Windows Phone Thoughts: Verizon Wireless and Microsoft in alliance

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Monday, June 3, 2002

Verizon Wireless and Microsoft in alliance

Posted by Andy Sjostrom in "NEWS" @ 02:22 AM

http://www.microsoft.com/MSCorp/presspass/Press/2002/May02/05-23MSNVerizonPR.asp

Microsoft continues to execute on its "We Love Mobile Network Operators"-strategy. Microsoft and Verizon Wireless entered into an wireless data services and applications alliance on May 23rd. I guess this is not news to all of you, but I want to highlight a couple of things I found especially interesting in the press release.

Co-branding of technology and services is likely to mean Verizon Wireless Pocket PCs and Smartphones:
"Together, Verizon Wireless and Microsoft will also develop, co-brand and offer technology and services to consumers and enterprise customers across a range of devices. ... Verizon Wireless will offer groundbreaking wireless devices that include Microsoft software and wireless technology, such as Windows Powered Pocket PCs and Smartphones, to Verizon Wireless customers."

Bringing the real Internet to Verizon Wireless customers:
"The VZW with MSN service enables consumers to easily access popular MSN services from any Web-enabled Verizon Wireless digital phone, including MSN Messenger Service instant messaging, which will be available for the first time in the United States as a mobile service. By combining other favorite MSN services, such as the MSN Hotmail® Web-based e-mail service, Microsoft® .NET alerts and MSN information services..."

Marketing that actually will be seen:
"Together, MSN and Verizon Wireless have committed to aggressive joint marketing efforts that include a nationwide advertising campaign, unprecedented promotion on the MSN network of services, promotions in more than 1,200 Verizon Wireless Communications Stores nationwide and thousands of retail outlets operated by Verizon Wireless and its retail partners, and direct marketing to more than 100 million consumers annually."

As much as I believe the mobile network operator is really just a wireless ISP, I must say that Microsoft's strategy is brilliant given the current structure of the wireless market. The strategy was probably the only one available as major device manufacturers chose to label Microsoft as a competitor and not a partner. A really interesting question now is whether or not the consumers will start to care less about the hardware manufacturer brand (Nokia, Sony Ericsson, Motorola) and more about what is IN the device and what mobile network operator offers the best devices.

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