Microsoft makes wireless bid

Despite another high-profile partnership and the introduction of a new microbrowser, Microsoft is still trying desperately to get its feet on the ground in the wireless market.

Last week, the software giant and the Swedish telephone firm Ericsson agreed to form a joint company that will allow mobile users to access e-mail with wireless phones.

The deal is similar to one Microsoft made a year ago with Qualcomm to form Wireless Knowledge, which offers data services to wireless carriers.

Microsoft also introduced a new microbrowser for wireless phones called Mobile Explorer, which provides a software platform for application services.

But despite the two advancements, Microsoft is late again and playing its usual game of catch-up.

"The wireless industry has been doing a tango, and Microsoft has been doing a waltz - they are out of step," says Ian Gillott, an analyst with International Data Corp. in Framingham, Mass. "If it was any other company, I would say you are too late, but Microsoft might be able to pull it out."

A little more than a year ago, Microsoft laid out its wireless strategy, which was intended to support the firm's move into the post-PC era. The company's four goals were to embrace industry standards; provide server, middleware and client products; support value-added service; and help carriers deploy infrastructure.

The company's first misstep may have been to snub the Wireless Application Protocol (WAP) in favor of IP. WAP is a specification for providing wireless phones and other devices with efficient access to e-mail and other Internet content (see story, right). The protocol enjoys widespread acceptance, but Microsoft only recently pledged support.

The deal with Ericsson is significant in that Microsoft gains the right to use Ericsson's WAP stack in Mobile Explorer. Ericsson is one of the creators of the standard.

"We've learned that Microsoft and WAP have the same goal," says Rebecca Thompson, a Microsoft product manager. "WAP is committed to XML and Internet standards, and both are key for us."

What about Windows CE?

Another Microsoft goal is to provide a wireless client platform. While Mobile Explorer does that, it also masks another Microsoft misstep.

"With Mobile Explorer, Microsoft in a sense is going around the failures of Windows CE," says Warren Wilson, an analyst with Summit Strategies in Kirkland, Wash. "They now have this technology they can use to play in the market while they try to tune CE."

Windows CE has been criticized for being too bulky for deployment on wireless phones. A competing operating system from Psion, called Epoc, is already highly regarded and has the backing of Ericsson through a project called Symbian.

Mobile Explorer also is likely to have its problems entering the microbrowser arena. Nokia, Phone.com and Spyglass all have browsers, while Mobile Explorer will not be available until late next year.

"Microsoft is nowhere near solidly established in this market," Wilson says. "But Mobile Explorer and investments like the one with Ericsson are another step in the right direction."

With wireless key to Microsoft's overall strategy and with the market taking off at a furious pace (see graphic), Microsoft is likely to begin taking those steps a little quicker.