New "open mobile" architecture could unify wireless market: some see a closed door admission policy by Nokia - Server & PC

Computer Technology Review, Feb, 2002 by Joshua Piven

"Nokia's open mobile initiative is one in a very long line of phone consortiums, from WAP to Symbian," says Michael Mace, chief competitive officer at Palm Inc. "Every time one falters a new initiative is declared. Palm-powered smart phones from Samsung and Kyocera are selling extremely well, and we are very excited about the upcoming Handspring Treo and new wireless products from other licensees," Mace adds. "The Palm platform continues to gain momentum in the smart phone market while the other guys are still talking."

Nokia's Roberts admits that Palm, Handspring, and Microsoft were not invited to join the group but--without naming names--says he expects to see other software companies make some announcements in the near future. Roberts notes that Microsoft, for one, would be welcome to join the open mobile initiative, assuming the company committed to the open standards supported by the group. Still, he says that Nokia believes that by 2004, fifty percent of 3G devices will be based on Symbian, a result that Microsoft et al would presumably be less than thrilled to see develop.

Because its strengths lie in phone software and not in the PC world, Nokia is seeking to create a universal platform for mobile communications that it can still control to some degree. It's probable that the company may fear (and rightly so) that opening its phones up to Windows may in the long run pull Microsoft into the wireless space while at the same time relegating Nokia to the sidelines.

"It's not a secret that Nokia and Microsoft are not the best of friends," says Cahners' Nogee. "Nokia knows that if it allows Microsoft into its handsets, Microsoft will attempt with PocketPC for handsets [Stinger] what it has done with Windows for PCs. The hardware will be relegated into just something supporting the operating system, and that certainly isn't in Nokia's best interest." Nogee also points out that Nokia realizes that Microsoft has little experience in the wireless arena, and it is experience that Nokia would rather not hand over to Redmond.

But Nokia's vision of an open mobile environment separate from the existing world of Windows may be the way of the past, not the road to the future. And make no mistake: The battle for control of the mobile phone operating environment has broad implications. Wireless connectivity is one of the fastest growing segments of the industry, and tens of billions of dollars have been invested in the global wireless infrastructure. As phones and networks hit 3G (and faster) speeds, true wireless connectivity will become a reality; it's a question of when, not whether. It is too soon to tell if the mobile phone will be the main actor in this drama, but many companies are betting it will play an increasingly important role.