New Nokia SA headman Mathia Nalappan details services, enterprise plan IT`S SAID THAT new brooms sweep clean, but some make more sweeping changes than others. Since Nokia`s new GM for SA arrived in the country in February, he`s not only swelled staff numbers by 30%, moved the company to shinier, bigger offices and encouraged workers to be more mobile, metaphorically speaking, but he`s also driving Nokia`s new focus on services, as distinct from its handset business.

Mathia Nalappan, who has joined the Nokia SA team from Singapore where he was responsible for growing the enterprise solutions business for the Asia-Pacific region, says that "South Africa is where Nokia wants to go".

"Coming from Asia, which is a region with mature and developing markets, to one that still provides growth and maturity in some areas is going to be a challenge. And we now have the opportunity to develop the market from a different perspective, from a services perspective," he says, referring to Nokia`s global decision to introduce a service division as separate from its handset business as of January this year.

MONEY IN MOBILE SERVICES

"The future growth [of mobile] is in the delivery of services as more users start to look for reasons to replace their handsets," notes Nalappan.

These services include navigation, enterprise services, e-mail, internet, gaming, music and other software solutions, and Nokia SA has dedicated two staff members to drive the new division, for now.

Not at the expense of its handset business, mind you. Nalappan indicates that Nokia will continue to develop demand for its devices, spanning entry-level to converged smartphone and business devices.

"Our aim is still that the first phone a young user ever owns is a Nokia, and that they will carry this experience with them, particularly as they migrate to a [higher-spec] phone for music and gaming, to a dedicated business phone," he enthuses.

There is a particular opportunity in SA for boosting business device and service uptake, and Nokia SA is partnering with the country`s network operators, including Vodacom and MTN, and established cellular service providers Altech Autopage Cellular and Nashua Mobile in this regard.

When asked about the potential threat of the imminent Apple iPhone launch, Nalappan is pragmatic, maintaining that "Apple and others will help expand market awareness, but every player in industry will be viewed as a challenge for us", he concedes.

Although Nalappan declines to divulge Nokia`s SA market share ("South Africa is a reasonably sized market for Nokia, and one of the biggest in sub-Saharan Africa," is all he will say), it would seem that Nokia`s number one ranking in the handset market globally is mirrored in this country, with a share of 49.94% in May this year, according to www.mobref.com.

MOBILE WORKERS UNITE

A key factor in the take-up of business devices is the necessity for greater worker mobility.

"I`m a big believer in encouraging employees to be more productive by being able to work from anywhere, especially given the traffic situation and the expense of real estate here," he notes.

And Nalappan practices what he preaches: he works from home whenever possible until the traffic has abated, then gets to the office, where he has a desk (but not an office) and access to meeting rooms.

"A work/life balance is critical, but we often have downtime when we`re waiting for a meeting to happen (or your wife is shopping, he says only half jokingly), and this gives you a moment to check your mail. A device like the E90 gives you a choice as to how to manage your time," he notes.

As for the users, "the market is also shifting". SA has a pretty average handset replacement ratio - 1.5 to two years - by global standards, but it is climbing, although it is nowhere near the six to nine-month replacement time of Hong Kong, for example.

"Navigation is a big opportunity, be it via phone or dedicated device; it`s being driven very strongly in South Africa, and will be a focus for us this year and the next," says Nalappan.

Another focus area will be in customer care. While Nokia has a sufficient number of retail and care outlets, he intends improving care service levels, especially for servicing phones.

Finally, Nokia SA is also taking up the global effort to encourage users to return old devices for recycling. Between 65% and 80% of a Nokia phone can be recycled, and devices collected in the over 35 take-back bins countrywide will be forwarded to qualified recyclers for responsible reclaiming of materials.