Nokia's Avvenu Buy To Bolster Its Market ShareNokia's Avvenu Buy To Bolster Its Market Share

Nokia, which already sells more mobile phones than its nearest three competitors combined, singed an agreement on Tuesday to acquire Avvenu.

The California-based startup provides Internet services enabling mobile users to securely access, use, and share personal computer files. Users can access files using Avvenu's "digital locker" technology even if their host computer is turned off.

Avvenu will be integrated into Nokia's new Services and Software unit, as a part of the company's re-organization planned in January. Once the acquisition closes, Nokia said it will use Avvenu's expertise to provide a secure file access and share service to mobile workers, as well as an enhanced offering for wireless carriers. Financial terms of the deal were not disclosed.

Nokia president and CEO Olli-Pekka Kallasvuo said at its annual investor day meeting in Amsterdam that it plans to increase its cell phone market share even more.

"The improvements we've made have driven the profitable growth and market share gains Nokia has enjoyed in 2007," Kallasvuo said in his keynote speech Tuesday. "And we aim to continue the good momentum in our device portfolio next year."

Nokia wants to have an edge over other providers by offering anytime access to PC content -- such a capability, the phone maker said, is currently missing in mobile productivity. Instant access to PC files and the ability to share them with others via mobile devices will make workers more productive, Nokia believes.

"With the integration of Avvenu's technology, Nokia will further extend its business mobility solutions beyond email to add collaboration tools that enable greater everyday productivity through access to a user's own content anytime, anywhere, from any connected device," said Mary McDowell, executive VP and general manager of Enterprise Solutions at Nokia, in a statement.

Nokia is also increasing its footprint in other ways. The company announced this week that it has expanded the Nokia for Business Channel Program to include wireless carriers and independent software vendors, and introduced new incentive programs to encourage the creation of mobile products and services for businesses.

Nokia also said it planned to raise its operating margins. The company said it is planning for its Devices and Services operation to achieve 20% markets during the next one or two years.

With its nearest two competitors -- Motorola and Samsung distracted with their unique problems -- Nokia may be able to increase its share of market beyond its current 39%. Motorola is undergoing a painful management change and Samsung saw Korean prosecutors raid its offices earlier this week looking for evidence of possible corruption.