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Trevor Snapp/Bloomberg
A resident speaks on a Nokia Asha mobile phone on a street in Nairobi.
Nokia Oyj (NOK1V), seeking to revive sales of cheaper mobile phones in growth markets such as India, unveiled new software to run its Asha devices and a pact that lets customers use Facebook (FB) for free on their handsets.
The software, called the Asha platform, is a revamp of the older S40 program that ran 300 million phones sold last year alone. The updated software will first appear on the new Asha 501 and lets users swipe from screen to screen while multitasking, bringing the functions of cheaper phones closer to higher-end ones such as Nokias Lumia.
Nokia sold about 11 million fewer mobile phones in the first quarter than analysts had projected, with sales of the more basic handsets plunging 21 percent to 55.8 million units. Chief Executive Officer Stephen Elop blamed intense competition and said adding newer Asha models and aggressive pricing will help Espoo, Finland-based Nokia win back customers.
The new Nokia Asha 501 raises the bar for what is possible in affordable smartphone design, Timo Toikkanen, head of Nokias basic-phone unit, said today in a statement.
Shares of Nokia lost 7.1 percent this year through yesterday in Helsinki, heading for their sixth straight annual drop. Finnish markets are closed today for a public holiday.
The Asha 501 allows a user to swipe side to side to multitask between different applications, similar to Nokias Lumia smartphones that use Microsoft Corp.s Windows software, incorporating some of the capabilities acquired when Nokia bought Norways Smarterphone AS last year. The phone will cost $99 and start rolling out to 90 countries by June, Nokia said. Future Ashas will also use the new software, while current Ashas arent compatible.
A deal with Facebook Inc. (FB) and mobile operator Bharti Airtel Ltd. (BHARTI), Indias largest wireless carrier, will allow Asha 501 users in India and Africa to check their account without paying any data charges. MTN Group Ltd. (MTN), Africas largest mobile-phone operator, will ease access to Facebook through the Asha 501, Nokia said. Indonesias PT Telekomunikasi Selular, known as Telkomsel, will offer a special data plan for Asha 501 users.
While demand for the iPhone and Android devices has made smartphones the fastest-growing part of the market, basic handsets still make up more than half of units sold. That means hundreds of millions of phones each quarter -- a market Nokia dominated until Asian manufacturers such as ZTE Corp. (000063), Huawei Technologies Co. and Samsung Electronics Co. (005930) started challenging it more aggressively. Nokia is now the No. 2 mobile-phone maker, trailing Samsung.
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Nokia Unveils Software to Boost Sales of Cheaper Phones
Many people, when they hear "open source," think "oh boy, free software." But making software available under open-source terms sometimes opens up a more powerful possibility: the chance to blow up existing models and rebuild them, piece by piece.
That's what makes Metaswitch Networks' Project Clearwater -- an open-source effort for Internet Multimedia Subsystem (IMS) software, which launches Wednesday -- so promising, says Tom Nolle, principal analyst with CIMI Corp.
As Light Reading reported last week, Clearwater is an attempt to make core IMS software available under open-source licensing, the wrinkle being that this version of IMS will be tailored toward cloud-hosted services. (See IMS Gets Some Open-Source Love.)
Metaswitch is providing the initial code, which is available at projectclearwater.org, and naturally, the vendor is inviting the rest of the industry to get involved. Metaswitch's release does not mention what kind of open-source licensing Project Clearwater will use.
Part of Metaswitch's bet is that the cloud is different enough to warrant building a better IMS from scratch. In his press-release statements Wednesday, Metaswitch CTO Martin Taylor refers to the chance to "accelerate the promise of the new software telco," breaking free from the "expensive and exceedingly vendor-centric" IMS approaches on the market.
This approach also happens to give Metaswitch an angle against bigger IMS competitors such as Alcatel-Lucent and Ericsson AB.
To Nolle, the bigger possibility coming out of Clearwater, and really out of virtualization (the dissolving of hardware-based functions into software components) in general is to redefine certain network functions, "to rework those workflows," he says.
That seems reasonable when adapting networking functions to the cloud, where the basic concept of location -- where is my application running? -- stops being fixed or even predictable.
Nolle sees other avenues where open-source IMS code could be useful, too. The nature of "4G" wireless networking seems likely to change over time, and IMS will have to change accordingly. "It's easier to do that if we've got a componentized IMS that we can diddle with," Nolle says.
His point is that it's good to see a fresh approach germinating. "I think the operators believe a lot of the componentization being done today is just taking devices and mapping them one-to-one to virtual devices," Nolle says.
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