Trio of vendors tout Windows-based Treo

Verizon Wireless to be exclusive provider of Palm's latest in the short term.

By Tom Krazit and Elizabeth Montalbano, Network World
October 03, 2005 12:03 AM ET

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The new Treo smart phone running Windows Mobile 5.0 over Verizon's wireless network will help both Palm and Microsoft persuade more large companies to purchase mobile devices for their employees, according to executives from the vendors.

Officially unveiled last week, the device is expected to be available in the U.S. early next year. Treos combine the functionality of a PDA with the ability to make phone calls and browse the Internet.

Palm CEO Ed Colligan was joined on stage at last week's press conference by Microsoft Chief Software Architect Bill Gates and Verizon Wireless CEO Denny Strigl, whose company will be the exclusive provider of the Windows Treo for several months.

"This is our first 3G product," Colligan said. Verizon's growing Evolution-Data Only (EV-DO) network based on Code Division Multiple Access technology allows download speeds between 400K and 700K bit/sec in some parts of the U.S.

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Verizon provided much of the impetus for the deal, said Joe Fabris, director of wireless and business marketing at Palm, in an interview after the press conference. Palm and Microsoft had talked about working together for a while, but Verizon's interest in a Windows Treo for its EV-DO network persuaded the companies to put their heads together, he said.

Microsoft's deal with Palm also fits nicely with the software giant's long-term vision of making its Windows Mobile platform as ubiquitous in the enterprise as the desktop version of Windows. "In our view, every professional will [eventually] have a phone that hooks up to their network," Gates said.

Click to see: The latest Treos

Most notably, once the new Treo is available early next year, it will allow business users accessing e-mail from Microsoft Exchange Server 2003 to use e-mail push technology to synchronize information from Microsoft Outlook without the use of another piece of software to enable the connection, Gates said. The e-mail push technology is expected to be available in an update to Windows Mobile 5.0 by year-end.

Gates said that out of the 130 million current Exchange users, about 50 million have devices that can hook up to Exchange, and about half of that number use Research In Motion's BlackBerry devices, which require the use of a third-party server to allow synchronization to Outlook.

The Windows Treo will not come with a Wi-Fi chip, disappointing some analysts. Colligan said users will be able to connect to Wi-Fi networks with a Secure Digital card, but those cards take up space that could otherwise be used for storage and sap battery life, says Gerry Purdy, principal analyst with MobileTrax.

The lack of Wi-Fi access could dissuade some corporate customers, says David Linsalata, an analyst with IDC. However, most users will probably check their e-mail or browse the Internet on these phones, rather than working with demanding mobile applications that require more bandwidth, he says.

Verizon has also stepped up its promotion of its EV-DO network, signing several deals with notebook manufacturers last week and launching an ad campaign in the U.S. with negative messages about Wi-Fi connections. Verizon has not invested as much in Wi-Fi networks as other wireless carriers, such as T-Mobile USA, and would prefer to keep its corporate customers away from Wi-Fi and on EV-DO, Linsalata says.