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CHICAGO (Reuters) - Sprint PCS Group (NYSE
CS - news), which stopped selling Nokia (news - web sites) cell phones about two years ago because of technical problems with the handsets, said on Friday it will start selling a Nokia (NOK1V.HE) (NYSE:NOK - news) model again by the end of the year.
Sprint PCS, the fourth-largest U.S. wireless telephone company, will carry the Nokia 3585 voice-only cell phone on a limited basis at Sprint PCS and RadioShack (NYSE:RSH - news) stores, spokesman Dan Wilinsky told Reuters.
Sprint PCS shares closed 5 percent higher at $5.25 on the New York Stock Exchange (news - web sites) on Friday amid broad strength in the telecom sector.
"We view this rekindled relationship between the two as a vote of confidence by Sprint PCS," said U.S. Bancorp Piper Jaffray analyst Samuel May.
"We believe the 3585 model will be positioned as a low-end (under $100) model and fill an important gap in the Sprint PCS product portfolio, which is dominated by high-end handsets."
May added Sprint PCS's business represents a significant boost for Nokia, which has struggled to sell its Code Division Multiple Access phones and gain share. CDMA (news - web sites) is the second-most widely used wireless technology standard in the world.
Sprint PCS controls 35 percent to 40 percent of the CDMA market in the United States, according to May. Verizon Wireless (NYSE:VZ - news) (VOD.L) the nation's largest wireless operator, also provides cell phone service based on CDMA.
The Overland Park, Kansas-based operator had stopped selling phones made by Finland's Nokia, the world's largest cell phone maker, due to technical problems with the phones.
"Sprint has never lost touch with Nokia in the years since we last sold their phones," said Wilinsky. "We both tried to get a device right technically with a new chipset."
Wilinsky said the 3585 model meets its lab standards.
He declined to comment on the price of the cell phone but said the
company planned to issue a statement with more details next week.
Asked whether Sprint PCS would carry more Nokia phones in the future, Wilinsky said, "We've been in dialogue over the years. Stay tuned."
He said the decision to sell the Nokia phone will have no impact on its relationship with Qualcomm Inc. (NasdaqNM:QCOM - news), Samsung Electronics Ltd. (05930.KS) and Sanyo Electric Co. Ltd. (6764.T)
Qualcomm owns most of the key patents to CDMA technology and supplies most CDMA handset makers with cell phone chips. One analyst said Sprint PCS's decision was a mild negative for Qualcomm because Nokia makes its own chips.
Qualcomm shares closed 4 cents higher at $40.68 on the Nasdaq on Friday.
Samsung and Sanyo are major suppliers of Sprint PCS' cell phones.
CS - news), which stopped selling Nokia (news - web sites) cell phones about two years ago because of technical problems with the handsets, said on Friday it will start selling a Nokia (NOK1V.HE) (NYSE:NOK - news) model again by the end of the year.Sprint PCS, the fourth-largest U.S. wireless telephone company, will carry the Nokia 3585 voice-only cell phone on a limited basis at Sprint PCS and RadioShack (NYSE:RSH - news) stores, spokesman Dan Wilinsky told Reuters.
Sprint PCS shares closed 5 percent higher at $5.25 on the New York Stock Exchange (news - web sites) on Friday amid broad strength in the telecom sector.
"We view this rekindled relationship between the two as a vote of confidence by Sprint PCS," said U.S. Bancorp Piper Jaffray analyst Samuel May.
"We believe the 3585 model will be positioned as a low-end (under $100) model and fill an important gap in the Sprint PCS product portfolio, which is dominated by high-end handsets."
May added Sprint PCS's business represents a significant boost for Nokia, which has struggled to sell its Code Division Multiple Access phones and gain share. CDMA (news - web sites) is the second-most widely used wireless technology standard in the world.
Sprint PCS controls 35 percent to 40 percent of the CDMA market in the United States, according to May. Verizon Wireless (NYSE:VZ - news) (VOD.L) the nation's largest wireless operator, also provides cell phone service based on CDMA.
The Overland Park, Kansas-based operator had stopped selling phones made by Finland's Nokia, the world's largest cell phone maker, due to technical problems with the phones.
"Sprint has never lost touch with Nokia in the years since we last sold their phones," said Wilinsky. "We both tried to get a device right technically with a new chipset."
Wilinsky said the 3585 model meets its lab standards.
He declined to comment on the price of the cell phone but said the
company planned to issue a statement with more details next week.
Asked whether Sprint PCS would carry more Nokia phones in the future, Wilinsky said, "We've been in dialogue over the years. Stay tuned."
He said the decision to sell the Nokia phone will have no impact on its relationship with Qualcomm Inc. (NasdaqNM:QCOM - news), Samsung Electronics Ltd. (05930.KS) and Sanyo Electric Co. Ltd. (6764.T)
Qualcomm owns most of the key patents to CDMA technology and supplies most CDMA handset makers with cell phone chips. One analyst said Sprint PCS's decision was a mild negative for Qualcomm because Nokia makes its own chips.
Qualcomm shares closed 4 cents higher at $40.68 on the Nasdaq on Friday.
Samsung and Sanyo are major suppliers of Sprint PCS' cell phones.