Danger Blows Over Barcelona
By Brad Smith, Wireless Week Technology Editor 

This was the first year in six years I haven't gone to the GSM community's
big mobile show, now called Mobile World Congress (it's changed names three
times since I started going in Cannes, which tells you something about the
speed of change in this industry). I miss the face-to-face meetings, getting
to see friends I don't see that often (you know who you are), and some of
the parties and nightlife. I don't miss the long hours and especially giving
up all or parts of two weekends because of the travel.

There are many disadvantages to not going to the world's biggest mobile
conference. But one of the advantages is being able to see the forest and
not the trees. With that perspective, here are some random thoughts about
everything that happened in Barcelona this week:

First, one of the biggest stories to come out of MWC actually didn't happen
there. It happened in Redmond, Wash. I'm trying to figure out why Microsoft
would buy Danger, a small company that has lost more than $188 million in
the last five years. Sure, Danger has had some popularity with the younger
set for its Sidekick (T-Mobile USA) and "hiptop" devices, but Microsoft
would buy Danger to add another niche device to its Windows Mobile quiver? I
also don't think Microsoft would buy Danger for its operating system.
Microsoft already has one that has sold a lot more devices than Danger will
ever sell. You may see new Sidekicks in the future, but they will be running
WinMo.

So, Microsoft probably was attracted by Danger's "software-as-a-service"
expertise, which Microsoft can use to improve the WinMo user experience for
Internet services. One of Danger's strengths was its user interface, its
social networking, and integration of services through a carrier's network.
That's all I can figure now.

A wild card here is the departure of Pieter Knook as head of Microsoft's
mobile communications business unit. Knook, who is leaving Redmond to head
Vodafone's new Internet division, undoubtedly was heavily involved in the
acquisition of Danger. With Knook out the door, someone new to his job will
have to deal with Danger's integration. What impact will that have on
Danger's future?

Another theme at MWC this year was the appearance of the Google Android OS,
which several companies were showing on prototypes. Play that against the
speech given by Vodafone CEO Arun Sarin, who repeated his call for fewer
handset operating systems. Sarin has been trying for years to reduce handset
OS proliferation, with no success. There are more operating systems now than
there were when Sarin first said a few years back he'd like to see three. At
least he's now saying the market place should decide which ones survive,
instead of having carriers like Vodafone make the choices.

I have a small bone to pick with Mr. Sarin on another part of his speech. He
told the crowd in Barcelona that "technology is not what matters." He went
on to say the important things for consumers are services and applications,
about which I can't disagree. But you have to have the technology first to
make those other things possible.

Finally, I have another bone to pick with a MWC keynoter. Ralph de la Vega,
who runs AT&T Mobility, said in Barcelona that 95 percent of iPhone users
regularly surf the Internet with their phones. He also said 51 percent of
iPhone users watch videos on YouTube.

You hear a lot of those comments about iPhone Internet use, but have you
tried to watch video on an EDGE network, which is what the AT&T iPhone uses?
EDGE provides data rates akin to dial-up, something in the range of 100
Kbps. If iPhone owners are watching YouTube videos, they aren't watching
them on AT&T's EDGE network. They have to be using the iPhone's Wi-Fi radio.
I think those numbers about 95 percent iPhone Internet use are a little
disingenuous because they imply the AT&T cellular network is being used when
it isn't. Correct me if I'm wrong.

 



[Non-text portions of this message have been removed]



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