With the introduction of the Windows CE operating system designed by Microsoft Corp.-expected to revolutionize the mobile computing industry much like the company’s Windows 95 operating system changed the computing world-wireless communications companies are hot to secure strategic agreements with the software giant.
Motorola Inc. recently announced it will design, manufacture and sell a set of wireless modules for Windows CE-based devices to provide paging and data transmission capabilities using FLEX technology. Both companies will jointly develop a software protocol to enable Windows CE-based devices to receive data over one-way and, eventually, two-way FLEX-based networks.
In turn, PageMart Wireless Inc. and Paging Network Inc. signed agreements with Microsoft to develop wireless applications, information services and provide the wireless network for Windows CE devices. Infowave Wireless Messaging Inc. agreed to provide wireless messaging solutions as well.
Windows CE is a 32-bit operating system designed for mobile computing products. The PC Companion Line of products powered by the operating system include the Handheld PC, Auto PC and the Palm PC.
Receiving particular attention is the Palm PC platform, the latest personal digital assistant platform to emerge in recent months. Several original equipment manufacturers have announced they are releasing products based on the Palm PC platform, including: Uniden Corp., Philips Electronics North America Corp.’s Mobile Computing Group, Palmax Technology Co. Ltd., Samsung Electronics America Inc., LG Electronics U.S.A. Inc., Everex Systems Inc. and Casio Computer Co. Ltd.
Metricom Inc. announced its Ricochet line of wireless modems also will support the Palm PC platform. Further, JP Systems Inc. will integrate the Palm PC with the existing AccessLink two-way pagers from Glenayre Inc.’s Wireless Access Group, used by Mobile Telecommunication Technologies Corp.’s SkyTel network.
The emergence of this next generation of PDAs opens up a new realm of opportunity for paging carriers, desperate to find alternative revenue streams for their existing networks.
“We think the Windows CE platform lets us start emphasizing the delivery of valuable content out to users,” said Doug Ritter, vice president of corporate development for PageNet. “That’s what we believe is a significant opportunity.”
Both PageMart and PageNet emphasized that their aim is not merely to turn the Palm PC into a fancy pager. While the agreements do give the Palm PC messaging capabilities, the companies both said the main goal is to provide value-added information services to the device by linking their networks with the user’s corporate intranet via push technology.
“You can think of huge amounts of possible opportunities,” Ritter said. “Opportunity is limited only by the imagination. We’re going to invest in bundling all types of applications. Some are going to be niche-y and some are going to be broad. But all are going to be value driven and not `how cheap can I get a beep?’ “
The PDAs are being marketed as a pocket-sized extension of the desktop PC. Users will be able to access the calender, contact list, Internet and intranet information and other data stored on their laptop PCs through the Palm PC, Microsoft said. That information will be sent to the paging network using push technology and made available to the Palm PC on demand, explained Wayne Stargardt, vice president for marketing at PageMart.
PageMart previously signed exclusive agreements with 3Com Corp. and Texas Instruments Inc. to be the wireless network provider for the PalmPilot and Advantra PDAs, respectively.
PDA devices of the past never seemed to get off the ground, but analysts believe this next generation of palmtop products have the price point, form factor and, most importantly, wireless connectivity needed to be successful. In particular, the success of the PalmPilot device, which sold some 1 million units last year, heralds the potential of this market.
Ira Brodsky, an analyst with Datacomm Research Company, Chesterfield, Mo., said he believes in the future of PDAs, but questions the longevity of such integration with paging networks.
“I think two-way communications are another capability that can really boost these devices, but whether paging companies are going to be the provider for that, I don’t know.”
Brodsky said paging carriers are signing agreements such as these out of desperation because they need the added revenue stream and alternative applications to escape the commodity tag they are determined to shed.
But a few years down the road, he said, digital cellular and personal communications services providers may usurp paging carriers as the network providers of such agreements, depending on how the two-way interactive market pans out.
“The voice guys have an advantage in that they don’t have to be profitable in messaging anytime soon. They have an economy of scope to bring to it,” he said. “With paging carriers, this is it.”
