Nokia plans to issue an update of its 770 Internet Tablet early next year, adding instant messaging and internet telephony to the device that started shipping last November.

The company did not disclose which applications it plans to bundle. But Nokia's director of product management, Olavi Toivainen, told vnunet.com that he would favour applications using open standards over proprietary platforms.

This would rule out a bundling deal with parties like Skype or MSN Messenger and makes the Jabber client a prime candidate.

A future hardware version will also feature high quality audio to give the tablet better media features.

Nokia declined to say when consumers could expect a new hardware model. Instead the company plans to focus on increasing performance through software upgrades, according to Ari Jaaksi, Nokia's director of open source operations.

"It is interesting to see how long we can improve the software and what can we do with this hardware. That is going to have an impact on the decision about when we need to move on [with a hardware upgrade]," he told vnunet.com. 

The Nokia 770 is a handheld computer running Linux with a built in Wi-Fi radio. It comes with several internet applications including a browser, email client, Real player and Macromedia Flash. Users can download and install additional software.

Nokia aims the devices at consumers who are considering additional computers because in most cases these are solely used for web browsing and reading email, said Toivainen.

"The proposition is: 'Are you going to buy a fourth computer for your home?' Don't bother. Buy something that is more free from your location and can be used outdoors," he said.

Meanwhile Nokia consciously stays away from the traditional PDA market that is centred around electronic address books and calendars.