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Nokia targets Middle East, Africa

Having identified Africa and the Middle East as fast-growing mobile telecoms markets, Nokia has introduced a range of entry-level cellphones aimed at these emerging regions.

The three new models, the Nokia 1112, 2610 and 2310, were launched at the Experience Mobility event in Soweto last week. All the models are expected to begin shipping mid-year.

The 2610, aimed at small and medium enterprises (SMEs), features e-mail and Internet access and supports MMS and Nokia express audio messaging for recording and editing messages.

The 2310 model, targeting music lovers, offers a short-cut key that activates the built-in FM radio, polyphonic and MP3-grade ringtones.

The 1112 model, designed for first-time users, has a speaking clock and alarm, and an interface that makes use of graphical icons and large font size to simplify user navigation.

Tomi Paatsila, Nokia`s VP for market operations in the Middle East and Africa, estimates the 1112 will sell for $55, the 2310 would go for $80 and the 2610 would cost $90.

"The pricing issue depends on the local markets, also taking into consideration taxes and tariffs," he says. "We have been working closely with operators and regulators in the Middle East and Africa regions to lower the total cost of mobile phone ownership for consumers."

African mobile market

Nokia expects about three billion mobile phone subscribers in 2008 worldwide, with significant growth expected in Africa, China, India and South-East Asia, where penetration levels are low.

Tania Steenkamp, Nokia SA communications manager, says there are 2.5 billion mobile phone subscribers worldwide.

Timo Toikkaken, senior VP for customer and market operations in Middle East and Africa, says in 2004 there were about 100 million mobile subscribers in Africa, which was the first continent where mobile subscribers surpassed fixed-line phone users.

He notes that a recent Nokia survey, completed in October, revealed that about 97% of Tanzanians have access to mobile phones and that about 28% use fixed-lines.

Petteri Terho, Nokia`s director for strategy and business development networks, adds that new mobile subscribers would come from lower-spending groups in Africa.

Toikkaken points out that SA is ranked 23rd in terms of global telecoms market size.

"The introduction of 3G technology in 2004 and recently the high-speed downlink packet access technology proves SA is a market leader in terms of development in the mobile phone market.

"Nokia also found that 85% of SMEs in SA make use of mobile phones to run their businesses," he adds.

"It is evident there is market demand for mobile phones in Africa, but there is still very low penetration," explains Toikkaken.

He attributes the expected demand in Africa and the Middle East to economic expansion and an emerging competitive environment.

Related story:
Nokia prepares for Africa, Middle East boom

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