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
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
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
4 © 2006 Nokia
Affordable Connectivity is the key enabler
UniversalAccess
Affordablecommunications
Total cost of ownership
Regulatory environment
Cash barrierfor entry
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
6 © 2006 Nokia
Consumer segmentation
LOWERINVOLVEMEN
T
RATIONAL
ASPIRATIONAL
HIGHERINVOLVEMEN
T
7 © 2006 Nokia
Consumer driven productsHIGHER
INVOLVEMENT
LOWERINVOLVEMEN
T
RATIONAL
ASPIRATIONALFamily Providers
Nokia 1112
8 © 2006 Nokia
Consumer driven productsHIGHER
INVOLVEMENT
LOWERINVOLVEMEN
T
RATIONAL
ASPIRATIONALStyle Followers
Nokia 2310
9 © 2006 Nokia
Consumer driven productsHIGHER
INVOLVEMENT
LOWERINVOLVEMEN
T
RATIONAL
ASPIRATIONAL
Nokia 2610
Life Builders
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
11 © 2006 Nokia
Cash barrier
Mid income Low income
Cash at handCash at hand
• Handset: microfinance• Service: micro top-ups, balance transfer
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
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
14 © 2006 Nokia
Thank you!