Microsoft Leads Threat to Mobile Operators

By Tony Glover, The Business, London

Mar. 19–Microsoft and its manufacturing partners are preparing to invade Europe with new devices offering free voice calls over the internet. Microsoft chief executive Steve Ballmer recently demonstrated how Mobile Office Communicator software can be used to make free internet voice calls over wi-fi networks.

The Business has learned that devices offering free voice calls are starting to appear in Europe, with many more expected soon. The technology is a threat to European mobile operators as it enables business users to make free internet calls instead of paying hefty roaming charges on international calls.

One new device supporting free voice being marketed to European companies is made by Symbol Technologies, with more to come from 45 manufacturers including HP and HTC.

Symbol has produced a tough handheld PC that enables companies to equip mobile workforces with something that can link straight into the corporate database and which enables free voice calling over the internet. Devices such as Symbol’s voice-enabled MC70 are not cheap at around $2,000 (£1,120, E1,620), but manufacturers believe many companies will prefer this type of device because it is an extension of their IT network and not an add-on like a Blackberry.

“I would not put this device in the same space as a Blackberry but it is getting closer,” said Jan Burton, the head of Symbol’s European operations.

Microsoft last week announced a $500m global marketing drive for business services. Ballmer outlined how Office Communicator will break down “today’s silos of communication (e-mail, phone instant messaging, web conferencing)” and bring them together into “an intuitive experience”.

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