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Motorola, Palm to develop mobile smart phones

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CIOL Bureau
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SCHAUMBURG: The world's No. 2 mobile phone maker Motorola Inc. and hand-held

computer maker Palm Inc. agreed to jointly develop co-branded mobile smart

phones that provide access to e-mail and can store calendars and contact

databases.

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The phones would allow users to check a text message, click to pull up the

sender's telephone number and call him or her, said Motorola senior vice

president and general manager of strategy, business development and industry

relations Leis Soderberg.

Soderberg said the new phones would be similar to other mobile phones but

with larger screens. "Users and developers of Palm will feel comfortable

using this product," he told Reuters.

The companies said they have begun forming a joint product development team

and plan to unveil their first co-branded multi-functional smart phone in early

2002. The phones will be initially distributed through Motorola's existing sales

channels.

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The first phone under development is a tri-band GSM (Global System for Mobile

Communications) smart phone that can be used around the world. GSM is the

digital cellular phone standard in most countries around the world. Tri-band

capability allows phone users to take advantage of GSM networks around the world

on different frequencies.

The phone will also be compatible with current wireless networks as well as

high-speed next-generation networks.

Motorola said it will provide primary support for the product, including

initial customer calls and warranty while Palm will supply software and

operating system support.

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The companies said the deal is an extension of an agreement from last

December under which Motorola took a minority equity stake in Palm before the

company's initial public offering in March.

Palm already licenses its operating system, Palm OS, to Nokia Corp., the

world's No. 1 cell phone maker and Kyocera Corp., which acquired Qualcomm Inc.'s

wireless phone business in February.

However, Palm said this was the first co-branded wireless phone device.

(C) Reuters Limited 2000.

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