Nokia Projects 70M 3G Subs

CANNES, France -- At the 3GSM World Congress in Cannes, Nokia cites mobile music, operator customization and further growth in 3G as three main drivers for the industry in 2005. The company's top management also demonstrates the overriding importance of mobility as a global technology and lifestyle influence.

A blurring of industry boundaries is bringing new mobile devices, services and ways of using mobile devices both socially and professionally. This is already clear from the phenomenal success of camera phones as well as the growing use of smartphones for computer-like applications such as, email, web browsing and music downloading. After exceeding 20 million units in 2004, Nokia expects the global smartphone market to exceed 50 million units in 2005.

Music the next big thing in mobile multimedia

"Music is the next big thing in mobile multimedia, says Anssi Vanjoki, Executive Vice President and General Manager, Multimedia, "and we see 2005 as the year when music really goes mobile. Already in 2004, we sold 10 million phones with integrated music players. This year, more than half of our new Nokia phone models are expected to have music functionality."

In order to bring the best mobile music experience possible to consumers, Nokia and Loudeye Corp. together announced the industry's most comprehensive mobile music solution for operators. Nokia also announced an unparalleled collaboration with Microsoft, which will make it easier for consumers to enjoy their digital music whenever and wherever they want, without having to worry about digital file formats.

Widespread commercialization of 3G/WCDMA in 2005

"We expect to see the widespread commercialization of 3G/WCDMA networks during the year," says Simon Beresford-Wylie, Executive Vice President & General Manager, Networks, "with more than 100 3G networks opened by the end of 2005. Nokia is also projecting a sharp rise in 3G subscribers, to 70 million by the end of 2005, up from 16 million last year."

Driving 3G uptake globally, Nokia today launches its Nokia 6680 3G smartphone, with instant communications such as video sharing, XpressPrint(TM) and always-on email. With increasing demand for new-generation devices and services and more and more users in growth markets gaining access to mobile communications, Nokia estimates the total global mobile subscriber base to reach two billion by the end of 2005 and hit three billion subscriptions by 2010.

The Nokia 6101: expanding nokia's commitment to operator customization

Nokia also presents customer commitment as a top agenda item at Cannes by focusing on another strong industry trend, the role of customization in mobile devices. On top of an existing range of options, the Nokia 6101 clamshell camera phone, introduced at the event, presents operators with an extended range of software customization options, including operator icons and menus, operator-branded graphics and tones, and branded access to operator services. Equally important, the Nokia 6101 is the company's first mobile phone to offer hardware design customization for key operators, which includes exclusive colors, logos, industrial design alterations and product numbers.

"Customization in our mobile infrastructure and mobile devices businesses is an important element in Nokia's commitment to greater customer satisfaction," says Olli-Pekka Kallasvuo, Executive Vice President and General Manager, Mobile Phones. "Of the mobile devices we plan to announce in 2005, approximately 90% will offer a range of customization options."

Nokia Corp.