To: JMD who wrote (31536 ) 6/2/1999 5:33:00 PM From: Ruffian Respond to of 152472
Any Comments> Microsoft May Announce Wireless Phone Alliances, Analysts Say Microsoft May Announce Wireless Phone Alliances, Analysts Say Redmond, Washington, June 2 (Bloomberg) -- Microsoft Corp. may announce alliances with wireless phone companies including Nokia Oyj, Motorola Inc., Ericsson AB, Sprint Corp. and AirTouch Communications Inc. next week as the No. 1 software maker seeks to catch up with Psion Plc and 3Com Corp., analysts say. Talks between Microsoft, phone makers and service carriers have intensified in recent weeks and may culminate in announcements at Microsoft's Windows CE Developers Conference in Denver, said Randy Giusto, an analyst at International Data Corp. Windows CE is a slimmed-down version of Microsoft's Windows operating system that's designed for Internet devices such as smart phones that connect to the World Wide Web. Microsoft is pushing beyond desktop computing into Internet computing on devices that offer e-mail, personal calendars and Web surfing. ''Microsoft is playing catch-up in smart phones,'' said Giusto. ''Microsoft is noticeably late in putting together alliances and agreements both with hardware and services companies.'' Microsoft trails Psion, the U.K. computer maker that has a joint venture with Motorola, Nokia and Ericsson; and 3Com, which makes the market-leading Palm Pilot hand-held computer, analysts said. The software powerhouse may use some of its $17 billion in cash reserves to invest in one or more companies, analysts said. Possible Investments ''I wouldn't be surprised to see them invest in AirTouch or Sprint,'' said Seamus McAteer, an analyst at Jupiter Communications Inc. Investments in handset makers Motorola, Ericsson and Nokia can't be ruled out, McAteer said. Redmond, Washington-based Microsoft at least wants to persuade Motorola, Ericsson and Nokia to use its software, including Windows CE and its browser that lets users surf the Net on a cell phone. ''I don't think that would be a surprise if Microsoft aligned itself with the troika,'' said Phil Redman, an analyst at the Yankee Group, referring to Motorola, Ericsson and Nokia. Their joint venture with Psion is called Symbian. ''They have a need for differentiation,'' said Redman. ''Each wants to take certain elements from Symbian or Microsoft and incorporate it in their vision.'' Microsoft made a foray into wireless communications last year when it created a 50-50 joint venture with Qualcomm Inc. to let users connect to the Internet and their own business networks from digital phones and other computers. The venture, called Wireless Knowledge, provides the services to wireless carriers such as BellSouth Corp. and GTE Corp. Windows CE needs to be faster and more efficient to attract more phone-company customers, analysts said. ''An improved CE would be a lure,'' said Redman. ''CE isn't fast enough for phones to process what is needed.'' Microsoft fell 1/16 to 78 7/16.