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OPENWAVE browser notches up one billion

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Openwave Systems, a provider of software products and services for the communications industry, today announced it has achieved a new milestone by having shipped its mobile browser in over one billion handsets worldwide.

Openwave Systems, a provider of open software products and services for the communications industry, today announced it has achieved a new milestone by having shipped its mobile browser in over one billion handsets worldwide.

The company’s client technology enables handset manufactures to meet operators’ demands for personalized and easy-to-use data services.

Increasingly, operators want the ability to add newer, more customized services to phones– for a more personalized mobile data experience that is both quick to deploy and cost effective.

Today the browser is shipping in some of the World’s most popular and feature rich data phones including Siemens’ Series 65 handsets, Sanyo S-750, Sharp GX30, and KDDI’s au WIN devices. Additionally, Openwave messaging client technology has been adopted by more than 20 manufacturers, and shipped on over 100 phone models.

Openwave was among Motorola, Nokia, and Seimens as one of the original one of the original founders the WAP Forum and, together who, introduced WAP (Wireless Application Protocol) in February 1999. Since then WAP has become the worldwide standard for enabling Internet communications and advanced
data services on mobile devices. Today, virtually all mobile sites require WAP to translate content so it can be read by a mobile device. Openwave is evolving the browser beyond just a tool for viewing web pages on a device; today operators and handset manufacturers can customize multiple services on their phone by using the browser as the underlying core framework for network access, downloads, messaging, email, presentation and file and content management.

“Our software continues to be fundamental in the rollout of handsets across hundreds of different platforms around the world,” said David Peterschmidt, chief executive officer of Openwave. “Openwave has shipped over one billion mobile phones worldwide, powering services from Internet browsing to content downloads. I fully expect this trend to continue as we continue to be a critical component for handset manufacturers as they work with operators to define new service visions.”

inCode buys Northstream

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Wireless consultancy adds well known European arm

inCode, the global wireless technology and business consultancy, has announced the acquisition of specialist industry advisors Northstream. Northstream will become an inCode company, bringing unique industry experience and a strong European focus to the inCode portfolio.

Based in Stockholm, Sweden, Northstream provides strategic and tactical support on business and technology issues to global wireless companies. The incorporation of Northstream’s reach and expertise will strengthen the inCode group offering, enabling it to bring industry best practices to its clients irrespective of geography.

Founded in 1998, Northstream clients include more than 25 network operators, leading suppliers of networks and handsets, investment banks, regulators and standards bodies.

Following the acquisition, Northstream co-founders Bengt Nordström and Jonas Twingler will become Chief Strategy Officer and Managing Director, Technology & Strategy Group EMEA respectively.

“We are delighted to welcome the Northstream team to inCode. We share the same enthusiasm and vision for the wireless industry, and will benefit from complementary skills, experience and geographical knowledge base,” said Rob Chimsky, VP/GM International Operations and CTO, inCode. “Our combined strengths make us the only specialist consultancy that can guide wireless companies through the maze of opportunity they face now and in the future.”

Bengt Nordström, Northstream co-founder and CEO, said: “There is no such thing as too much experience. The wireless world is re-inventing itself on a continuous basis, and this new inCode company will be perfectly placed to provide an unrivalled source of strategic, tactical, technical and creative services to those looking to lead the mobile industry.”

The business and strategy focus of Northstream will complement the pure wireless consultancy expertise of inCode, and build on the company’s established European engineering consultancy services. Backed by Sequoia Capital, inCode has forged a market leadership position by providing true specialist and undiluted expertise in the wireless space.

Northstream clients will also benefit from inCode’s Wireless Technology Lab, a unique facility in the consulting field. The Lab gives an objective opportunity to gain hands-on access to tomorrow’s technology, explore end-to-end solutions prior to making major capital investments, and put theories into practice and study the results without risking commercial network resources.

America Online acquires Wildseed

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Announces formation of expanded AOL wireless group and updates mobile strategy to address expanding sector opportunity

America Online Inc has increased its investment in the wireless services sector by acquiring Wildseed Ltd – a leading provider of advanced wireless technologies – and also by forming an expanded AOL Wireless group. Terms of the deal were not disclosed. The company was previously privately held.

Wildseed was founded in June 2000 and is based in Kirkland, Washington, with offices in London UK. Wildseed’s technologies provide the industry’s richest Linux-based mobile operating system solutions, which include support for advanced interactive games, music and video playback, remote device management, and a fully “skinnable” user interface for delivering both branded and themed user experiences on mobile devices.

“Data-related mobile technologies are on the cusp of mainstream adoption. We see it every day in the explosive growth of our mobile AIM traffic. The whole wireless industry is focused on bringing additional media and value-added services to the mobile consumer, and we are committed to being
a leader in that arena,” said John McKinley, Chief Technology Officer and President, Digital Services, America Online, Inc. “With the combination of Tegic and Wildseed, we can offer our carrier and OEM partners the best-in-class platform they need to deliver these rich and engaging mobile experiences and help drive innovation and growth in the industry.”

The expanded AOL Wireless division, which encompasses the AOL Mobile, Tegic and Wildseed groups, will speed the delivery of community and convenience to mobile users with an array of software solutions, communications and content services supported by the top wireless carriers and handset
manufacturers.

AOL Wireless will be led by Craig Eisler, General Manager and Senior Vice President, AOL Wireless, America Online, Inc. Wildseed employees and operations will be integrated into AOL’s current Seattle offices and Wildseed’s CEO Eric Engstrom will become AOL Wireless’ Senior Vice
President, Wireless Products.

“Wildseed’s advanced technologies will help AOL enhance the value of its wireless properties, and speed the development and deployment of new applications and solutions that address the wants and needs of consumers and carriers,” said Eisler. “We are extremely excited to welcome the Wildseed team into AOL Wireless and look forward to working with our carrier and OEM partners to deliver innovative services and must-have
content to their subscribers.”

Nokia fends off Cisco rumours

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Looks a bit of a stretch to us

When a British Sunday newspaper runs a story such as The Business’ report that Cisco was considering purchasing Nokia in order to get its hands on the company’s networking division, then the best question to ask is, “Who benefits?”

Clearly, if the piece is well-sourced and provable then the journalist has a scoop on his hands and fair play to him. But there is a long history of tips being handed on to journalists, often on the Sunday papers, if a company wants to float something at arm’s length in a deniable fashion.

Traditionally Sunday has been the day of choice because you can set the agenda for the following week. If such a story is truly choregraphed then various supporting analysts and brokers will emerge over the next couple of days to say they think the deal is a good ‘un. Then you often find one of the major shareholders in the target company strongly recommending the offer.

Time will tell with this one if a) the story is a complete flier on the part of the journalist b) the story is a deliberate leak from Cisco wishing to test reaction c) the reporter has an unauthorised leak, and a genuine scoop.

For our part, being mere mobile market watchers as we are and not City journalists accustomed to getting the nod on a story over a conspiratorial drink, the match-up between Cisco and Nokia’s infrastructure business looks viable. Cisco has bought and scrapped hard to have a major share in WLAN equipment sales. Mobile networks move ever closer to IP in the core and the radio access networks and clearly Cisco’s router business and knowledge of IP is unparalleled (sorry Juniper). It has also been touting Cisco Mobile as a “vision” for a while. But does it want a consumer handset division? It has none of the channels or brand marketing or scale of that kind of operation.

A final thought. If Cisco does fancy a slice of the mobile pie, is Nokia in fact the tastiest morsel? Consolidation in the operator space has been met with little consolidation over on the vendor side so far. The traditional players (Alcatel, Ericsson, Nokia, Siemens, Motorola, Nortel, Lucent) are all still fighting away, as are the Japanese competitors (NEC, Fujitsu) often in partnership with other vendors. Then there is the new wave of cheaper Chinese companies Huawei (most recently rumoured to be looking at a deal to put Marconi out of its misery) and ZTE.

The obvious point there is that of the established players Nokia is the least competitive to Cisco, but its networks business is dwarfed by its handset money maker.

Nortel says wireless momentum good in second quarter

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Lists operator contracts and HSDPA trials

Nortel said contracts for the provision of high speed data services and voice and data 3G networks contributed to a second qaurter in which revenues were up 10% on last year.

The company reported Q2 2005 revenues of $2.86 billion, up year over year 10%, and Q2 2005 net earnings of $45 million compared to net earnings of $16 million in the second quarter of 2004 and a net loss of $49 million in the first quarter of 2005.

In EMEA the three months ended June 2005 generated $721 million compared to $643m for the 2004 period. The six months figure was $1,443 million compared to $1,239m in the first half of 2004.

“Our results demonstrate progress against our strategic plan. I am pleased that our strategic objectives of cash, costs and revenue combined with a strong focus on our business operations and execution are delivering solid results,” said Bill Owens, vice chairman and chief executive officer, Nortel.

“We are playing to win, and Nortel’s commitment is to long term value, not just short term gain. This should be apparent as we continue to increase our investment in our enterprise business, evolve our product portfolio and build new businesses. We are driving our investment strategy to maintain our technology and market leadership in our chosen markets around the world.”

Owens emphasised that the improved results demonstrated that “business is building and results are headed in the right direction.”

Nortel listed among recent highlights wireless contracts with Bell Mobility, Orange France, Telefónica Móviles España, SaskTel Mobility, Telesur, and Liberia’s Cellcom.

There was also evidence of “continued technology leadership” with High Speed Downlink Packet Access (HSDPA) wireless broadband live network trials with Partner in Israel and BB Mobile in Japan. Nortel has already worked on HSDPA trials and deployments in 2005 with mm02, Orange, Vodafone and mobilkom austria.

WonderPhone extends mobile games title list

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Five more games from Vivendi Universal

WonderPhone today announced that it will distribute five new mobile titles from Vivendi Universal Games in 2005, which extends an existing distribution agreement between the two companies. WonderPhone currently distributes VU Games’ products for the mobile platform in Europe, South & Central America, Africa, Australia, New Zealand, Singapore, Kuwait, Bahrain and Fiji.

The initial distribution agreement between WonderPhone and Vivendi Universal Games was signed in 2004 and included four mobile titles, Crash Twinsanity, Crash Nitro Kart, Spyro: Ripto’s Quest, and Leisure Suit Larry: Magna Cum Laude. Given the commercial success of these games, WonderPhone will distribute five additional mobile titles from VU Games, including two franchises that are new to the mobile platform.  WonderPhone and VU Games today announced the first two titles scheduled for release this month.

SWAT® Force – a tactical squad game based on the SWAT franchise.
With over 2m units of the PC game sold, SWAT is one of the most successful tactical based shooter games ever. SWAT 4 for the PC recently released to critical acclaim. The mobile version of the game, which is all new to the mobile platform, demands the same degree of tactical finesse and features 7 authentic crisis situations.

Vivendi Universal Games is the exclusive owner of the SWAT license for the mobile platform.
SWAT, or Special Weapons and Tactics, is a rapid intervention police force that handles the most delicate crises such as hostage and terrorist situations. Established in the early 1970’s in Los Angeles, SWAT has become a reference world wide for effective crisis situation management.

Larry’s™ Sexy Pinball – a wild pinball game based on the Leisure Suit Larry franchise.
Larry’s Sexy Pinball is the sequel to Leisure Suit Larry™: Magna Cum Laude, the mobile game phenomenon released last by WonderPhone… This time Larry will be trying to seduce beautiful women on a wild pinball table designed by Larry himself.  Authentic pinball action and Larry’s unique humour are present in this classic arcade game that will be sure to please Larry fans.

Leisure Suit Larry is one of Vivendi Universal Game’s most well known game characters. Created by Al Lowe, Leisure Suit Larry’s ‘loser’ humour struck a chord with gamers for over 2 decades. Larry has featured in 8 games released by Vivendi Universal Games.

The current mobile games portfolio of Vivendi Universal Games / WonderPhone is today live across 70 operators in 40 countries.

The first Vivendi Universal Game licence released in the context of the alliance was Crash Nitro Kart™ in May 2004. This outstanding racing game has already achieved sales of over 750,000 downloads and top charting positions in seven territories. Spyro™: Ripto Quest, an innovative adventure game, was released in September 2004.
Following Spyro, Leisure Suit Larry™: Magna Cum Laude was released in November. Combining an innovative mix of rhythm based gameplay and sassy mini-games Larry went on to encounter record sales performances in several territories including being a historic best seller in the Nordic region and a number 1 chart topper in Spain and Germany.
Finally, Crash™ Twinsanity was released in November 2004 simultaneously with the Vivendi game of the same name. This first in genre platform game was chosen by Vodafone Global to be one of its ‘hero games’ for the end of 2004, and a specific 3D version of the game was developed to accompany the operator’s commercial 3G launch. Crash Twinsanity went on to become a best selling game in many territories, even setting a historic download record for a month in France.

InterDigital will tell Nokia to pay up

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Accuses Finns of being overly-litigious

InterDigital Communications Corporation announced today that it will oppose Nokia’s recent motion to vacate or modify the binding Final Award rendered by the International Court of Arbitration of the International Chamber of Commerce (ICC) in June 2005.  Following two and one-half years of discussions, discovery, testimony, and deliberations in this matter, Nokia has alleged, among other claims, that the majority of the arbitration panel reached a “totally irrational result.”  Additionally, Nokia has continued its litigious approach toward resolving business issues with InterDigital by filing a new patent action in the United Kingdom last week. From the time Nokia was notified of its royalty obligations under its patent license agreement with the company, Nokia has filed eight separate legal actions involving InterDigital.

“In 1999, InterDigital entered into the original agreement with Nokia in good faith,” commented William J. Merritt, President and Chief Executive Officer of InterDigital.  “Over the course of the past several years, InterDigital has systematically honored the agreement and when this dispute arose, we pursued resolution in a controlled manner with the sole objective of finding a sensible business outcome.  Nokia has taken a different approach and has not complied with the terms of the Final Award, including missing the deadline set forth in the Final Award for payment of royalties for past sales.  We are very confident that Nokia will fail in its efforts to have the Final Award vacated or modified and will pay the amounts due, either of their own accord or by court order.”

Mr. Merritt, further noted, “Nokia’s public statements about the arbitration and the Final Award are misleading.  The arbitration process was measured and rigorous, affording both parties ample opportunity to present their respective positions.  The majority, comprised of seasoned commercial litigators/arbitrators, wrote a comprehensive and well-reasoned decision addressing the relevant issues.  The dissenting opinion, authored by the arbitrator selected by Nokia, has no legal effect on the enforceability of the Final Award.”

“Based on these facts, and the very limited basis available under the law for a court to vacate or modify a binding arbitration decision, InterDigital believes that any challenges to the Final Award are frivolous,” added Mr. Merritt.  “Moreover, the purpose of parties selecting binding arbitration is to achieve finality in business disputes, and to do so in an expedited manner.  Consistent with that purpose, any court proceeding to challenge a binding arbitration award is normally undertaken on a summary basis (i.e., no new trial is held), making the review process more streamlined and expedited than traditional U. S. District Court litigation.”

In July 2003, Nokia filed a request with the ICC for binding arbitration regarding Nokia’s royalty payment obligations for its worldwide sales of 2G and 2.5G products under the existing patent license agreement with InterDigital.  On July 1, 2005, InterDigital announced the material findings made by the Arbitral Tribunal operating under the auspices of the ICC.  In sum, two of the three arbitrators favored all but one of InterDigital’s positions on the interpretation of the rate-setting provisions in the patent license agreement between Nokia and InterDigital.  Under the binding Final Award, the Tribunal has established royalty rates which are applicable to Nokia’s sales of covered products for the period beginning January 1, 2002 through December 31, 2006, and also established dates for payment of royalties on past sales.

On July 1, 2005, InterDigital initiated an enforcement action in the U. S. District Court for the Southern District of New York in order to convert the Final Award into a court judgment which would allow InterDigital, if necessary, to compel collection of the royalties due to InterDigital from Nokia under the Final Award.  Collection ultimately could be compelled through a number of different judicial processes.

In a separate action on July 29, 2005, Nokia filed a claim in the United Kingdom High Court of Justice, Chancery Division, Patents Court against InterDigital Technology Corporation (ITC), a wholly-owned subsidiary of InterDigital Communications Corporation.  Nokia’s claim seeks a Declaration that the importation, manufacture and sale of mobile phones and/or infrastructure equipment compliant with the 3GPP Standard TS 41.101 Release 5 without license from ITC does not require infringement of any of thirty-one of ITC’s UMTS European Patents registered in the UK, such that none of the patents are essential IPR for that standard.  InterDigital believes the filing is without merit and intends to vigorously defend its position.

easyMobile claims 10% share of online mobile sales

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15,000 customers since easyMobile.com launch

By the end of June and less than two months after initiating advertising of the easyMobile.com mobile service the company had already signed up 15,000 customers thereby successfully completing the launch period. easyMobile.com estimates that this means its share of all online sales of mobile services is more than 10%, and that its share of online sales of PAYG is around 15%.

As of July 1st easyMobile.com – true to its announcement when launching – ended its promotional launch offer and reverted to its standard prices of only 15p per minute voice calls, any UK network anytime and just 5p per text, any UK network anytime – still the most attractive price and service for most users of basic services.

“I am pleased with the results we have achieved in such a short time” says Frank Rasmussen, CEO of easyMobile.com “Not only did we manage to implement the service and bring it into operation in 2 months, but we have also successfully made an impact on the UK mobile market fulfilling the promises we made when we launched”. “By the end of June we passed the 15,000 customer mark and we remain optimistic that we will continue following our business plan going forward – not least as customers are proving to be very loyal and satisfied with our service”, Frank Rasmussen continues, and adds “Our results are even more impressive when we consider the very competitive nature of the UK mobile market, and the number of promotions and initiatives our launch has prompted from almost all the other players in the market”.

The feedback we receive from customers is very supportive”, says Sandy Munro, Chief Commercial Officer of easyMobile.com, and continues “our website and our offering is seen as a great improvement compared to what has previously been available, and customers praise the simplicity and ease of use of the site and the fantastic customer service”.

“By our estimates easyMobile.com has realised a market share of more than 10% of all online sales of mobile service in the UK”, says Sandy Munro, and adds “No small feat for a company that has just launched its service, and that has only a small fraction of the marketing budgets of the incumbent players”.

“I have said before that customers will be the big winners following the launch of easyMobile.com, and this proves to be true”, says Frank Rasmussen. He continues “Not only are we providing fantastic service at attractive prices to our own customers, but we have also triggered a trend where many other players have started improving their customer proposition”. Mr. Rasmussen adds “Unfortunately, 18 and 24 month contracts, confusing and complicated PAYG prices, complex terms and conditions, combined with convoluted marketing deals and offers continue to lure customers to sign agreements that are not really in their interest. At easyMobile.com we will remain focused in our drive to make mobile life simple and transparent for customers.”

Boungiourno snaps up Freever

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18.5 million Euros cash should do it

Buongiorno Vitaminic, one of the leading companies in the mobile value-added service (VAS) sector, has signed an agreement for the acquisition of a 100% stake in Freever, a leading European company in the Mobile Community sector.

The Mobile Community sector brings mobile telephone users together into groups based on shared interests through services like Chat and Messaging – the resulting content is therefore based on relationships between members of the community. This sector of the mobile-phone based communication and entertainment services market is expected to be worth approximately Euro 1 billion in Europe alone by 2009 .

Formed in France in 1999, Freever has offices in France, the United Kingdom, and Germany, and business cooperation agreements with the major European telephone carriers, giving the company access to more than 100 million customers. Each week Freever offers its members different theme programs, information on events, the chance to participate in various activities (contests, quizzes, etc.), and even the chance to interview famous people like, for example, UK Prime Minister Tony Blair, the singer Beyonce Knowles, and others.

Andrea Casalini, Chief Executive Officer of Buongiorno Vitaminic SpA comments, “Freever is the uncontested leader in the Mobile Community sector in Europe. Due to its excellent management team, specialist knowledge, its dedicated technology platform, management’s constant focus on issues concerning privacy and protection of minors, and the loyalty gained from both the end-users as well as the major European telephone companies, Freever has built a profitable and sustainable business with excellent growth prospects. For Buongiorno, the acquisition of Freever will be another hugely important step in building a strong international leadership position in our market. Plus the business synergies that we plan on achieving, Freever’s addition to our Group represents a further growth opportunity going forward.”

Jerôme Traisnel, Chairman, Chief Executive Officer and co-founder of Freever comments, “In turn, Buongiorno Vitaminic’s global reach, its leadership in the mobile value-added services market, and its ongoing relationships with more than 40 carriers throughout the world, represent a unique opportunity for Freever to accelerate its growth. The mobile VAS market continues to offer major opportunities for development and requires increasing size and global scale. We are excited to have the chance to become part of a group that is showing real strength, and setting international standards with a distinctive business model that offers the best opportunity for rapid, sustainable, and durable growth”.

Freever, profitable since 2002, reported Euro 9.6 million in turnover in 2004 and Euro 700,000 in net income. The company reported a net cash position of Euro 2.7 million at end-June and net positive working capital of around Euro 2 million. For the full year 2005, the company forecasts revenues above Euro 12 million and net income of more than Euro 1 million.

The closing of the acquisition of Freever by Buongiorno Vitaminic is subject to certain conditions precedent, among which the approval of the issuance of bonds convertible into Buongiorno Vitaminic shares by the general shareholders’ meeting of Buongiorno Vitaminic, convened on 7, 8 and 9 September (as indicated below), and the obtaining of the financing deriving from the underwriting of a part of the convertible bonds.

The closing of the acquisition will be settled through a cash payment of Euro 18.5 million at the closing date and, possibly, a further variable earn-out price maturing upon the achievement of certain levels of operating result by Freever in 2005. The maximum variable amount is Euro 15.5 million, partially expressed in a number of Buongiorno Vitaminic shares and shall be in part payable in shares or cash at the discretion of the buyer.

Following to the closing of the acquisition, Freever will remain an independent business unit within the Buongiorno Vitaminic Group, it will develop commercial synergies with Buongiorno “geographical” business units, and it will continue to be headed by the current management team, specifically by Jerôme Traisnel in his capacity as Freever’s Managing Director.

The company will provide further details on the operational and income statement impact of the transaction with respect to its targets for 2005 and going forward during the meeting with the Financial Community scheduled for September, as well as – if required – while preparing the information document in compliance with Art. 71 and 91 of the Regulations for Issuers, which would be made available to the public within 15 days after the closing of the acquisition.

Buongiorno Vitaminic plans on financing this and any other possible acquisitions for external expansion through currently available cash (in this regard, we point to the recently concluded third instalment of the capital increase begun last year with Banca IMI, with the underwriting of Euro 8.4 million in new shares by institutional investors), operating cash-flow generated in accordance with the business plan, medium-term bank loans, and the issue of a bond convertible into ordinary shares without option rights according to Art. 2241, 4 paragraph, last period, of the Italian Civil Code.

Option revenues soar on data card demand

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3G data cards acount for 90% of sales as Option has record quarter.

See the full results announcement

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