Nokia handset was pulled after connectivity issues on AT&T 3G network were reported

The iPhone has spawned an entire ecosystem of touchscreen devices that look to dethrone the Apple handset from the top of the smartphone pile. One of the most recent challengers to the iPhone came from the Nokia and is called the 5800 XpressMusic phone.

The handset launched on February 25 in America. The handset had been available in Europe since October 2008 and from launch until January 2009, Nokia said that the device had moved a million units.

Nokia brought the handset to America as an unlocked device, meaning that it had no carrier deal and promised to operate on most networks around the country. One of the big networks that Nokia promised compatibility with was AT&T. As it turns out, compatibility with AT&T’s network was not optimal for many users and after only a few days on the market, Nokia has stopped selling the handset in America until it can sort out issues with the AT&T 3G network reported by users.

According to AT&T users, the Nokia device failed to connect to the 3G network. Nokia said in a statement, "We have learned that some Nokia 5800 XpressMusic devices are having issues with 3G performance. This is a very isolated problem concerning only the North American market and is not specific to any other region or country."

Nokia was quick to point out that the issue with the handset was limited to America and specifically was limited only to users in New York and Chicago. Nokia promises that there will be a "quick remedy" to the connection issue plaguing the handset. The 5800 XpressMusic retails for $399 in America. The handset runs version five of Symbian S60 and features a 3.2-inch touchscreen, a 3.2-megapixel camera, GPS, Wi-Fi, and a FM receiver.

Nokia's CEO announced the day after the American launch of the 5800 XpressMusic that the company may enter the netbook market.