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A few months ago when I published our Digital Radio report, I stuck my head out and suggested that network operators would push handset manufacturers to include digital radio (DAB or HD Radio) receivers in handsets to provide high quality music experiences – with smartphones starting to include them in 2011. Recently, Nokia launched a headset accessory that includes a DAB receiver with a micro-USB interface to enable handsets to receive DAB radio. They previously announced a video versions supporting DVB-H. The device is expected to start selling before the end of the year in the UK for 40- 45.

While this falls short of incorporation in the handset itself – it points to continued demand for DAB radio in Europe, and handset manufacturers paying attention to the trend. Nokia’s strategy could include testing demand with a standalone product, capturing a larger market than their own handsets and/or avoiding adding cost into a competitively priced phone while leveraging a strong accessory market.