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Microsoft, BT set venture
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February 8, 1999: 11:16 a.m. ET
Companies plan to develop a wide range of wireless services
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LONDON (CNNfn) - In its first major move in U.K. telecommunications, Microsoft Corp. is joining British Telecommunications to develop a range of Internet and corporate data services that will allow mobile users to conduct all their online business on the run, the companies said Monday.
The world's largest software maker and Britain's dominant telephone company said the new service will enable customers outside North America to access e-mail and online information services using a digital mobile phone, pager or hand-held or laptop computer.
Trials are set to begin in the U.K. this spring and service is expected to become available in several countries by early 2000, the companies said.
The agreement marks Microsoft's latest push to extend its wireless reach as it seeks to head off mounting global competition for quick and convenient high-speed connections to remote computers.
For Microsoft, the deal with BT (BT.A) -- which was outbid last year for MCI Communications by feisty upstart Worldcom -- would mark the software giant's first foray into telecommunications in the U.K.
Microsoft (MSFT) entered the wireless market in the U.S. last year through its joint venture, Wireless Knowledge, with Qualcomm (QCOM).
In Europe, Microsoft will face a potentially formidable challenge from an already established rival, Symbian.
The Symbian venture between U.S.-based Motorola, Sweden's Ericsson, Finland's Nokia and the British-based Psion, aims to offer mobile users the same type of long-distance, high-speed access to the information databases that Microsoft and BT aspire to do.
In its early years, Microsoft's dominance in operating systems enabled the corporation to vault to the top of the software industry.
But now the battleground for market share may be shifting, analysts say, as telecom companies focus more seriously on ways to connect mobile users to personal information databases from anywhere they may be.
British Telecom already has unveiled a joint venture with U.S. counterpart AT&T that aims to harness Internet technology in providing data and video service to customers across the world.
Under their new agreement, BT and Microsoft will develop and market their services worldwide. The services will be provided by Concert, BT's Global communications company.
BT and Microsoft also said they intend to collaborate on developing future wireless products based on Microsoft's Windows CE operating system.
BT's mobile networks, at present, serve more than 13 million customers in 10 countries. Concert allows BT to reach more than 40 countries outside North America, said Andy Green, BT's group director of strategy and development.
Microsoft's messaging and collaboration solution, Exchange Server, will form the core of the wireless e-mail and data services provided by BT and Concert.
A report Sunday also suggested Microsoft (MSFT) may be close to announcing a restructuring, with the company creating four customer-focused groups.
Shares of BT were off 2.50 pence at 925.00 Monday in London trading while Microsoft stock rose 2-5/8 to 162-5/8 on the Nasdaq. 
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