Nokia (NOK) is launching a new phone on which "users can make calls over the Internet when they are in range of an unlicensed wireless network, such as Bluetooth or Wi-Fi," according to Reuters. That could mean a lot less minutes used on the cellular networks that usually sell Nokia phones.
When the new Nokia 6301 gets within range of a GSM, GPRS or UMTS mobile phone network, it switches to a standard cellular mode.
But, bad news is bad news. Big cellular network providers like AT&T (T) and Sprint (S) rarely make much money on handsets, except the Apple (AAPL) iPhone. Most phones are offered cheap in exchange for sign-ups to multi-year calling plans. These lock in revenue for the carriers.
The biggest enemy of the current cell revenue model is the upcoming ability of the consumer to use free internet service to make calls, transfer data, or access audio and video files.
Now that the world’s largest handset provider is a champion of the internet-enabled handset, cell carriers need to ask what they should do next.
Douglas A. McIntyre
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
