Nokia Launches Low-cost Phones In India
I have previously written about Pakistan’s dependence on mobile phone imports. Here are some updates on what is going on in India where Nokia makes its moves to retain its top position. As reported widely in the media, Nokia continued its push into emerging markets, launching a 0.4 in thin “Barracuda” fashion phone and six other handsets predominantly aimed at the Indian market. It will be priced around Indian Rs. 4500 or $105. According to Nokia ” at this price the largest volumes are sold–on both developed and emerging markets.” I believe these phones will hit the Pakistani market in a few months.
Here is even more interesting news, as reported by WSJ. This reinforces the point that rurual markets are the new focus of telecom companies.
Nokia also launched two devices which use technology that makes it easier to share them among families and entire villages. The 1200 and 1208 models include call-tracking and multiple phone books so that many people can use the same phone. Preset time and cost barriers can also be set on the new phones, meaning that the calls can be terminated once it reaches its limit.
Nokia Siemens Networks, the recently merged telephone infrastructure businesses of Nokia and Siemens AG, also said Thursday that it was launching Village Connection, a product aimed bringing mobile networks to rural communities in India and other growth markets.
Last month, India’s largest mobile phone operator Bharti Airtel Ltd. said it had doubled its fourth-quarter net profit, saying rural areas provided a strong opportunity for further growth.
In addition to the barracuda phone, Nokia also launched several entry-level fashion phones, including cameras and FM radio. This is in contrast to the past when most phone manufacturers have offered basic phones into India, with very little functionality.
Nokia has managed to grow its world-wide share of the mobile phone market to 36% over recent quarters by targeting markets such as India and China, where mobile penetration is fairly low at 13% and 35% respectively. India has more than 166 million mobile subscribers and this is growing rapidly.
“India is very important to Nokia and to the global mobile communications industry as a whole,” said Soren Petersen, senior vice president for Nokia’s Mobile Phones unit said in a statement.
In other telecommunication happenings in India, Vodafone Group PLC, the world’s largest mobile phone operator, last month also received approval from India authorities to go ahead with its acquisition of a controlling stake in Hutchison Essar Ltd, India’s fourth largest phone network.
Pakistan has already been invaded with low cost GSM phone sets. Motorolla is selling (probably) the cheapest (although some of them look like (so to say) a dentist’s instrument.
And just yesterday, Ufone has launched a campaign in Karachi. The offer bundles a motorolla Csomething phone, Rs 75 balance and the ‘Public Demand’ pacakage for just Rs 1499, girls not included. (http://www.ufone.com/prepay_public.aspx)
Seems like Motorola and Nokia are competing for low-cost phone market and its helping consumers. A couple of questions for you:
1) Are these phones a good fit for users in villages and rural areas?
2) Is motofone successful in Pakistan?
Ufone is on the right track with ‘public demand’ - both with the package and the girls.
Okay. I read it again on the road this morning. The set is C123 (http://www.motorola.com/rtte/PCS/MEdocs/RDoC_CC3-41C21_171204.pdf)
These types of phones are a fit for villages and rural areas (strategy=voice only) because their simplicity is actually a needed feature not a lack of the same.
BTW, the ufone strategy is attracting negative comments, not just from the right wing but from the average person on the street. Families are taking the obviously suggestive campaign very negatively so girls and moms are already turned off. If you talk about the kids, they’re confused probably because they are yet to see the pakistani leisure workers ufone is trying to mimic here. Finally, if they are targeting the upper class youth, probably they’ll have to introduce a different set of models.
What these companies fail to understand is that while sex sells, nothing turns off your customers than talking to them in an extra-cultural lingo.
The only exception to the above generalization could be the
[...] nation is expected to have 100 million mobile subscribers. The size of the market is already attracting interest of manufacturers worldwide. Ufone is offering a C123 with Rs 75 balance and the ‘Public Demand’ package for Rs [...]
[...] the average joe Teefa on the street buying a new cellular phone worth $60 ~ $100, no local production of cellular terminals, PTA complaining about insufficient record keeping of SIM issuance and millions of users being [...]
I think Pakistan’s policy is not very clear as regards the mobile fone sets. Government should draft a policy that should encourage the manufacturing of cell fones in Pakistan instead of importing cell fones. That might be really very very helpful in saving the forex, enhancing the rate of employment and ultimately strengthening the economy of the country. This may not be implemented at once but step by step like in the first phase, prohibiting the importation of assembled sets, in the second phase, encouraging to manufacture certain parts of the sets in Pakistan and then finally pull back the free hand given for the imports of cell fones by imposing duties and taxes in such scenario. I hope that the authorities would already be working on this and if not, then will consider the drafting of such policy seriously.
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