partner with America Online in delivering a screen phone to U.S. consumers. AOL, by marketing to its millions of subscribers, could stoke a mass market by offering discounted subscriptions to early adaptors of the technology. A phone is just one of a slew of Net-surfing gadgets planned by AOL. An Alcatel spokesman, Gean Christophe Huertas, declined to comment on any AOL deal but confirmed the company is talking with ''several U.S. partners to develop our screen phone in the United States.'' AOL spokeswoman Wendy Goldberg also would not comment. Alcatel hopes it can duplicate the success of its Minitel screen phone, which is widely popular in France. Don't expect the PC to go away. Potential smart phone customers are expected to still use a PC to for lengthier Web browsing, since computers boast larger screens. ''It's not in competition with the PC,'' said Beatrice Mandine, an Alcatel spokeswoman. ''In our visions, it's a very different approach.''