MICROSOFT BEATS COMPETITORS TO CDMA

Microsoft got its first edge on wireless rival Nokia last week, announcing it has reworked its Pocket PC and Smartphone platforms for CDMA networks. While Nokia and U.K. mobile operating system developer Symbian may have a head start on Microsoft in GSM, they have yet to produce a CDMA product.

And though GSM makes the rest of the world go 'round, CDMA's domination of the U.S. and Korean markets gives Microsoft a distinct advantage that could be used as a jumping-off point to push its Windows-based mobile OS to the rest of the globe.

“Supporting CDMA really opens the door to widespread adoption of the devices,” said Ed Suwanjindar, product manager for Microsoft's Mobile Devices Group.

The software bundle essentially provides a middle layer between radio interface and OS, allowing any Smartphone or Pocket PC application to work on CDMA. So far Samsung, the world's largest CDMA handset vendor, and Hitachi have agreed to release products with the software. U.S. carriers also were quick to jump on board. Verizon Wireless and Sprint PCS have both agreed to offer Pocket PCs by the end of 2003, and Verizon will offer the world's first CDMA Smartphone using the Microsoft platform.

Launching CDMA products gives Microsoft an enormous competitive advantage in light of the technology's importance in the U.S. and Asia, said Andrew Cole, head of Adventis' Global Wireless Practice. He expects Symbian and Nokia to follow Microsoft's lead, bringing Symbian and Series 60-based CDMA products to market as quickly as possible.

“I can't see them leaving the CDMA market to Microsoft,” Cole said. “[Symbian] doesn't want to give Microsoft the opportunity to establish any sort of beachhead in a niche market. If it does, Microsoft could become a serious threat.”