Openwave Systems Inc., the offspring of Phone.com and Software.com’s recent union, became the darling of Wall Street last week following its announcement to introduce a new browser for packet-based GPRS and third-generation wireless networks, and it already has a customer in KDDI of Japan.
The company also indicated to analysts it will provide AT&T Wireless Services Inc.’s platform for the carrier’s 3G launch and introduction of i-mode service in the United States, according to Marc Cabi, managing director of equity research at Credit Suisse First Boston in San Francisco.
In an effort to bring more computer-friendly functionality to mobile phones, Openwave created the new browser to support color and animated graphics, sounds, text wrap, multiple mark-up languages and blinking icons, among other features.
The architecture is an integral part of the company’s Services OS, an Internet Protocol-based software platform, Openwave said. It will allow carriers to retain their existing investments in content and infrastructure through full backward compatibility with current mobile Internet services.
John MacFarlane, executive vice president of technology and product development for Openwave, said the new browser can launch a set of applications that enable communication service providers to do a better job of servicing their users.
“It’s a framework for a communication service provider to put applications on top of their mobile application services,” MacFarlane said.
Analysts greeted the news with enthusiasm, particularly since two weeks ago Openwave revealed its revenues increased 36 percent to $109.7 million for its second fiscal quarter, and it inked a deal with Verizon Wireless to create a standards-based, over-the-air-provisioning solution for voice and data.
In addition to the new 3G GPRS browser, Openwave announced last week its VoiceXML-based unified communications software, and said it will team with Cisco Systems Inc., Cap Gemini Ernst & Young and IBM Corp. to deploy a complete unified communications solution.
British Telecommunications plc also said it was interested in adopting this unified messaging platform for its Genie portal, which currently has about 2.6 million subscribers.
“The unified messaging service would simplify people’s lives by giving them access to a centralized mailbox from anywhere, at any time,” said Kent Thexton, president of BT Genie.
Cabi said the recent add-ons from KDDI, BT and potentially AT&T Wireless suggest Openwave is helping carriers bolster average revenue per user, and the company’s recently strengthened management team has given Openwave a clear vision of the future.
“We continue to view this as our favorite stock to capitalize on the next phase of growth in the communications industry,” Cabi said.
MacFarlane noted that although many wireless-related companies have been struggling lately, Openwave is faring well because the applications its software supports and enables are critical to a service provider’s business plan.
“(Wireless data) is not a segment of the budget in the service provider world that is being cut,” said MacFarlane.
Shares of Openwave were trading at $68.75 at RCR Wireless New press time, down 50 cents from the previous day’s close.
