U.K. wireless handset manufacturer Sendo announced a global strategic partnership with Virgin Mobile. Virgin Mobile will be the first operator to offer Sendo’s phones to consumers later this year. Virgin Mobile initially plans to introduce two Sendo phones, which will be marketed as Virgin Mobile own-brand phones and carry features that have been especially incorporated to Virgin’s specification. The phones will also carry the Sendo logo. Sendo, founded in August 1999, plans to initially focus on GSM-based products for Europe and Asia, with future expansion into the United States.
Phone.com announced it will merge with Software.com in a deal valued at about US$6.8 billion, creating a company focused on providing Internet software infrastructure for wireless, wireline and cable carriers, as well as portal firms and Internet service providers. The combined company is expected to offer software infrastructure and applications allowing the delivery of e-mail, voice mail, unified messaging, directory services and wireless Internet access for any type of Internet Protocol (IP) network.
Motorola said it is finishing a schedule to deorbit Iridium’s 66 satellites after failing to find a buyer. In August, New York City-based merchant bank Castle Harlan withdrew its US$50 million bid to buy Iridium, citing the satellite company’s limited potential to generate revenue. Other suitors, including Venture Partners and IR Acquisition Group, did not qualify to buy Iridium, once valued at US$5 billion.
Ericsson said it will begin reselling other manufacturers’ low-end cell phones under the Ericsson name, with a facility established in Malaysia. Ericsson said it would address the entry-level market with a special organization that would have the remit to externally source products.
Ericsson recently reported sales of its mobile phones had increased by 40 percent in the first six months of the year compared with the same period in 1999.
Qualcomm said it will spin off its integrated circuits and system software business. Qualcomm said its chips business needs access to technologies necessary to produce multimode, multinetwork chipsets that enable roaming in the third generation. The company has been working on obtaining patents to GSM technology to do this, but has yet to announce any agreements. Qualcomm said it will assign a portion of its patents to the new company, Spinco, without compromising its existing licensing and royalty business. Spinco intends to use its patents to gain access to GSM and other technologies by negotiating cross-licenses.
