Nokia has begun its campaign to re-imagine itself at Mobile World Congress and is looking to become the most operator-friendly smartphone vendor

The news of Nokia’s partnership with Microsoft seems to be sinking in at Mobile World Congress. Nokia’s CEO Stephen Elop continues to appear throughout the event to again tell people why this move makes sense. He’s confident in his messaging and delivering it clearly but his enthusiastic explanations don’t do the scope of the announcement justice.

Elop declared at Monday’s keynote presentation: "A battle of devices is shifting to a war of ecosystems.”

This signals a move in the market that has been coming into focus in 2010 with the emergence of Android as a true force in the smartphone market. Throughout Mobile World Congress, Elop has been banging the “three-horse race” messaging hard and Windows Phone 7 with Nokia’s reach will create a third combatant in the smartphone market. This will be a definite but distant third player and one that will have to make a pretty drastic statement when they finally bring a device to market.

Jo Harlow, senior vice president marketing at Nokia Mobile Phones, has hinted that this will be within 2011 but her statement was definitely not a guarantee.

Operator Friendly

What has been interesting since the initial announcement Friday night, where Elop said he’d been on the phone with European operators reassuring them, is the operator-friendly message that Elop has been emphasizing. Elop seems to be carving the smartphone market up and putting Nokia on the side of the operator and its business model.

Operators are in a unique position and need all of the help they can get to retain revenue and take some control back in the market they brought to life. If you are an operator you see Apple taking market share in areas you’d like to excel in while Google has seen Android explode in 2010 and at the same time a revenue hog on the web. In the smartphone market these two players are in a luxurious position as operators grasp at different ways to answer the “dumb pipe” question.

Nokia and Microsoft have the opportunity to be the shoulder to cry for operators that have seen opportunities squander elsewhere. iPhone is established and Android is a force in the market as we have seen throughout Mobile World Congress with this additional platform creating, what Nokia says, will be more competition and choice for operators.

Elop explicitly addressed the operator community during the Microsoft keynote on Monday and let them know that Nokia’s new partnership will create the most operator-friendly smartphone platform in the market. He added that Nokia and Microsoft would help operators to retain and drive revenue, which aren’t likely goals for Apple.

Elop said: “We understand what it means to be friendly to operators."

This kind of messaging plays into Nokia’s history of strong partnerships with its operator partners and broadly makes sense but looking at another aspectof Nokia’s business you wonder if Nokia needs to focus on the smartphone market. The company has shown its strength around the world with feature phones and is still a force in the market even though it may not appear to be an innovator any longer.

Peters Suh, CEO of Wholesale Applications Community (WAC) noted in an application-focused keynote panel that Nokia has between 30%-40% global market share in handsets, which he then followed up by saying, “but I’m not sure that the smartphone market is a global phenomenon”. This is a fair statement as emerging markets with limited mobile coverage may struggle to take advantage of advanced features.

Feature Phones Not Its Future?

Suh was highlighting that perhaps this doesn’t play to Nokia’s overall position or strengths in the mobile market. It may not want to play the role of emerging market or feature phone vendor but that may be what it is good at. Nokia has been looking for an identity for some time and this move has not brought anymore clarity into play.

What is clear is Elop may be playing to operators now but eventually Nokia will need to attract consumers and prove to them that its Windows Phone 7 devices are not just operator friendly but customer friendly as well.

Matthew_Whalley

Edel_Telecom

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Twitter CEO Dick Costolo believes the goal for Twitter is to be like water, to be immediately available and instantly useful.

Twitter has taken a mainstream role in pop culture but its CEO is striving to improve the service and have it reach more devices and engage more people.

Dick Costolo outlined Twitter’s goals, achievements and meaning at Mobile World Congress 2011 comparing the information network to the ubiquitous and usefulness of water. He said he wants Twitter to have the same functionality on every device, anywhere, adding that the Twitter experience isn’t the same on iPhone, Blackberry and Android. Costolo compared this to using a shower saying every time we use a different shower we don’t have to relearn how to use water.

 

Simple and Useful

"Our goals this year are that Twitter will be instantly useful. We want you to get a meaningful timeline right away," said Costolo. "We want the experience to be the same. I shouldn’t have to think about how to use Twitter…We want deep integrations into the platform. When you take a picture with a camera phone, you shouldn’t have to switch applications to tweet that photo."

He highlighted the importance of the mobile experience for Twitter users and noted that 40% of tweets are from mobile devices with 50% of Twitter users using multiple platforms.

Costolo continued the water analogy in explaining the meaning of Twitter and saying each tweet was like rain drop. There are billions of them but a single rain drop can hold tremendous meaning for some but nothing for others.

He said, “Some tweets are purely social and don’t have any extra meaning. This is where we’ve been criticized. What these criticisms miss is the distinctly personal connection of these tweets."

What Twitter has carved or stumbled upon is social context and how important that is for people as they sift through the mountains of data that appear in front of us everyday. As we try to make sense of all of this data, we need to shape it and contextualize it in order to evaluate it and give it meaning.

Costolo said the goal is to be simple and that is because Twitters users give order to their own universe and can constantly evolve their experience through following and unfollowing other Twitter users. Costolo sounds if he wants Twitter to be the least of the focus as its user focus on shaping their connections and interests into a service tailored to them. This ties into his ideas about deep platform integration noting that the Twitter just needs to work from smart devices to basic handsets with SMS services.

Costolo said: “With just a few social connections, a user is far more likely to become an engaged user. One of the things we have to do this year is shorten the distance between ‘awareness of Twitter’ and ‘engaged on Twitter.”

Revenue Through Engagement

This level of engagement is important to Twitter from a financial perspective as it is helping brands get in front of the right people with the right products and services but it will need to understand its users betters. Users that join Twitter and use it as a listening device are far less valuable to the company then people who are actively engaging with their community.

Costolo added that Twitter is making money. While that may be a vague statement, he certainly sounded like he understands his product and is clear on how he’d like to see the business grow.

Matthew_Whalley

Edel_Telecom