Nokia resumes CDMA efforts

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Nokia resumes CDMA efforts


By Phil Carson
Story posted: October 15, 2007 - 2:21 pm EDT

Nokia Corp. will offer a new CDMA handset in North America this fall, though details about possible carrier deals and pricing were not given.

Such a phone, however, could run on Verizon Wireless’ and Sprint Nextel Corp.’s CDMA networks and enables Nokia to address 60% of the United States market. No word yet on whether the phone uses Qualcomm Inc.’s CDMA technology; the two companies remain on uncertain terms after their cross-licensing agreement expired in April.

The phone is notable as Nokia last year announced its intent to engage the CDMA market through a joint venture with Sanyo; Nokia nixed the effort shortly after announcing it, however. More recently, Sanyo announced it is in talks to sell its phone business to Kyocera.

The Nokia 2135 focuses on voice services and affordability, offering a 400-entry phone book with 3.5 hours of talk time or 11 days of standby time. The Finnish vendor emphasized the device’s compactness and large keys.

The modest details appear to suggest that Nokia is looking to snap up American and Canadian consumers who are focused on voice services and, perhaps, daunted by handsets’ growing complexity. The 2135 does not offer multimedia or a Web browser.

The potential for Nokia to increase its U.S. market share, plus the company’s strong position in high-growth emerging markets and improved portfolio in the high- and mid-tiers, played a role in UBS analyst Jeffrey Schlesinger’s view today that the company is poised to grow faster than the industry next year.

Schlesinger said in a research note today that Nokia’s third-quarter earnings, due this Thursday, would be in line with Wall Street expectations and would not be affected by the firm’s longer-term outlook.