Just how far will Nokia's transformation go?

Faced with intense competition from Apple--and with Google on the horizon--Nokia expanded far beyond its core device business last year, introducing new web, music and gaming services in concert with new handsets. "We are constantly thinking beyond the phone," said Nokia CEO Olli-Pekka Kallasvuo in summer 2007. "Devices alone are no longer enough." But as the company continues its metamorphosis from manufacturer to service provider, it threatens to irreparably damage its relationships with network operators. Realistically speaking, how much further can Nokia go? Already Orange UK griped in a leaked memo that the combination of the Nokia Music Store link and Orange's own branded music service on the same handset could confuse its subscribers, prompting a threatened boycott of Nokia's new N81 device. Don't expect rival operators to keep their mouths shut much longer. 

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