Friday, June 27, 2008

Nokia targets rural India in expansion plans

New Delhi: Rural India could well become the focus of the world's biggest mobile phone maker, Nokia Oyj, in its expansion plans in one of the fastest-growing wireless markets, according to its chief executive officer and president Olli-Pekka Kallasvuo. India is already adding about eight million mobile-phone subscriptions a month, making the country one of the world's fastest-growing markets for both Nokia and its rivals.

Kallasvuo added that India's countryside consisting of nearly 1.1 billion people could be greatly impacted by Nokia's plans, as many are still not linked through telecommunications. "People can earn their living, stay in touch and reach their mobile communities more easily and, definitely yes, we have to put a lot of more emphasis here to increase our presence and penetration in the rural areas," he said.

"We see and continue to see rural areas as a great opportunity and potential in the future," he told reporters here. The Finnish major revealed in a press statement that it may adopt the microfinance route to escalate its market presence. It would also come up with special offers which could make mobile phones more attractive buys.

"Nokia India, which is now engaged in providing agriculture-based solutions catering to farmers, is working with content providers and has started programs for farmers," it said. The solutions range from providing information on market prices for agricultural products and weather updates to financing options, it said.

Nokia hopes to target the local village consumers to enhance its rural distribution network and tapping virgin markets, by launching awareness programmes for them and educating them about the benefits of mobile phones. Nokia also plans to incorporate opportunities in Internet services on mobile phones.

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