Nokia to Click Revenues from Internet Venture

Finnish cell phone like giant Nokia that plans to make the big bang entry into Internet services space that might take the different route to the drive revenues from business. Nokia intends to generate the revenues primarily from the advertisements for the business as against the global revenue model that is based on the user subscriptions.

In result, there is enough of reason for consumers to cheer, as Nokia will make accessible the bouquet of the Internet services for free of cost to customers. This comprise of “commodity services” like the songs, video clips as well as some mobile games. Nokia be expecting the initiatives will put in nearly 10% from services business to its revenues all over the next 2-3 years.

Nokia Company will now roll out its Internet services into India in first quarter of 2008. “Driving its revenues out of services business is the challenge in the market like India consumers till now has full-grown on the diet of free services. Thus, we mean to drive revenues out of the advertisement from services.

The company now feels there is the enough of potential to make revenues out of the advertisements. “While it is close to about 80 million TV sets, the cell phone penetration is now expected to hit almost 225 million mobile handsets by the end of 2007. Hence, there is the huge potential for the advertisers to funnel the information through mobile screen.

The company is developing with the new ecosystem for the services business with the content providers as well as the mobile operators. “All this agreements are currently is being finalised. Though, premium content like the new songs, new videos as well as latest games will not at all be free for the consumers. The pricing arrangement is currently now being finalized.

While Nokia will make use of its global technology for services, there might be the significant level of the local customizations. “Content will also be locally adapted in the several languages. The company now enjoys about 53% share only in the Indian market.

Nokia has recently announced the plans to foray into the mobile Internet services beneath the ‘Ovi’ brand. As the part of Ovi blitz, Nokia will also roll out the web based music store, revive the gaming brand and present navigation services like the maps plus the city guides under Nokia Maps stable.

Nokia might also drive a few innovations to increase speed of the Internet access for the mobile phones.