America Online Inc has acquired Tegic Communications Inc, which it has been working with to develop text-entry mechanisms and a wireless Instant Messanger for forthcoming mobile devices and internet appliances, to be launched under the AOL Anywhere banner. AOL says that it plans to use Tegic’s T9 text-entry software in AOL-branded smartphones and set-tops, the two companies have been collaborating on wireless IM for the last six months. The terms of the deal have not been disclosed. Tegic will continue to operate as a separate business unit in Seattle.
Tegic’s T9 text input system is designed to speed up text entry on a standard numeric keypad, allowing the users to enter up to 25 words a minute on a mobile phone. Currently, most other text- input systems on mobile phones are ‘multiple tap’. For instance to enter the letter ‘c’ into an address book on a mobile phone, a user would have to tap the ‘2’ key three times. T9 allows the user to enter each letter of a word with a single tap on the relevant key, a statistical algorithm analyzes the entry and compares this with a database of 60,000 English words and selects the relevant word. If the word is not correct the user then has to revert to the multi-tap entry system. The system has already been adopted by 20 of the world’s mobile phone manufacturers, notably, Nokia Oyj, which is shipping some handsets that use the system.
The Tegic/AOL Instant Messanger will run over wireless application protocol (WAP) and short messaging service (SMS) systems. Tegic will supply IM ‘gateway’ server software to operators that want to offer IM along with WAP or SMS services. The advantage over SMS, Tegic claims, is that, like the desktop IM from AOL, the wireless IM will have a ‘buddy list’ so that a mobile user will know if other users are ‘online’ before they send a text message or make a voice call.
AOL is still being tight-lipped about exactly what hardware and services it will offer under the AOL Anywhere umbrella. A spokesperson said that the aim of initiative was to develop new services for mobile and internet-attached devices and allow existing AOL members to access their accounts through a range of new devices. Smartphones and set-top boxes will be some of the initial AOL Anywhere devices released, the spokesperson confirmed. As well as offering improved text-entry and an IM function on smartphones, the spokesperson said that the Tegic acquisition would allow AOL to offer easier to use electronic program guides, as part of the AOL TV service. AOL is also being coy about when it will start to roll out AOL Anywhere devices. Look for announcements in the early part of next year, the spokesperson said.