T-Mobile USA opens up to Ovi, Nokia supports Skype

Nokia Corp. finally found a domestic taker for its Ovi application platform announcing today that T-Mobile USA Inc. would begin offering the Nokia 5230 Nuron in the coming weeks. The device’s price of $70 after rebates also signals an aggressive position for both Nokia and T-Mobile USA that are both looking to regain their footing in the domestic market.
In addition to access to Nokia’s Ovi Store, the Nuron packs Nokia’s free turn-by-turn navigation service, access to T-Mobile USA’s 3G network and a 3.2-inch touch screen smartphone. The Nuron comes preloaded with maps for the USA, Canada and Mexico with the ability to download maps covering more than 180 countries through Nokia. T-Mobile USA will also provide customers with the option of billing content purchased from the Ovi store to their cellphone bill or to a credit card.
Analysts have noted that Nokia’s inclusion of its navigation service for free could help the device manufacturer regain its place as a player in the North American market where its worldwide dominance has not gained traction. Google Inc. made similar waves late last year when it included a free, turn-by-turn navigation service with its Android 2.0 operating system on the Motorola Inc. Droid. Google has since expanded the availability of the free navigation service to other versions of its OS.
T-Mobile USA’s pricing of the device is also aggressive as the $70 price point is significantly lower than other smartphones the carrier offers, including the bevy of Android-powered devices, and well below the $200 price point that is seen as standard for high-end smartphones. In addition, the Nokia navigation service could get top billing at T-Mobile USA as the carrier does not yet offer its own branded navigation service as is offered by its larger rivals.
The Nokia Nuron will also require new customers to sign a two-year contract and sign up for a data package, both of which are areas that have been a challenge for T-Mobile USA as of late. The industry’s No. 4 operator said it lost 117,000 postpaid customers during the fourth quarter of last year after the carrier revamped its rate plans emphasizing its no-contract services. The carrier’s results also showed that data services accounted for just over 20% of its total revenues, which is significantly less than the 30%-plus of its larger rivals.
Nokia snares Skype
In an unrelated announcement, Nokia said Skype Ltd.’s Voice over Internet Protocol service would be available through its Ovi store for Nokia’s Symbian-powered devices. The Skype for Symbian offering can be used over cellular networks (GPRS, EDGE, 3G) or Wi-Fi.
Skype recently announced a deal with Verizon Wireless to begin offering the service on select Verizon Wireless smartphones. The initial devices include devices running Research In Motion Ltd.’s BlackBerry OS or the Android OS. Following the announcement, Skype began pulling access of its application from Microsoft Corp.’s Windows Mobile devices and its Skype Lite service for Java-powered devices.