Microsoft Sounds Off On The gPhone And The FCC Spectrum AuctionWelcome to an action-packed edition of Take 5, a regular feature where we at Over The Air ask an industry insider five questions about their company and the mobile business market as a whole. This week we focus on the gPhone. Our guest is Scott Rockfeld, group marketing manager at Microsoft (NSDQ: MSFT).
Over The Air (OTA): Hello Scott, welcome to Take 5. Let's dig in. Do you think Google (NSDQ: GOOG) is really planning to launch a phone? Or are they just ramping up their handset applications?
Scott Rockfeld (SR): We've heard the rumors, but we don’t have any more information than what we have read in the press. If Google does move into the mobile space as rumors suggest, it again validates a thriving smartphone market; one that Microsoft helped build seven years ago. Windows Mobile has gone from selling one phone from one mobile operator five years ago to offering more than 140 different device designs made by 48 different device makers through 160 mobile operators in 55 countries today.
OTA: All the hype this year has surrounded the Google Phone and, of course, the iPhone. Why has Microsoft not generated this much hype around its mobile products?
SR: Actually, we've been having another great year at Windows Mobile. During Microsoft's FY '07 earnings report we announced that we sold 11 million Windows Mobile phone licenses in one year. This fiscal year we expect to nearly double this total by selling 20 million licenses. We're seeing customers continue to adopt Windows Mobile technology at an impressive rate. One of our partners, HTC, recently announced that it sold 800,000 Touch devices.
OTA: Does Google's recent push into the wireless market challenge Microsoft's Windows Mobile efforts? Can Microsoft's mobile products compliment Google's?
SR: We see Google's entry into the mobile space as validation for the tremendous amount of potential in the wireless market as a whole. We welcome their entry and we will continue to work with a number of partners to enrich mobile experiences for our users.
OTA: What do you make of Google's efforts to participate in the upcoming FCC spectrum auction? Is Verizon Wireless right to sue the FCC over the commission's drive to open the auction process?
SR: Again, we won’t speculate on their strategy until we see something a bit more tangible. With respect to our partner Verizon (NYSE: VZ), Microsoft prefers not to comment on its dealings with the FCC.
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