China and Asia in the

Nokia strategy

Nokia Networks operations in China

We have served all three of

Chinas mobile
telecommunications operators
and over 350 million users for
more than two decades .

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 Peoples Republic of
China, the Shanghai World Expo,
and other major national events.

Net revenue in China

reached more than EUR 1.4
billion in 2014, accounting
for 11% of our global
revenue.

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 4 innovation
centers and 3
manufacturing sites in China
and 50 representative
offices in Mainland China,
Hong Kong, and Taiwan.

We have approximately 8,000

employees engaged in R&D,
manufacturing, client service, and
supply chain management in
China.

Nokias16-year contribution to TD technology development in China

Worlds 1st

In 2001, first TDSCDMA video call

between Mr. Lou
QinJian (former Vice
Minister of MIIT) and
CEO of Siemens

Worlds 1st

World 1st TDSCDMA

outdoor test

Worlds

1st

World 1st TDSCDMA call

Worlds 1st

World 1st voice

call handover
between 3G TDSCDMA and 2G
GSM

Worlds 1st

Support China
in application
process to
include TDSCDMA as
part of ITU 3G
standard

First TD-LTE
video call
between
Mainland and
Taiwan

Worlds 1st
First TDSCDMA
open lab,
best test
platform in
ecosystem

Successfully
supported
CMCC to
include
convergence of
LTE TDD frame
structure in
3GPP standard

World 1st TDLTE open lab

Worlds 1st
World 1st
uplink 2.2
M bps in
HSUPA

2010

1998

2001

2007

World 1st
Supported
to include
Zu Chongzhi
encryption
algorithm in
3GPP
standard

TD-LTE
1.6 Gbps demo

2013
2012

2011
2008

2005

Support China
to make TDLTE-Advanced
as ITU 4G
standard

Mr. Miao Wei, Minister of MIIT,

visited Nokia TD-LTE A Demo

China Friendship
Award

GTI: Market
development
award

2014
World Record:
TDD-FDD LTE
CA throughput
4.1 Gbps at ITU
Doha on Dec.

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 personal
relationships?
Do you have flexibility to react to increased risks caused by the above
factors?
4

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 work
on improving local education systems.
At the same time bringing in foreign workers to bridge the competence
gap 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 been
acknowledged.
5

CHINA
Investing for the Future
a great business and country to be in