Nokia plans advanced mobile services…
Nokia CEO Olli-Pekka Kallasvuo yesterday unveiled plans to launch a slew of services for mobile users–initially in Europe and Asia, and perhaps later in the U.S–called Ovi, which is Finnish for “door.” Ovi will be a gateway to music, photos, maps, and other content starting later this year.
The scheme includes an online music store rivaling Apple’s iTunes. It is aimed primarily–but not exclusively–at the 200 million music-capable Nokia mobile phones already on the market. It also features an interactive multiplayer game service accessible to the 40 million Nokia Nseries phones now in use. Early next year, Nokia will add a service that lets consumers swap personal photos, videos and audio.
Some of the bigger mobile operators, like Vodafone and Orange, are expected to balk at the idea of replacing their own music service with Nokia’s. Although Nokia claims it has had “very positive discussions” with most operators, few are willing to comment on the initiative.
Hackers unlock iPhone…
Hackers have unlocked Apple’s iPhone, which means they’ve discovered a way to open up the $500-$600 device to any wireless network. Bad news for AT&T, which had to fight hard for an exclusive iPhone contract that runs through 2009.
It’s not so exclusive anymore. In fact, 17-year-old George Hotz, who claims to be the first person to successfully unlock the device, has just joined a cell-phone refurbishing company called CertiCell, which plans to sell unlocked iPhones. AT&T will no doubt sue the company, but if Hotz and co. can clear up the murky legal air surrounding the practice of unlocking mobile phones, then CertiCell could be at the forefront of a new movement.
Unlocked phones would allow users of T-Mobile USA’s network, for example, to operate an iPhone, while AT&T gets nothing. AT&T lawyers are already on the case, trying to pressure hackers to stop unlocking iPhones. However, no one really expects AT&T’s legal efforts to deter them, especially now that individual users have the right to unlock their phones under an exemption to the Digital Millennium Copyright Act, implemented last November. The question now is whether it’s cool to sell already-unlocked phones.
Source Businessweek
Nokia relaunches N-Gage as Smartphone Feature…
Nokia will revive N-Gage this week as a multiplayer gaming service that will work on its popular line of smartphones. The service will offer games from major publishers, like Electronic Arts, as well as smaller developers like Digital Chocolate that focus on the mobile gaming market.
The original 2003 N-Gage and its successor–2004’s N-Gage QD–were primarily intended to compete with portable gaming consoles like the Nintendo DS and the Sony PlayStation Portable. But owners had to remove the battery to insert gaming cartridges, hoist the bulky device to their heads and hold it sideways to make an actual call. Gadget hounds dubbed it the Frankenphone.
Nokia sought help from the Silicon Valley design firm Ideo–whose hits include the original Apple computer mouse–in designing the new service. The new N-Gage permits users to see what games their friends have on their phones and whether they are online. Customers also will be able to sample games free before buying them.
Source: New York Times
Verizon spends big money…
Verizon Wireless, a joint venture between Verizon Communications and Britain’s Vodafone and the second-largest US mobile carrier, is to acquire Rural Cellular in a deal valued at $2.67bn that will expand its wireless service coverage in rural markets and add about 700,000 subscribers.
Ivan Seidenberg, Verizon’s chief executive, announced the deal on Monday as Verizon Communications unveiled strong second quarter earnings fuelled by Verizon Wireless, which added 1.3m net new subscribers in the quarter.
He said the acquisition, which includes $757m in cash together with assumed debt, will be made by Verizon Wireless and had been “enthusiastically supported” by Vodafone, which has until August 9 to decide whether to exercise a “put” option entitling it to sell Verizon Wireless shares worth up to $10bn to Verizon Communications. Vodafone’s stake is believed to be worth about $58bn, up from a valuation of $47bn last year thanks to Verizon Wireless’ stellar performance.
The Rural Cellular acquisition is subject to Rural shareholders’ approval and regulatory approval and is expected to close in the first half of 2008. It comes just weeks after AT&T, Verizon’s main rival, announced plans to acquire Dobson Communications, another leading rural carrier, for $2.8bn in cash. Both transactions highlight the growing pressure for further consolidation in the US wireless telecommunications sector as penetration rises and the major carriers seek to exploit economies of scale.
Verizon is also believed to have considered bidding for Alltel, one of the leading second-tier US wireless carriers, but decided against making an offer because it viewed the asking price as too high.
Alltel subsequently announced it had agreed to a leveraged buyout backed by TPG Capital and Goldman Sachs Capital Partners. Alltel’s shareholders are due to vote on that deal later next month. Under the terms of the proposed deal, Rural cellular’s shareholders will receive $45 per share in cash. The price represents a 16 per cent premium to the stock’s average closing price over the past 10 trading days and a 41 per cent premium to its closing price Friday of $31.88.
Minnesota-based Rural Cellular had 716,000 customers at the end of March.
“The addition of Rural Cellular’s markets will enable us to expand our services into areas where previously we had little or no presence,” said Lowell McAdam, president and CEO of Verizon Wireless.
Mr Seidenberg added that the deal is expected to generate more than $1bn in synergy savings through reduced roaming and operating expense savings. He said it will be neutral to moderately accretive in 2008 and accretive thereafter.
The deal came as Verizon Communications reported a 4.5 per cent increase in profits in the second quarter boosted by Verizon Wireless and Verizon’s expanding base of broadband and FiOS video subscribers.
Net income rose to $1.68bn, or 58 cents a share, from $1.61bn, or 55 cents, a year earlier. Excluding some costs, earnings were 58 cents a share, in line with expectations. Sales grew by 6.3 percent to $23.3bn.
Copyright The Financial Times Limited 2007
Nokia shares are up…
Shares in Nokia rose sharply on Thursday after the world’s largest maker of mobile phones reported stronger-than-expected second-quarter results, selling in excess of 100m handsets in the period – more than its three closest rivals combined.
The Finnish company said revenues and profit margins increased as it continued to expand its share in crucial emerging markets such as China and India.
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