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Technology Stocks : Nokia Corp. (NOK) -- Ignore unavailable to you. Want to Upgrade?

To: Eric L who wrote (1758)	11/30/2001 4:19:53 PM
From: Eric L	Read Replies (1) \| Respond to of 9255

re: EMC on Nokia Internet Conference in Barcelona - OMA - New Software Division Nokia recently created a new Mobile Software division which brings together the work of developing server software on the one hand and device software on the other (not applications). The new division is made up of over 1,400 people, compared with approximately 20,000 each at Nokia Networks and Nokia Mobile Phones. Nokia still appears to be surprised by the extent to which the market appears to want to react to its lead - it clearly wants to drive growth in the industry but without being seen to be dictating the industry's direction. >> Nokia Pictures The Future With The 7650 Abigail Browne EMC Cellular November 30 2001 'Openness' was the buzzword of the day at Nokia's press conference in Barcelona on 19 November 2001, held to announce the launch of the new imaging phone, the 7650. The MMS-enabled phone is the most tangible of Nokia's innovations aimed at kickstarting its part of the mobile content market, adding to its push towards open standards and a more horizontal structure for the industry which it believes will create the climate to fuel growth. Multimedia Messaging (MMMS) - a habit to drive the growth of mobile content - As the industry seeks to encourage an evolution in the way customers use their mobile phones - from simply making voice calls, to combining this with messaging, through to embracing a diverse range of content services, Nokia has chosen to give MMS prominence, describing the launch of its new MMS-enabled 7650 as the company's most significant step in 2001. Nokia belives MMS offers the end-user as an intuitive step beyond SMS, which explains the company's excitement at and belief in the service given that tens of billions of SMS messages are currently being sent each month. (The GSMA estimates that the world's GSM population will be generating 30 billion SMS per month by December 2001). Moreover Nokia estimates that on average an MMS message will generate 1.3 voice calls. As with SMS, but in contrast to WAP services, the appeal of MMS is that it is the end-user who creates the content - making an MMS device not only a tool of communication but also of expression. The complete lack of emphasis on the 7650's WAP over GPRS capability was noticeable at the press conference held to announce its launch, despite the fact that it is Nokia's first device to combine a colour screen and GPRS. The question as to what segment of the market the 7650 is targeted at generated considerable discussion among Nokia employees after the launch - several of whom agreed that it would be desirable to have a 7650 in addition to their 9210 Communicator which they still regarded as the best Nokia handset for day-to-day business purposes. The fact that the main selling point of the 7650 is its built-in camera suggests that its main target is not business users (although many so-called 'early adopters' are in fact business people, they would not be buying it primarily as a business tool). The point is that Nokia sees this as the first of a generation of imaging phones, which will have an appeal to the mass market. Nokia estimates that in 2003 MMS will be an integral feature in all new Nokia phones. Nokia faces the task not only of encouraging more diverse use of the mobile device but also of encouraging people to move beyond thinking of it as a 'phone'. If users are going to be willing to pay more not only for the device itself, but also for the services available over it and the if product is to take a hold in the mass market the industry will have concivnce subscribers that they want to use these services. Nokia estimated that the retail price of the 7650 will be approximately EUR 550 unsubsidised - expensive for a 'phone' but not high for a digital camera/email device/mobile phone in one. Nokia launches two other devices in its more traditional areas On 19 November Nokia launched two other handsets and three Bluetooth accessories: The Nokia 5210 'Active' Handset The 5210 marks the introduction of a new 'Active' category of handset (in addition to Nokia's existing Premium, Fashion, Classic, Expression and Basic categories) Incorporating innovative materials the handset has a durable removable shell design where the two parts of the handset's plastic shell click together - a fun gimmic! A thermometer, a digital clock. Shipments are scheduled to begin in Q1 2002. The Nokia 6510 (Classic Category) - Mobile wallet - designed to make the use of m-commerce functions easier (e.g the user can pre-program credit card details into the phone such that it is only necessary to type a password to complete a transaction up to a value specified by the user) - GPRS-enabled - Xpress-onTM colour covers - Built-in FM radio. Shipments are scheduled to begin in Q1 2002. Bluetooth-enabled accessories (compatible with version 1.1 of the Bluetooth specification) - The Nokia Wireless Headset - Nokia Wireless Car Kit - Nokia Connectivity Card. Shipments are scheduled to begin in Q1 2002. Nokia 'Pushing For Open Standards' To Fuel Industry Development The decision to encourage users into the realm of mobile content via MMS is set against moves Nokia has been making in recent months to encourage the industry as a whole to accelerate the development of mobile data services by licensing its software to other players in the industry and through adopting open standards (Nokia was one of 20 signatories on 12 November 2001 to a commitment to an open mobile software and services market), with the aim of fuelling growth and innovation. In addition Nokia is trumpeting its attempts to act as a broker between operators and content providers: Matt Wisk, VP Marketing, Nokia Networks, cited the example of a recent deal where Nokia had approached a radio station and encouraged it to develop a WAP site, subsidising the programme. Nokia had then presented the product to an operator. Nokia had left it up to the operator to negotiate financial terms directly with the radio station and did not directly benefit financially - the incentive for Nokia in such deals is the time element - it sees an urgent need to 'kick start' the mobile content industry (similar language was used by Qualcomm in its relaunch of its BREW platform in May 2001 ). Nokia is not the only company seeking to open up the industry , but in its position as clear market leader in handset sales it has most to gain if the market as a whole grows. Nokia's New Mobile Software Division' Nokia recently created a new Mobile Software division which brings together the work of developing server software on the one hand and device software on the other (a representative stressed that Nokia was not going to be in the applications business). The work of the division thus overlaps with that of both Nokia Networks and Nokia Mobile Phones, to some extent providing a horizontal link between the two, but it is independent of both and its creation reflects Nokia's willingness to move to open up the industry since it will theoretically treat Nokia and other device manufacturers on equal terms when considering potential contracts (Nokia MSW is targeting the top six handset manufacturers in the industry). The new division is made up of over 1,400 people, compared with approximately 20,000 each at Nokia Networks and Nokia Mobile Phones. In the view of Niklas Savander, VP Strategy, Marketing and Sales, Nokia Mobile Software, the next 9-12 months will be critical in determining the architecture of the industry, with the need for agreement on standards most pressing in six areas before content services can boom: * Browsing * Messaging * Downloading * Mobile Digital Rights Management (DRM) * Content formats * Authentication Jorma Ollila, Nokia chairman and CEO, in his speech at the 19 November press conference, stressed that Nokia's aim was to avoid industry fragmentation. He argued that an open architecture would allow the industry to avoid extra licensing costs, time delays and the need for extra memory in terminals. Nokia's Own Position As Market Leader Nokia employees were far from complacent at the press conference for the launch of the 7650 - there was a strong awareness among many Nokia employees at the event that in rapidly changing market conditions it was only through continuing to be innovative that Nokia would retain its leading position. The awareness could be fuelled by a fear of competitors such as Microsoft coming into the mobile software market or merely by Finnish modesty about the company's succees. Nokia still appears to be surprised by the extent to which the market appears to want to react to its lead - it clearly wants to drive growth in the industry but without being seen to be dictating the industry's direction. << - Eric -