Word: nokia
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...Already, cracks are surfacing in operator relations. Earlier this week, a memo from pan-European carrier Orange that was leaked to the press complained that the combination of the Nokia link and Orange's existing music service on the same phone could confuse customers. Orange does not deny the contents of the memo, but declined to elaborate on it, except to say in a carefully worded statement that it is testing the N81 and has not yet committed...
...Apple CEO Steve Jobs found Nokia's announcement interesting, there's little doubt that executives at the world's mobile phone networks found it positively riveting. Nokia's download site marks a radical departure from the traditional way of doing things in which handset makers like Nokia have to sell their phones to mobile operators like Vodafone, Orange, T-Mobile and 02. And those companies, in turn, sell services - not just voice calls but increasingly things like ring tones, music and other forms of entertainment - to consumers. In listening to Kallasvuo on Wednesday though, it was clear that Nokia...
...operators, who are little if not service companies, the word "service" must have rankled. But there was more from the boss from Nokia, the powerful Finnish company that dominates the world's handset market with a nearly 40% share and which has the clout to force industry shifts. "We are transporting Nokia into an Internet-driven company," he said. "Today, we are constantly thinking beyond the phone. Devices alone are no longer enough...
...Kallasvuo denied that this big push into services would damage relations with operators, saying that Nokia is finding ways to work with them. Executive vice president Anssi Vanjoki suggested that Nokia might even share Website revenue with operators. After all, the Website could be a golden opportunity for Nokia to sell advertising space, so how bad would it be to arrange a little revenue sharing with old partners? Vanjoki, who's in charge of marketing Ovi, says Nokia will be a more flexible partner than Apple, which so far has restricted the iPhone to one U.S. carrier...
...That may be true, but as Nokia starts embedding links to Ovi into more phones, operator sentiment could sour. Nokia is loading Ovi onto two fancy phones it introduced this week for shipment later this year - a refurbished N95 and the new N81, both with 8 gigabytes of storage capable of carrying 6,000 songs, according to Nokia. Vanjoki says the long-term plan is to embed Ovi throughout the Nokia range, including two new midrange, 4-gigabyte models it announced this week...