1. 1 © 2006 Nokia Voice services in New Growth Markets Rauno Granath Nokia

2. 2 © 2006 Nokia Voice Services in New Growth Markets / Geneva Jan2007 Mobile phone subscriptions globally, millions Source: Nokia December 2006 Mobile subscriptions globally 0 200 400 600 800 1 000 1 200 1 400 1 600 1 800 2 000 2 200 2 400 -92 -93 -94 -95 -96 -97 -98 -99 2 600 2 800 3 000 Current global mobile penetration 34 % (12/06) 3 200 3 400 3 600 3 800 4 000 4 200 4 400 3 billion in 2007 3 billion in 2007 -00 -02 -03 -04 -05 -10 e -06 -07 e 4 billion in 2007 4 billion in 2007

3. 3 © 2006 Nokia Voice Services in New Growth Markets / Geneva Jan2007 Affordable Connectivity for the consumer is the key enabler for growth Growth Affordable connectivity Total cost of ownership Regulatory environment Cash barrier for entry

4. 4 © 2006 Nokia Voice Services in New Growth Markets / Geneva Jan2007 New business models enable growth into low income segments 0.8b >40$/day 2 billion mobile phone users 2005 3 billion mobile phone users 2008 4 billion mobile phone users 1.4b 2$/day 1.3b 1$/day 1.3b 4$/day 1.5b 4-40$/day Prepaid Postpaid Microprepaid Microfinance Phone sharing World population split according to income segment (USD per capita per day)Business model

5. 5 © 2006 Nokia Voice Services in New Growth Markets / Geneva Jan2007 Matching spending patterns with cash flows Mid income Low income Time Cash at hand Micro-prepaid Micro-financing Shared phones Micro-prepaid: Enabling very low denomination top-ups and balance transfers between subscribers

6. 6 © 2006 Nokia Voice Services in New Growth Markets / Geneva Jan2007 Example from India - addressing affordability and value Highest growing mobile market – 7 million new subscribers a month, high competition 20 different Prepaid denominations between Rs 10 (0.17 EUR) and Rs 3500 (61 EUR) Minimum monthly spend to stay connected Rs 99 (1.7 EUR) – part of so called “Lifetime validity” offer Lifetime Validity: Either Rs 999 (17.4 EUR) or 12 x Rs 99 gives the subscriber lifetime validity for the subscription Incoming calls Prepaid balance => minimum spend < 2 EUR/month Source: www.airtelworld.com (12.1.2007)www.airtelworld.com

7. 7 © 2006 Nokia Voice Services in New Growth Markets / Geneva Jan2007 Concluding New Growth Markets will bring continuous growth to voice business in terms of new subscriptions Successful business models will address both the Total Cost of Ownership and Cash Barrier aspects – the two key aspects of Affordability Mobile operators are in the key role to extend other services to the mass markets due to lack of substitutes Banking services Data and internet access … taking into account the requirements for “Affordability”

8. 8 © 2006 Nokia Thank you