Handset manufacturing giant -
) - has entered into a partnership with Indian telecom carrier
Bharti Airtel Limited, allowing the latter to offer some of
Nokia's value added service (VAS) in Africa.
The deal is expected to boost the revenue of Nokia's mobile
application store that offers both national and international
As per the deal, Bharti will start selling popular Nokia VAS
like Life services, Xpress browser and Store Operator Billing.
Nokia Life service provides customised information in the field
of education, agriculture, healthcare and livelihood, which are
delivered by text at a relatively lower cost than other
Nokia Life service is already available in 18 different
languages and is being accessed by more than 95 million people.
Nokia Life is already available in Nigeria and Bharti will extend
its reach within the continent by launching it in Kenya this
month. The partnership will be the first of its kind for Nokia in
Africa, where smartphone sales are expected to climb by 56% in
2013. This in turn will drive larger volume of apps and game
downloads, thus improving the prospect of Nokia's Value added
Other areas of collaboration include Nokia Xpress browser a
cloud based internet platform, which provides customers with
increased download speed by compressing data. On the other hand,
Nokia's billing solution will allow customers to download apps
and games from the Nokia store, charges for which will be
included in their monthly phone bills.
For the last couple of years, Nokia has been combating market
share loss to
) iPhone and other smartphones running on
) Android operating system. Lack of application has been one of
the main reasons why Nokia is lagging. Both Google and Apple have
more than 800,000 applications while Nokia has only 100,000
applications in its kitty.
We believe that tying up with Bharti will popularize Nokia's
applications and draw in smartphone users of the other operating
platforms. It will also act as an additional source of revenue
for the Finnish handset manufacturer.
Nokia currently carries a Zacks Rank #3 (Hold). Among the
other companies in the same industry where Nokia operates,
), with a Zacks Rank #2 (Buy), is a better option for the
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