AUSTRIA: NOKIA BETTING ON SERVICE

Article Abstract:

Nokia, the Finnish world market leader in mobile phones, aims to raise its market share in Austria from 30% to up to 40% in year 2000. Since growth on the Austrian market, which absorbed 2.69 mobile phones in 1999, is slowing down, Nokia is boosting service, sales and marketing. Value to the customer is playing an increasing role, but according to Nokia the entertainment aspect must not be neglected either. Customer service, new features and design are important for those buying a replacement for their mobile phones. Nokia estimates that 40% of mobile phones sold in Austria in year 2000 will be bought by existing users. WAP phones are expected to account for 15-20% of sales.

Sales & consumption, Telecommunications equipment, Nokia Corp., NOK, Nokia Mobile Phones Inc.

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AUSTRIA: ERICSSON'S EXPANSION PLANS

Article Abstract:

The Austrian subsidiary of Swedish Ericsson aims to double its market share in mobile phones and become the second-biggest supplier. In March-April 2000, Nokia held 40% of the market, Siemens 13%, Ericsson 11% and Motorola 10%. Ericsson explains the loss of market share to delivery problems. Altogether the company expects to sell 900,000 mobile phones in Austria in year 2000, up from 600,000 in 1999. Turnover is to be raised 50% from Sch 3.6bn in 1999. Ericsson estimates that of the 3.5mn mobile phones to be sold in Austria in year 2000, 30-50% will be bought by existing users. Ericsson has set the target of gaining at least one UMTS infrastructure contract in Austria, after it remained unsuccessful in GSM investments.

Ericsson Inc.

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AUSTRIA: ERICSSON'S PLANS

Article Abstract:

Kjell Johannsson, the new head of Ericsson's Austrian subsidiary, says that the company will aim to secure at least one contract to supply infrastructure for the third generation of mobile phone networks in Austria. So far the Swedish company, which claims world market leadership, has not been successful in this market in Austria. The fourth mobile phone operator, Tele.ring, chose Alcatel as hardware partner. Moreover, Ericsson Austria will defend its market leadership in the field of communication solutions for businesses. A new field of business, consultancy and systems management, will be handled by Ericsson Schrack BusinessCom, which was hived off within a management buyout at the beginning of 1999. In the field of mobile phones, Ericsson is the second-biggest supplier in Austria. Its market share is 19% in terms of unit numbers, while that of Nokia is 40% and that of Siemens 10%.

Telephone Apparatus Manufacturing, Strategy & planning, Sweden, Central Station Switch Eqp, Telephone switching equipment, Central office equipment (Telephone)

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