Microsoft Software Fuels Growth and Simplifies Business Processes for Mobile Operators

CANNES, France, Feb. 14, 2005 — Today at 3GSM World Congress 2005, Microsoft Corp. will demonstrate how it is delivering bottom-line results to operators and delivering dynamic software solutions in collaboration with the mobile industry. Microsoft will unveil a study that concludes that Windows Mobile (TM) -based devices increase mobile operators’ average revenue per user (ARPU) by 37 percent, resulting in a 93 percent average margin per user (AMPU) uplift.* Continuing its momentum in the mobile industry, Microsoft will also announce plans to develop a series of Windows Mobile-based devices with Flextronics Corp., one of the world’s largest mobile phone manufacturers. Microsoft also announced the general availability of the Microsoft
Connected Services Framework, an integrated software solution that enables operators to accelerate the creation and delivery of profitable communications services.

“Microsoft is providing smarter, advanced mobile solutions and creating business models that help mobile operators generate new revenue streams,” said Pieter Knook, senior vice president of the Mobile and Embedded Devices Division and Communications Sector Business at Microsoft. “Microsoft’s innovative and familiar software solutions, such as the Windows Mobile platform, enable operators to offer products and services that encourage a broader range of customers to use higher-revenue-generating smart devices, enhance the user experience and build subscriber loyalty.”

Pieter Knook, Microsoft Senior VP for Mobile and Embedded Devices Division & Communications Sector, announcing innovative devices and opportunities for mobile operators at 3GSM World Congress 2005, Feb. 14, 2005, Cannes, France. Click image for high-res version.

Windows Mobile Drives Increased Mobile Operator Revenue

EDGE Strategies reported that Microsoft Windows Mobile-based devices drive the highest uplift in ARPU uplift for mobile operators — an increase of 37 percent* — compared with some competitors. The EDGE Strategies study also showed that in addition to receiving e-mail, users are more likely to access other data services, such as Internet browsing, on Windows Mobile-based devices.

The new business value model highlighted in the study demonstrated that Windows Mobile-based devices can significantly increase mobile operators’ AMPU due to the scalability of the Windows Mobile platform and the lower support costs associated with these products. These findings underscore the competitive edge and opportunities that mobile operators can realize by deploying devices that use the Windows Mobile platform.

“T-Mobile is striving to give its customers access to whatever they need, wherever they are, whenever they want it. The Windows Mobile-based range of devices does just this, like having your office in your pocket,” said David Hytha, executive vice president, International Terminal Management, at T-Mobile. “T-Mobile is experiencing a 50 percent uplift in mobile data traffic from Windows Mobile-based devices compared with other business handsets in its range. The reason for this is simply due to ease of use and access to the Internet and e-mail.”

Flextronics, T-Mobile, HTC and HP Showcase Hardware Innovations

Signaling continued growth of the Windows Mobile-based partner ecosystem, Flextronics, an original design manufacturer (ODM), and one of the world’s largest manufacturers of mobile phones, unveiled Peabody, a Windows Mobile-based platform and announced its commitment to working with Microsoft to develop a complete line of next-generation mobile devices. With the Peabody, Flextronics joins the ranks of 40 device makers and more than 65 mobile operators shipping Windows Mobile-based devices globally.

Building on their commitment to the Windows Mobile platform, T-Mobile and HTC Corp. announced plans to deliver the first Windows Mobile-based device that will bring 3G to life for customers. The MDA IV, which is the first Windows Mobile-based 3G triple radio handset that integrates UMTS, GPRS, WLAN (Wi-Fi) and Bluetooth®
connectivity technologies, will be available later this year. The MDA IV, which will be shown at 3GSM, also includes a full QWERTY keyboard and an integrated camera.

“We are very happy to collaborate with Microsoft and have demonstrated time and again our pioneering role in delivering innovative Windows Mobile-based products,” said Peter Chou, president of HTC Corp. “Relentlessly innovating, we are very committed to playing a leading role in the 3G era.”

In addition, HP will provide a glimpse of its new Windows Mobile-based device designed with the mobile professional in mind: the HP iPAQ Mobile Messenger. This new device, with a full QWERTY keyboard, integrates wireless voice, high-speed Enhanced Data GSM Environment (EDGE) data networking and versatile Global Positioning System (GPS) navigation technologies, allowing users to stay connected to vital business information.

Connected Services Framework Enables Operators to Prosper From Change

To accelerate the creation and deployment of telecommunications services, Microsoft announced the general availability of the Microsoft Connected Services Framework, an integrated software solution that allows operators to deliver converged services across multiple networks and a range of device types. With the Connected Services Framework in place, wireless and wireline operators have the opportunity to reduce the cost and time of service deployment, more efficiently utilize existing infrastructure and generate additional revenue through value-added communications services. Leading telecommunications operators BT, Bell Canada and Celcom Malaysia have selected the Microsoft Connected Services Framework to facilitate the delivery of services to their subscribers.

Press Conference Can Be Attended Live or Online

The Microsoft press conference will be held at The Carlton Hotel in Cannes today at 6 p.m. CET. Those interested in viewing it via Live Meeting can register at & role=attend & pw=C7JBFB . 3GSM news is available on the event Web site at .

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at on Microsoft’s corporate information pages. Web links, telephone numbers and titles were correct at time of publication, but may since have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at .

* EDGE Strategies, “Leveraging Smart Devices for Mobile Operator Profitability,” Feb. 14, 2004, http//

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