Nokia Faces 3G Challenge from Asia

Not only is Nokia facing intense competition from rival manufacturers, but its relationship with its customers, such as Vodafone and mmO2, is becoming increasingly tricky too. Yesterday the Finnish press was full of comments made by Peter Erskine, the chief executive of mmO2, who claimed 3G handsets starting to appear from Asian manufacturers were generally superior to Nokia’s.

Press reports have suggested that Nokia will lose out to Asian manufacturers when Vodafone comes to start placing firm orders for large numbers of 3G handsets next year. Vodafone is being extremely coy about who is going to get its business. It is only going to start full commercial trials of its 3G network next month. A Vodafone spokesman insisted it was keeping its options open, with orders going to those suppliers who can deliver on time to its specifications. Continue >>