Spokesperson for Fair Trading, Wayne Watson, confirmed that a meeting between Nokia executives and Fair Trading took place more than a week ago and that its investigators raised issues that were "of interest to the department", but would not comment on them in specific terms.
"In order for investigations to be successful we must conduct them in confidence," he said.
It seems, however, that Nokia customers burnt by the alleged screen defect are not so happy with the decision to keep the results of the meeting a secret.
"I think it's absolutely disgusting that a government department who's meant to look after consumers won't even tell them [consumers] what's going on," one frustrated Nokia customer told ZDNet Australia. "It's like [the Fair Trading Department] is taking Nokia's side at the expense of the people they're meant to look out for."
The decision to conduct the investigation beyond the public gaze is not inconsistent with the department's role as a consumer protection agency according to NSW Fair Trading Minister, John Aquilina.
"The department is acting in the interests of consumers," said a spokesperson on behalf of the Minister. "There is nothing unusual in the department conducting investigations in this manner. If the public interest were better served by another course of action such as a public statement, it would take it."
The shadow ministry for Fair Trading agreed.
"The department wouldn't comment unless there was a danger that people would be killed or injured," said a spokesperson for the shadow minister's office.
However, Aqualina's office was prepared to elaborate on Fair Trading's investigation slightly. The spokesperson said that a formal point of contact had been established between Nokia and the department, and the two parties will meet again early next year "to discuss levels of consumer satisfaction at that time."
It appears that the Department of Fair Trading is reluctant to take action against Nokia publicly. The department told Aqualina's office that it hasn't uncovered any "firm evidence of a major design fault" in Nokia's handsets since receiving complaints from customers.
"If any further evidence comes to light we would reassess the situation," said Watson explaining that the department may consider issuing a public statement.
Consumers with any available evidence can contact Aquilina at John.Aquilina@parliament.nsw.gov.au .
A former member of the mobile phone industry told ZDNet Australia that the department's investigators should not have difficulty finding evidence.
"All that the department would have to do is go through the repair records from the Melbourne Nokia Care Centre and they would see a common repair. That is, a common fault," said the source requesting anonymity.
In an earlier report another mobile repair centre owner told ZDNet that Nokia had changed the part alleged to be faulty, in later model handsets.
While the department claims that it is still waiting for evidence, it seems that some Nokia customers whose handsets are affected by the alleged fault may find themselves stranded between the end of their handsets warranty and the termination of their carriage service contract.
One ZDNet Australia reader claims that his Nokia 8210 failed one month past its warranty period, leaving him in a difficult position.
"Telstra are demanding the full buy-out price to terminate the contract even though the minimum cost [of the handset] has already been exceeded several times over," he said. "It seems the bigger they get, the less we get."
Tim Scott, corporate affairs manager for Telstra OnAir said that Telstra and other carriage providers have little responsibility in the matter.
"It's primarily an arrangement between Nokia and its customers," he said, but conceded that it presented a "less than satisfactory arrangement for both customers and Telstra".
When mobile handset subsidies are discontinued on January 1 2002, de-coupling mobile purchases from carriage service contracts, the role service providers will become less relevant in handset warranty disputes. However, Scott says that customers will still have to pay a fee if they wish to terminate a service contract early.
Currently mobile service contracts extend from 12 to 24-months, with customers given economic incentives for choosing longer service periods.
I know 3 people (including me) with an Nokia 8210. All of us are are suffering severe display problems (e.g hieroglyphics all over the place). All of us are just out of the warranty period. This is unacceptable, and it implies that Nokia have sold us a defective phone not fit to carry out its purpose.