Nokia Picks HP as Partner for 'Visual Radio'
16 minutes ago Add Technology - Reuters to My Yahoo!
SAN FRANCISCO (Reuters) - Nokia (news - web sites) (NOK1V.HE) (NYSE:NOK - news), the world's largest maker of mobile phones, has chosen Hewlett-Packard Co. (NYSE:HPQ - news) to help roll out its FM-radio service on cell phones, the companies said.
Finland's Nokia first announced what it calls its Visual Radio service in late October, and already is selling phones that let users listen to FM radio through the handset.
But to expand the service, Nokia needs powerful computer servers with storage capacity needed for maintaining artist lists, titles, and promotional information. That is where No. 1 computer and printer maker Hewlett-Packard comes in.
Executives of both companies told Reuters they see a large market and new business models for the radio service, which synchronizes FM radio with visual signals the phone uses for voice and data traffic.
"As you drive to this 'digital lifestyle' where it's fundamentally mobile and digital and virtual, and content becomes much more meaningful, (the question is) how do you have business models in that world?" said Felice Swapp, director of strategic initiatives for Palo Alto, California-based HP.
Visual Radio, which Nokia will continue to develop and ultimately make available to other handset manufacturers, is one such business, she said.
Under the agreement, Nokia will develop and refine the visual radio service, while HP will sell the product to mobile handset service providers and FM radio stations. HP will also provide installation, consulting and support, and it will also host and manage the Visual Radio service on its servers.
HP CONSUMER PUSH
Reidar Wasenius, who leads the project for Nokia, said that about 75 percent of consumers who have an FM radio receiver on their handset typically use it about once a week.
But with the Nokia radio, users can punch up the title and artist of a song playing, view upcoming concert dates, participate in promotions and easily purchase ring tones or other content from their favorite artists, the companies said.
Users would likely be charged for the visual radio service according to how much they used it -- as measured by the amount of data sent to their handset -- or by other pricing plans that would be set by service providers, the companies said.
For HP, the agreement is another push further into consumer and entertainment markets. Chief Executive Carly Fiorina is the keynote speaker at the National Association of Broadcasters convention in Las Vegas next week.
Last month, Starbucks Corp. (NasdaqNM:SBUX - news) and HP announced a service that lets Starbucks customers buy custom music CDs. Starbucks hopes to expand the service to 2,500 stores in two years. HP is supplying a range of computing, storage and networking gear as part of that agreement, in addition to support.
Nokia said that by the end of the year it will be selling both high- and low-end phones with FM radio receivers that can display Visual Radio. The companies said the service will be widely available in the second half of the year.
