Openwave nods to open Internet with WiderWeb acquisition

Openwave Systems Inc. announced it acquired WiderWeb Ltd., a mobile Web software developer, for $5 million in cash and a further potential $4 million if the company achieves certain levels of sales or profitability for Openwave.
With WiderWeb in tow, Openwave said it can now provide its clients with an open Internet browsing solution that re-formats Web content for cellphones. Openwave said the technology will open up access to the entire Internet on mass market mobile devices.
“It is imperative that mobile operators and content providers ensure they are properly positioned to leverage off-net opportunities,” said Peter Galvin, senior vice president of products and marketing at Openwave. “The content re-formatting technology from WiderWeb can dramatically improve the user experience when accessing Internet content on mass market mobile devices.”
Openwave is not forecasting any significant effect on its 2007 financial results due to the acquisition. The company’s stock showed no movement after the news.
The acquisition is notable for Openwave, which has made a serious business in promoting WAP and in fact is one of the pioneers of the technology.
In the late 1990s, WAP technology was heralded as bringing the Internet to cellphones, but-to make their sites accessible to WAP phones-Web site vendors had to modify their programming code to work with WAP technology. The situation essentially created two separate Internets-one for desktop computers and one for cellphones.
Now, with Openwave’s acquisition of WiderWeb, the company could be signaling that it will eventually support standard Internet pages instead of just WAP offerings.
Openwave sells WAP browser software to cellphone makers and WAP gateway technologies to wireless carriers.
However, Openwave could face notable challenges in the open-Internet market, as companies like Opera Software ASA already provide Internet browsers for cellphones that render standard Internet pages.