© 2009 Nokia Affordable mobile communications, TCO study 2008 1 Reasons for Optimism

© 2009 Nokia Affordable mobile communications, TCO study 20081

Reasons for Optimism.

The best educational tools, are the ones you have with you.

INSPIRE THE

CLASS

REACH THE PUBLIC EXTEND THE CLASSROOM

© 2011 Nokia Affordable mobile communications, TCO study 2011, Sanna Eskelinen

3

First things First.

“In 10 short years, what was once an

object of luxury and privilege, the mobile

phone, has become a basic necessity in

Africa.”

Paul Kagame, President of Rwanda

Today the average monthly Total Cost of Ownership (TCO) for the lower-income consumer is USD 11.47.

4

Cheap mobile phones aren’t the whole story

Taxes Taxes to handset and service, including VAT, sales tax, extra telecom taxes and custom dutiesService OECD low-cost service basket for a pre-paid mobile subscriber, including 30 calls and 33 SMS.

Handset Lowest cost globally available Nokia handset (Nokia 1616 classic)

5.00

10.00

USD

76%

17%

7%

$11.47


Features on rise

The emergence of the discerning, more confident and demanding first time buyers suggest upgrading the device used in the study.

NOTES

© 2011 Nokia Affordable mobile communications, TCO study 2011 5

2010 returned the TCO development back on track after negative development in 2009

- 4 %

- 12 %

- 43%0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

2005 2007

USD

handset 11%

service 74%

tax 15% 2009 was the first year since 2005 that witnessed increase in TCO as an aftermath for the financial crisis. 2010 put the development to the right track and overall TCO has decreased by 14% between 2005 and 2010.

handset 8%

service 78%

tax 14%

2008handset 7%

service 79%

tax 14%

2010handset 7%

service 76%

tax 17%

2009 unpublished

results NOTES


TCO < USD 5 enables the majority of the lower-income consumers to use mobile communications

US d

olla

rs

0

5

10

15

20

25

Average 11.47 US dollars

Bangla

desh

Sri

Lanka

Chin

aPa

kist

an

In

dia

Uzb

eki

stan

Kenya

Egypt

Vie

tnam

Sudan

Iran

Eth

iopia

Cam

bodia

Thaila

nd

Ghan

aU

ganda

Tanza

nia

Hait

iIn

donesi

aA

lgeri

aPhili

pp

ines

Tunis

iaB

oliv

iaG

uate

mala

Moza

mbiq

ue

Nig

eri

aSenegal

Syri

aH

ondu

ras

Côte

d'Iv

oir

e

Kaza

khst

an

Ecu

ador

Dom

inic

al

Rep

ublic

Guin

ea

South

Afr

ica

Madag

asc

ar

Zim

babw

eB

urk

ina F

aso

DR

CC

olo

mb

iaZ

am

bia

Mala

wi

Chile

Cam

ero

on

Moro

cco

Turk

ey

Chad

Arg

enti

na

Peru

Bra

zil

Eleven countries reach the monthly TCO target of 5USD or less.Affordability is best in Asia with TCO under 5USD/month in several countries.

NOTES


7

Eliminating the tax brake on growth

• Taxing mobile phones as luxury items is suppressing the economic and social development – mobile phones to be treated as necessities

• High duties on import are predominantly harmful to the poor widening the digital divide

• Moderation in taxation will not only increase subscribers and the socio-economic benefits that flow from connectivity, but will also increase overall tax yield².

² Economist, May 29, 2008

Case – Kenya Kenya waived VAT on mobile phones in June 2009

Immediate market and consumer impact. Reported development after 6 months:• Penetration up 7%• Market Volume Growth

31.4% • Grey imports decline

from 40% to 10%• Counterfeit decline

5.6%

NOTES

Internet premium¹ describes the additional cost of using mobile internet in addition to basic voice and SMS services on monthly basis.

The average Internet premium is 3.58 USD.

The Internet pricing has come down significantly between 2009-2011 and almost halved.

8

Mobile platforms and apps are fragmented. M-learning cannot take off without affordable mobile data and internet

5.00

10.00

USD

© 2011 Nokia Affordable mobile communications, TCO study 2011 NOTES

15.00

¹ Internet premium consists of the price difference between a voice/SMS capable device and a data capable device and 2MB of data monthly.

Equivalent events examples based on total 2 MB usage; 2 hours browsing or 20 emails or 8 game downloads or 0.4 music track download

2009 2010

$6.72

$3.58

Basic TCO Voice + SMS monthly TCO

Handing Over..


Nokia’s Ovi Life Tools

Ovi Life ToolsInform. Involve. Empower.

11

Entertainment

Learning/ Education

Agriculture

Nokia Life Tools Addresses Specific Consumer Pain Points

Livelihood & Economic progress

Increase profit through cost savings,

obtaining higher crop prices and

improved harvest due to tips

Better life & Social Standing

Improved English skills

Improved performance in exams

Improved general knowledge

Entertainment

Ability to keep up with your

interests, sports, music,

astrology etc.

Market pricesWeather +advisory Tips/News Exam Preparation General Knowledge Learn English

Astrology, Jokes News Ringtones, Wallpapers

Health CareHealthcare

Actionable health tips to cater to your

and your family’s healthcare

information needs

Mother & Child Health & Fitness Health Topic

Nokia Life Tools: Created for the emerging markets

Targeted at the rural, semi-urban and urban low income consumers in emerging markets

Focus on Livelihood and Life Improvement information

Locally relevant information in one’s own

language (16 languages across 4 countries)

Easy to use innovative graphical interface

No hassles with settings

Works anywhere with GSM coverage, GPRS not necessary

Ovi Life ToolsInform. Involve. Empower.

12

Life Tools – Learning Services

13

Better life & Social Standing

• Improved English skills

• Improved performance in exams

• Improved general knowledge

• Practice English daily through various levels of difficulty

• Explanations & pronunciation in local language

• Relevant mix of words & phrases mapped to levels with weekly tests

• Modules aligned to prescribed curriculum & text books

• Study tips• Summary & test

• GK facts with a regional, national and international mix

14

Evolution to Include Life Roles and Affiliates Academics

• Exam Tips (Primary and Higher)

• Exam Results • Test Prep (University)

Life Roles

• Live Smart (Life Skills & Financial Literacy)

• Parenting • Study with Child

General Learning

• Learn English • General Knowledge • Dictionary

Partner Services

• University (IGNOU) • Career Counseling

15

Vibrant Life Tools ecosystem in India, Indonesia, China & NigeriaEducation

India:

Learning English skills in 11 Indian languages

Two National boards and various State board Curricula

Exam Tips in 11 Indian languages

Grades 10 & 12 across all boards

General Knowledge (Local, State, National & International)

Indonesia:

Learning English skills in Bahasa Indonesian

Over 48 subjects across 6 Grades


China:

Learning English skills via Simplified Chinese language



Nigeria:

Learning English skills via three local languages.



http://www.k12intelligence.com/images/PearsonLogo.jpg

Mobile Learning for Mathematicsin formal /informal education in South Africa/Finland

Education for All

Accessibility

SustainabilityScalability

Affordability

The m-learning service

South Africa• Project started by the request of

South Africa Vice President in Oct 2008

• 2009 300 learners from 6 schools• 2010 app. 4000 learners from 30

schools• 2011 app. 15 000 learners from

more than 100 schools

Finland• 2010-2011 piloting in 4 schools

© 2011 Nokia Corporate Social Investment


• Learners and teachers can access to interactive mathematics learning materials provided through a mobile delivery support. platform combined with a social media application for peer-to-peer

• Support both formal and informal learning in secondary schools

• Support teachers in their teaching and develops new skills for teachers



• Aligned to the current South African curriculum for Grade 10 mathematics.

• Theory and questions from a database of approximately 10,000 questions categorized by topic and degree of difficulty.

• Topic tests• Immediate feedback• Compare results with their

classmates in their school, in other provinces, and nationally.

• Peer to peer support via Mxit/Ovi chatting

• Moodle LMS


Implementation methodologies

• In class or independently

• Mobile access:• Own mobile• Shared mobile• Mobi-kit

• 2011 access content via Internet also


• Sustainability, affordability, scalability and replicability considerations have driven the concept design

• Research results have played important role in further development of the service

• Zero rating of the IP address• Service for all phones• Focus on learner• Real 24/7 service• Lowers the cost of technology required to use such a service• Brings mathematics into the social networking space already used by

youth• Does not put additional pressure on computer infrastructure in schools• Minimal teacher training

What makes this project successful


• Core group of 1,297 learners emerged as regular users over 2010 (52% of active learners)

• Very positive feedback from learners and teachers• 28 % of regular users made use of either shared phone / mobi-kit

phone• 82% of use was outside of school time• Continued use during holidays and strike• Continued use over one full year (often, despite non-use by teachers)• Preliminary analysis (Feb – June 2010) shows impact on learner results

– 14 % better maths results fro those who were using the service

Operators zero rating the service IP address (MTN, Cellc)

Achievements to date (2010 academic year)



Bridgeit

Nokia Education Delivery

www.nokia.com/educationdelivery

23


An Enduring Success

• Conceived during the excitement of 3G auctions. ‘We can send education everywhere!’ Delayed by dot-com bust and slow 3G roll-out > satellite.

• Aimed to boost teacher quality and student academic performance. Achieved both. Also had unintended outcomes related to retention and community.

• Will become obsolete one day but remains valid and increasingly viable as a financially sustainable project.

• ‘Over 1 million served.’ Now in the Philippines, Chile, Tanzania, pending in Colombia, Nigeria and Kenya.

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Documents

© 2009 Nokia Affordable mobile communications, TCO study 2008 1 Reasons for Optimism