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Microsoft’s Smartphone losing out to Symbian

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CIOL Bureau
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Doug Young

HONG KONG: How do you muscle your way into a club whose members include the world's top cell phone makers when nobody wants you? It's a tall order, even if you are Microsoft Corp. The U.S. company is trying hard, though. On Wednesday, Microsoft was touting the virtues of its Smartphone operating system for use in a new generation of high-tech mobile phones at one of Asia's biggest telecoms trade shows .



Since its launch in October, the system called Smartphone has faced an uphill battle, largely because five of the world's top cell phone makers support their own competing system, known as Symbian.



The battle pitting Microsoft against the quintet of Motorola, Nokia, Siemens and a joint venture between Sony and Ericsson will likely be long and hard-fought, as the two sides tussle for control of the screens of a new generation of PC-like mobile phones.



Despite its own lack of mobile phone output and five of the world's top producers in the enemy camp, Microsoft believes that Smartphone will ultimately win over the mobile phone carriers who order handsets from the likes of Motorola and Ericsson, said Derek Brown, Microsoft director of mobile devices.



"Overall we have 20 mobile operators who've signed agreements with us," said Brown during an interview at the ITU 2002 Asia trade show in Hong Kong.



"If the handset makers don't bring out the phones, the mobile operators are going to go to this value chain (of smaller phone makers willing to use Smartphone) that's being established in the industry," said Brown, who cuts an unassuming figure but speaks with conviction when it comes to Microsoft's efforts to break into the business.



A few victories needed


Brown acknowledged that Microsoft is yet to sign up an Asian carriers for Smartphone, which is basically a version of its PC-based Windows operating system modified for use on the small screens of new high-tech mobile phones. With the exception of Korean cell phone giant Samsung, which has agreed to make some Smartphone handsets, Microsoft's successes in Asia to date have come from a handful of second-tier cell phone makers.



Two of those include China's top cell phone maker TCL, whose clients include the country's two largest wireless carriers, and Taiwan's High Tech Computer. But Smartphone also suffered a setback last month when Britain's Sendo plc scrapped plans for a model based on the Smartphone operating system.



With lowered expectations, Microsoft would be content to win over a just a few new cell phone makers and service providers next year, Brown said. "In 2003 we look forward to having several mobile operators in each key region, the U.S., Asia and Europe," he said.



"If we had two to four in each region it would be a good start...We don't feel like our success is contingent upon the top tier handset manufacturers."



© Reuters

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