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Microsoft Corp.

Wireless Internet Convergence: A New Mass-Market Product in the Making

Strategic Insights

— 1 min read

The convergence of mobile phones with the global internet is poised to revolutionize the way people access the web, with unit sales of fully wired hand-held devices expected to reach 600 million a year within five years. Companies from the technology and communications industries are teaming up to make this convergence a reality, with British Telecommunications and Microsoft planning to develop a pared-down Windows CE operating system for wireless phones. Meanwhile, Cisco and Motorola are investing $1 billion to build the infrastructure for a wireless internet. This parallel development is likely to lead to competing technologies vying for dominance, making it challenging for investors to pick winners.

Key Takeaways:

  • British Telecommunications and Microsoft are planning to develop a pared-down Windows CE operating system for wireless phones, targeting BT's corporate customers.
  • Cisco and Motorola are investing $1 billion to build the infrastructure for a wireless internet, with a potential to reach the mass market.
  • The convergence of mobile phones with the global internet is expected to lead to a market size of 600 million hand-held devices per year within five years.
  • Companies such as Nokia, Ericsson, and Motorola are partnering with Psion to develop hand-held devices, indicating a non-exclusive deal with potential rivals like Microsoft.
  • The deal between British Telecommunications and Microsoft is non-exclusive, allowing for partnerships with other companies in the future.
  • This convergence has the potential to create new opportunities for innovation and development, with companies vying to create the best wireless internet solutions.

Statistics:

  • Unit sales of fully wired hand-held devices are expected to reach 600 million per year within five years.
  • Cisco and Motorola are investing $1 billion to build the infrastructure for a wireless internet.
  • The deal between British Telecommunications and Microsoft is non-exclusive, allowing for future partnerships.
  • The technology and communications industries are experiencing a rapid convergence, with 600million hand-held devices expected to be sold within five years.

Sources:

  • Financial Times Limited 1999. All Rights Reserved.

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