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Microsoft signs up BT Viag for PDA initiative

OXFORD, United Kingdom—Cell-phone operator BT Viag, the German subsidiary of BT’s MmO2 mobile division, said it plans to launch Microsoft’s combined Pocket PC and mobile device in early 2002. The device, which will be branded as O2 xda, will be based on Microsoft’s new Pocket PC 2002 operating system and will be General Packet Radio Service (GPRS) enabled, Viag said.

The decision by Viag to use Pocket PC comes as a blow to both Palm and Symbian, which are developing sophisticated operating systems for wireless PDA devices.

Dave McGlade, managing director of BT Cellnet and an executive director of MmO2, said existing products have failed as there are no compelling applications for the devices. “The company has no plans to launch similar products with Microsoft’s rivals in the near future,” added McGlade.

Reports indicate that Europeans have shown a marked reluctance to buy the expensive smart phones that are already available from Nokia, Ericsson and Sagem.

Viag confirmed that the 02 xda will cost approximately 1500 deutsche marks (US$692) when it is launched in the first half of next year. Users will be charged 0.09 deutsche marks (US$0.04) per Wireless Application Protocol (WAP) page and for 10 kilobits of Internet use, as well as a daily flat rate of 0.49 deutsche marks (US$0.23).

BT Cellnet added that it plans to launch the product in the group’s five markets during 2002.

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