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Carolyn Ong

Microsoft is seeking a foothold in the mobile phone business with a 'developer-friendly' approach to its Smartphone 2002 platform.

The software giant hopes this open approach will encourage independent software vendors to produce applications that run on the platform.

The director of technology and standards at Microsoft's mobility division, Mike Wehrs, said the company recognised that applications sold a device, and not the other way around.

'There is never going to be one device that fits everyone's needs,' he said. 'What we have done is make it so that developers can turn around an application... in hours or days [rather than] months.

'If there are six applications that are ideal for you on that device, that could become the killer device for you. It is not going to be the same six applications for the next person.'

Microsoft is competing primarily with Symbian and Palm to become the standard for advanced handsets with data messaging functionalities like e-mail, Web browsing and chat.

Mr Wehr said mobility products were Microsoft's most important new business, and the mobility division had the largest research and development budget of any unit in the company.

'The amount of money devoted to the mobility division is dramatic,' he said.

Applying its PC model to the telecommunications world, Microsoft makes only the software and not the mobile phones. It licenses its platform to carriers and mobile phone companies.

The popularity of the platform will depend on the number of applications developed for it - the more applications, the more likely users will find a use for Smartphone devices.

'We are trying to enable an ecosystem that allows companies to do unique things as easily as possible,' Mr Wehr said.

Smartphone 2002 has so far got off to a shaky start.

First, there are not many takers. Microsoft has managed to sign up only four licensees, all in Asia.They are Compal, HTC, Samsung and TCL.

Second, British mobile phone maker Sendo filed a suit against Microsoft last month claiming theft of its technology and customers.

Sendo, a start-up set up in 1999 with former Philips and Motorola talent, was an original equipment manufacturer for Microsoft's flagship phone. But it pulled its Z100 Smartphone just days before the launch in December, terminated its agreement with Microsoft and said it would develop a Symbian-based smartphone instead.

Sendo claims Microsoft passed its trade secrets on to low-cost manufacturers in Asia. The first Microsoft Smartphone launched in Europe was the Orange SPV, built by Taiwanese firm HTC.

Jason Gordon, product manager for Microsoft mobile devices, said he could not comment on Sendo or the lawsuit.

He said carrier partners in Hong Kong, including CSL and Hutchison Telecom, were expected to launch mobile phones featuring Smartphone 2002.

Third, reviewers of the Orange SPV report it is buggy. Internet technology news network CNET reported security flaws in the Smartphone software two weeks ago, fuelling carriers' fears of rogue software flooding mobile networks.

Reviews of the Orange SPV have been mixed, though most have pointed out its chief flaw - a lack of integration between its contact book and Microsoft Outlook.

There is also no direct synchronisation between Microsoft's operating system for pocket PCs, called Pocket PC 2002, and Smartphone 2002. Users would have to use the ActiveSync feature to transfer data between the two devices via a PC.

Another Microsoft failing is its attachment to the PC, still the company's main source of revenue. The Smartphone and the Pocket PC software are designed to be PC-centric whereas the trend is towards products independent of the PC.

Epson already makes a printer that takes flashcards, bypassing the PC, while personal digital assistants (PDAs) made by Sony and Palm feature Bluetooth technology that allows them to communicate directly with printers and mobile phones.

Mr Wehr said the next version of the Smartphone would focus on tighter messaging features and more user-friendly features. He also said it would have 'more tightly integrated features'.

He said Smartphone 2002 could already take full advantage of a higher bandwidth network like 3G.

'We are independent of the radio stack. 3G is another interim network. The real jump is when it gets to more than one megabits per second [Mbps]. Are you going to see one Mbps of speed on 3G? Probably not. We do not see the need to roll out a new generation of Smartphone until speeds get to those levels.'



Microsoft pins mobile hopes on open approach