Uncommon Wisdom

Oct 3 2008   3:17PM GMT

Nokia indicates shift to service market

Tom Nolle Tom Nolle Profile: Tom Nolle

Nokia’s launch of its touch-screen high-end smartphone was also a bully pulpit for the company to make it clear that their activities with Symbian and smartphones are not the main event, but a shift into the services market.

Nokia noted that Blackberries were not successful because of the handset or the handset OS but because of the service behind them. This is the first time a major mobile equipment player has articulated what we believe is the central truth of 2009 and beyond. The industry is moving to services as operators move to monetization, and those who can create service ecosystems will be successful.

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  • 1avalon
    Tom, move to a service platform such as NOKIA's OVI is not without peril - see articles on "Comes with Music" music download application in UK. Heavy lifting in this NOKIA application is carried by mobile operators (increased data net usage) with nominal benefit to carrier. This issue touches the future role of carriers and likely evolution of open platform models. Tom - can there ever be co-existence in this area between NOKIA and its mobile operator customers?
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  • Tom Nolle
    It's my view that mobile operators have come to accept that a total walled-garden model is simply not going to work. Given that, they have two priorities--first, to move customers to some data-driven service model, and second to expose new infrastructure features (at a fee) that can exploit that new model. That means that things like open handsets and even some over-the-top processes will have to be tolerated in the near term to achieve "step 1". The key to your question of peaceful coexistence in the longer term will be the ability of operators to create a new set of features and expose them through third-party APIs to developers, and so to build revenue for themselves. Right now, "third-party access" is a major priority with operators, but whether they can get it right fast enough is still a question.
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