Another firm has emerged to help start-up companies find their place in the nascent wireless Internet space.
Sprint PCS and eCompanies L.L.C., a firm that guides Internet start-ups, have formed eCompanies Wireless, an incubator dedicated to creating companies that offer wireless consumer services, business services and infrastructure.
Sprint PCS is the first wireless operator to invest in such a venture. It is investing $15 million into the new company and may provide resources such as technology, leadership and usability research on a case-by-case basis.
“From the $15-million investment, we expect to fund eight to 10 ventures,” said Tom Ellsworth, vice president of external incubator development with Sprint PCS.
eCompanies will host the wireless incubator in its existing streamlined facility in Santa Monica, Calif., where it will take young wireless Internet companies and offer assistance ranging from marketing and sales expertise to office space.
eCompanies Wireless will run as a separate company, with board representation from Sprint PCS and eCompanies. It will focus on four primary areas: B2B applications, mobile commerce, entertainment and games and technology applications, said Ellsworth.
Wireless Internet development is a difficult process. In the wired Internet world, developers work with virtually one device, the desktop PC, and one Internet language. Wireless Internet developers are finding they must develop technology and applications for a variety of Internet-ready devices and young wireless Internet languages. Ellsworth said wireless Internet companies coming to eCompanies Wireless will benefit from receiving feedback from Sprint PCS.
“They are going to get critical insight with management,” Ellsworth said. “Having that carrier perspective and a carrier touching multiple handset manufacturers brings to the table a certainty. They can build to their design because they’re not alone working through the whole process. They are able to benefit from Sprint’s robust feedback so that what they’ve developed has good coaching and mentorship.”
Sprint PCS also receives advantages. Developers are likely to gear wireless Internet technology and applications toward Sprint PCS.
“We get early insight,” said Ellsworth. “We get exposure to all the tough processes, and it also puts us at the leading edge of innovation to make decisions for Sprint PCS customers.”
Sprint PCS already offers an applications developer program as part of its product development effort. The program allows existing Internet and other companies to convert existing Internet content into wireless content. But these companies must be established companies. Rather than turning down those groups presenting a younger concept, Sprint PCS can now refer them to eCompanies Wireless.
Last week L.M. Ericsson also formed a $300-million venture capital fund that targets mobile Internet development. Ericsson and partners Merrill Lynch, Investor AB and Industrivarden will invest primarily in mobile Internet ventures and technologies, focusing on Europe and North America. Investments will cover all aspects of mobile Internet technology, including network infrastructure, services and applications. Each venture partner will commit $75 million.
