UPDATE: Nokia (NYSE: NOK) said the Ovi Store is on track for next month’s launch because it was never their intention to immediately launch operator billing and credit card billing in all the markets from the very start. See the company’s statement and explanation on an updated post here.
Nokia said today that when the Ovi Store launches this summer in the U.S., it will not allow users to pay for applications on their phone bill as originally expected, Reuters reported.
The change is a set-back for the handset maker, which is trying to become a software and services company. The billing functionality was expected to give Nokia a boost in the U.S. market, where it was going to be the first handset maker to offer the convenience. Other storefronts like Apple (NSDQ: AAPL), BlackBerry and Google (NSDQ: GOOG) require users to sign-up for external accounts. Nokia said consumers will still be able to pay through their operator in eight countries — Australia, Britain, Germany, Ireland, Italy, Russia, Singapore and Spain. The store, which will also except credit cards, is expected to launch in May.
The disappointing news follows an earlier announcement by Nokia today that it was pruning back its investment in starting up new services, and would slash another 450 jobs.
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