sector Overview:

After a century of gradual development from telegraph to sophisticated fixed-line communication there was an initial divergence created by the newer mobile telecommunication businesses. This has been followed by increasing convergence that has brought the two core systems together, thanks to technical developments enabling cordless communication, broadband providing high-speed connection and industry consolidation from a plethora of privatisations, mergers, acquisitions and new entrants.

Nokia’s leadership in the design, supply and support of a wide range of mobile equipment remains strong and, with increasing share and margins, the company has distanced itself from immediate competition. Having fought off increased challenge from Motorola which was, for a time, gaining market share, albeit at the expense of margins, Nokia is now facing more significant global growth competition from Korea’s Samsung. Especially in the US where Nokia has less than 10% market share, Samsung, LG and Motorola are all trying to capitalise on their entrenched position before Nokia turns up the heat with its combined high-end product and service offers.