Although GSM proponent Nokia Corp. continues to profess plans to improve its CDMA phone sales, the company’s efforts to date in the United States seem relatively unimpressive.
Of the two major CDMA carriers in the United States-Verizon Wireless and Sprint PCS-only Sprint sells Nokia phones. And so far Sprint is only selling one low-end, voice-only Nokia model, the 3585i.
Nokia’s CDMA situation in the United States comes several months after Nokia showcased five new CDMA phones at the CTIA Wireless trade show earlier this year. Nokia introduced its lower-end 2270, 2280 and 2285 CDMA 1xRTT phones, as well as the color-screen, Java-capable 3586i and the advanced 6585.
To date in the United States, Sprint sells the 3585i. Verizon does not currently sell any Nokia phones. Leap Wireless sells two Nokia phones, the 6370 and the 3570, while MetroPCS offers the 3585 and U.S. Cellular sells the 3585i. Western Wireless Corp. sells the Nokia 3285.
Nokia said it could not reveal future product launches or carrier deals, but that it plans to increase its CDMA sales.
“Just because they have it doesn’t necessarily mean we’ll buy it,” said Brenda Raney, a spokeswoman with Verizon Wireless.
Still, Raney said Verizon has no qualms about selling Nokia products and has done so in the past. Further, Verizon at its recent developer’s conference in San Diego confirmed it plans to sell a Nokia handset that includes the BREW application download technology. Such a move is notable because Nokia rival Qualcomm Inc. developed and manages the BREW service.
“We’re always open to new products with manufacturers we’ve had relationships with,” Verizon’s Raney said.
As for Sprint, the carrier too expressed a positive view of Nokia phones. Dan Wilinsky, spokesman for Sprint, said the carrier is selling the voice-only 3585 to fill in its low-end phone portfolio. The phone sells for about $100 (or free after a rebate).
The 3585i is the first Nokia phone Sprint has sold in more than two years. Sprint’s Wilinsky said the carrier wanted to make sure the phone met lab standards, but industry insiders have said the reason for the suspension was Sprint’s displeasure over Nokia’s CDMA efforts. Wilinsky said Sprint will sell additional Nokia phones in the future but would not provide further details.
“There’s been a lot of things that have strained relations,” said Andrew Cole, senior vice president of consulting company Adventis Corp.
Cole said Nokia’s relationships with many of the world’s carriers have recently come under pressure as carriers look to differentiate their services through unique phones, user interfaces and services. Nokia, on the other hand, continues to promote its own brand and works to gain the widest distribution possible. Those two dynamics have led to some public confrontations, Cole said, referencing an argument last year between Nokia and European carrier Orange plc over modifying phone interfaces.
However, Cole said, the changing wireless industry and Nokia’s desire to expand its business have led the company to refine some of its tactics.
“They are becoming a more humble Nokia,” he said, alluding to the company’s work with Sprint and its decision to include BREW technology in its handsets for Verizon.
Although Nokia’s CDMA phone efforts in the United States still seem relatively light now, the situation could change, said Ted Shelton, a senior analyst with Allied Business Intelligence. Shelton said things are still early for Nokia, and it could in the future make more of an impression in the CDMA market.
“It’s something to watch,” he said.
