CDMA BU Strategy

Short version for sharing May 28 For more information contact: Paula Jantunen

Confidential

CDMA BU Current state

Strengths and achievements + We are well on our way to build organization to scale global reach + Customer base improving + Product quality + Our portfolio is broadening + Renewed position in Standards & IPR

Challenges - Diligent integration of new employees. Nokia Values at work - Manufacturing Planning Process agility - Security in Ramp Up executions - Competence in SW complexity, management and planning - Crisp timely execution and implementation

Confidential

CDMA Business Environment

CDMA handset vendor shares 40%

20%

0% 1998 1999 2000 2001 2002

Technology environment: CDMA industry orchestrated mainly by Qualcomm Qualcomm offering multitier chipset roadmap

Handset vendor competition: Operator environment: No dominant vendors in CDMA: Big accounts both in Americas market share game open and APAC Key competition: Samsung, Market fragmented: all big Motorola, LG, Kyocera accounts need own SW & HW
Confidential

CDMA BU Strategic Intent

NMP will be the global #1 CDMA terminal manufacturer with >25% market share and a recognized CDMA technology leader by end of 2005

CDMA handset vendor shares 40%

20%

0% 1998 1999 2000 2001 2002

Confidential

CDMA BU Key Strategies

NMP will be the global #1 CDMA terminal manufacturer with >25% market share and a recognized CDMA technology leader by end of 2005
Commercialize CDMA chipset Position Nokia as a credible CDMA leader and drive Nokia initiatives in the CDMA market

Offer a wide product portfolio through three-tier product architecture

Bring CDMA SW & HW technology components on par with or ahead of competition

Focus on few major CDMA operators to maximize global market share

CDMA handset vendor shares 40%

MMS
20%

#1 Nokia

0% 1998 1999 2000 2001 2002

Confidential