Nokia's Internet offering is far from ready and the world's top cellphone maker is seeking further acquisitions to speed up roll out of new services, Niklas Savander, the head of the unit, said in an interview.

Nokia bought U.S. digital maps firm Navteq for $8.1 billion in July and has acquired ten smaller firms to jump-start its Internet services business as the growth in the cellphones market is set to stall.

"We're not done," Niklas Savander told Reuters in an interview, when asked about further acquisitions.

Likely targets could be small companies which develop services Nokia itself plans to offer in the future -- enabling the Finnish firm to roll those services out faster, he said.

In an online media event later on Tuesday, Nokia will introduce The Files on Ovi service, based on the acquisition of Avvenu last year, which allows users to store files in a "cloud" of servers so that they are always accessible, an increasingly common service offered by Internet firms like Google and Yahoo.

Nokia introduced a new personal information management (PIM) synchronization service for calendar, contacts, notes and tasks between Nokia phones and its Internet services site -- similar to Apple and Microsoft offerings.

"We obviously think there is genuine consumer demand. Information that is contained on device is becoming more and more critical to people," Savander said.

"We are incrementally, step-by-step, building up the offering that has to be matched with demand," he said.

Nokia has not unveiled user numbers for its Internet services, but its navigation, gaming and music offering created April-June revenues of 119 million euros ($170.7 million), up 42 percent from the previous quarter.

BUILDING THE OFFERING

Nokia hopes to combine its Internet services into one user-friendly system, but so far all services have separate sign-on systems and no links between them.

"Our target is to make it more seamless, more and more integrated. We are absolutely not yet where we need to be."

"When will it be perfect? Never. When will it be better? Very soon. So it is an incremental thing, in six months it will be dramatically better than it is today and in 12 months it will be more improved," he said.

Nokia's move to services has raised fears among operators that the cellphone vendor would steal their growth business, but Savander said the dialogue with operators was very pragmatic, as both look for more users and profits.

"In the end we have the same goal: we need to find ways to convince the consumer to incrementally spend on their phone."

Savander said he expects Nokia's phones with free access to music to also be sold by telecom operators, with the timing now up to the carriers.

"The issue with music is a special one as many operators already have their own music offering," he said.

Last week Nokia said it would kick off of its "Comes with Music" offering -- a new business model, allowing users to keep the music they download during 12 month subscription period -- signing a deal with retailer Carphone Warehouse in Britain to offer the first model to pre-paid clients.

Deals with operators are usually more beneficial to phone makers as operators subsidize phones to boost demand and win new clients, hoping to win the subsidy back in monthly bills.

Source:Reuters