Nokia to offer Google service
LONDON (Bloomberg) - Nokia Oyj, the world's biggest maker of mobile phones, will offer Google Inc.'s search engine on some handsets and will work with Orange SA to promote its Internet services and boost sales of devices with Web access.
The Google search feature will be available on Nokia's N96, N78, 6210 Navigator and 6220 Classic models introduced yesterday, Espoo, Finland-based Nokia said in a statement yesterday. The service will be integrated with Nokia's search application. Together with France Telecom SA's Orange unit, Nokia will market its location-based services, maps, mobile advertising and games.
Nokia has moved into the services business through alliances with phone companies and content providers to win a share of revenue generated from downloads. The company is promoting its Ovi portal, which means "door" in Finnish, to attract wireless traffic to sell its games, maps and music.
"The Google deal looks like if you can't beat them, better to join them," said Neil Mawston, an analyst at Strategy Analytics. With the Orange agreement, "Nokia looks to be getting more operator-friendly," he said.
The tentative deal with Orange is Nokia's third with a major European phone company after it announced plans to offer services such as music and games. Under an agreement with Vodafone Group plc., customers can access all Vodafone's and Nokia's Internet services through a range of Nokia handsets.
The Orange deal "is a step in the right direction," while it may not be as extensive as the Vodafone accord, Mr. Mawston said.
Nokia said a strategic partnership with Orange may be announced by mid-2008 following yesterday's letter of intent.
Nokia's Internet plans have caused concern among some phone companies that revenue will be taken from them. Deutsche Telekom AG's T-Mobile unit said on Monday that Nokia's initiative confuses consumers.
Nokia shares gained 1.05 euros, or 4.3 percent, to 25.70 euros in Helsinki. The stock has dropped 3.1 percent this year, valuing Nokia at 102.4 billion euros ($149.5 billion).
The Google search engine will be accessible with other Nokia devices later, eventually in more than 100 countries and more than 40 languages. The service has previously been integrated with Nokia's Internet tablet device and the eight-gigabyte version of the N95 handset.
"Providing choices for our consumers is an important driver in Nokia's Internet service strategy," Ilkka Raiskinen, manager at the software and services unit, said in the statement.
No financial details were disclosed for either agreement.