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Nokia chooses India for latest mobile phone launch

By John Ribeiro, IDG News Service
May 03, 2007 07:35 AM ET
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Nokia chose Delhi, India, for Thursday's launch of seven mobile phones for emerging markets, including two intended for shared use by families or entire villages.

The launch of these GSM phones in India comes in the wake of attempts by the Indian government and mobile services operators in the country to introduce low-cost mobile telephony to India's rural masses.

Like the traditional public call office, the shared mobile phone offered through a local village entrepreneur is seen by many nongovernmental organizations as the best way to increase mobile penetration in rural markets, where users may not be able to afford a personal phone. In many villages, local entrepreneurs have already emerged to offer this service.

Nokia's 1200 and 1208 models offer call-time tracking and multiple phonebooks, the company said. To help manage airtime costs, the call-time tracking feature allows consumers and village phone entrepreneurs to preset a time or cost limit on individual calls, automatically ending the call after the limit has been reached, it said.

India had 166 million mobile subscribers at the end of March, up 68% over a year earlier, according to the Telecom Regulatory Authority of India. Most of these subscribers are in urban areas. Large mobile service providers have identified the rural market as the next big opportunity. The government is also subsidizing roll-outs of mobile services in rural markets, and has proposed that operators share infrastructure to reduce costs.

A number of multinational mobile phone vendors, including Nokia, have started manufacturing phones in India. Nokia also has other operations in the country including a research and development center and a network operations center.

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