China and Asia in the Nokia strategy
Nokia Networks’ operations in China
We have established our global procurement center in Shanghai. The center works with over 2,000 direct suppliers, which in turn employ 550,000 employees.
We have approximately 8,000 employees engaged in R&D, manufacturing, client service, and supply chain management in China.
We have provided telecommunications support for national events including the Beijing 2008 Olympic Games, the Military Parade of the 60th anniversary of the founding of People’s Republic of China, the Shanghai World Expo, and other major national events.
We have served all three of
China’s mobile
telecommunications operators
and over 350 million users for
more than two decades .
Net revenue in China reached more than EUR 1.4 billion in 2014, accounting for 11% of our global revenue.
We have 4 innovation centers and 3 manufacturing sites in China and 50 representative offices in Mainland China, Hong Kong, and Taiwan.
Nokia’s16-year contribution to TD technology development in China
First TD-
SCDMA
open lab,
best test
platform in
ecosystem
Support China
in application
process to
include TD-
SCDMA as
part of ITU 3G
standard
World 1st
uplink 2.2
M bps in
HSUPA
Support China
to make TD-
LTE-Advanced
as ITU 4G
standard
World’s 1st
World’s 1st
World 1st TD-
SCDMA call
World’s 1st
2007
1998
2013
2012
2001
2008
2010
2011
In 2001, first TD-
SCDMA video call
between Mr. Lou
QinJian (former Vice
Minister of MIIT) and
CEO of Siemens
World 1st TD-
SCDMA
outdoor test
World’s 1st
2005
World 1st TD-
LTE open lab
World’s 1st
First TD-LTE
video call
between
Mainland and
Taiwan
World’s 1st
GTI: Market
development
award
Supported
to include
Zu Chongzhi
encryption
algorithm in
3GPP
standard
World 1st
TD-LTE
1.6 Gbps demo
Mr. Miao Wei, Minister of MIIT,
visited Nokia TD-LTE A Demo
Successfully
supported
CMCC to
include
convergence of
LTE TDD frame
structure in
3GPP standard
2014
World Record:
TDD-FDD LTE
CA throughput
4.1 Gbps at ITU
Doha on Dec.
World 1st voice
call handover
between 3G TD-
SCDMA and 2G
GSM
World’s 1st
China Friendship
Award
4
Some success factors in China/Asia
Key success factors:
• Understand the national interest and the priorities of the 5-year plan and target alignment. Understand the key performance indicators of the central and local government officials. Seek for areas of win-win.
• Build and maintain a network of senior officials who are sympathetic to your causes.
• Adequate level of personnel and other resources needed.
• Adequate local and global business management level attention needed.
Watch the following factors:
• Economic situation – e.g.budget deficit?
• Political stability – upcoming elections?
• The stage of industrialization – impact on cost development?
• Membership in WTO?
• General administrative culture - based on legislation or personalrelationships?
• Do you have flexibility to react to increased risks caused by the abovefactors?
5
Some challenges in China/Asia
• Mere number of officials relevant to your business.
• Complex business license questions.
• Joint Ventures still required for certain activities.
• In China role of Industry Associations smaller than in many other countries.
• Legal questions
– Consider how the litigation system works in your business (e.g. IPR, consumer protection).
– Creating IPR and bringing it back to your home country is possible, but you may lose some benefits if that is done to a too high extent.
• Supply of adequate competences, many governments still need to workon improving local education systems.
• At the same time bringing in foreign workers to bridge the competencegap may not be easy enough.
• Pressure for using local suppliers –competencies a question.
• Corruption has not been an issue for Nokia – our zero tolerance has beenacknowledged.
CHINA
6
“Investing for the Future”
… a great business and country to be in…
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