Nokia, the world’s biggest handset maker, is buying out its fellow shareholders in Symbian, the UK-based handset software company. At the same time, the Finnish giant is throwing Symbian’s mobile phone operating system open for royalty-free use.

Symbian’s operating system software, originally developed by UK company Psion, is today used to operate two-thirds of smartphones – handsets with computer-like capabilities – and 6pc of all mobile phones.

However, it is facing new threats to its dominance, from Google’s Android and Apple’s iPhone, adding to existing rivalry from Microsoft, with Windows Mobile, and BlackBerry maker RIM.

Nokia was quick yesterday to dismiss the idea that its moves were simply a reaction to its rivals. “This is a market-making move and looking at it as a response to anything would not do justice to what we are doing,” said Kai Oistamo, executive vice-president of Nokia.

But analysts were in little doubt. “This move’s a shrewd response to growing threats from other providers of mobile phone software,” said Geoff Blaber of industry watchers CCS Insight.

advertisementMr Blaber made particular reference to the “open-source” LiMo Foundation as well as Google’s Android, which also promises to offer handset makers an operating system at virtually zero cost.

Nokia is launching the non-profit Symbian Foundation, which will unite the Symbian’s operating system with three user interfaces – Nokia’s S60, Motorola/Sony Ericsson’s UIQ, and NTT DoCoMo’s MOAP – to create one open mobile-software platform.

Nokia said the whole system will be open source – which means that developers can access its software code free of charge.

“It offers us an opportunity to innovate faster on a bigger, united, more widely accepted platform,” Mr Oistamo said. “It also enables us to deliver new products, we believe, faster to the market. I’m convinced we will sell more products.”

The news is likely to please departing Vodafone chief executive Arun Sarin, who has consistently told the industry to streamline the number of mobile handset operating systems so as to encourage the development of new software applications.

Vodafone has emerged as one of the members of the new Symbian Foundation, which includes mobile networks AT&T and NTT DoCoMo and chip makers Texas Instruments and STMicroelectronics.

Symbian’s closest rival is Microsoft’s Windows Mobile operating system, which has just 13pc of the market.

Microsoft charges handset makers $8 to $15 per phone, according to research firm Strategy Analytics, while Symbian charges on average $4.10. Under Nokia’s ownership, Symbian will come free.

“This puts a lot of pressure on Microsoft right at a time when they are trying to really push into the consumer space,” said Gartner analyst Carolina Milanesi.

“Lower price points are what operators and the market need to push smartphone adoption and dropping royalty is going to help that. For operators this offers a good alternative to Android.”

Google is hoping that Android will allow it to generate more revenue from internet advertising as more people access the web on their phones.

Last year, Google announced an alliance of 30 partners who would co-operate on a handset designed to allow owners much greater control over the device.

However, it emerged this week that the so-called “Gphone” – a new handset powered by the search giant’s software – is unlikely to appear until the end of the year.

“By creating an open-source software platform, Nokia has taken the fight to Google and will leverage its existing clout in the market to isolate Google,” said Emeka Obiodu, telecoms analyst at Global Insight.

“Given the combination of delays, uncertainties about evolutionary path, and Nokia’s latest initiative, Google’s game plan is fatally derailed and will struggle to gain traction in the market.”

Nokia, which makes 40pc of all phones sold globally, will pay €264m (£209m) to buy the remaining 52pc of Symbian shares it does not own.

Sony Ericsson, Ericsson, Panasonic and Siemens have accepted the offer, and Nokia said it also expects Samsung Electronics to accept.

As Nokia’s market share is much larger than 48pc among all Symbian phones sold, it has been paying more to its partners in Symbian in royalties on the phones it makes than it has been getting from the company.

Nokia said it expects the deal to be completed by the end of this year, and to weigh on earnings in 2009. Nokia expects the acquisition to reach break even in 2010, and boost earnings in 2011.

The BlackBerry Pearl Flip 8220, a 3.6-ounce clamshell adaptation of the compact Pearl “smart” phone, will be available from several global carriers this fall, Co-Chief Executive Officer Jim Balsillie said.

A smart phone offers advanced capabilities beyond those of a typical mobile phone, often with PC-like functionality.

No price was given for the new quad-band BlackBerry, but is believed to be priced in the $150 to $200 range, infoSync World Inc. reported.

The phone initially will be available in the United States through T-Mobile USA Inc. in an exclusive deal that will last at least through the end of the year, the Waterloo, Ontario, company said.

Blackberry Storm 9530

The BlackBerry has been making its presence felt in the consumer market since the arrival of the Pearl a few years back, but today sees the UK launch of what is likely to be its most popular consumer device to date — the Storm.

It is the first touchscreen BlackBerry and will be exclusive to Vodafone, which has been working with creator RIM for over a year on the handset. (Demo)

Already the mobile phone company — which will be offering the Storm in 10 countries worldwide — has received pre-orders from well over 100,000 British customers who want one when it goes on sale.

The phone is RIM’s response too the growing popularity of touchscreen devices, which was sparked by the arrival of the iPhone a year and a half ago. Vodafone lost out on the iPhone to bitter rival O2 in the UK.

More recently, Nokia has jumped on the touchscreen bandwagon — which has to date been dominated by Asian manufacturers such as LG and Samsung — while T-Mobile made a major splash recently with the G1, the first handset to include Google’s Android operating system.

The G1 is, of course, made by HTC which recently launched its own-brand full touchscreen device — called the HTC Touch HD.

The Storm, meanwhile, is free to anyone willing to sign up to a two year contract at £35 a month, making it cheaper than the G1 and iPhone.

Nokia has yet to sign up an operator for its touchscreen phone in the UK.

Through July 14, customers who download the software will receive Frankenstein: Prodigal Son by Dean Koontz; One Shot by Lee Child; The Alchemyst by Michael Scott; Julia Child’s Julia’s Kitchen Wisdom and Master your Metabolism by Jillian Michaels. The books are worth more than $40 collectively, Borders said.

Customers will also get a chapter of Danielle Steel’s forthcoming novel Legacy, which isn’t available anywhere else.

Borders launched its e-bookstore earlier this week, entering the fray along with competitors Amazon.com and Barnes & Noble.

Borders e-book reading software is available across an array of platforms including e-book readers and mobile devices such as the iPhone, Blackberry and Android phones with its partner Kobo.