The eagle has landed… Vodafone (NYSE: VOD) has agreed on handsets which include Nokia’s Ovi brand of mobile services. There was a fair bit of deal making—the handsets will have an integrated suite of Vodafone services combined with Nokia’s Ovi services on a range of Nokia (NYSE: NOK) handsets, some of which will be exclusive to Vodafone. The release mentions the fact that the two companies services are integrated a few times—perhaps more than is necessary. The handsets will be 3G, which will allow for better internet services and browsing, with one-click internet browsing. On the music front (which usually generates the most friction) the handsts will have both the Vodafone music service and the Nokia Music store. The phones will be out in 2008.

This is a huge win for Nokia—Vodafone is one of the largest mobile carriers in the world, and is the one in the most number of markets. If Vodafone rolls the handsets out across all its subsidiaries Nokia will get access to a large number of markets, which could improve its bargaining position with other carriers in that market. It’s also a good move by Vodafone since it will be able to promote a wide range of services to its customers, which is becoming increasingly important...although a large number of people still go for the cheapest handset, the most desirable (ie, those with the highest ARPU) customers are looking at what they can do with the handset.
(release)

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