By Brendan January, The Record, Hackensack, N.J. Knight Ridder/Tribune Business News
May 24--Verizon Wireless Inc. and Microsoft Corp. announced Thursday a partnership to sell Microsoft Internet services to Verizon mobile phone users.
Customers of Verizon Wireless, the largest mobile phone company in the nation, and Vodafone Group Plc will be able to use Microsoft products such as real-time communications service and news alerts over their mobile connections, the companies said in a statement.
Wireless companies have expanded their networks to carry larger files, including text and images, at average speeds two to three times those of a 56K connection -- which is typical for home PCs.
This week, Verizon announced it would offer high-speed wireless networking for a flat fee and expand the network to 29 additional markets, forming what the company called "the country's first and only national high-speed wireless data network."
With these expanded capabilities, it makes sense for wireless companies to seek out established partners to provide content, industry analysts said.
The telecommunications industry has been struggling through a collapse in stock prices, a sluggish economy, and severe competition. Verizon Wireless and other wireless companies have sought to develop high-speed wireless services to boost profits.
Verizon Wireless will charge about $100 a month for the wireless, high-speed Internet service.
Sprint PCS, another wireless company, has said it, too, will offer a high-speed Internet service for about the same price.
"Companies have to make a decision as to whether they want to be a player or just a part of the wireless data explosion," said Jeff Kagan, an independent telecommunications analyst. "Both Verizon and Microsoft have thrown their hat in the ring, and they're going to be players."
The companies are seeking to match complimentary areas of expertise, said Kagan.
"Neither has all expertise under one roof -- Verizon is [the] top voice and data [provider] but not a content provider. With Microsoft, it's the reverse. It makes sense for companies like this to team up."
Wireless companies may be close to finally delivering the promise of wireless communication -- high-speed Internet access from remote phones or laptops virtually anywhere at anytime.
Earlier efforts fizzled because of poor design and service.
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(c) 2002, The Record, Hackensack, N.J. Distributed by Knight Ridder/Tribune Business News.
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