Finnish mobile phone giant Nokia yesterday launched a new Taiwan online platform which it will use to enhance handset sales and boost the company's brand image and non-handset revenue.
Linking up with four local content providers, Nokia's new Downtown service will allow Nokia handset owners to download a variety of entertainment services such as ringtones, cartoons and icons.
Future technological advances will see the addition of animation and games to the service, which is accessed through Nokia Taiwan's Downtown site.
"As well as using the Internet for downloads ... this service gives us an opportunity to add value to our products," said Colin Giles, managing director of Nokia Mobile Phones.
While the new service will help the company push its handset sales, Giles said it will also increase the company's non-handset income.
"You can't separate the two. We have an opportunity to enhance the handset brand, but it is also a separate revenue stream," he said.
Nokia leads the global handset market with around 35 percent market share. While not giving details of the company's Taiwan-market position, Giles said Nokia's Taiwan revenue growth and market share are in line with its global position.
Nokia has so far signed up EMI Music, the US National Basketball Association (NBA), gaming site Softstar, and story/comic site A-Kuei.
Each of the partners will provide content to Nokia and will share revenues on a per-item basis. Nokia will provide the hardware and infrastructure.
In addition to providing player and team icons, the NBA will also provide subscription services such as game scores, updated player statistics and game Taiwan TV schedules for NBA games.
"This is a totally new business model for us and the potential for the business is huge," said Justin Kuan, marketing director for NBA Taiwan.
While the NBA has an online presence through its NBA.com site, the deal with Nokia Taiwan is the first of its kind. The NBA will provide all of the basic content, statistics and updates to Nokia which will then be re-packaged for the Downtown service.
Music label EMI also expects significant benefits from being a supplier to the Downtown service.
"I have huge expectations because it is a whole new business model," said Mark Liu, managing director of EMI Taiwan. As well as providing EMI with another channel to push its artists, the Nokia site will help the company boost revenue.
EMI will provide Nokia with access to five Taiwan artists as well as former Spice Girl Emma Bunton. Liu said he sees a range of services being provided, including songs, signatures, characters and messages.
"You could send a message to your friend with Faye Wong singing happy birthday," he said.
The average cost of downloads will be between NT$8 and NT$12 with users being able to purchase prepaid cards at convenience stores, paying by credit card online, or paying via monthly phone bills.
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