Word: nokia
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...Nokia can expect more of the same rockiness. TIME also contacted major European carriers Vodafone, T-Mobile and Telefonica O2. None were willing to comment on the delicate subject of Nokia's services push. "Clearly, there are tensions. This puts them on a collision course with some their customers," says Ben Wood, a director with London telecom consultancy CCS Insight. But Wood noted that operators should consider what he called a "greater good" scenario in which customers who buy a Nokia phone through the operator might dip more into the operators own service offerings as well...
...Nokia has been through this before in the early 2000s, when in deference to operators it toned down an initiative called Club Nokia, a portal for selling games and ringtones. But things are different this time, because as Kallasvuo put it, the Internet, and in particular the mobile Internet, "is one of the most opportunity-rich markets the world has ever seen." Nokia can't step aside for operators because the competition is already fierce and because more boundaries between which companies do what are falling every day. Not only has Apple entered the phone business...
...digital music business is one of the prime battlefields right now, with new vendors entering all the time. In the week alone leading up to Nokia's announcement, giant retailer Wal-Mart strengthened its downloading service, and MTV, Real Networks and Verizon Wireless joined music forces. They're all chasing a digital download business that the International Federation of the Phonographic Industry says grew to $2.1 billion in 2006, or 11% of all recorded music sales, as more artists embrace it. "Any band that's resistant to it is crazy," says Adam Levine, lead singer of Grammy-winning L.A. group...
...Another reason why the time is right for Nokia: among the people who do put music on their phone, most of them "sideload" it by transferring tunes over from a PC. According to research firm M:Metrics, 85% of the people who listened to music on their phones in Europe's big 5 countries and the U.S. from February to April did not get the songs through cellular downloads. Nokia's service supports both cellular and PC Internet downloads...
...Nokia may not be the only handset vendor looking longingly at services. Rival Sony Ericsson, currently offers a limited collection of tunes from sister recording company Sony BMG, but may soon expand. "We'll have more to say in the future," says president Miles Flint. Sony Ericsson would follow Nokia's tactic of slowly building up to a full-on Web services push. In the last couple of years, Nokia has taken many small steps, tying phones into Yahoo, Flickr photo sharing and content from Turner Broadcasting, among others. Last fall, it launched a music Web site called Music Recommenders...