Handset brand, quality gain over cost: Study

A study comissioned by Nokia found that brand, handset quality, and network
service quality are strong market drivers in new growth markets that sometimes
outweigh the cost factors that industry watchers typically expect. Countries in
Latin America, South East Asia, Africa, the Middle East, and Central and Eastern
Europe are among the fastest growing new markets for mobile services, said the
press release.

Walid Moneimne, Senior VP, Networks, Nokia said, "The research reveals
that from early adoption, new growth markets take off very quickly to become
more sophisticated about their expectations about handsets and services than
some people might immediately think. Price and cost are issues but they are
influencing consumers in subtler ways next to equally powerful factors like
network reception strength, handset brand value, design, and quality. These are
among the driving forces in new national markets that are contributing to such a
rapid pace of growth that we see the world passing its three billionth mobile
user by 2010."

In the survey, over 8,000 urban mobile phone users and non-users were
surveyed in Ukraine, Russia, India, Indonesia and Argentina. The research was
done by independent market researcher Synovate between September and November
2004.

Among current mobile users in these markets, the research reveals how local
operators are building strong businesses based on high levels of customer
satisfaction, with an average of 86% of surveyed users satisfied with their
service. In some markets like India and Indonesia, satisfaction rates are even
higher at 90% and 91%, respectively. The factors that are driving consumers to
choose one operator over another are not simply the availability of low priced
tariff plans, but banks heavily on reception quality.

The study revealed a degree of sophistication in phone usage that points to
the potential for offering more advanced services and products. Handset brand is
the main factor in phone choice among 46% of the respondents. Among the 16-24
age group it is even higher at 52%. In India it is 64%. Brand is closely
followed by the phone's quality and durability, then its cost and its design.

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