Emerging Markets Woes (A): Nokia in India and China
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Case Code: BSTR425 Case Length: 23 Pages Period: 2008-2012 Pub Date: 2013 Teaching Note: Not Available |
Price: Rs.500 Organization: Nokia Corporation Industry: Mobile Telecommunication Equipment Countries: Global; China; India Themes: Competition, Turnaround Strategy, International Management |
Abstract Case Intro 1 Case Intro 2 Excerpts
Mobile Telecommunication in India and China
In 1915, American Telephone & Telegraph (AT&T) discussed the concept of wireless telephones. By 1930, one could communicate with people travelling on a ship in the Atlantic using radio signals. By 1946, the first mobile phone calls were made from cars, mostly used by the police department.After this, the technology underwent many changes. In 1973, Dr. Martin Cooper invented the first personal handset while working for Motorola.
During the 1970s and 1980s, the technology was improved and commercialized by various companies and by 1990 there were 12 million users of mobile handsets globally. With further improvements in network technologies and frequencies and the opening up of economies, mobile usage reached 4.7 billion in 2009, 5.4 billion in 2010, and around 6 billion subscriptions (equivalent to 87% of world population) by the end of 2011. Of these 6 billion subscribers, 4.5 billion were from the developing nations - which was 76% of the global subscriber base...
Though telecommunications started in India in 1850, there was meager growth in the number of telephones used till the 1990s. The number of telephones in the country remained low at 80,000 in 1948; 980,000 in 1971; 2.15 million in 1981, and 5.07 million in 1991. In 1994, the National Telecom Policy (NTP) was formulated with the objective of offering world class telecommunication services for all at affordable prices while protecting the defense and security interests of the country. It was further improved with NTP 1999. This attracted Foreign Direct Investment (FDI) and stimulated domestic investment in the sector. With the initiation of economic reforms (during the 1990s) in the country, there was also a change in the spending patterns of Indians. Owing to its large population and low telephony penetration levels during the period, India became the fastest-growing telecom market in the world. In 1995, GSM entered India and the first call was made on July 30, 1995, using the Nokia 2110 mobile phone and the network of MobileNet...
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