Verizon Wireless Defers Purchases From Nokia Until E-Mail Works
New York, Jan. 5 (Bloomberg) -- Verizon Wireless Inc., the top U.S. mobile-phone company, deferred ordering more Nokia Oyj handsets until the phone maker ensures that users can send and receive short-text messages on their phones, a spokesman said.
Spokesman Jim Gerace said Verizon Wireless has no plans to buy the Nokia phone known as the 6185i until the equipment and software issues are resolved. The handset is similar to the 5185i Verizon sells to its subscribers.
``While the phone has passed our rigorous testing standards for basic voice features, we remain concerned that it cannot perform the simplest data requirements,'' Gerace said in an interview.
Verizon Wireless and other mobile phone companies are counting on new features, such as short-text message service that lets users send and receive 120-character e-mail messages on their phones, to sign up more customers.
The company said a report by Dain Rauscher Wessels analyst T. Michael Walkley, saying Nokia shipped Verizon Wireless 2 million 5185i phones in the fourth quarter and would ship the 6185i in the first quarter, was inaccurate.
``We currently have no plans on purchasing the 6185,'' Gerace said. He said Nokia shipped ``nowhere near'' 2 million 5185i phones in the quarter that ended last month.
``We don't release shipment volumes, but Verizon is a very important customer to us,'' said Nokia spokeswoman Cherie Gary. She said the short-message service has been successful with other vendors, and declined to discuss issues related to Verizon.
Walkley said his report is based on Nokia statements at a London analyst meeting last month, where executives said a majority of the 2 million 5185 phones went to Verizon Wireless.
He initiated coverage of Nokia today with a ``buy'' rating, writing that ``We believe Nokia is developing strong relations with Verizon.''
Verizon Wireless and Nokia have tried to get two-way messaging to work for months, and ``they continually fail to meet their own deadlines on when it will work,'' Gerace said of Nokia.
Verizon Wireless, a venture of Verizon Communications Inc. and Vodafone Group Plc, has been promoting phones by Kyocera Corp., Motorola Inc. and LG Electronics Inc.
The shares of Verizon fell 13 cents to $54.56 and Vodafone American depositary shares, each representing 10 ordinary shares, fell 25 cents to $35.88.
Jan/05/2001 18:16 ET |
