Nokia Assures China of Continued Investment Amid India's Rapid Telecom Growth

Strategic Insights -

Nokia's chief executive officer, Jorma Ollila, has reassured China that the company will maintain its investment plans in the country despite India's rapid rise as a major telecom market. Ollila believes that India is a promising market with great potential, but Nokia has no plans to relocate its Research and Development centers to India from China. Instead, the company will continue to beef up investments in China, where it expects subscriber growth to continue robustly. By 2010, China is expected to have added another 250 million mobile subscribers, making it the single largest mobile market in the world.

Key Takeaways:

  • Nokia will maintain its investment plans in China despite India's rapid telecom growth.
  • Jorma Ollila, Nokia's CEO, has stated that India is a promising market with great potential, but the company has no plans to relocate its R&D activities to India from China.
  • Nokia expects China's subscriber growth to continue robustly, with an expected addition of 250 million mobile subscribers by 2010.
  • China has more than 380 million mobile subscribers currently, with Nokia controlling a 33-34% share of the global mobile phone market.
  • Ollila stated that Nokia now has a 30% share of the Chinese handset market, including Hong Kong and Taiwan.
  • The deregulation of India's telecom market has resulted in an investment boom, attracting global technology giants.

Statistics:

  • China is expected to have added another 250 million mobile subscribers by 2010.
  • China has more than 380 million mobile subscribers currently.
  • Nokia controls a 33-34% share of the global mobile phone market.
  • Nokia has a 30% share of the Chinese handset market, including Hong Kong and Taiwan.
  • The country has an increasing number of high-profile investment deals from global technology giants.

Sources:

  • Asia Pulse, 28 Nov 08
  • China Daily, cited in Asia Pulse, 28 Nov 08
  • PTI, 28 Nov 08