Nokia looks back at 25 million CDMA handsets and sets course for the future

March 11, 2003

Nokia's CDMA investment pays off with successful product line, chipset development and EV-DV technology

IRVING, Texas - Later this month, Nokia will mark another milestone by producing its 25 millionth CDMA handset, a figure that few other handset producers can match. In the 12 years since becoming one of the first manufacturers to begin research and development efforts in CDMA technology, Nokia has marketed over 20 models of CDMA handsets, developed three different generations of CDMA chipsets and has shipped phones to 25 different countries. Today, Nokia is shaping the direction of the CDMA market by pioneering development in next-generation CDMA2000 1xEV-DV technology.

Nokia's CDMA efforts began with a handful of researchers in 1991, a time when most of the world's wireless phones were still based on analog standards. These efforts quickly began to produce results, and in 1997 Nokia introduced its first CDMA products, the Nokia 2170 and Nokia 2180 phones, both of which were based on Nokia's own IS-95 CDMA chipset. Today, Nokia has over 1000 people concentrating specifically on CDMA, many of them housed in Nokia's 330,000 square-foot state-of-the-art product creation center in San Diego.

Nokia's current CDMA product line now includes 12 models, each of which is based on a Nokia-designed chipset. This current lineup follows Nokia's successful product category strategy, with individual models designed specifically for a well-defined consumer segment. The new Nokia 2275 phone falls in the Basic category, and is designed for first-time, budget-conscious and pre-paid users as well as for customers in emerging wireless markets, while phones like the Nokia 8270 and Nokia 8280 are part of Nokia's Fashion category, and are targeted towards an upscale, image-conscious user who desires a compact handset. Other models in Nokia's CDMA stable are designed for the markets in-between, including phones for younger, more flamboyant wireless users and models for business users needing a work-focused, feature-rich handset.

Demonstrating Nokia's 12 years of expertise in CDMA, field trials of Nokia-designed CDMA2000 1xEV-DV mobile phone chipsets will begin during the second half of 2003. The CDMA2000 1xEV-DV specification, developed by leading CDMA companies including Nokia, represents the logical next step for incumbent CDMA operators upgrading their existing CDMA2000 1X networks. Allowing the flexibility to dynamically balance voice and data traffic by allocating bandwidth on demand, CDMA2000 1xEV-DV allows for the performance of two high-value tasks simultaneously on a single RF section device. Following successful completion of these field trials, Nokia plans to market new terminals based on Nokia-designed CDMA2000 1xEV-DV chipsets.

"Few companies can match the experience in CDMA research and development that Nokia has gained over the past 12 years. The combination of this experience with Nokia's understanding of the market, leadership in mobile design, and wireless engineering prowess has positioned Nokia for continued success in the CDMA market," said Soren Petersen, senior vice president and general manager of Nokia's CDMA business unit. "Our extensive work in CDMA engineering makes Nokia the only handset manufacturer to design its own CDMA chipsets and its own CDMA phones. This allows us unmatched flexibility in design and production to create products tailored to meet the cost and feature-set needs of a wide range of customers."

About Nokia
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.