Nokia dials rural India

Nokia plans to offer internet based services in micro-finance, distribution, agricultural services and after sales and support services for the non-urban markets

To position itself effectively in the rural market, mobile phone maker Nokia plans to

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offer internet based services in micro-finance, distribution, agricultural services and after sales and support services for the non-urban markets.

"The company is planning to come up with internet-based services for the rural market soon," Nokia Corporation President and CEO Olli-Pekka Kallasvuo told reporters here.

The company would also introduce these services in its mid-level mobile devices as well.

The Finland-based company is looking at micro finance as a major initiative to increase mobile penetration in India from the current 26 per cent.

"While India is adding eight million subscribers a month, the country still has a huge untapped base contrained due to the initial cost of mobile phone.

"The company is running pilots and trials to gauge consumer response in select markets and would soon come out with specific offerings in those areas soon," he added.

With its large distribution in the country and nine Indian language support, it is working with a host of content providers and has started programmes for farmers, which include providing solutions from information on market prices for agricultural products to weather updates to financing options.

Talking about the Indian market, Nokia India Vice President and Managing Director D Shivakumar said: "In 2006, the penetration of mobile in the rural areas was three per cent which almost doubled in 2007 at six per cent. With this growth rate the rural India is going to be a huge market.

However, he ruled out coming up with a sub-Rs 1,000 handset for the rural market.

"Price is not the parameter in the rural areas. People do value brand," Shivakumar said.

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