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Microsoft to Make Push Into Mobile Messaging

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From Associated Press

Microsoft Corp. has won backing from major cellular networks for a new generation of phones designed to transform mobile e-mail from executive accessory to standard issue for the corporate rank and file.

The partnerships with operators including Vodafone Group and Cingular Wireless, to be announced today at a mobile industry gathering in Spain, could spell more trouble for BlackBerry and other niche e-mail technologies, analysts say.

Unlike the BlackBerry and its peers, phones running Microsoft’s latest Windows Mobile operating system can receive e-mails “pushed” directly from servers that handle a company’s messaging -- without the need for a separate mobile server or additional license payments.

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As costs fall, Microsoft is betting companies will extend mobile e-mail beyond top management to millions more of their employees.

“We’re at the tipping point of seeing exponential growth in this area,” said Pieter Knook, Microsoft’s senior vice president for mobile and embedded devices.

On the opening day of the 3GSM phone show here, Hewlett-Packard Co. and three other handset makers are expected to launch the first Windows smart phones equipped with the new e-mail technology out of the box. HP’s new iPaq HW6900 Mobile Messenger also offers Bluetooth and Wi-Fi connectivity.

Vodafone is to sell the phones under its own brand, in a joint-marketing deal, targeting companies that run Microsoft’s Exchange software on their servers. Exchange is the collaborative glue behind Microsoft’s popular Outlook application, which manages appointments and electronic address books in addition to e-mail.

Together with Cingular, Orange and T-Mobile International, Vodafone also will deliver phone software upgrades to subscribers who are running the Windows Mobile 5.0 operating system on their smart phones.

Microsoft laid the groundwork for its e-mail offensive with an October update to Exchange -- which led the server software market last year with 48% of global sales, according to technology research firm Gartner.

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Some observers have been predicting that the technology will hurt BlackBerry’s maker, Waterloo, Canada-based Research in Motion Ltd.

Mobile messaging prices are already falling. Cingular last year began bundling an e-mail service from BlackBerry rival Good Technologies Inc. with its unlimited wireless Internet package, at no extra charge.

Research in Motion has 4.3 million BlackBerry customers, most of them in the U.S. It enjoys the largest share of a wireless e-mail market estimated at about 10 million users globally.

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