The killer Android and the iPhone: Nokia fights back

Stuart Corner
Friday, 09 November 2007 01:10

IT Industry - Deals

In a move that is seen as direct response to Google's Android initiative  and Apple's iPhone, Nokia, the world's largest cellphone maker, and Vodafone, the world's largest mobile operator by revenue are to launch an integrated suite of Vodafone services combined with Nokia Ovi Services on a range of Nokia handsets. They promise that these services will offer customers a greater choice of communications, Internet services, content and browsing through a range of premium handsets on high speed 3G and 3G broadband networks And have also said that a number of these handsets will be exclusive to Vodafone. They have not made it clear which countries the deal will initially apply to or given any indication of when or to what countries it will be extended.

The tie up between the two companies comes just days before the UK launch of the Apple iPhone. Commenting on the deal, UK mobiles consultancy, BWCS said: " The agreement, which follows a similar deal between [Nokia] and Telefónica, last month, shows how much pull the mobile handset makers can exert over service providers...Clearly the chance to have its services featured prominently on a Nokia mobile phone was too good an opportunity for even Vodafone to pass up."

They promise that: "Vodafone customers will be able to access the widest and most attractive choice of Internet services [and] Vodafone and Nokia will make it easier to access the Internet quickly at the click of a button. Customers will get the full suite of communications, content, Internet services and browsing, through seamlessly integrated Vodafone services on Nokia handsets." Vodafone and Nokia also promise to deliver greater choice in music for customers, by making both the Vodafone music service and the Nokia Music Store available on Nokia's 2008 handsets.

However, BWCS noted that "some analysts have taken the deal as a sign that Vodafone is effectively giving up in the fight to be uppermost in customers' minds when it comes to branded services."

Frank Rovekamp, global chief marketing officer of the Vodafone Group, naturally viewed the deal differently, "This is a logical step for Vodafone to make, further improving our customer experience with many of the services already launched with leading Internet partners," he said. What he did not say is that the deal clearly marks an attempt to head off the iPhone effect, which will see Vodafone's rivals steal a march on it by selling the iconic, feature-rich Apple handset to their customers.

The iPhone goes on sale today (9 November) in the UK exclusively on the O2 network. 02 has partnered with independent retailer Carphone Warehouse to sell the phone, giving Apple 1300 points of distribution in total, covering 90 percent of the UK population.

Also O2 is partnering with European-wide WiFi network The Cloud to bundle in access for iPhone customers and enabling the iPhone will switch seamlessly onto those WiFi nodes. The Cloud manages 7,500 WiFi hotspots in the UK.