UK: Vodafone delays Microsoft move

Vodafone, the world's largest mobile-phone company, is to delay the introduction of a new operating system developed by Microsoft, in a setback to the software giant's ambitions in the telecommunications industry, says the Financial Times

Arun Sarin, Vodafone chief executive, hinted that Microsoft needed to improve its keenly awaited system before Vodafone would consider using it in its handsets.

In an interview with the Financial Times, Mr Sarin said: "In our view, it's not quite ready for prime time."

He insisted that Vodafone was not opposed to using Microsoft as a systems supplier for its new generation of mobile phones, but wanted assurances on reliability.

Vodafone and Microsoft already co-operate on mobile standards and payment services, but have yet to sign a deal on operating systems.

"Hopefully they're working to solve some of the issues that we have and in time, when they're ready, we'd be very open to talk to them," Mr Sarin said.

Vodafone's caution could hamper Microsoft plans to dominate the market for operating systems in smart phones--mobile handsets with sophisticated functions such as games and e-mail.

The software group clinched a deal in September with Motorola and Orange, France Telecom's mobile arm, to sell a Microsoft-powered phone. However, Microsoft has otherwise found it difficult to strike alliances with leading handset makers to carry a stripped-down version of its Windows operating system.

Earlier this month DoCoMo, Japan's largest mobile operator, signalled that it favoured the "open-source" Linux system and rival software from Symbian for its 3G phones.

Mr Sarin said Vodafone would kick-start its 3G launch across Europe next October with "several and many different kinds of handsets in different tiers" from Asian, US and European vendors.

Vodafone is also considering exclusive deals with various content providers--possibly in the music, film or sports sectors--in a bid to differentiate its service from rivals.

The chief executive said he was "fully confident" of resolving the main technical problems of 3G, including the handover of calls between 2G and 3G networks.

(c) 2003 Financial Times Information Limited.

Source: Financial Times.