YOU ARE AT:Archived ArticlesMicrosoft antitrust ruling charges wireless competitors

Microsoft antitrust ruling charges wireless competitors

As the wireless industry continues its journey toward the convergence of wireless and Internet, many have kept a wary eye on Microsoft Corp. to determine where wireless concerns can fit in a paradigm held by computer interests.

After all, competing in the same space as the Redmond, Wash.-based powerhouse has often proven fatal to several companies. Its iron grip on developers and corner on the desktop PC market left little air for others to breath.

But last week’s federal antitrust ruling against the software giant points to the weakening role Microsoft could play in the future of the Internet. Even before the ruling, Microsoft rivals such as the Symbian group and Phone.com Inc. were victorious against the once seemingly invincible Microsoft.

At almost every wireless trade show, somebody brings up the fact that more wireless phones were sold last year than were PCs. While the desktop PC market remains the largest installed base of Internet-enabled appliances, the future growth of that market goes to wireless.

And that’s not Microsoft’s strongest suit. At Wireless I.T., a Microsoft executive showed off a sample Global System for Mobile communications phone Microsoft made with Windows CE included. He said the plan is to use the prototype phones to convince other phone manufacturers to develop and make Windows CE phones.

In the past, an announcement that Microsoft planned to enter a market discouraged competition-either directly by scaring off competitors, or indirectly by scaring off competitors’ potential investors-but not in the wireless industry. When Microsoft first announced its plan to create a microbrowser that would allow phones to access Hypertext Markup Language Internet content, many figured Phone.-com would get crushed by the larger rival, and the Wireless Application Protocol would fizzle out.

But carriers and handset manufacturers continued to support the WAP effort. Eventually, even Microsoft joined the WAP Forum.

Symbian’s success is equally telling. Microsoft remains hopeful it can get its Windows CE operating system as the predominant platform on wireless handsets. But the major handset vendors are all aligned with Symbian, which touts the EPOC operating system.

Windows CE’s competitor in the handheld space, the Palm OS, also has made inroads against Microsoft, signing a deal with Nokia to include Palm’s pen-based user input method in Nokia phones.

The judge’s harsh rebuke against Microsoft only serves to further embolden its rivals.

Phone.com’s stock price went up more than $17 the first trading day after the announcement.

3Com Corp., which soon expects to spin off its Palm Computing division, also saw an increase in investor interest, with stock prices reaching $33 last week, the highest since February.

ABOUT AUTHOR