Nokia's Strategy in India
	
 
		
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Case Code : BSTR174 Case Length : 19 Pages Period : 1998-2005 Organization : Nokia India Pub Date : 2005 Teaching Note : Available Countries : India Industry : Telecom
  
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Nokia - Made in India Contd...
	
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One, that its strategies - including ones like developing a phone specifically 
for India - are respected. But, more importantly, Nokia's win is also an 
endorsement of the importance of the ubiquitous cell phone as a durable in 
today's world. After all, unlike its competitors, most of which offer a slew of 
durables, Nokia is mostly a cell phone company."7 
  In 2005, Nokia was recognized as the 'Brand of the Year'by the Confederation of 
Indian Industry, India's apex industry association. The company was chosen for 
this award because of its high brand recall, well established distribution 
channels and being 'most preferred' by the consumers. 
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Enamored of Nokia's success in the Indian market, Harvard 
University had invited Nokia India to talk on 'How Nokia cracked open the Indian 
market?' 
	
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		The Indian Mobile Phones Industry
		
		 The mobile phones industry made a slow start in India in 1995. Several 
			private players who had entered the industry in 1995 exited in the 
			next few years due to the unfriendly telecom policies of the Indian 
			government, high licensing fees and absence of a proper telecom 
			regulatory body. The growth in the subscriber base of mobile phones 
			remained sluggish initially, reaching the 1 million milestone in 
			1998. In 1999, the Government of India announced a new telecom 
			policy. This policy planned to provide telephones on demand by 2002.  | 		
	 
 
Among other things, the policy allowed unrestricted private 
entry into almost all mobile service sectors. The government allowed cellular 
mobile service providers to share infrastructure with other operators. It also 
allowed existing operators to migrate from fixed license fee to one-time entry 
fee with revenue sharing. This policy helped many private operators to break 
even faster. By 2001, the demand for mobile services was growing well. The 
private companies concentrated on providing basic telephone services to 
consumers. The number of mobile phones crossed five million by 2001 and doubled 
to 10 million in 2002... 
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