Android Launches, Palm Falters, Visa Info comes to Handheld

T-Mobile USA, Inc. launched the first Google, Inc.-based Android phone this week, the T-Mobile G1. Elsewhere, Palm, Inc. detailed further delays in its forthcoming Palm OS update and the immediate availability of its Palm Treo Pro. Lastly, Visa Inc. introduced new mobile information and payment applications for handheld devices.

Focal Points:

• The first phone based on Google's Linux-based Android platform has been formally introduced for use on the T-Mobile network, with availability starting later in October. The G1 features a 3.2" touch screen that reveals a full keyboard and trackball when flipped up. Connections are built-in for synchronizing with Google applications including Google Calendar and its e-mail applications, though connectivity to enterprise e-mail and calendaring is limited to only Post Office Protocol 3 (POP3) and Internet Message Access Protocol (IMAP). Instant messaging (IM) is available for mainstream consumer IM services, and Web browsing via a full HTML browser is supported. Users can view Microsoft Corp. Word and Excel documents in addition to PDFs. The device features integrated Wi-Fi and Global Positioning System (GPS) chipsets to enable hotspot use and directional assistance. Experton Group believes enterprises will find the lack of manageability and integrated collaboration server support undesirable, thus making this first offering based on Android more a consumer than corporate play. The lack of a desktop synchronization cable and capability provides further justification to keep the device away from the corporate mainstream.
• Palm's new Palm OS update is based on Linux to improve some of the memory management and functionality limitations of the current Palm OS, which has been stagnant for many years. The company says that it is on track to complete the new operating system by the end of year, but has pushed back the availability of devices based on the updated platform to the middle of next year instead of first quarter. Code-named Nova or Palm OS II, device delays may be more due to carrier timing desires than Palm's own capabilities. Nonetheless, the many deferments of the new operating system have encouraged customers to abandon the platform that once ruled the handheld device space. Elsewhere, the company also announced that its unlocked Windows Mobile 6.1 worldphone, the Treo Pro, is now available from Palm's Web site and reseller partners for $549. The Treo Pro includes is a refreshed design of the existing Treo mold, and is the first Treo to include Wi-Fi in addition to GPS and broadband wireless access.
• Visa is launching new payment and payment related services including account alerts and notifications, contactless payments, money transfer, and remote payments. The solutions will first be in trial use by interested financial institutions, allowing consumers using the Nokia Corp. 6212 Classic to check account statuses, pay for goods and services, and receive "opt in" offers and real-time activity notifications. The Nokia 6212, available starting in October, uses an integrated Near-Field Communications (NFC) chipset to initiate contactless payments by swiping the phone in front of a point of sale reader. Trials of Visa mobile technologies have been conducted in Malaysia, Taiwan, the United Kingdom, and the United States. Visa also announced it is developing financial services applications for Google Android phones, the first of which will be available for Chase cardholders and available on the Google Android Market.

Experton Group believes competition in the smartphone space continues to put increased pressure on all players, and the arrival of Google-based devices will offer a compelling alternative over time. Google's initial offering certainly has its limitations, as its primary access and synchronization capabilities are with Google properties. However, the Google Android Market aims to change that.

The openness of the platform will allow for numerous manufacturers, over time, to develop their own versions of Android-based devices based on their understanding of market and user requirements. However, this first Android-based device is more of a proof of concept than a compelling alternative to existing offerings. IT executives should expect Google to have a significant impact on how applications and devices interact with users and Web-based systems over the next 12 – 18 months. IT executives should steer clear of early devices in the enterprise – be they Android-based or otherwise – until management, security, and synchronization with enterprise systems are worked out. 

Palm's slow progress and continued delays with the forthcoming version of Palm OS come as little surprise to anyone familiar with the company's missteps. the company desperately needs to reinvigorate the brand with compelling new capabilities if its intends to remain a top-tier player in an increasingly heated space. IT executives should take solace in the fact that the ubiquity of Windows Mobile will allow them to move to other hardware vendors if need be, but will need to wait to see if the company has the legs to stand on its own long term.

Mobile payment solutions have been available for greater than 10 years, and have met with some success in Europe and Japan. In the U.S., mobile payments have seen only failures. Timing may be right now for such solutions given the rising availability, interest, and power of mobile handheld devices. IT executives in financial institutions should consider piloting offerings where reasonable payback timelines can be monitored and achieved.