Operators pin hopes on Nokia
By Andrew Parker in London and Andrew Ward in Stockholm
Published: February 7 2011 23:02 | Last updated: February 7 2011 23:02
Some of Europe’s leading mobile operators are hoping Stephen Elop, Nokia’s chief executive, will this week rule out using Google’s Android smartphone operating system in the Finnish company’s devices.
Operators such as Vodafone, Telefónica and France Telecom are privately hoping that Mr Elop will use a long-awaited strategy presentation on Friday to say that Nokia’s fledgling MeeGo smartphone operating system is capable of providing a mass market alternative to Android and Apple’s iOS platform for the iPhone.
An executive at one large operator said if Nokia felt compelled to use a third-party smartphone operating system, the company should consider Microsoft’s Windows Phone 7 because such a move could improve competition in the smartphone market.
However, the executive said Nokia risked undermining confidence in MeeGo if it tried using the platform in tandem with one of the operating systems developed by Microsoft or Google.
Vodafone, Telefónica, France Telecom and Nokia declined to comment.
Mr Elop, a former Microsoft executive, will brief analysts on his plans after considering radical options to revive Nokia’s fortunes.
Nokia is the world’s largest mobile phone maker, but it has been reporting falling profitability mainly because of its struggle to produce sophisticated smartphones to match Apple’s iPhone and handsets featuring Android.
Analysts interpreted comments by Mr Elop at Nokia’s fourth-quarter results in January as meaning the company might use the Google or Microsoft smartphone platforms for the US market, where the Finnish company has been losing ground.
Nokia had a 1.8 per cent share of the US smartphone market in 2010, according to Strategy Analytics, the research group. Nokia was the leader in the broader US mobile market 10 years ago, but its share slipped to 5.5 per cent in 2010.
Android is advancing rapidly, and overtook Nokia’s much-criticised Symbian operating system to become the world’s most popular smartphone platform in the fourth quarter of 2010, according to Canalys, the research group.
Europe’s top mobile operators are increasingly concerned about the risk of Apple’s iOS and Android forging a duopoly in the smartphone operating system market.
Vodafone, Telefónica, Telecom Italia, France Telecom and Deutsche Telekom have almost 900m mobile customers between them, and are some of Nokia’s biggest customers.
Some analysts are expecting Mr Elop to confirm a management shake-up involving the departure of several senior officials.
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