Nokia Oyj, the world's No. 1 cellular phone maker, said it's releasing the first mobile phone that can browse the Internet based on the next generation of cellular technology.

The new 7110-series incorporates the so-called Wireless Application Protocol, or WAP, which enables a cellular phone to access the Internet. The phone, based on dual-band GSM 900 and GSM 1800 networks, will be available in the second quarter.

The Finnish company last year passed Motorola Inc. as the world's top cellular phone maker mainly because of strong sales of its lower-end 5100 series and 6100 series. Swedish rival Ericsson AB has been slow to introduce a new range and only unveiled its slim T28-series in January.

``It looks like Nokia will hold the competitive advantage over Ericsson this year,'' said Visa Manninen, an analyst at D. Carnegie. ``It's positive that they've got a phone this advanced this fast out on the market.''

The new 7110 weighs just 141 grams and is similar in appearance to the 6110 series, although it incorporates a larger screen and slide cover. It was unveiled at the GSM World Congress in Cannes, France.

Data Key

To enable Internet browsing on the large screen, Nokia has developed a scroll button, which it calls the Navi Roller. The browser helps to find sites on the Internet through Yahoo Inc.'s search engine. The Web site addresses can then be saved.

The phone can also send and receive faxes and e-mail and exchange information between other Nokia models through an infrared port, Nokia said.

``Demand for better data capabilities has increased,'' said Manninen at Carnegie.

The 7110 enables talk time of four-and-a-half hours with a standard battery and up to seven hours with an extended battery.

Although the new phone is a step towards the next generation of mobile telephony which will speed up communications significantly, the 7110 is restricted to the data transmission speeds of the existing networks.

The Global System for Mobile Telecommunications network currently allows the 7110 to transfer data at a speed of 14,400 bits per second. The next generation could allow speeds of over 100 kilobits per second with the General Packet Radio Service - system, or GPRS. Other next generation systems could allow speeds of up to 2 megabits per second.

CNN Service

While the current system isn't fast enough to transfer large pictures, it is sufficient to transfer text.

Nokia said today Time Warner Inc.'s Cable News Network launched its CNN Mobile service, which sends news to customers through GSM networks. The CNN Mobile is the first service to be built on the WAP.