ISPs grab for spot on wireless landscape

On-the-go consumers get access to Net

By Paul Davidson and Shawn Young, USA TODAY

The nation's biggest Internet service providers announced a bevy of wireless deals Monday aimed at putting the Web in consumers' hands, wherever they may be.

The agreements by America Online, Microsoft and EarthLink mark the Net's biggest foray into the exploding wireless market. They promise to give on-the-go consumers e-mail, stock quotes, driving directions, movie schedules and flight information via their wireless phones and pagers.

"We're really going to surprise people with what they can do," Microsoft Chairman Bill Gates said at the Wireless 2000 meeting in New Orleans.

The biggest deal was AOL's agreement to feature its e-mail, news, weather and stock quotes on Sprint PCS' Wireless Web. It could drive many of AOL's 21 million subscribers to Sprint Internet phones, while prompting Sprint's 6 million wireless customers to upgrade to their Net service from the lower-priced telephone service, analysts say.

In a separate deal, EarthLink also will send its e-mail, news, sports and other content to Sprint PCS phones.

The deals are a "huge blow" to Yahoo!, which could drop from the second to the fifth spot on Sprint's tiny phone screen, which displays three or four lines of type, says Mark Zohar of Forrester Research.

Other deals:

AOL's Instant Messenger, which has 50 million users, or e-mail will be available on the wireless networks of BellSouth and paging provider Arch Communications, as well as on devices made by Motorola, Nokia and Research in Motion.

Microsoft's MSN Net service will pipe messaging, travel data and stock quotes to wireless phones and pagers from Nextel Communications, Airtouch Cellular, WebLink Wireless and Totally Free Paging.

"There's a land grab going on," Zohar says.

None of the companies disclosed financial terms. In the short run, the deals will let the Internet providers foster loyalty. "You're far less likely to switch to another Internet service" with AOL on both your personal computer and wireless phone, says Zia Wigder of Jupiter Communications. The Internet providers also will get ad revenue, analysts say.

Meanwhile, wireless firms will see revenue increase as people use their phones more and move to more expensive Internet plans, analysts say.

"The potential is staggering" for personalized or location-based services, Forrester's Josh Bernoff says. "You're walking down the street and pass a restaurant and you get a review."