3GSM: Nokia and Vodafone - best of friends?

You'd be forgiven for thinking they'd never fallen out. Jorma Ollila and Arun Sarin, the CEOs of Nokia and Vodafone, yesterday shared a stage at the 3GSM mobile communications show and talked up their respective strengths - especially in upcoming third-generation offerings.

Along with Orange and others, Vodafone has pledged 2004 to be the year of 3G telephony, by which it means the evolution from second-generation GSM and GPRS to networks and devices that enable faster data access and multimedia services.

Focusing on a future based on a mix of telecoms, IT and infotainment, CEO Sarin said: "The real opportunity comes with 3G. It will take Vodafone to new heights. It is the catalyst."

Further bullish comments are expected throughout this week.

Ollila - whose equipment giant is now made up of divisions spanning handsets, network infrastructure, multimedia and enterprise connectivity - was singing from the same optimistic hymn sheet, as might anyone whose revenues are expected to grow robustly over 2004 after three flat years.

He said the industry is about to "change out of all recognition" with the "story of 2004 being the commercialisation of 3G". He added we'd have the "commitment and sheer hard work from the industry" to thank for this promising future.

The new gadget du jour was the 9500 Communicator, like its predecessor Symbian-based, using a Series 80 interface and aimed squarely at enterprise users.

However, there was famously bad blood between the two companies when Vodafone shunned Nokia - thought unwilling to bend the way it supplies its terminals - in favour of Sharp for the supply of several million handsets for the Vodafone Live! all-in-one service.

Sarin said that at that time Nokia was "not that far along" but that now it will be a "key supplier" in second- and third-generation worlds.

Vodafone hasn't spelled out who its 3G handset providers will be - it has only so far launched a 3G data card service for laptops - but says it remains on course for a widespread launch by year's end.

It's a prediction backed up by analysts, one of whom said: "They will, at the very least, make the Christmas [buying] season."

Coincidentally, Ollila pointed out Nokia has shipped 3G handsets to operators in 50 countries across Europe, the Middle East and Asia this year and that it is the largest supplier to Vodafone KK in Japan, one of three 3G networks in that country.

Clearly it’s the case - as it has always been - that these two big hitters have a lot more to gain from getting on than falling out.