WAP featured in Microsoft Ericsson alliance

Ericsson and Microsoft have fleshed out some of the details of their strategic alliance.

Their as yet unnamed Stockholm-based joint venture will focus on using Wireless Application Protocol (WAP) technology from the Swedish manufacturer, as well as Microsoft's Windows NT and Exchange platforms.

At a press conference, Steve Ballmer, president of Microsoft, said the two companies have a "shared vision" and a respect for each other's strengths.

Torbjörn Nilsson, Ericsson senior VP marketing and strategic business development, said: "In five years there will be over 400 million mobile Internet subscribers... but that depends on the pieces coming together."

He added the companies will give mobile access to email, even off corporate networks, as next-generation (2.5G) GPRS and (3G) UMTS technologies develop, and standards such as WAP, XML and Bluetooth are taken up.

On the subject of the exclusivity of the relationship, the company's said anything was possible, but Microsoft's Ballmer said: "We're committed to making this work, and that's hard to do with lots of other people."

The tie-up shocked the mobile market. At one stage on Wednesday shares in PDA-maker, Psion, fell 40 per cent, before rallying as details of the deal became clear.

Palm Computing, the soon-to-be-independent 3Com subsidiary and owner of the PalmOS, played down developments.

Gabriel Acosta-Lopez, Palm's director of platform development services, told Silicon.com: "This is an interesting move, but it will all rest on who has the best solution in the market. We're there now. Purchasing decisions are never just based on a PR announcement."