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Saturday, August 14, 2004

For Nokia, There's Music in the Air via Bweek

Nokia is upping the ante in the growing battle over digital convergence. The Finnish mobile-phone giant has staked a claim in the nascent business of wireless music-on-the-go, announcing a little-noticed deal with Loudeye, a Seattle-based startup, to collaborate on technology for downloading songs over the air to mobile phones. If the partnership works, mobile phones could become stronger competitors to portable music players such as the Apple (AAPL ) iPod. Equally important, Nokia could help mobile operators develop a lucrative new revenue source from selling and distributing digital music.Nokia (NOK ) is upping the ante in the growing battle over digital convergence. The Finnish mobile-phone giant has staked a claim in the nascent business of wireless music-on-the-go, announcing a little-noticed deal on Aug. 9 with Loudeye (LOUD ), a Seattle-based startup, to collaborate on technology for downloading songs over the air to mobile phones. If the partnership works, mobile phones could become stronger competitors to portable music players such as the Apple (AAPL ) iPod. Equally important, Nokia could help mobile operators develop a lucrative new revenue source from selling and distributing digital music.Nokia will certainly benefit if music phones take off and it manages to sell tens of millions of units. Its infrastructure business also will do well if Nokia sells packaged solutions with Loudeye that help operators get quickly into the mobile music business.

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