Nokia Slams Motorola on Euro 3G

This column was originally published on RealMoney on Oct. 7 at 2:11 p.m. EDT. It's being republished as a bonus for TheStreet.com readers.

Last winter, a strong market share in the nascent 3G phone market was one of Motorola's (MOT Quote) key advantages. Well, over the past two weeks, Nokia's(NOK Quote) new high-end phones have captured the lead in the European 3G race, and now the clock is ticking for Motorola, which must get the long-anticipated V3x and A1010 out within weeks to avoid a 3G market-share tumble.

This Christmas is widely expected to be a turning point for leading European mobile operators. This is the juncture where these companies begin to push 3G services seriously, trying to shift their customers from the second-generation GSM services to third-generation W-CDMA technology.

Last winter, W-CDMA phones were 160-200 gram abominations that were widely shunned by most consumers. This winter's new models are expected to have a better shot at mainstream success. The new wave of 120-130 gram models boast key novelties such as 2-megapixel camera phones and 250-K color displays.

Operators are beginning to roll out new promotional programs this October to prepare for the year's most important mobile-phone season -- and the early news flow is downright intriguing. Orange U.K. just announced its ambitious new mobile TV service for 3G networks and said it will be available for Nokia 6630, Nokia 6680 and Nokia N70 models. Almost simultaneously, T-Mobile U.K. announced its new "web'n'walk" service, which is meant to be give subscribers a "true mobile Internet" experience. This 3G service is being launched with five models -- Nokia N70, Nokia 6630 and three white-label phones (MDA and SDA).

What is going on here? Why have two major U.K. operators shuffled away from Motorola, even though the U.K. 3G phone market was dominated by NEC, LG and Motorola last winter? Apparently, Nokia has been faster than Motorola in getting out the new generation of 3G phones, which is important because October is the key month for operators since it's when many important promotional programs are locked in for the fourth quarter.