"We're cooperating with operators on services... We're not in contradiction to what they're doing," says Kallasvuo. "This has not been happening in stealth mode. We announced our services strategy a year ago." (See Nokia Adds Skype to N800, Nokia, Microsoft Team, Nokia Invests in Kyte.tv, and Nokia Streamlines Structure.)

    Indeed, Nokia will not want to damage its core handset business with operators.

    According to M: Metrics' Burk, Nokia is in a good position to enable mobile Internet services, particularly over-the-air music downloads, because they determine the user interface and how easy it is to find a service. "They can make it a one-click business," he says.

    In the U.K., 79 percent of mobile phone users have handsets that can play music. Of all the phone users in the U.K., on an average over a three-month period ending June 2007, 13.4 percent have listened to music that they sideloaded from a PC, and only 2.1 percent have downloaded songs from an operator, according to M:Metrics.

    Burk says that with Nokia's services, more people will find it easy to download music over-the-air onto their phones, adding that users really need 3G phones to do it.

    Among Nokia's new devices are an updated N95 and the new N81, which has 8 Gbytes of storage. Nokia's marketing for the N81 marketing comes complete its own music video and dedicated song with irresistible lyrics, such as, "N81, when I caress your sexy Navi Wheel..." (See Nokia Intros Multimedia Devices and Nokia Launches New N95.)

    Nokia will also soon introduce touch-screen user interfaces on certain handsets, like Apple Inc. (Nasdaq: AAPL - message board)'s iPhone. (See Report: Apple Picks Euro iPhone Partners.)