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Microsoft on cellular hunt?
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June 1, 1999: 8:16 a.m. ET
Report: Software giant seeks to drive wedge between Symbian partners
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LONDON (CNNfn) - Microsoft has launched an aggressive campaign to lure leading cellular phone makers away from their operating system joint venture Symbian, according to a report published Tuesday.
Microsoft president Steve Ballmer has lobbied executives at the world's three leading mobile manufacturers -- Nokia, Ericsson and Motorola -- to explore Windows-based software for the next generation of mobile phones, according to the Times of London newspaper.
The three manufacturers have used Symbian -- in which U.K. technology firm Psion is a partner -- to develop operating systems allowing a range of data to be accessed and processed by mobile phones. The partners were recently joined by Japan's Matsushita
"I don't think they'd let the small investments they'd made in Symbian affect them if they thought we had better ideas," Ballmer is quoted as saying in the report.
The battle to create an industry-standard platform for future mobiles had previously led Microsoft to identify Psion as a major global threat to its business.
Market strategists said Microsoft still feels aggrieved at being late in the cellular game. "To some extent Microsoft is just trying to stir up some trouble. They've really been left out in the dark in this market," Justine Hayes, mobile analyst at telecom consultant The Yankee Group, told CNNfn.com.
The launch of Symbian last June has helped Psion's market value to almost triple to 600 million pounds over the past year, with the first Symbian-driven phones expected to be launched next year. Psion (PON) shares shrugged off the report, adding 2.24 percent to reach 805 pence and the company said it would maintain "a dignified silence" and avoid any slagging match with Microsoft.
Hayes said Symbian's cellular shareholders are unlikely to be from lured from their Psion relationship because the U.K. firm's EPOC software has been developed from scratch for small hand-held devices and has already enjoyed commercial success with Philips cellulars.
The Windows CE system touted by Microsoft is a stripped down version of its PC software, though Hayes believed Microsoft will succeed in the cellular market if manufacturers opt for a suite of devices providing different services.
"They certainly have the financial muscle to succeed," she said, pointing to the benefits of a strategy based on working closely with operators such as British Telecommunications and Wireless Knowledge in the United States.
Hayes said Symbian has not had an easy time developing products to meet the specifications of all four cellular partners, and doubts the viability of them opting for Symbian and Microsoft platforms at the same time.
Symbian shareholders declined to comment on any talks with Microsoft. 
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