Nokia rolling out micro finance for mobile handsets in India

The company expects high growth in demand for mobile phones in India's rural markets

Nokia plans to roll out a micro financing program for mobile phones across 12 states in India.

The company has completed a pilot of this program across 2,500 villages in the rural areas of the Andhra Pradesh and Karnataka states of India. Nokia tied up for the pilot with a micro finance institution to offer mobile handsets on installments of 100 Indian rupees (US$2) a week for 25 weeks.

The company said in a statement on Wednesday that it expects that the benefits of mobility will reach 500 million people in the country by next year.

The penetration of mobile phones in rural India is still very low at 13 percent, and much of the growth in mobile telephony will be in non-urban markets, the company said. Its objective is to lower access barriers as well as total cost of ownership in these markets, it added.

Nokia did not name its micro finance partner.

The mobile phone giant is also launching Nokia Life Tools commercially in the country this year, which includes a range of agriculture information and education services targeted at non-urban consumers. The service was tested in Maharashtra state.

India added 12 million mobile subscribers in June, the latest month for which data is available, taking the total number of subscribers to 427 million, according to the Telecom Regulatory Authority of India (TRAI).

Mobile service operators and handset makers are targeting India's rural market as the next big opportunity. The rural market is however low margin and geographically dispersed, Kamlesh Bhatia, a principal research analyst at Gartner, said last month.

Data from TRAI for the first quarter of this year showed declining ARPU (average revenue per user) and utilization of mobile phones by consumers, across service providers, reflecting the economic slowdown and expansion of services in rural markets.

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags indiainnovationmobile phonesmicrofinancingNokia

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Essentials

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?