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Microsoft and Mtel Collaborate on Nationwide Two-Way Communication Network

Strategic Insights

— 1 min read

Microsoft and Mobile Telecommunications Technologies Corp. (Mtel) have joined forces to develop a nationwide, two-way personal communications services network in the United States. The partnership aims to upgrade Mtel's Nationwide Wireless Network (NWN) to enable customers to receive and send wireless text messages. This network will be operational by the second half of 1995, offering a significant improvement over the existing one-way text messaging offered by competitors like BellSouth Mobile-Comm. The financing for this project will be approximately $150 million, with Mtel contributing $100 million, Microsoft contributing $30 million, and the remaining funds coming from other sources, including a personal investment of $10 million from Microsoft Chairman Bill Gates.

Key Takeaways:

  • The partnership between Microsoft and Mtel will create a nationwide two-way personal communications services network in the United States.
  • The upgraded Nationwide Wireless Network (NWN) system will enable customers to receive and send wireless text messages.
  • The network will support a wide range of handheld devices, including two-way personal communicators, laptop and palmtop computers, personal digital assistants, and personal organizers.
  • Nathan Myhrvold, Microsoft's senior technology executive, will oversee the development process, with a focus on creating effective two-way messaging communication capabilities and other advanced services.
  • Bill Gates, Microsoft Chairman, will personally invest $10 million in the project.
  • The total financing for the project is estimated to be around $150 million.

Statistics:

  • $150 million: The estimated total financing for the project.
  • $100 million: Mtel's contribution to the project.
  • $30 million: Microsoft's contribution to the project.
  • $10 million: Bill Gates' personal investment in the project.
  • 300 markets: The number of markets that will be included in the network.
  • 1995: The second half is expected to see the network become operational.

Sources:

  • According to Microsoft Corp. and Mobile Telecommunications Technologies Corp.
  • The companies announced their partnership to build the nationwide two-way communication network.

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