Summary:

Nokia (NYSE: NOK) is hoping to cash in on the soaring demand for mobile broadband. Nokia vice president for hardware platform components Tap…

Nokia (NYSE: NOK) is hoping to cash in on the soaring demand for mobile broadband. Nokia vice president for hardware platform components Tapio Markki told Reuters that the handset maker is taking advantage of its expertise in building 3G technology and will start shipping its first mobile “dongles,” which connect laptops to wireless broadband networks using HSPA, early next year. No word on how much the modems will cost. Nokia did say, however, that the devices would be sold mostly through operators and bundled with services. The sector is currently dominated by Chinese manufacturer Huawei.

Research firm Strategy Analytics estimates that the global market for external USB modems and PC cards will grow to 26 million units in 2009, up from 20 million this year. Operators in Europe have been eager to tap into the popularity of mobile dongles. Carriers in the UK, including Vodafone (NYSE: VOD) and O2 are not just subsidizing the cost of the modems but bundling free laptops in monthly mobile broadband deals as well. The eventual aim is to be able to have a two-screen play, the PC and mobile phone, on which to offer services such as search and advertising, among others.

By Dianne See Morrison

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