Nokia says its Nokia 808 PureView will start shipping from May.

The cameraphone, which was announced at Mobile World Congress, combines a 41-megapixel sensor with Carl Zeiss optics, and sophisticated imaging algorithms. Images can be produced at a maximum of 38 megapixels.

Facebook has agreed to acquire photo sharing service Instagram. Two-year-old Instagram offers iOS and Android apps for taking photos, adding effects and then sharing the results online.

Instagram is expected to continue as an independent application.

In today’s edition of The Fonecast we’re taking a look at all the top mobile industry news stories from the last week.

As well as discussing mobile phone coverage on Eurotunnel and 4G service in the UK, the team also looks back at the highlights of Mobile World Congress in Barcelona.

Mark Bridge and James Rosewell report for from the final day at Mobile World Congress in Barcelona. James visits the WIP app developer conference, while Mark has conversations with Visa and with Dolby.

You can listen to the programme on our website audio player, via iTunes, by using our RSS feed or by downloading the MP3.

Dolby is demonstrating HDR (High Dynamic Range) photo encoding on a smartphone at Mobile World Congress this week.

The technology combines a number of photos with different exposures to produce a final image that captures shadows and highlights without over-exposure or under-exposure. Each photo is saved as an JPEG-HDR file, which enables it to be viewed on conventional photo viewers. However, the additional HDR information remains in the image file, offering the opportunity of returning to the image after it was taken and using HDR software to adjust the exposure.