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.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags indiainnovationmobile phonesmicrofinancingNokia

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

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Armand Abogado

HP OfficeJet 250 Mobile Printer

Wireless printing from my iPhone was also a handy feature, the whole experience was quick and seamless with no setup requirements - accessed through the default iOS printing menu options.

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

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.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?