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Ericsson and Microsoft Launch Joint Mobile Venture

Strategic Insights

— 1 min read

Ericsson (NASDAQ:ERICY) and Microsoft have taken a major step in their strategic alliance by launching Ericsson Microsoft Mobile Venture AB, a joint company that will drive the mobile Internet by developing and marketing mobile e-mail solutions for operators. As part of this venture, the first solutions are expected to be commercially available by the end of 2000, providing mobile operators with easy-to-use and secure mobile e-mail services to corporate and consumer customers.

Key Takeaways:

  • The Ericsson Microsoft Mobile Venture AB will be headquartered in Stockholm, Sweden, with regional centers around the world, and will be led by Ulf Avrin from Ericsson as its president.
  • Ericsson and Microsoft will hold a 70% and 30% stake in the company, respectively.
  • The joint venture will develop solutions based on Ericsson's and Microsoft's products, integrating Microsoft Windows 2000 Server and Microsoft Exchange platforms with Ericsson's infrastructure and mobile Internet technologies.
  • The solutions will provide mobile operators with easy-to-use and secure mobile e-mail, as well as calendar, to-do lists, and other personal information management tools.
  • The venture will focus on offering professional users full mobile access to corporate data, with the first solutions anticipated for deployment by the end of 2000.
  • Ericsson estimates that mobile phones and other mobile devices will surpass consumer PCs as the main Internet tool by 2003, with the number of mobile Internet subscribers expected to reach 1 billion by 2005.
  • The joint venture will also explore new technologies such as Bluetooth, WAP, and UpnP (Universal Plug & Play), while promoting open standards.

Statistics:

  • The number of e-mail boxes in use is over 435 million (source: Messaging Online Inc.).
  • Ericsson estimates that mobile phones and other mobile devices will surpass consumer PCs as the main Internet tool by 2003.
  • The number of mobile Internet subscribers is expected to reach 1 billion by 2005.
  • The joint venture will focus on deploying solutions for mobile operators' existing networks.

Sources:

  • "Ericsson and Microsoft Launch Ericsson Microsoft Mobile Venture AB," press release, [no date]
  • Ulf Avrin, president of Ericsson Microsoft Mobile Venture AB
  • "Ericsson predicts 1 billion mobile Internet users by 2005," Bloomberg, [no date]
  • "Messaging Online reports over 435 million email boxes," source: Messaging Online Inc.

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