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Qualcomm, Microsoft Plan Wireless Venture

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<i> Bloomberg News</i>

San Diego-based Qualcomm Inc. and Microsoft Corp. are expected to announce next week they’re forming a joint venture that will specialize in connecting portable computers to computer networks over cellular telephone systems. Cellular networks, though reliable in voice communication, are still difficult for use in computers because of security issues and because the connections don’t have enough capacity to move data quickly. The venture company, analysts said, is expected to create a facility that will accept and route wireless calls from computers to companies’ internal computer systems. Qualcomm and Microsoft spokeswomen confirmed that the companies plan a joint announcement Tuesday at Microsoft headquarters in Redmond, Wash. The companies declined to comment further, other than to say the announcement will involve wireless data. In Nasdaq trading, Qualcomm shares fell $2.63 to close at $55 and Microsoft rose 31 cents to $105.50.

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