Nokia's Orange deal promises first step on road to 3G

Nokia's £931m deal with Orange promises the dawn of multimedia mobile phone applications.

3G heralds the process that will transform handsets into handheld computers, capable of supplying 'always-on' web connections, video and e-mails.

Under today's three-year agreement, Nokia becomes a major supplier for Orange's 3G mobile phone networks in Europe.

The company is charged with supplying a network that can expand on the existing GSM technology to incorporate a range of advanced services.

Although trials of UMTS (Universal mobile Telecommunication System) networks will begin this year, Nokia says its 3G phones will not be available until the third quarter of 2002.

In the meantime network operators and manufacturers will develop multimedia applications to ensure that using 3G is a rich experience for consumers once it becomes available.

According to Nokia a major task throughout the process is to ensure the complex jigsaw of complementary technologies remains in the background.

Arja Suominen, vice-president of communications for Nokia Networks, said it's vital consumers see only the full picture when the technology becomes available.