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Future Mobile Technology Mission to JapanDissemination Seminar

Background

Dr Keith BaughanChairman Mobile VCENokia Mobile Phones21st June 2002

TopicsJapan - Evolving RoleMission ObjectivesMission StructureGrowth prior to 2002Business Drivers

Japan - An Evolving RoleEarly 1990s - PDC, a national standard3G - pro active approach via ARIB, ITU, ETSI, 3GPPFirst rollout of 3G - October 2001Very active in ITU "Systems beyond 3G"Proposed 4G air interface at 100Mb/s

Mission ObjectivesTo review:the rationale for Japanese proposals for "Systems beyond 3G" including a "4G" air interface The diversity of views across Japanese industryTechnological progress "beyond 3G"3G rollout in Japan

Mission StructureJoint UK-Japan Symposium"Future Mobile Communications" at YRP (Yokosuka Research Park)Half day visits to individual companies and other relevant organisations

Over 100-fold Growth in 10 YearsMobile phone subscribers worldwideCellular subscribers (millions)

Cellular Penetration - January 2000Source World Bank, EMCFinland SwedenItaly Austria KoreaNetherlandsUnited KingdomAustraliaSpainJapanTaiwanFranceUSAGermany Canada TurkeySouth AfricaBrazil MexicoP.R. of China

Time Taken to Reach 50 Million Users

The #1 Consumer Electronics Industry

The Mobile WorldIn the future, a major partof personal communication- be it voice, data, images or video - will be wireless.The personal mobile devicewill be the main application platform and medium!

Digital and IP Convergence are the Main Building Blocks of the New Mobile WorldInformation TechnologyTelecomConsumer ElectronicsNEW MOBILEWORLDConsumptionConnectionContent

Amount and Types of Mobile Content Will Explode in the Future Types of content: User created(images, videoclips, music etc.) Personal(music, movies, movieclips, games, applications, etc.) Group(family, friends, daughter's soccer team etc.) Community(greyhound owners' image album etc.) Subscribed(Manchester United Multimedia news service etc.) Network provided(location-based weather info etc.) ImagesMMSsAudio/musicApplicationsVideoclips

New Categories Driving the Market ChangeImaging PhoneImaging & Messaging & BrowsingMedia PhoneFull browsing & Access to MediaCommunicatorFull browsing & Corporate DataEntertainmentGames & Music & Messaging

Business Drivers for "Beyond 3G" in JapanCompetion from wireline 100 Mb/sFundamental belief that digital convergence of hardware (cameras, audio, video, TV) with broadcasting, communications, computing is a major business opportunity Capacity limitations

Note: Social differences

Nokia concentrates on the access element of the IP networks, creating services and added-value for customers. Market drivers taking us towards the Mobile Information Society.

The first key driver is the impact of the internet. The net is where most information is stored. The net has increasingly become an important part of our personal lives. Many of us use the net to research everything from which car to buy to vacation destinations.

We all have the expectation of being able to access information immediately, from a wide variety of online sources.

The second key driver is mobility. We are all becoming increasingly more mobile. Studies show that many of us spend less than half of our day at our desks. The balance of our day is spent in meetings in and out of the office, commuting, travelling to meet customers and colleagues across the city, the country, or even the globe.

An increasing part of the growth in mobile wireless devices will come from web-connected handsets. In our estimates the number of mobile phones connected to the web will exceed the number of PCs connected to the Internet by the year 2003.As the worlds number one mobile phone company, Nokia aims to continue to lead the development towards the Mobile Information Society. So, in addition to the worlds first WAP phone, the Nokia 7110, we are today announcing three new mobile phones for Mobile internet access. These are the Nokia 6210, a new business model for our Classic category; the Nokia 6250, the first model in a new category of tough products; and the Nokia 9110i Communicator which in addition to HTML browsing now offers also WAP.With four WAP compliant models Nokia has the most comprehensive product portfolio for mobile Internet. 6This figure is very suitable to illustrate the explosion of cellular marketsLast year, approximately 165 million mobile phones were sold worldwide

A comparison with two more traditional high-volume products is illustrative:This was more than the sales of PC's and passenger cars combined