Lots of discussion since the Japanese newspaper Yomiuri Shimbun announced that Nokia could become MVNO in Japan. I say “could” because no confirmation has been given yet and because the newspaper cited unnamed sources*.
Indeed, the fact that the world’s largest handset maker could become an operator (even if a virtual one using NTT DoCoMo’s network) can be read as another sign of the tectonic shifts happening in the mobile ecosystem.
In fact, two elements need to be taken into account to put this in persepctive:
- Nokia never managed to obtain a significant market share in Japan (below 1% I think) and does not risk to upset operators since the likes of DoCoMo always had a tight control over handests
- the scope is limited since Nokia is reported to focus on the high-end market with its luxury Vertu phones.
However, the Japanese market is evolving quite quickly and the fact that the subsidy model has radically changed in the last year or so, gives Nokia an opportunity to go directly to consumers.
Such a strategy is followed by Nokia worldwide with its new Internet strategy (OVI, direct online sales for mobile phones / softwares…). This is particularly true in countries where operators play a smaller role and where distribution is key (e.g India) but if subsidies are to be reduced, it could make the online channel a more competitive distribution alternative in other regions.
As far as OVI is concerned, the press/analyst/industry community should bear in mind the brand does not really exist yet in consumer’s mind, despite having been announced a while ago. I read too many analyses of OVI services and how consumers may or may not react to them. Few services have been made available under the OVI umbrella brand and a huge work of integration and marketing still needs to be done. Once this will be done, Nokia will probably really start promoting the brand.
However, due to the importance of user-generated content, I think it will be difficult to predict yet how it will be perceived by consumers, what the attributes will be and the extent to which it will nurture the Nokia brand itself.
*UPDATED: the only official confirmation came on Nov 27th saying that Nokia would stop shipping phones in Japan, except for the Vertu brand. See my previous post on the Japanese market here
December 2, 2008 at 11:16 am |
[...] – Mail on OVI. The interesting point is that the beta version will roll out in 12 languages (with many more to comes) including Hindi, Bengali, Tagalog, Bahasa Indonesia and Bahasa Malaysia. It is often forgotten how fragmented and diverse the Indian, Indonesian (235 million people on more than 17,000 islands) or Malaysian markets are. To adress emerging countries, the offering has to be driven by local content and offerings, in local language and on the mobile device (due to limited PC penetration). The simple fact that the service is available on all currently shipping Nokia Series 40 devices is another clear sign that Nokia is targeting masses. Nokia does neither restrict the solution to its high-end S60 solutions not does it want to address the niches that currently use mobile consumer e-mail. The web access version will launch in February 2009 and will be a key component for driving traffic into the OVI Web site. Consumers need to have strong benefits to regularly visit OVI. If the service is really simple to use, open, and as reliable as the Nokia brand, expect the company to really start promoting OVI. [...]