New Growth Markets - Nokia vie Larilahti... · 2 © 2006 Nokia Global mobile penetration 08 e...
Transcript of New Growth Markets - Nokia vie Larilahti... · 2 © 2006 Nokia Global mobile penetration 08 e...
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1 © 2006 Nokia
New Growth Markets- Nokia view
Anne Larilahti
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2 © 2006 Nokia
Global mobile penetration
08 e
Source: Informa & Nokia estimate, Dec 2005
0-92 -93 -94 -95 -96 -97 -98 -99 -00 -02-01 -03 -04 -05 e -
200400
600800
1,0001,2001,4001,6001,8002,0002,2002,4002,6002,8003,000
3 billionby 2010
2 billionin
September 2005
0-92 -93 -94 -95 -96 -97 -98 -99 -00 -02-01 -03 -04 -05 e -
200400
600800
1,0001,2001,4001,6001,8002,0002,2002,4002,6002,8003,000
3 billionin 2008
2 billionin
September 2005
08 e0
-92 -93 -94 -95 -96 -97 -98 -99 -00 -02-01 -03 -04 -05 e -
200400
600800
1,0001,2001,4001,6001,8002,0002,2002,4002,6002,8003,000
3 billionby 2010
2 billionin
September 2005
0-92 -93 -94 -95 -96 -97 -98 -99 -00 -02-01 -03 -04 -05 e -
200400
600800
1,0001,2001,4001,6001,8002,0002,2002,4002,6002,8003,000
3 billionin 2008
2 billionin
September 2005
TODAY• Penetration 38%• 2.5B subs
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3 © 2006 Nokia
Source: The Impact of Telecoms on Economic Growth in Developing Countries, Waverman, Meschi & Fuss
Socio-economic benefits of mobility
Macro level: GDP GrowthIn a typical developing country, an increase of ten mobile phones per 100 people boosts GDP growth by 0.6 percentage points.
Micro level: Productivity increase• Being reachable• Travel avoidance• Access to information• Mobile phone as a business• Financial transactions
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4 © 2006 Nokia
Affordable Connectivity is the key enabler
UniversalAccess
Affordablecommunications
Total cost of ownership
Regulatory environment
Cash barrierfor entry
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5 © 2006 Nokia
Total cost of ownership
handset14%
tax15%
service71%
Source: GSMA Report, “Tax and the digital divide”, Sep 2005
1984: $18001984: $1800
2003: $1002003: $1002008: ?2008: ?
Time
Pric
e
Cost of lowest priced handset to end-user
Source: Nokia research
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6 © 2006 Nokia
Consumer segmentation
LOWERINVOLVEMEN
T
RATIONAL
ASPIRATIONAL
HIGHERINVOLVEMEN
T
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7 © 2006 Nokia
Consumer driven productsHIGHER
INVOLVEMENT
LOWERINVOLVEMEN
T
RATIONAL
ASPIRATIONALFamily Providers
Nokia 1112
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8 © 2006 Nokia
Consumer driven productsHIGHER
INVOLVEMENT
LOWERINVOLVEMEN
T
RATIONAL
ASPIRATIONALStyle Followers
Nokia 2310
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9 © 2006 Nokia
Consumer driven productsHIGHER
INVOLVEMENT
LOWERINVOLVEMEN
T
RATIONAL
ASPIRATIONAL
Nokia 2610
Life Builders
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10 © 2006 Nokia
Total cost of ownership
handset14%
tax15%
service71%
How can operators and Nokia help to reduce the cost of service and thus the total cost of ownership?
Source: GSMA Report, “Tax and the digital divide”, Sep 2005
1984: $18001984: $1800
2003: $1002003: $1002008: ?2008: ?
Time
Pric
e
Cost of lowest priced handset to end-user
Source: Nokia research
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11 © 2006 Nokia
Cash barrier
Mid income Low income
Cash at handCash at hand
• Handset: microfinance• Service: micro top-ups, balance transfer
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12 © 2006 Nokia
GOVERNMENT INTERVENTION TOEXTEND SERVICE INTO THIS AREA
POLITICALLY &SOCIALLYDESIRABLE
REGULATORY OBSTACLES NEEDED TO BEREMOVED AND/OR NEW BUSINESS MODELSWITH LOWER COST STRUCTURE NEEDED TOEXTEND SERVICE INTO THIS AREA OR SEGMENTS
COMMERCIALLYFEASIBLE
MARKETEFFICIENC
YGAP
CURRENTEXPANSIONPLANS
Regulatory EnvironmentPO
VER
TY
GEOGRAPHIC AND AFFORDABILITY ISOLATION
EXISTING ACCESS ANDPENETRATION TODAY
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13 © 2006 Nokia
Summary• The strongly continuing mobile growth brings socio-economic benefits• Mobile penetration is driven by affordable connectivity
• Total Cost of Ownership• Cash barrier• Regulatory environment
• Handsets – one size does not fit all• Networks – choose technologies based on TCO• Public – private cooperation is key
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14 © 2006 Nokia
Thank you!