NEWS & VIEWS: From Handsets to Networks

Comment

Digg

Del.icio.us

Cellphone major Nokia, came out with several new models of handsets in June. Communicating the company's different new initiatives and progresses was also an agenda at the Nokia Connections 2004 event, held at Singapore.

In the mobile market, Nokia's strategy has two major pillars; one, targeting new market for market expansion and two, driving the fixed line to mobile substitution. Both these strategies are anchored in the common theme of affordability. The total cost of ownership (TCO) of a mobile phone has two major components; handset cost and services cost. Introduction of cheaper models takes care of the handset affordability issue for the new markets, while Nokia is also providing solutions to the service providers to reduce the service cost.

The service cost accumulates from three major cost heads: subscriber acquisition cost, network cost, and servicing cost. Nokia's AMR and Smart Radio concept reduce the network costs significantly. This concept operates on the premise of reducing costs by reducing the number of base stations with the help of increased coverage of each base station. By putting the entire equipment on the tower itself, this technology can eliminate the cost associated with RF cables, shelter for the equipments, and air-conditioning of the room. It can reduce the costs by 40 percent, claims Nokia. Apart from reduced costs, the technology also helps in faster rollouts-usually a big challenge for operators.

The new launches range across the new entry-level, voice-centric model 2600 to the top-end 6630. Three of these models are clamshell phones. Out of the five new models, Nokia 6630 was the most catchy. This small 3G handset offers e-mail, broadband access to multimedia content, live video streaming, and video conferencing. All this is going to make your pocket only 127 gm heavier. The phone works on all 3G networks, which allows the users to roam around USA, Europe, and Asia seamlessly. It also has a 1.3 mega-pixel camera-display and can record up to 74 MB of memory, which is so far is the top of this class.

Given the fact that around 60 operators are due to launch 3G networks and one-third of them are in Asia, this handset is expected to be a success in Asia. According to Nokia, the new users of 3G in this region are going to welcome this handset. However, it would be interesting to watch the off take of this particular model at an estimated price of around 500 euros, according to market sources.

Another new launch, the Nokia 6260, has features like a camera, video recorder, web browser, and e-mail. Another clamshell, with stainless steel finish, Nokia 6170, also has a camera. But its most exiting feature is 'push-to-talk' (PTT ).

The Nokia 2650 is an entry-level clamshell model. It is primarily for voice communication and does not have many jazzy features. The candy bar-shaped Nokia 2600 is the most basic version among the new launches. Like 2650, it does not have much except for essential features like voice and SMS.

Parijat Chakraborty