Olli-Pekka Kallasvuo

President and CEO, Nokia

Mobilizing the Internet Enabling My Connected Life
CES 8 January, 2007
Ladies and Gentlemen, welcome to the first day of CES. Im really sure that this
is going to be an exciting week.
We are living in a changed world.
The future of mobilized entertainment and the internet is already here, and those
who have discovered the first glimpses of this are not about to turn back.
The internet is not a static place, it is constantly evolving, and as it changes so
do the devices that we are using to access it.
Nokia is at the forefront of this momentum, creating for people
"My Connected Life"the immediacy of the internet, in your hand, on the move,
the infinite world of facts, feelings and aspirations, with you everywhere, able to
be shared with anyone at any time,
with the products and solutions that people want to use.
Mobility, Internet, Communities, Convenience. This is where we are.
What we are seeing is that everything, your camera, your internet browsing,
your music and email is being brought into one powerful package and converged
mobile devices.
Single purpose devices are becoming less attractive and those taking their place
are not only packing massive amounts of functionality but are also working
increasingly better.
Reaching 90 million units last year and expected to reach 250 million units in
2008, the market for converged devices is the fastest growing segment of
consumer electronics.
Within this, Nokia is by far leading this market. We have almost 50% market
share worldwide. These are computers in their own right. Their capacity is
already more than the desktop computers of the 1980's. Their power is
increasing as fast as their popularity - by the end of this year, they will most likely
be more common than laptops. In many developing countries, mobile devices
are expected to become the computers to access the internet.

Nokia is the world's largest manufacturer of these pocket computers. We sold

close to 40 million in 2006. These extremely powerful, personal mobile devices
are creating a highly connected world. They are revolutionizing our media
experience and fully mobilizing the internet.
The Nokia N95 is the first of what we are calling "fully connected multimedia
computers". This is the future of computers, and is where experiences have
arrived. We will start the sales of N95 in March.
Before the announcement, we talked to
a number of people, explaining what the N95 was capable of, and then asking
what they would call it. Here's what they said.
[Nokia N95 video]
These are some very powerful statements. But when you give people a welldesigned and easy to use device and it enables them to do what they want, when
they want, well they start saying things like
"it's the world in your hand."
But this doesn't happen by just adding more capability. Everything has to start
getting easier as well.
Ultimately, convergence has to mean convenience - without compromise.
Multiple functions working in simple ways. The information you need when you
need it. And easy ways to take part in the many experiences that are driving the
internet towards greater change.
This is why Nokia is here at CES with our biggest presence ever - not just as a
device company but as an experiences company. We are bringing great
experiences to people around the world.
This year, as CES celebrates 40 years of innovation, Nokia is also celebrating a
40 year anniversary.
In 1967, Nokia had already been in business for more than 100 years. But that
was the year we took a major shift towards the fast growing electronics industry.
Nokia was already well along the road of mobile communications technology
back then, and when I joined the company in 1980, a strong vision was building.
First of voice going mobile, then life going mobile, and now a vision of a world
where everyone can be connected to what matters most to them.
In 1994, we had our first truly global launch introducing the Nokia 2100 series,
right here at CES. Since those early days we have provided mobile phones to

over 1.5 billion people. In the third quarter of 2006, Nokia had 36% market share
of the mobile device market almost twice that of Motorola.
Nokia is the undisputed world leader of the mobile device market. In real terms,
this means that 850 million people have a Nokia mobile phone in their hands,
always with them and always connected. 850 million people. No other consumer
durables company in the world has ever had such a customer base.
These people are tapping into some very real and tangible benefits. In many
areas, the mobile phone is the most reliable access to the world's information. In
China, people are using mobiles to access the Internet - just as an example,
there are almost 60 million visits to mobile.nokia.com in China every month. For
the first time in history, people in 7 countries watched the 2006 World Cup soccer
games on mobile devices. In India, I remember when we brought the first GSM
network in 1995. Now we have India covered this has created possibilities like
mobile music downloads - which was a 170 million dollar business in India last
year.
We have been leading the drive to reduce the total cost of owning and using a
mobile phone - not only delivering low cost phones, but delivering affordable
aspirations - helping people create their lifestyle around the mobile device they
want to have.
All of these factors have accelerated some strong growth and there really has
been some amazing progress. 15 years ago, only one out of every 250 people
worldwide used a mobile phone. Now it's one in every 3. Mobile subscriptions
worldwide are expected to surpass 3 billion this year, and 4 billion during 2010.
People are demanding things that work. And the balance is tipping towards
connected personal devices with great features that work easily and well.
I think the best illustration of this is with digital cameras. Nokia is challenging this
industry head-on with connected cameras across our portfolio - our devices with
up to 5 megapixel cameras and Carl Zeiss optics are leading the way. It is
features like these that have made us the world's largest camera manufacturer,
with around 140 million cameras sold in 2006.
Flickr - the world's most popular photo sharing website - now has easy photo
uploads from Nokia N-series multimedia computers. It works, and people are
using it. When looking at photos uploaded to Flickr, Nokia is the third most
common camera brand, right after Canon and Sony.
Another exciting area is maps and navigation, in real time. This is where I see
things getting really interesting - and I'm not the only one. Over half the people
we recently interviewed said they want to use maps and navigation on the move,
and want more information about what is around them.

It's only natural for mobile devices to be the main tool for this, and we are
working with leading Yellow pages companies around to world to make this
experience real.
Last October, Nokia acquired the leading mapping and navigation services
company Gate 5 to build the industry's leading location based experiences into
our devices. Earth browsing, dynamic route guidance for pedestrian and car
navigation, city and travel guides, local search and other services. Maps and
navigation will become a standard feature in all Nokia converged devices.
We're revolutionizing the personal navigation market. This year we will introduce
a number of GPS devices to the market. The Nokia N95 is our first device with
GPS capability.
I'm happy to announce our "smart2go" mapping and navigation platform. It gives
you free navigation features, world maps and local content on Symbian S60,
Linux and Windows operating systems - and not only on phones, but also on
many Personal Navigation Devices.
I'd like you to see how this works, because it's actually quite simple and really
great to use. Let me introduce Ralph Eric Kunz - Vice President for this business
within Nokia.
[Demo of Navigation with N95]
Thank you for the demonstration. Really interesting - I expect this to be a big
thing already this year! ]
Amazingly enough, we are still only scratching the surface of what is possible.
Take for instance business mobility. Worldwide, only about 30% of people in
companies have mobile phones, and almost 95% of those people still do not use
mobile e-mail. What we do see is people buying their own phones, then for
instance installing Yahoo e-mail and asking at work to get hooked up to their
work e-mail. Then the CIO discovers that there are 50 employees using 30
different devices.
They need a better solution - and they are discovering the Nokia E-series. We
have an email solution that supports more than 100 devices, and have the
industry's only enterprise-grade device portfolio, including the Nokia E62. This
has been selected for use or trial by more than 400 North American businesses
in its first 4 months.
The real power for business is security and we have built this into our device
management solution. You can securely and remotely, synchronize your email,
calendar and other applications and upload data. Lost phones can be wiped and

your information brought to another device quickly and easily, and you're back on
the road.
If we look forward, connectivity will be for everyone. Nokia is leading the
development of multi-radio and mobile broadband devices to offer the best
choice of connection:
Technologies such as HSDPA on the Nokia N95 - offering 10 times faster
download speeds than current 3G. Then, there is Wifi, which has truly become a
universal mobile broadband technology, and Nokia already today has more than
a dozen Nokia devices with Wifi connectivity.
Opening this up, we're the main sponsor of the Wifi parks initiative in New York.
It will offer free Wifi access in Central Park and other parks in Manhattan. Having
a residence in Manhattan myself, I can imagine some beautiful spring days in the
park, connecting to the web from my handheld window to the world.
The next big leap will be WiMAX - deployments are now on-going in tens of
countries, and I'm excited that we're working with Sprint Nextel to develop their
WiMAX offering for US consumers for 2008. As part of the cooperation, we will
supply to Sprint both WIMAX network infrastructure and WiMAX enabled mobile
devices - including multimedia computers.
We're excited to see Sprint taking a leading role in this promising technology.
I think that WiMAX has great potential to bring the open internet model to the
mobile space.
TV has become a personal, interactive and mobile multimedia experience, with
mobile video streaming already common in many regions. And this year we'll see
launches of DVB-H broadcast TV in Europe and here in the US. Asia Pacific's
first commercial service was recently launched in Vietnam using the Nokia N92.
With better and faster connections, the internet will truly become personal and
mobile. We can expect this to completely change internet use, and even the
nature of the internet itself. There is a growing momentum of active participation.
I have seen this first-hand with my Nokia internal blog - one sentence can
stimulate a barrage of comments and conversations that literally take on a life of
their own.
I can really see the innovation bubbling within the organization.
I think this is very exciting. This is Web 2.0 - communities of people sharing
experiences: interactive discussions crossing between text, images, voice and
videos. I believe that it is the mobile device - with high quality cameras, video
viewing and always-on broadband connection to the internet - that will become
the main way for people to participate in these communities.

Within this, people are not just sharing, listening to and watching content. They
are also becoming a big part of the creation. To further drive this creative
momentum, I am now pleased to introduce the NEW Nokia N93i multimedia
computer. Now you can film DVD quality video or shoot print-quality still photos
with its 3.2 megapixel camera.
[Nokia N93i video with VOX]
With devices like these, people are sharing their lives in a true Web2.0 way creating the news, capturing events in their immediacy with their connected
cameras and video recorders. The conversations that evolve around some of
this footage is really incredible.
One of the most energized new communities out there is VOX by Sixapart. This
free blogging service for sharing photos, videos and audio with friends and family
is a perfect companion to the multi-media computer. Access to the VOX
community will be integrated into the Nokia N93i and other upcoming Nokia
Nseries devices. We have brought it right into the images and video gallery - so
you can make uploads easily and conveniently- select "web upload" and share
your creations with the world.
This is what people need. In Nokia we're pushing the technology not only
towards capability, but also towards simplicity.
Ease of use has always been a key aspect of our design, and people have
recognized this. I think that it is a main aspect of why Nokia is one of the top 6
brands globally.
Design means a lot of things - simple features, long standby and talk times,
phones that keep their connection and phones that make sense to your fingers.
And it means products that look good. Among other aspects of form, blending
thin design with simple and useful features is a strong part of designing for the
total experience.
[Shows the N76]
Ladies and gentlemen,
I would like to introduce to you a computer that is a truly beautiful experience the Nokia N76 - convergence without compromise.
It really does combine great design with the best technology.
[Nokia N76 Video]

This is a computer done beautifully- and believe me, it really feels good. Our
designers are right on with this one.
And it's our next great music device. In 2006 alone, we sold close to 70 million
music devices - making us the world's largest manufacturer of music devices.
And more importantly, people are using them. We've found that nearly 70% of
people who have a Nokia music device use the MP3 player regularly. This is
great! This is how it should be, music enjoyed like it's meant to be enjoyed.
With the Nokia N76 we have truly raised the bar for portable music players.
Superb stereo audio quality. Standard audio connectors and dedicated music
keys on the outside cover. You can create, edit and share playlists and sync your
music collection between device and PC. And we have implemented Windows
DRM into the Nokia N76 - you can now purchase music for your N76 from
hundreds of online music stores.
While enjoying music is being made easier, discovering new music is still a big
challenge. We're helping to make this easier too. We have created the Music
Recommenders Community - led by David Bowie as the godfather to this exciting
community. Let's take a look.
[Music Recommenders Video]
You can go listen to all the best recommendations at music
recommenders.com. This is human technology, which is also about opening up
innovation. For instance, using your phone as a credit card.
We are working with Visa to develop their comprehensive "contact less" payment
services. We are also working with MasterCard Worldwide in some of the
nation's first Near Field Communication NFC - mobile payment trials. One is in Dallas. Another is with Citigroup and
Cingular Wireless in New York City. MasterCard calls this "Tap and Go". Tap
your phone and buy and you're on your way, simple as that.
I am happy to tell you that we are launching our Nokia 6131 NFC enabled mobile
phone here at CES. Small and versatile, this device is being used in the New
York trial.
We are driving to take the vision of a connected world even farther. We see that
web 2.0 and mobile broadband technologies such as Wifi and WiMAX are key in
mobilizing the Internet experience.

Already today, 20% of US and European households have Wifi connection - and
it is estimated that in three years time there will be more than 200 million Voice
over IP users and more than 400 million broadband subscriptions.
Driven by convergence, new product concepts have been brought to the market
by Nokia as well as by our competitors. These are challenging old product
category definitions.
Last year, we launched the Wifi enabled Nokia 770 Internet Tablet. Running on
the desktop Linux platform, it brings the immediacy of the web, always-on and on
the move. I'm now pleased to tell you that the next version of the Internet Tablet the Nokia N800 - is ready for sale, immediately. Let's have a look at how the
Nokia N800 can change the way we experience the Internet.
[Nokia N800 Video]
[Holds up the N800]
I have been testing the Nokia N800 in recent weeks and really like listening to
podcasts of local political commentary - they just arrive - it's great.
The Nokia N800 has a high resolution wide screen display and automatic
connectivity over Wifi or Bluetooth.
Applications such as messenger, video chat, browser and media players create a
truly captivating experience like never before.
I'm also excited to announce a couple of partnerships with businesses that we
believe truly build on this product's strengths:
Skype - with this platform Nokia and Skype will develop a mobile Skype Internet
calling experience. Touch screen and hi resolution allow familiar Skype
experience and the mobility brings great ehancement of its value.
And of course there is our WiMAX cooperation with Sprint as I already discussed.
WiMAX will definitely bring great benefits to this type of Internet-focused product,
and you can expect to see WiMAX in future internet tablets starting in first half of
2008.
Rhapsody - Music is a great example of an internet service that is simply better
when mobilized, Rhapsody will develop an easy to use Rhapsody music client for
the Nokia N800.
Mobility. Internet. Communities. Convenience.
These are not signs of things to come, they are things that are happening now.

Mobility will be at the core of how the internet evolves. Nokia will be right there,
enabling people to connect to the communities, content and the information they
want, from wherever they are. This is all about people, and the way people
experience life - this is where the fundamental value of these devices lies.
Ladies and gentlemen,
We all have a fundamental need to communicate, and more and more often, we
expect to have instant access to information, entertainment, our friends and
family, on the move, on our mobile devices. The internet has evolved and I
believe that mobile converged devices, will deliver the true promise of personal,
social media Web 2.0.
We will continue to raise our expectations of what is possible. And these
expectations will continue to raise the demand for increased capabilities and
value in the devices themselves.
If we hear people saying one thing, it's that there is no longer an end to the value
chain. Value is not something that is transferred or bought or sold, but is
something that is built, together.
None of us need complexity, and we do not need bad solutions or trade-offs.
What we need and want are great devices and great shared experiences.
Mobile devices will continue their transformation, and will continue transforming
the way we live our lives.
I'm excited that Nokia continues to take the leading role in this - in "My
Connected Life".
Thank you.