Nokia: Google alliance brings nothing new of significance

Nokia feels that Internet already works well on its phones

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Nokia feels that Android, a mobile telephony alliance announced on Monday by Google, is unnecessary because Nokia has already been doing nearly everything that the alliance is just talking about.
      Nokia says that its S60 platform, which is based on its own Symbian operating system, is the best and most workable foundation for Internet services of mobile telephones.
      According to Nokia, its phones will soon be able to use all Internet services as they are on the net. Therefore, it says that the establishment of forums like that announced by Google for the development of a mobile platform is not actually necessary.
     
This year Nokia has started to work in earnest to solidify its foothold in the mobile phone Internet market. The company released its Ovi service pages early in the autumn. In the future it will compile Internet services of Nokia and other producers.
      Nokia's music store opened last week in Britain.
      At the beginning of next year, Internet services will be given equivalent status to telephones in the Nokia organisation. The company has also bought more know-how in areas such as positioning and navigation, and in mobile phone advertising.
      It is no surprise that Nokia is not yearning for a competitor like Google, although the company points out that in some connections, Google is Nokia's partner, and in others, its competitor.
      In comments by market analysts, Android was seen as primarily a response to Nokia. However, it is not seen as a serious threat to Nokia's handset sales, and it is not expected to form such a threat in the near future. The first Android-based phones will be placed on the market by Google and its partners in the second half of next year.
      Comments on Internet message boards celebrated the emergence of a new competitor which will force Nokia to put more effort into making services more easily accessible.
      Expectations are also high for opportunities offered to developers of Google applications. Nokia also has a forum for programme developers, which has so far given rise to more than 5,000 applications.
     
Google's partners include Nokia rivals Samsung and Motorola. Traditional mobile phone companies are now joining forces in other forums in order to counter Nokia's overwhelming market position in handset sales.
      Google, meanwhile, needs partners among both mobile phone manufacturers and service providers in order to get its advertisements onto mobile phone displays.
      The views that the companies in Android have about the possibilities afforded by a mobile Internet, are very similar to those of Nokia. Both have their eyes on the potential revenue from mobile advertising, which is expected to grow considerably in the coming years.
      The Android initiative could possible benefit Nokia, at least in the United States, where the problems it faces are similar to those faced by Google. The four large mobile operators in the United States basically control what kinds of handsets and services are available to the consumer.


Previously in HS International Edition:
  Nokia Q3 result exceeds all expectations; net sales of EUR 12.9 billion and EPS of EUR 0.40 (19.10.2007)
  Nokia to buy Navteq in Finland´s largest-ever corporate acquisition (2.10.2007)
  Nokia buys new talent (7.10.2007)
  Nokia stock buoyant on announcement of new music & games portal and N81 handset (30.8.2007)

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