Cingular and Microsoft will be rolling out new products together in 2005 to pack more personal computer features into so-called smartphones, the companies said late Wednesday night.

The announcement was made at the Consumer Electronics Show in Las Vegas.

Cingular already offers several types of smartphones that enable personal data applications such as access to enterprise networks and email systems plus digital cameras.

The wireless service provider said it planned to use additional Windows Mobile.

“Our No. 1 goal is to maximize the wireless experience for our customers. We must provide customers with the best quality and coverage and most comprehensive mobility solutions in the country,” said Jeff Bradley, vice president of business marketing for Cingular Wireless. “By delivering devices that combine the breadth and quality of our ‘Allover’ network with Windows Mobile software, we can offer customers a great everyday mobility experience.”

Various studies forecast strong growth in smartphone sales over the next several years. In 2004, more than 27 million were sold, up 89 percent from a year ago, according to ARC Group. Estimates are that smartphone users make up some 9 percent of wireless users, according to one recent survey. Another firm, InStat/MDR, has forecast 44 percent growth in smartphone sales over each of the next five years, reaching 117 million among 833 million handsets produced by 2009.
According to the CTIA, an industry trade group, there are nearly 174 million wireless users in the United States as of Jan. 6.

Microsoft and Cingular cited the InStat/MDR report in their announcement.

“The planets are lining up for a rather robust Smartphone market over the next couple of years, with smaller devices entering the market, midtier pricing on some models, and faster data networks coming online,” said Neil Strother, senior analyst with In-Stat. “Not only is demand strong from business users, especially for mobile e-mail and Internet access, some consumers are starting to make the move to these ‘smarter’ devices as well.”

Cingular offers Motorola, Audiovox and Siemens products that support Windows Mobile Software.

Features include email, calendars, contact lists, and personal data.

A new phone from Motorola, the MPx220, includes Windows Media player, integrated Bluetooth capability for linking to other devices, and an expansion slot for 512MB of additional memory.
On Wednesday, Cingular also announced a combination PDA and WiFi capable device from Siemens.

Cingular: www.cingular.com
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Vonage Tops 400,000

Also at the CES on Wednesday, Vonage said it has passed the 400,000-customer mark for its Voice over Internet Protocol-based services. Vonage, which offers service in much of the Southeast, added 115,000 customers in the fourth quarter and doubled its customer count over the past six months.

Vonage: www.vonage.com
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New York Times: Alltel Eyes Cellular One

Alltel is negotiating to buy Western Wireless in a deal worth $4 billion, The New York Times reported in Wednesday’s editions.
Alltel covers much of the Southeast and more than 20 states. Western covers 19 states in the West.

A combined company would have nearly 10 million customers and $10 billion in revenue, The Times said.