How does a company grab its next 1 billion customers? The world's largest mobile phone maker, Nokia, believes it has the answer: simplicity. The company is predicting that the number of mobile phone users worldwide will rise from 2.2 billion now to more than 3 billion by 2008, and that most of them will come from India, China, the Middle East and Africa. Most of these new users will be able to afford only US$5 (Bt192) a month for mobile phone services, a Nokia survey found.

"Our survey has found these users would be ready to pay 10-15 per cent of their monthly income on mobile phone costs, which would be only $5 a month," said Soren Petersen, Nokia senior vice president for its entry business unit.

Of the total cost of ownership, airtime constitutes 71 per cent, handset 14 per cent, and tax 15 per cent, according to Nokia's research.

As a result, Petersen said, Nokia needs to help network operators lower costs and boost income.

Nokia's survey also found that new users look for phones that are easy to use, well designed and durable.

Nokia executive vice president Robert Andersson said that 800 million of the 2.2 billion mobile phone users in the world now use Nokia phones.

Andersson said Nokia's recent survey was the most comprehensive study ever undertaken in the industry. It interviewed 42,000 consumers in 16 countries.

"The users want simplicity," he said. "We've found that one size is definitely not fitting all."

Nokia found there are 11 types of mobile phone consumers, or 11 product segments, Anderssen said. The firm has also renewed its global product line-ups in four categories - Live, Connect, Achieve, and Explore - and two sub-brands: N-series and E-series.

Live is for consumers who look for "inspiring self-expression" handsets, which emphasise design and style such as the Nokia 8800 and the Lamour Collections. Connect, meanwhile, is about "progressive simplicity", handsets like the Nokia 6131 which feature a good balance of style and practical benefits. The N-series models are in the Achieve category, while the E-series users belong to the Explore category, Andersson said.

Nokia's product philosophy is now "flow/wow/show", he said at the opening of the Nokia Connection 2006 in Singapore last week.

Nokia introduced five new cell-phones - the 6151, 6080, 6275, 2875, and 11101 - at the two-day event. The new models will hit the shelves in the third and fourth quarters.

The Nokia 6151 will be the least expensive 3G phone Nokia has ever launched. Its suggested price before tax is ¤240 (Bt11,628).

Pichaya Changsorn

The Nation

Singapore