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.

Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked -- Ignore unavailable to you. Want to Upgrade?

To: Dolfan who wrote (47125)	5/31/1999 12:04:00 PM
From: JeffA	Respond to of 90042

NXTL - Nice little article Microsoft/Nextel deal boosts wireless Net apps By R. Scott Raynovich Redherring.com May 29, 1999 Microsoft's (Nasdaq: MSFT) $600 million investment in Nextel Communications (Nasdaq: NXTL), formally completed today, is expected to give a boost to the market for wireless applications based on the Wireless Applications Protocol (WAP). <Picture> <Picture> <Picture> <Picture><Picture><Picture> Will new names spell consumer success? <Picture> The Internet and Uncle Sam <Picture> The Herring 100 <Picture> <Picture> <Picture>The partnership is expected to yield one of the first systems for delivering a stripped-down version of Internet data to mobile phones using a wireless packet data network. This could prove the potential for the use of WAP, which allows mobile phones and other devices to more efficiently access Internet-based applications designed for wireless networks. "It highlights the value of wireless assets for delivering data, voice, and Internet services," says Harvey Liu, senior analyst at CIBC World Markets. Nextel has a sophisticated customer base that is more likely to use wireless connectivity to access Web data, says Mr. Liu. "This is a natural extension that provides Internet content to people on a 24 by 7 basis." <Picture><Picture> <Picture> <Picture: [ Related Links ]> <Picture><Picture> A Montgomery Securities analyst examines which of the large wireless services companies are best positioned. <Picture> Wireless industry players are joining up with every tech company in sight. <Picture> <Picture> <Picture>INFUSION FOR NEXTEL ONLINE Nextel will use Microsoft's investment to fund its Nextel Online system, which will be deployed to 50 million points of presence (POPs) by year-end, according to Nextel officials. It will be tested in several major cities, including New York and Atlanta, as early as the end of the summer. Because Nextel's networks are based on a packet data network, rather than the voice circuit networks employed by many of the traditional telecom carriers, it's in a position to focus on data services and the Internet, says Mr. Liu. "They're using a packetized data network which makes Internet services more efficient," he says. ARRIVAL OF THE WAP APPS? Nextel officials say that the online service will deliver a series of WAP-based interfaces that strip out Web graphics, enabling the Internet data to be more easily delivered over wireless links. Observers say this points to an opportunity for companies developing Internet apps. "This will help companies write more apps to provide value-added services because they see WAP as an emerging standard," says David Freedman, senior managing director at Bear Stearns (NYSE: BSC). Indeed, interest in the WAP protocol has flourished in just the past several months. The WAP Forum, an organization that oversees the standards for developing WAP-based applications, was officially founded by LM Ericsson (Nasdaq: ERICY), Motorola (NYSE: MOT)), Nokia (NYSE: NOK), and Phone.com (formerly Unwired Planet) in January of this year. Since then, another 33 companies have joined, including both Nextel and Microsoft. Software companies that belong to the organization include Geoworks (Nasdaq: GWRX), Spyglass (Nasdaq: SPYG), Mapquest (Nasdaq: MQST), and Starfish Software. The deployment of WAP apps may make the mobile phone a more viable competitor to other wireless devices like personal digital assistants for accessing Web data. During the past five years, cellular penetration in North America grew from 15.6 percent to 42 percent of households, according to Forrester Research. Forrester expects that by 2003, nearly 57 of all North American households will be cellular subscribers. Some companies are already focusing on WAP apps. For example, Phone.com, which is expected to go public next month, has been a contributor to wireless applications being used by equipment providers like Nokia and Alcatel (NYSE: ALA). In exchange for the $600 million investment, Microsoft received approximately 16.67 million shares of Nextel stock, accounting for a stake of roughly 4 percent of the company.