Lanka's potential to be a leading Nokia market

Lalin FERNANDOPULLE reporting from Dhaka, Bangladesh

Sri Lanka has immense potential to be a leading market for Nokia in the region following the restoration of peace and stability in the country, said General Manager, Emerging Asia Nokia, Prem Prakash Chand.

He said Sri Lanka is one of the most advanced markets in Asia and peace divends will position the country in the same place as Singapore in the market for technology driven products.

Chand was addressing a ceremony at the Hotel Western Inn in Dhaka to launch Ovi Mail and mobile phones for emerging markets in Asia.

General Manager, Emerging Asia Nokia, Prem Chand explains a point at the media briefing.

"With peace and stability restored in the country investor confidence will grow and various sectors will revive", Chand said.

The power of the internet is unbelievable. Mobile phones catalyse the growth of the informal sector across the globe and empowers entrepreneurs with an immediate impact on people's lives", Chand said.

An Ovi Mail has the potential to be the first digital identity for people in merging markets. Ovi mail account can be created and used directly on a Nokia device without a PC.

He said since the launch of the beta service, around 90 percent of the mail accounts have been created on a Nokia phone. Customers in emerging markets prefer to connect to the internet over a mobile phone than a PC.

Sri Lanka, Nepal, Maldives, Bangladesh and Bhutan are the emerging markets in Asia for Nokia.

"High import Duties and mushrooming of illegal players are the major challenges for Nokia to expand its market in Sri Lanka. Duties contribute around 30 percent to the cost", he said.

"Fixed line internet penetration rates among markets in Asia are low. Access to internet through mobile phones is the most feasible and affordable option", Chand said.

The Nokia 2323 classic and 2330 classic will be in the market in June while Nokia 2730 classic will be available during the third quarter this year.

The first quarter performance for Nokia in Sri Lanka was unsatisfactory but the company is optimistic that dividends of peace would result in better performance during the rest of the year.

"Low foreign remittance, high inflation and the drop in the value of the Sri Lankan currency were the main reasons for the decline in the market", Chand said.

Fixed line penetration has been low due to high cost of PCs, laptops and desktop. The new consumers prefer a handset device with internet services due to convenience, affordability and functionality.

Vice President, Entry Category Marketing, Paula Laine said Nokia unveiled a strategy in 2002 to lower the cost of owning and operating a mobile phone and offer wide range of benefits to customers in emerging markets.

"Today we are expanding that vision by launching a number of devices and services that aim to bring the power of internet to the markets" Laine said.

She said the mobile device and the internet are a powerful combination in connecting people, accessing information, news, entertainment and sharing.

Nokia can fuel the growth of the internet in emerging markets by launching products and services which are affordable, relevant and easy to use.