Nokia in revenue share discussions with operators

Nokia in revenue share discussions with operators

Nokia is in revenue share discussions with some operators ahead of its move into services, with Vodafone and Telefonica O2 the most advanced to enter into deals with the manufacturer.

T-Mobile is believed to be the most reluctant to range Nokia’s handsets, which come with free music, games and navigation, as well as the Nokia Ovi portal.

Orange was initially resistant to range the first Nokia handsets – the N95 and N81 – which launched with Nokia’s Music Store, but has since started to soften its stance after Nokia made the case that its plans may conflict with operators’ own music and online services but they would increase data usage.

Nokia’s executive VP for marketing, Anssi Vanjoki, said: ‘It is not like five years ago when all the operators are one monolithic block. They are playing very different strategies at the moment.’

The world’s biggest manufacturer is currently planning ahead of its biggest launch in years, as it unveils handsets that are pre-loaded with advanced navigation services and unlimited free music.

Nokia is close to signing all the major record labels ahead of packing its new phones with Comes With Music built in.

It already has a deal with Universal and is at advanced stages with the other big labels - Sony BMG, EMI and Warner. Vanjoki said the company was also signing up several small record labels.

Music companies have been similarly reticent to enter into deals with Nokia given the manufacturer’s intention to give away music to consumers for free, with some labels seeing it as eroding value from their assets.

Vanjoki said: ‘Yes, music companies are getting a fraction of what they were used to before, but remember they are looking at the young consumers who are not paying anything at the moment.’

Written by Mobile Today
Mobile Today


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