In a strategic blitz to take advantage of the revenue streams in what industry experts call emerging or new-growth markets, Nokia Corp. has rolled out a string of mobile phones, business models and network solutions.
Pointing out Russia, India and Latin America as prime examples of this initiative, the company described the markets as capable of lifting worldwide mobile subscriptions to 2 billion by 2008 from the current 1.2 billion.
“New-growth markets will be a key driver of the mobile industry in the coming years,” said Jorma Ollila, Nokia chairman and chief executive officer at a press conference in Moscow. “There is extraordinary potential in the number of people currently without mobile service,” he said, adding that mobile services have reached only 20 percent of the world population with 4 billion without any telephone service of any kind.
The company said Russia will enjoy a 200-percent leap in subscriber growth, with users exceeding 60 million by 2008.
Moving to those markets requires a business model that challenges traditional wireless solutions, said Nokia, adding it hopes to tackle it with a new mindset and end-to-end solutions that break traditional cost structures. The Finnish company will pare total cost of ownership with affordable handsets and reduced capital and operating expenditures.
“Nokia sees that with the right mix of phones, optimized network solutions and low-cost voice and data services, operators can in the near future generate reasonable profit from customers even at average revenue per user levels of $5 per month and below,” said the company.
Already, the company has launched its Nokia Connect GSM solution aimed at markets with low ARPU. The system will save money with a concept that together maximizes the number of subscribers per site and minimizes the number of sites required, claimed Nokia.
“With standard-site solutions, operators can streamline their logistics process, simplify and speed up deployment and reduce the need for site visits,” said Nokia. “Remote network maintenance and centralized network management contribute to savings in OPEX.”
In the Philippines, Nokia has signed a deal with mobile carrier Smart Communications Inc. to deploy the Nokia Connect GSM.
“Through Nokia ConnectSites, Smart will be able to install cell sites in more areas at a more rapid pace,” said Napoleon L. Nazareno, Smart president and CEO.
