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Social networking phenomenon Facebook is in talks with Nokia to embed a version of its software into certain webphones, a move that could snatch the advantage from companies like Hutchison's INQ, that have pioneered the idea of integrating web services deeply into handsets. As if aware of the danger, INQ has beefed up its own team, hiring former executives from several big name mobile players to prepare for a global push for its web optimized devices.

Nokia and Facebook, if their talks prove fruitful, are playing to two important trends of 2009 - the mobilizing of social networking; and embedding popular web services in phones to provide an enhanced experience and one-click access (and keeping customers' web activities under the vendor's or carrier's control). Facebook aims to integrate its application into as wide a range of phones as possible, and is already working with INQ/3, Palm, Motorola and others, while rival MySpace is close to RIM - but Nokia would be the big prize.

Talks are still at an early stage, and there are no hints yet of the exact form a deal might take, or how revenue would be shared. It is likely that Facebook contact data would be integrated with the phone's address book and with Nokia cloud services like Ovi Mail. Nokia sources indicate that the company is still in a dilemma over whether to try to create its own social networking brand, around products like Mosh, or work with an established player. One sticking point, insiders told The Wall Street Journal, is that Nokia wants to limit the amount of customer data, such as web browsing and buying habits, that Facebook could access.

INQ was set up by Hutchison last year to work with web services players to create low cost webphones, optimized and branded for specific applications such as Skype and Facebook. Its first customer is its Hutchison stablemate 3, which has been an early mover in working closely with internet brands, but INQ is targeting a wider base. It has hired a trio of senior executives to help it achieve this in 2009. Allen Burnes has joined from Motorola as director of sales and operations; Amit Gupta from Qualcomm as director of engineering; and Leonardo Poggiali from Sony Ericsson as head of operations.

INQ CEO Frank Meehan said: "We are completely reinventing the way device companies are structured, and Amit, Leo and Allen will leverage their deep industry insight and highly cultivated networks so we can quickly harness the emerging opportunity for social-centric mobiles in multiple, simultaneous markets."

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