Nokia Corp. said it is looking to make handsets more accessible and affordable in India, the world's fastest-growing and second-largest telecommunications market.
Nokia's Indian unit plans to sell handsets in some rural areas under a program that allows the purchasers to pay in installments, the Finnish company's chief executive, Olli-Pekka Kallasvuo, said Wednesday.
Nokia expects about 500 million cellphone users in India by 2010, up from 427 million now.
"There is a lot of opportunity here [in India], and we need to make mobility more accessible to all people, including those in rural areas, which is the next frontier to be conquered," Mr. Kallasvuo said.The company has more than half the share of India's mobile handset market, according to analysts. Nokia said it plans to roll out the installment plan to sell its handsets in 12 Indian states after a pilot program covering more than 2,500 villages in the southern states of Andhra Pradesh and Karnataka.
Under the pilot program, a microfinance organization bought handsets from Nokia and sold them to women in rural areas by charging them 100 rupees, or about $2, in weekly installments for as long as 25 weeks.
Nokia expects about 500 million mobile-phone users in India by 2010, up from 427 million now, Mr. Kallasvuo said.
"We believe that much of this growth will take place in non-urban markets and rural penetration in India is still very low at 13%," Nokia said in a statement.
Source:The Wall Street Journal Aug,19,2009
