Nokia is today launching the Nokia Connect GSM Solution, an innovative GSM network solution designed specifically for mobile operators who want to develop the huge potential market of people who do not yet have access to telephony. The solution will be crucial in Nokia's drive to double global mobile penetration from the current one billion subscribers to two billion.
The Nokia Connect GSM Solution is expected to enable savings of up to half of network-related CAPEX and OPEX (capital and operating expenditures) compared to a traditional wireless network. These savings strengthen business models in regions with low average revenue per user (ARPUs) levels, allowing operators to offer handsets and services tailored precisely for entry-level mobile phone customers. The Nokia Connect GSM Solution gives operators the technology and capabilities to make their business profitable even at ARPU levels of 5 USD or less per month.
Savings are made possible by new, preconfigured base station solutions and a cost-optimized network-planning concept that together maximize the number of subscribers per site and minimize the number of sites required. With standard site solutions, operators can streamline their logistics process, simplify and speed up deployment, and reduce the need for site visits. Remote network maintenance and centralized network management contribute to savings in OPEX.
The Nokia Connect GSM Solution is an integrated solution consisting of optimized network infrastructure and services. The Nokia ConnectSite 10 and Nokia ConnectSite 100 base stations and the Nokia Connect Base Station Controller are new, highly optimized products designed for easy deployment in cost-effective, preconfigured "site packages". The solution combines these new products with scalable core network switching equipment and a centralized network management system to leverage the most cost-savings possible.
When combined with affordable Nokia entry-level terminals, the Nokia Connect GSM Solution enables the right mix of affordable mobile terminals and services to extend the experience of true mobility to a host of new users. According to Nokia's estimates, there is an untapped market of 600 million potential subscribers with relatively low spending power who will benefit from the Nokia Connect GSM Solution and entry-level terminals.
"GSM as the leading mobile technology is the natural, field-proven solution for new growth markets," says Jorma Häkkinen, Vice President, Mobile Entry Solutions, Nokia Networks. "Nokia has a unique position to drive the growth forward, thanks to our long-term experience and understanding of mobile markets, our track record of more than 110 GSM customers in over 50 countries, and our commitment to continuous research and development. We believe that with the right business model for the new growth segment, together with terminals, network equipment and services, there is a true opportunity for profitable business for mobile operators."
Nokia is the world leader in mobile communications. Backed by its experience, innovation, user-friendliness and secure solutions, the company has become the leading supplier of mobile phones and a leading supplier of mobile, fixed broadband and IP networks. By adding mobility to the Internet Nokia creates new opportunities for companies and further enriches the daily lives of people. Nokia is a broadly held company with listings on six major exchanges.
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Notes to Editor
The Nokia Connect GSM Solution is an integrated solution that combines optimized network infrastructure, network management systems and operator services. Combined with Nokia entry-level terminals, the Nokia Connect GSM Solution allows operators to specifically target entry-level mobile phone customers by realizing savings in CAPEX and OPEX and offering handsets and services tailored for this new market segment.
The solution consists of reliable and robust network elements:
- Complete site solutions based on Nokia ConnectSite 10 and Nokia ConnectSite 100 base stations, including auxiliaries, transmission and site services.
- Nokia Connect Base Station Controller for expandable capacities and enhanced functionality.
- The scalable Nokia GSM core network, including MSC, HLR and the INAP-based Nokia Connect Prepaid service.
- A centralized Nokia Connect Network Management System for reduced need for site visits.
For operators, the cost-optimized Nokia Connect GSM Solution will make it possible to seize more growth opportunities by reducing their operating and investment costs per subscriber. The solution addresses the key cost drivers of today's mobile operators, such as subscriber management, prepaid re-filling, customer care, network investment and network operation. By achieving reduced total cost of ownership, mobile operators will be able to expand their user base in a profitable way.
Mobile operators can start small now and grow later by adding capacity and functionality. The solution is well suited both for greenfield and expanding networks. It includes basic software functionality for voice and support for initial, value-added services such as short messaging and prepaid. There is an evolution path to MMS, GPRS and EDGE to address the need for advanced services.
Operator Services for the Nokia Connect GSM Solution include network planning, project management and telecom implementation services, as well as network maintenance and training services. Savings in CAPEX and OPEX are made possible by a new, cost-optimized network-planning concept that allows operators to maximize the number of subscribers per site, thus minimizing the number of sites required. The concept, together with preconfigured Nokia ConnectSite solutions, is expected to save up to half the site-related costs compared to a traditional GSM network. By deploying standard site solutions operators streamline their logistics process, simplify and speed up deployment, and reduce the need for site visits. Even more savings in operational costs can be achieved with remote network maintenance and centralized network management.