Weaving a Web around the phone InfoGear, Cidco partner to develop user-friendly package >BY SHIRA McCARTHY, Associate Editor-News

First there was the Internet over the personal computer, then came the Internet over the television set. And now, software company InfoGear and Cidco, one of the top manufacturers of smart phones, have teamed up to bring the Internet to yet another technology-the telephone.

Scheduled for introduction in early 1997, the iPhone is an advanced phone with a touch screen interface, keyboard and 14.4 kb/s modem that allows customers to access to the World Wide Web and e-mail.

"We think that the Internet is destined to reach the mass market, and this is the only way to do that," said Jim Greenway, vice president of marketing at Redwood City, Calif.-based InfoGear.

About 35% of American households own a personal computer and between 9% and 14% are connected to the Internet, Greenway said. Consumers without PCs aren't likely to buy one just for features like e-mail or Web access, he noted.

"A lot of people are interested in utilizing e-mail or accessing the Internet but either don't have plans to buy a PC for that or can't afford it," he said.

InfoGear has identified another pool of potential customers who have a PC but want another device for Internet access because their computers are in an inconvenient place or take too long to boot up.

Thus, the iPhone was born. While the iPhone is envisioned as eventually becoming a consumer electronic device, InfoGear and Cidco will begin by marketing the phone and its accompanying software to telcos and Internet service providers. A carrier or an ISP will then bundle the phone with its Internet access services, brand the combination with its name and provide it to customers as a complete plug-and-play package.

The iPhone's low cost-less than $500-will be the real selling point for both carriers and consumers, said Robert Diamond, chairman of Cidco.

"People want Internet access, and carriers have to find a way to give them that," Diamond said. "This basic, fundamental product can get people on-line today and can be upgraded for higher speeds in subsequent generations.

But at least one analyst questions whether a product like the iPhone will ever be anything more than a novelty item.

"I don't think a whole lot of research and development went into this," said Robert Rosenberg, president of Insight Research Corp., Livingston, N.J. "I just don't see people using a telephone in this way.

Sun Microsystems is teaming with Omnes, a global provider of Internet and communications services, to provide packaged Internet access services to telecommunications companies and PTTs around the world, with an emphasis on meeting developing nations' needs.

Under the deal, Omnes becomes a Sun Catalyst member. Catalyst programs help independent hardware and software developers with porting, developing and selling solutions on Sun hardware and software platforms.

Omnes is a joint venture of Schlumberger Ltd. and Cable & Wireless.

Omnes' key product is Service Provider Internet Node (SPIN), a package of services including e-mail, World Wide Web hosting, domain name services, authentication, administration and billing. SPIN runs across the Sun Solaris-based Ultra Enterprise servers, which use a symmetrical multiprocessing design that enables users to start their businesses small and grow without sacrificing their investment.

PTTs already using Omnes ISP and Sun technology are Terranet of Malta, Batelco of Bahrain and Cable and Wireless.

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