Microsoft and BT Unveil Global Agreement for Mobile Internet Services

Strategic Insights -

Microsoft Corp. and British Telecommunications PLC (BT) have announced a worldwide agreement to develop new Internet services and products that will enable consumers to access rich, interactive content on various mobile devices. The partnership will focus on creating mobile, multimedia-enabled portals, developing wireless handsets, and establishing an open industry forum to encourage the development of General Packet Radio Service (GPRS) and third-generation mobile Internet applications.

Key Takeaways:

  • The agreement involves the development of a mobile, multimedia-enabled portal based on the Microsoft MSN Mobile service, allowing customers to display and access engaging, interactive mobile services on handheld wireless devices.
  • The companies will develop a new generation of wireless handsets based on the Microsoft Windows CE operating system, which will enable access to new multimedia content, games, and other services.
  • An open industry forum will be established to encourage the development of GPRS and third-generation mobile Internet applications.
  • Both companies will commit substantial resources to the project, believing that the market for mobile multimedia products and services represents a significant business opportunity.
  • Microsoft's chairman and CEO, Bill Gates, stated that mobility is a key component of Microsoft's vision and that the company is excited to work with a world-class network provider like BT.
  • BT's chief executive, Sir Peter Bonfield, noted that deepening the relationship with Microsoft will enable the creation of world-class capabilities for customers and that mobile multimedia is a fantastic growth market.

Statistics:

  • The market capitalization of BT is in excess of 60 billion pounds sterling.
  • BT serves 27 million exchange lines in the United Kingdom.
  • International direct-dialed telephone service is available to more than 200 countries and other overseas territories, covering 99 percent of the world's 800 million telephones.
  • BT operates in more than 30 countries worldwide and has joint ventures in multiple countries.
  • Microsoft Windows CE is the operating system for the new generation of wireless handsets developed by the partnership.

Sources:

  • Microsoft Corp. (PRNewswire, Oct. 14)
  • British Telecommunications PLC
  • Microsoft (PRNewswire, Oct. 6)