And the winners are:

Today I am pleased to announce the third annual Fierce 15, our list of the top emerging companies in the wireless industry for 2005. Not to invoke a cliché, but this industry has changed a lot since our first list in 2003. In the last few years, wireless has matured as the main generator of growth for the entire telecommunications industry. A few wireless technologies, like WiFi, have gone from promising upstarts to mainstream hits, while others, like Bluetooth, have yet to live up to the hype. 3G has moved from buzzword to market reality in much of Europe and Asia and is even available in North America. Thanks to merger mania, the US wireless market has contracted, but competition remains high.

The most important change since our first Fierce 15, however, has been the overall resurgence of the wireless industry. Three years ago, this industry was stunted with cautious optimism. The industry is now poised for strong growth as everyone looks to areas like content to help drive growth for the rest of the decade.

This raises the age-old question: What is the next big hit? In that spirit of prognostication, I offer the 2005 FierceWireless Fierce 15. This year's list highlights a number of industry trends. The first is content. Seven of this year's winners offer either content or technology for accessing mobile content. Why all this focus on content? If this industry is ever going to make a successful transition away from its dependence on voice, content is going to be the key. Successful content and applications drive wireless data revenues. If there isn't compelling content -- or at least none that consumers are willing to pay for -- this industry could soon find itself facing a dead-end.

The next trend we spotlighted is convergence. In particular, we focused on the convergence of VoIP and wireless, picking three companies that offer different ways to solve the problem of multimodal access -- including cellular voice and data, WiFi, and VoIP -- on the same device.

While no one can predict the future, if the previous Fierce 15 winners are any indication you can bet this year's group of companies will be making the wireless headlines for the next few years to come, driving innovation and making bold plays to capture the future of this industry.

- Stephen Wellman

Action Engine
Based: Redmond, WA
Founded: 2000
www.actionengine.com

Why It's Fierce: Lots of companies in the mobile content space promise to revolutionize the end-user experience. Action Engine has a product that might just live up to the hype. Instead of simply replicating the desktop experience for the phone, this company's technology offers an innovative way to access content, optimized for the limited form factors of most cell phones. Action Engine's platform offers users a way to access mobile content at speeds up to 20 times faster than most competing solutions and with up to 80 percent fewer keystrokes. Simply put, a user can get to content without having to waste time fidgeting with their phone's keypad. This is good news for handset makers, content providers, and carriers. Speaking of carriers, Action Engine has signed on a number of key partners, including Orange and O2. As for technology, the company works with Nokia, Microsoft, Intel, palmSource, and Symbian. Once Action Engine launches the Java version of its product, their solution will be well-positioned for industry-wide success.

What To Look For: Action Engine will launch the Java version of its platform in September. Look for the company to sign more device partnerships and expand its presence with North American carriers.

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BridgePort Networks
Based: Chicago
Founded: 2002
www.bridgeport-networks.com

Why It's Fierce: VoIP's next great leap will be into the wireless market. Bridgeport is poised to take advantage of this opportunity by producing software that connects cellular and corporate networks, enabling mobile phones to run VoIP and cellular voice. Besides trimming mobile phone bills, this technology will allow employees to use their phones while overseas simply by plugging the handset into a computer and using the Internet to make the call. BridgePort Networks recently secured $25 million in new funding after closing $10 million in financing in October 2003. BridgePort's software is being tested at several large phone companies, and it hopes to announce its first major deals this year.

What To Look For: BridgePort is shifting its focus to sales. Look for the company to sign partnerships with at least one major carrier or service provider by the end of 2005.

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Colubris Networks
Based: Waltham, MA
Founded: 2000
www.colubris.com

Why It's Fierce: Colubris Networks is a trend-setter in the WiFi market. The company was the first to pioneer a number of WLAN management techniques that have since become industry standards. When you ask an insider which WiFi companies they respect, invariably Colubris makes their list. Colubris is not content just resting on its accolades, though. The company recently acquired cellular WiFi company Kiwi Networks, giving it more technology to adjust to the changing WiFi market. The company also inked a wireless VoIP partnership with Cicero Networks, positioning itself for the fast-emerging wireless VoIP sector. Earlier this year, Colubris closed $15 million in additional funding. Colubris Networks is well-placed to continue its role as the WLAN market's technology trend setter.

What To Look For: Look for more deployments with more enterprise and service provider customers and possibly another small acquisition.

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Kineto Wireless
Based: Milpitas, CA
Founded: 2001
www.kinetowireless.com

Why It's Fierce: Kineto Wireless is the second of three companies in the 2005 FierceWireless Fierce 15 targeting the convergence of cellular, WiFi, and VoIP. Kineto's approach, though, is different than the others. This company is spearheading an industry-wide technology movement called Unlicensed Mobile Access (UMA). UMA promises to allows users to seamlessly roam from GSM/GPRS networks to WiFi and even Bluetooth networks in areas where cellular reception is not strong or non-existent. Kineto is working with handset vendors to get UMA technology on dual-mode cellular/WiFi handsets. The company hopes to sell its roaming solution to mobile and fixed-location carriers and service providers. Granted, Kineto has a hard sell ahead of it. In order to achieve success, the company will need to get UMA technology on both handsets and carriers. Kineto has a number of strong partners, including chip maker Philips, and has plenty of cash in hand to make a strong play.

What To Look For: Look for Kineto to sign partnerships with at least one more major chip maker and a top handset vendor.

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HeyAnita
Based: Burbank, CA
Founded: 1999
www.heyanita.com

Why It's Fierce: While lots of small wireless companies are focused on data-centric applications, HeyAnita is trying to help carriers make extra cash off the industry's standby: voice. The company's main product, Rapid Messaging Service (RMS), is an enhanced messaging solution that lets users create and send voice messages that go far beyond the limits of traditional voice mail. HeyAnita has partnerships with a number of carriers and service providers including Verizon Wireless, Sprint, and net2phone. This company has stood the test of the telecom downturn and is well positioned to expand in both the wireless and VoIP industries.

What To Look For: Look for HeyAnita to sign a deal with at least one more major carrier or service provider.

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i-play
Based: London
Founded: 1998
www.iplay.com

Why It's Fierce: Everyone knows mobile gaming is hot. The biggest question facing this market is which companies will survive, and which ones will fall by the wayside. I-play is one of the mobile gaming companies we predict will make it. This company has been making mobile games since 1998, and emerged from the latest round of mobile gaming consolidation as one of the market's leaders. I-play's investors include Apax Partners and Argo Global Capital. This company has the products, the partnerships, and the know-how to make an impact in the mobile gaming market.

What To Look For: Look for i-play to expand its content and media brand partnerships.

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In-Fusio
Based: Bordeaux Cedex, France & London
Founded: 1998
www.in-fusio.com

Why It's Fierce: In-Fusio is a leader in the European mobile gaming market. The company has a portfolio of over 70 titles and claims more than 1 million paid interactions per month. The company list of partnerships reads like a who's-who of carriers, including Orange, SFR, D2 Vodafone, Telefonica Moviles, Vodafone Omnitel, and China's largest carrier, China Mobile. In-Fusio also works with top-tier manufacturers, including Alcatel, Philips, Siemens, and Panasonic. In-Fusio is positioned for growth in Europe and expansion in Asia.

What To Look For: Expect In-Fusio to expand its presence in China and try to expand to other Asian markets.

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M7 Networks
Based: La Jolla, CA
Founded: 2000
www.m7networks.com

Why It's Fierce: M7 Networks provides a bridge between carriers and content providers, allowing carriers to launch mobile content services. The company offers solutions for both BREW and Sun Microsystems' J2ME platforms and works with both Qualcomm and Sun extensively. M7 also works with a number of carriers, including Verizon Wireless and Sprint. The company powers Sprint's mobile game service, Game Lobby, which claims more than 500,000 users. This company also works with two former Fierce 15 winners, mobile game publishers Sorrent and Jamdat, as well as one of this year's winners, In-Fusio. In short, M7 has the carriers, the technology partners, and the funding to be a success in the mobile content market.

What To Look For: Look for M7 Networks to continue its growth, expanding beyond to the US to at least one market abroad.

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Motricity
Based: Durham, NC
Founded: 2004
www.motricity.com

Why It's Fierce: Motricity was formed in 2004 from the merger of PowerByHand and Pinpoint. Since then, the company signed a huge mobile content partnership with Cingular Wireless, the largest US carrier. That deal alone lifted Motricity from the middle of the pack and put it near the top of the US mobile content market. In addition to its partnership with Cingular, the company works with Verizon Wireless, China Unicom, mmO2, Amazon.com, palmOne, and other leading service providers and brands. Motricity reaches over 10 million consumers around the world through its carrier and vendor partnerships.

What To Look For: Expect Motricity to build on its list of impressive partners, adding at least one more major carrier or service provider before the end of the year.

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picoChip
Based: Bath, UK
Founded: 2000
www.picochip.com

Why It's Fierce: PicoChip is one of the most influential wireless companies you have never heard of. That's because the company's flexible chip technology powers a number of next-generation wireless solutions quietly from behind the scenes. The company's technology can be used in a number of next-generation wireless systems, including WCDMA and WiMax. The company's main product, the picoArray, is an array of fully-programmable processing elements which is optimized for high-performance signal processing. Simply put, this company's product can be cheaply and easily scaled for number of base stations and other wireless network areas. PicoChip has a strong partnership with Airspan. While this has never been fully confirmed, Intel representatives recently admitted in public that they will use picoChip's technology in early forms of its new WiMax solution, Rosedale. Rumors also have it that the company's technology will soon find its way into BT's new converged IP network.

What To Look For: Look for picoChip to continue working behind the scenes in both the 3G and WCDMA sectors.

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Skype
Based: Luxembourg
Founded: 2003
www.skype.com

Why It's Fierce: Every now and then a company comes along with an idea that's not only good and marketable, but that captures the spirit of the moment. Skype is this company for the VoIP industry. Leveraging peer-to-peer technology to power a free PC-to-PC VoIP service, Skype attracted nearly 10 million users in its first year of operation. Since then, the company has expanded to include prepaid voice. In the process, Skype has recorded over 110 million downloads of its software. The company has also added support for traditional phones and now supports mobile devices, allowing Internet calling from WiFi hotspots. Skype represents network economics in the purest form: free connections within the network become more valuable to each user as more users sign up. Because of the system's peer-to-peer design -- loosely related to the Kazaa file-sharing program that Skype's co-founders invented five years ago -- the system can scale easily and inexpensively.

What To Look For: Expect Skype to focus on its prepaid products like SkypeOut and Skype Voicemail. Also, look for the company to launch its product on dual-mode cellular/WiFi handsets by the end of the year and target its solution to the mobile enterprise market.

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SMS.ac
Based: San Diego
Founded: 2001
www.sms.ac

Why It's Fierce: SMS.ac is quite possibly the most controversial company ever to make the FierceWireless Fierce 15, and that's saying something. Regardless of what you think of this mobile community and messaging firm, one thing is certain: When it comes to numbers of registered users, no other mobile service comes close. SMS.ac claims over 30 million registered users in more than 180 countries, making it the largest community of registered mobile users in the world. The company claims more than 300,000 user-created mobile clubs that provide messages and updates on a variety of subjects, all through SMS messages. What about carrier partnerships? SMS.ac has relationships with 400 carriers around the world and claims over 100 premium billing relationships. Profitability? They nailed that too. In short, SMS.ac is the closest thing the mobile market has to a Yahoo. If they can't make mobile communities work, we don't know who can.

What To Look For: Look for SMS.ac to continue its strong growth with users around the world. One note of caution: In the next few years SMS.ac could find itself forced to rethink some of its user acquisition strategies if they expect their service to move into the mainstream market.

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Tatara Systems
Based: Acton, MA
Founded: 2000
www.tatarasystems.com

Why It's Fierce: Tatara's public WLAN system is a platform designed for convergence. The company's WiFi Service Delivery Platform allows retail and wholesale service providers such as mobile operators, landline carriers, aggregators, ISPs, and cable operators to support roaming relationships without sacrificing security, control, advanced capabilities, or profitability. The solution allows access to critical WiFi service data such as usage and performance information (information is collected even while customers are roaming on partners' networks). The company also offers SIM-based authentication, roaming, and service delivery solutions for both aggregators and GSM operators. This information helps operators tweak and recalibrate their business model -- or roaming agreements -- and improves their chances of success in a tough market. Tatra's solution is also well positioned for the growing wireless VoIP market, offering seamless access across a number of networks and devices. The company has raised a total of $17 million to date and has inked carrier deals with BT, Telus Mobility, and Vodafone UK.

What To Look For: Look for Tatara to sign deals with at least two more carriers or service providers, with one of those likely to be a cable operator looking to launch converged wireless/landline services.

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Tropos Networks
Based: Sunnyvale, CA
Founded: 2000
www.tropos.com

Why It's Fierce: Municipal WiFi is shaping up to be one of the top US wireless stories of 2005. No other company in this market has as much proven success with wide area, municipal WLAN systems as Tropos Networks. Tropos helped pioneer the idea of municipal WiFi networks and the company has a number of impressive deployments, including a network in Chaska, Minnesota, that has become a test case for public WiFi. In addition to its success with the municipal WiFi market, the company has inked deals with major service providers, including NTT Communications in Japan.

What To Look For: Expect Tropos Networks to be behind at least three more major municipal WiFi deployments in the next 12 to 14 months. Also, look for the company to sign more deals with service providers.

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Wireless Valley
Based: Austin, TX
Founded: 1995
www.wirelessvalley.com

Why It's Fierce: Wireless Valley provides software that lets carriers and service providers design and plan wireless networks. While a number of other companies claim their products can do this, Wireless Valley's software has delivered on the promise for over a decade. This company is a leader in the wireless network design market and its products are used around the world. As the demand for more and different types of wireless networks grows -- from just cellular to mixed access including WiFi, WiMax, municipal networks, and converged wireless systems -- demand for Wireless Valley's technology will only grow.

What To Look For: Look for Wireless Valley to target its solution at the growing municipal WiFi market and the growing market for wireless VoIP systems.

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