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Poll: Are Nokia low-cost mobile phones pushing growth rate?

To encourage growth in developing markets, Juniper Research has reported that entry level mobile phones cost of ownership need to be a monthly total of not more than $5, much like Nokia has learned to do.

According to a report from Juniper Research, the mobile phone market is continuing to expand on both entry level and high end, chances for handset vendors and operators all depends on their ability to keep inexpensive models’ total cost of ownership minimal. Between 2009 and 2014 Juniper estimates, a growth of 22%, to over 700 million devices for yearly sales of low-cost mobiles.

Within the next 5 years, the mobile market is expected to grow by roughly 1.5 billion subscribers. It has been recommended by analyst Kitson, that handset vendors and operators invest in software and hardware that can be delivered and made with hardly any expense. This is to draw in new subscribers and keep device TCOs low.

In this regard, Nokia has been at the top, they supported a monthly mobile TCO of $5 or less. Just four countries had reduced handset TCO to this cost by the end of 2008, these countries were, Bangladesh, India, Pakistan and Sri Lanka, it is said that soon Ghana may join them.

The major yearly shipment is expected to come from the Middle East and Africa by 2014, bringing in 24% of all sales that year with the 166 million handsets that are in that region, this figure is predicted to grow to 54% by 2014.

Source – eweek.com

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