Will Nokia make an MPoC play

Nokia's Booklet 3G could signal a new era of competition among mobile device makers, but it's too soon to say if the Windows 7 Netbook will manage to carve out a niche for itself in healthcare. While it's not unusual for the world's largest maker of cell phones to hop into the computer game--everyone's doing it--it is worth noting that Nokia's latest offering comes with a subsidized price tag of $299, thanks to an exclusive arrangement with AT&T.

Initial reactions to the device are strongly positive, given the rock bottom pricing and a solid feature set that includes a 12-hour battery life, sharp screen resolution, and a slick, lightweight design. For $299, customers get a sweet mobile device--and a two-year commitment to AT&T. Service will cost $60 a month for up to 5GB of data per month. An unsubsidized Booklet 3G, which does not require the $60-a-month AT&T plan, is available for $599.

The Nokia-AT&T deal follows a flood of criticism aimed at AT&T for poor 3G reception, particularly for Apple's iPhone handsets. At CTIA, AT&T's CIO John Donovan defended the wireless carrier's networks, saying that a broad range of mobile devices--not just iPhones--are leading to a surge in mobile traffic. He added that AT&T has been making many moves to boost its wireless data infrastructure to manage this trend.

The pact between Nokia and AT&T also comes on the heels of speculation that Apple will be hard hit by Verizon's decision to sell handsets powered by Google's Android. More than a dozen new Android-powered models are slated to hit the market over the next 10 months, which will significantly boost Google's presence in the smartphone arena.

Since mid-summer, we've heard rumors of Apple's disenchantment with AT&T's network performance for mobile Web surfing, and there's been talk of the iPhone maker dropping its exclusive distribution deal with AT&T to allow for a relationship with Verizon. But with market mavens predicting a big uptick in Android market share later this year, the longer Verizon can make Apple wait, the better the deal for Verizon.

Back to healthcare. While Nokia hasn't announced specific plans to target the healthcare space with the new Booklet 3G, it's no secret that the company has been bleeding market share to Apple, which has gained more ground in healthcare than many once thought possible. Nokia's move to sew up an exclusive 3G service deal with AT&T, backed by the right product push, has the potential to upset healthcare's Apple cart. Or, it could just keep things interesting.