FCCJ LUNCHEON MEETING 1 DECEMBER 2005
Theme:
"Mobile communications market and Nokia"

Speaker: Mr. Heikki Tenhunen, President, Nokia Japan Co., Ltd.
RECAP
After a brief recap of Nokia's history and development from a multibranch company to a telecommunications giant, Heikki Tenhunen spent most of his presentation on the present situation and future of Nokia, the telecommunications industry and the developments in 3G both globally, and in Japan.

According to Tenhunen, Nokia is in good shape evidenced by some highlights from the third quarter of 2005. Nokia has shipped its 1 millionth phone, it has a 33 % global market share, in the quarter 66.6 million mobile devices where shipped (+29% from previous year) and net sales was 8.4 billion euros (up 18 % from previous year).

Nokia also has a strong grip onf the WCDMA/3G market. It has supplied nearly alf of the 97 networks now in operation. It has announced 14 3G terminals as of November 2005 and 6 terminals are commercially shipped, of which the 6680 is the best selling 3G terminal in the world. Nokia has the largest market share (23%) of WCDMA terminals in the world.

Nokia sees a continued strong growth in the global mobile phone market, where the avergage penetration rate today is 29 %. This year, the 2 billion mark of users was exceeded, and the 3 billion mark will be reached in 2010. Major growth areas are China, India, Russia and South America.

IN Japan, Tenhunen also se further growth. Now the penetration rate is about 70 %, which is lower than in most other countries with same GDP level. Reasons for the low rate, according to Tenhunen, are party cultural, older people do not see the need for mobile devices but perhaps more importantly, the cost of using mobile phones in Japan. The costs will probably come down in the near future as the portability of phone numbers which will be implemented next year will increase competition. Also the entrance of two new players, Softbank and eAccess in the operator market in 2006 or 2007 will in also have a positive effect on the competition.
IMAGES FROM THE MEETING
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The lunch, attended by 24 members and guests, was held in the Nara Room at Capitol Tokyu Hotel
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FCCJ President Mika Mäkinen instroduces Heikki Tenhunen
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Tenhunen explains the agenda of the day
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The presentation started with the roots of Nokia
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Stast of the Q&A session
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Kalevi Lehikoinen of TeliaSonera asks a question
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...and Mika Kouhia of Hitachi Cable another
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Heikki Tenhunen gave good replies
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The Nokia Vision
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