Nokia Rings In Wireless Rally

Though Verizon bills the upgrade as third generation, or 3G, observers like RHK analyst Muayyad Al-Chalabi point out that the gear, called evolution data only, or EV-DO, is not a true voice-and-data technology.

Al-Chalabi says this may suggest that Verizon may forego a full 3G network progression. That's a sign, he says, that some spending may continue to get pushed back.

Verizon says its EV-DO plans are a firm commitment to data under the belief there will be growth in areas like messaging, mobile Internet access and higher-quality picture swapping. As for voice capacity, a Verizon rep said spectrum acquisitions in some markets last year have not yet been put to use. These offer the company plenty of room to grow as calling volume increases.

One item that has some observers optimistic about Nokia is that average phone prices, which have been in steady decline, actually rose in the fourth quarter, to $127 from $124. Margins also improved. That means Nokia has had success with sales of its more expensive phones like the new camera models.

Rivals like No. 2 handset maker Motorola have stumbled badly in their efforts to get camera phones to the market.

Making a slight dig at Motorola, the hapless wireless tech giant, Sanford Bernstein analyst Paul Sagawa points out: "Nokia is much better at delivering than most competitors."

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