Updated: 6/7/2002; 11:06:06 AM.
Reiter's Wireless Internet/802.11 Weblog
Wireless, wireless Internet, wireless LANs and other mostly high-tech musings
        

Thursday, May 23, 2002

Yeah, right:  Verizon and Microsoft announce "ground-breaking" alliance for wireless data


Verizon Wireless and Microsoft today announced a "ground-breaking alliance to offer superior wireless data services and applications to consumers and enterprise customers.  I'll believe it when it happens.  History has not been kind to companies that hype wireless data ventures.

[By-the-way, as of 9:30 a.m. EDT, Verizon Wireless didn't have this release posted on its Web site.  Microsoft does.  It was embargoed until May 23 at 12:01 a.m. PST (does Microsoft, Verizon or the PR flacks realize the entire U.S. is on Daylight Savings Time?  Here's a story about the announcement from CNET News.]

The press release says the offerings will be launched tomorrow (Friday) and include MSN services and content.  "As a result of the agreement, MSN and Verizon Wireless will deliver the most compelling wireless data services in the U.S."  Oh puh-lease! 

You have to wonder about the intelligence of PR people who write this sort of crap.  Haven't they learned from experience?  Unfortunately, many participants in the wireless data arena continue to hype their wares, as if the consumer didn't realize what was going on.

There will be a "multi-million dollar joint marketing and branding program" to promote all these incredibly compelling products and services.  What will these exciting services be?  MSN Hotmail, MSN Messenger, MSN information services and .NET alerts.  The CNET News article says the service will include such incredibly compelling [my sarcastic phrase] offerings as news, stocks, sports and weather.  CNET says these bountiful and ground-breaking services [my sarcastic characterizations] will cost $6.95 a month.

Dead On Arrival

Years ago, before Microsoft entered the wireless space (Gates didn't seem to "get it" -- either the importance of wireless or the difficulty of the market), all the analysts (myself included) believed Microsoft's entry into wireless was not only critical to creating successful wireless data businesses but also would help -- significantly -- to jump-start this moribund sector.

Well, Microsoft has entered the wireless space, and wireless data still is in bad shape in the U.S. consumer markets.  (There are many successful consumer wireless data services overseas, typically using SMS, and many successful vertical market wireless data services in the U.S.)

I predict these "most compelling wireless data services" will be a bust.  None of the consumer services is new or exciting.  Wireless e-mail, instant messaging, sports, weather?  Phooey.

Not all bad

That's not to say this venture (called in the press release as "VZW with MSN") should be dismissed.  Firstly, if Microsoft and Verizon do a good job of advertising, marketing -- and customer education -- this will create more awareness of wireless data services.  (Of course, like the insipid AT&T Wireless mLife services, it also could highlight how mundane these offerings really are.)

Secondly, wireless e-mail and instant messaging are extremely useful wireless data services for consumers and business people, regardless of your opinion of Hotmail or MSN Messenger. 

Thirdly, the more attention Microsoft pays to creating viable wireless data products for enterprises, the better it will be for Microsoft and enterprises.  Wireless-enabling corporate information makes a great deal of sense, and Microsoft can be of tremendous value.

The press release says "users will be able to take their Outlook functionality on the road."  They've been able to do that for years.  Can you spell "B-L-A-C-K-B-E-R-R-Y"?

Ha!  The only choice

The press release concludes with quotes by John Stratton, the chief marketing officer at Verizon Wireless.  "As consumers increasingly rely on their wireless devices to manage their life, the services beginning tomorrow, as well as those products and services available to them in the future through this alliance, make Verizon Wireless and Microsoft the only choice."

The "only choice" for what John?  Hyped services that aren't worth what you're charging?

I truly wish Verizon and Microsoft well.  Verizon is my cellular carrier of choice for the U.S. because it offers good coverage and good enough rates, and I'm more of a fan, so far at least, of CDMA data than GPRS data.  (I use multiple phones and carriers around the world.)  Microsoft XP and Office applications certainly are good enough for me and, frankly, often are just plain good.  I use and recommend products from both these companies. 

I would very much like them to succeed.  I wish they are able to provide great services for consumers, corporate users or any target market.

Perhaps I'll be pleasantly surprise when the service launches.  However, I have learned from 24 years of wireless experience that these sorts of announcements almost always are harbingers of disappointing offerings.  Wireless data is a tough, tough business.

By-the-way, it's 10:50 a.m. EDT (that means " Eastern Daylight Time" for you PR genuises) and Verizon Wireless has finally posted the press release.  Slow and steady does it, eh Verizon?

News flash, well kind of

Just got the logo for the new service.  It is "VZW with MSN" and it includes the MSN butterfly.


11:21:15 AM    


© Copyright 2002 Alan A. Reiter.
 
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