Nokia started by making paper – the original communications technology

The history of Nokia goes back to 1865. That was when Fredrik Idestam built a wood
pulp mill on the banks of the Tammerkoski rapids, in southern Finland. A few years
later, he built a second mill by the Nokianvirta river – the place that gave Nokia its
name.

Who was Fredrik Idestam?

A mining engineer by trade, Idestam brought a new, cheaper paper manufacturing

process to Finland from Germany.

It was a great success. Idestam’s invention won a bronze medal at the Paris World
Exposition in 1867, and he is considered to be the father of Finland’s paper industry.

• Idestam named his company Nokia Ab in 1871

• Nokia Ab added electricity generation to its business activities in 1902

Did you know?

The Nokianvirta river is named after a dark, furry animal that was locally known as the
nokia – a type of marten.

Company president was Finland’s first Olympic champion

In 1937, Verner Weckman became President of one of Nokia Corporation’s founding

companies, Finnish Cable Works, after 16 years as its Technical Director.

Russian connection

Weckman had worked as a mining engineer in Russia from 1909 to 1921.

His knowledge of the Russian language and culture, as well as his industry
connections, proved crucial when Finnish Cable Works started exporting products to the
Soviet Union after the Second World War.

Award-winning athlete

Weckman was also a world-class light-heavyweight wrestler and Finland’s first Olympic
Gold medalist.
 • He won the wrestling World Championship in 1905
• He won Olympic gold medals in wrestling at the 1906 Games in Athens and the
1908 Games in London

Did you know?

Finnish Cable Works supplied cables to the Soviet Union as part of Finland’s war
reparations after WWII. This gave the company a good foothold for later trade.

TVs and computers – the first electronics boom

Finnish Cable Works, already working closely with Nokia Ab and Finnish Rubber
Works, branched out into electronics in the 1960s.

In 1962, it made its first electronic device in-house: a pulse analyzer designed for use in
nuclear power plants.

The company’s involvement with telecommunications systems also began in the 60s,
and it 1963 it started to develop radio telephones for the army and the emergency
services.

The electronics department went on to sell mainframe computers and run a computer
center to cater for the company’s IT needs.

Nokia would later make:

• TVs – by 1987 Nokia would be the third largest TV manufacturer in Europe

• computers – the MikroMikko became the best known computer brand in Finland
• radio telephones
• data transfer equipment
• radio links and analyzers
• digital telephone exchanges

Changing times

Nokia would eventually leave consumer electronics behind in the 1990s. But the
telecommunications expertise it developed from the 1960s onwards would become the
core of its future work.

1962: First in-house electrical device

The Cable Works electronics department produces its first in-house electrical device - a
pulse analyzer for nuclear power plants.
Merger paves the way for Nokia’s future as a global corporation

The merger of three companies created Nokia Corporation. These were:

• Nokia Ab
• Finnish Cable Works
• Finnish Rubber Works

The companies, which had been jointly owned since 1922, officially merged in 1967. At
the time, Nokia Ab was the smallest of the three.

The new Nokia Corporation had five businesses:

• rubber
• cable
• forestry
• electronics
• power generation

Each business had its own director who reported to the first Nokia Corporation President,
Björn Westerlund. As the president of Finnish Cable Works, he had been responsible
for setting up the company’s first electronics department, sowing the seeds of Nokia’s
future in telecommunications.

1979: Mobira Oy, early phone maker

Radio telephone company Mobira Oy begins life as a joint venture between Nokia and
leading Finnish television maker Salora.

1981: The mobile era begins

Nordic Mobile Telephone (NMT), the first international mobile phone network, is built.

Nordic network pioneers international mobile calling

A new era for mobile phones began in 1981, with the launch of the Nordic Mobile
Telephone (NMT) service.

Initially spanning several Nordic countries, the service was the world’s first
international cellular network. It was also the first to allow international roaming,
and caught on fast both inside and outside Europe.

Mobile explosion
With the introduction of the NMT standard, the mobile phone industry began to expand
rapidly.

Nokia soon introduced the first car phones to the network. The Mobira 450 car phone
came in 1982, followed by the portable in 1986. By this time the company was also
providing base stations and switches for NMT network operators.

Did you know?

As Nokia’s telecommunications business took off, its cable and rubber businesses were
still going strong. One of the great successes of the early 1970s was the Kontio – a
rubber boot that was available in different colors and proved a big hit with all age groups.

1982: Nokia makes its first digital telephone switch

The Nokia DX200, the company’s first digital telephone switch, goes into operation.

1984: Mobira Talkman launched

Nokia launches the Mobira Talkman portable phone.

1987: Mobira Cityman – birth of a classic

Nokia launches the Mobira Cityman, the first handheld NMT phone

1991: GSM – a new mobile standard opens up

Nokia equipment is used to make the world’s first GSM call.

Nokia is a prime mover in digital standards

On July 1, 1991, Finnish Prime Minister Harri Holkeri made the world’s first GSM call,
using Nokia equipment.

It was an appropriate choice. From the start, Nokia was one of the key developers of
GSM technology. Its expertise in the new standard, coupled with the deregulation of
European telecommunications markets in the 1980s and 1990s, was to be the
cornerstone of its international success.

What is GSM?

The Global System for Mobile communications (GSM) was adopted in 1987 as the
European standard for digital mobile technology. This second generation mobile
technology could carry data as well as voice traffic.

GSM’s high-quality voice calls, easy international roaming and support for new services
like text messaging (SMS) laid the foundations for a worldwide boom in mobile phone
use.
Nokia was in the vanguard of GSM’s development, delivering its first GSM network to
the Finnish company Radiolinja in 1989. Nokia launched its first digital handheld GSM
phone, the Nokia 1011, in 1992.

By the end of the 1990s, Nokia had supplied GSM systems to more than 90 operators
all over the world.

Did you know?

Nokia was the first manufacturer to make a series of handheld portable phones for all
major digital standards, including TDMA, PCN and Japan Digital, as well as GSM.

MOBILE REVOLUTION

1992: Jorma Ollila becomes President and CEO

Jorma Ollila becomes President and CEO of Nokia, focusing the company on
telecommunications.

How telecommunications become Nokia’s core

When Jorma Ollila became President and CEO of Nokia in 1992, the company made a
crucial strategic decision: to focus on telecommunications and move out of its other
businesses.

During the 1990s, rubber, cable and consumer electronics divisions were gradually sold
as the company moved to concentrate on communications.

Nokia’s core business was now:

• manufacturing mobile phones

• manufacturing telecommunications systems

The strategy was to prove a big success, as Jorma Ollila’s long-term vision propelled
Nokia onto the world stage.

1992: Nokia’s first GSM handset

Nokia launches its first GSM handset, the Nokia 1011.

1994: Nokia Tune is launched

Nokia launches the 2100, the first phone to feature the Nokia Tune.
Nokia ringtone has classical roots

The Nokia Tune is probably one of the most frequently played pieces of music in the
world.

The company introduced it as a ringtone in 1994 with the Nokia 2100 series, which went
on to sell 20 million phones worldwide. Nokia’s target had been 400,000.

The tune comes from a classical guitar work called Gran Vals, composed by Francisco
Tarrega in the 19th century.

Ringtones have come a long way since 1994, and new phones offer dozens of choices in
a variety of formats. With the right phone, you can even create your own.

1994: World’s first satellite call

The world’s first satellite call is made, using a Nokia GSM handset.

1997: Snake – a classic mobile game

The Nokia 6110 is the first phone to feature Nokia’s Snake game.

Classic game gets thumbs working worldwide

In 1997, everybody knew their Snake high score. The addictive game was launched on
the Nokia 6110 and is rightly considered a classic.

Snake and its successors are now available on an estimated 350 million mobile phones.

A new version of the game was created for the N-Gage platform in 2005. You can
download it for free and share it over your phone’s Bluetooth wireless connection.

1998: Nokia leads the world

Nokia becomes the world leader in mobile phones.

Nokia becomes the world’s biggest mobile phone manufacturer

By 1998, Nokia’s focus on telecommunications and its early investment in GSM

technologies had made the company the world leader in mobile phones.

Expanding markets
For most of its history the company had exported to Europe, other Nordic countries and
the Soviet Union. As late as 1991, more than a quarter of its turnover still came from
sales in Finland.

But after the strategic change of 1992, Nokia saw a huge increase in sales to North
America, South America and Asia.

Soaring sales

The 1990s also saw unparalleled growth in global sales. Between 1996 and 2001,
Nokia’s turnover increased almost fivefold from EUR 6.5 billion to EUR 31 billion.

1999: The Internet goes mobile

Nokia launches the world's first WAP handset, the Nokia 7110.

2002: First 3G phone

Nokia launches its first 3G phone, the Nokia 6650. Nokia launches mobiles for a new
generation

The launch of 3G ("third generation") technology meant mobiles would never be the
same again.

Nokia launched its first 3G phone, the Nokia 6650, in 2002. A vintage year for
innovation, 2002 also saw the launch of Nokia’s first phone with a built-in camera, the
Nokia 7650, and its first video capture phone, the Nokia 3650.

Expanding possibilities

With 3G, mobiles can do much more than just make calls. 3G means you can use your
phone to:

• download music
• make video calls
• watch TV on the move
• browse the web2003: Nokia launches the N-Gage
Mobile gaming goes multiplayer with the N-Gage.

2005: The Nokia Nseries is born

Nokia introduces the next generation of multimedia devices, the Nokia Nseries.
Entertainment and communication on the move

A new generation of multimedia devices was born in 2005 with the launch of the Nokia
Nseries.

The easy-to-use devices combine state-of-the-art technology with stylish design, creating
complete entertainment and communication packages.
Whether it’s taking your music collection mobile, shooting and editing feature-length
video or watching TV

2005: The billionth Nokia phone is sold

Nokia sells its billionth phone – a Nokia 1100 – in Nigeria. Global mobile phone
subscriptions pass 2 billion.

2006: A new President and CEO – Nokia today

Olli-Pekka Kallasvuo becomes Nokia’s President and CEO; Jorma Ollila becomes
Chairman of Nokia’s board. Nokia and Siemens announce plans for Nokia Siemens
Networks.

World leader

Today, Nokia is still the world’s number one manufacturer of mobile phones, and one
of the leading makers of mobile networks.

A new President

In 2006, Olli-Pekka Kallasvuo, formerly Nokia’s Chief Financial Officer, took over as
CEO from Jorma Ollila, who became chairman of Nokia’s Board of Directors.

The next step: Nokia Siemens Networks

The next step in Nokia’s continuing evolution is already under way. In June 2006, Nokia
and Siemens announced plans to merge Nokia’s networks business and the carrier-related
operations of Siemens into a new company, to be called Nokia Siemens Networks.

Nokia’s future

As mobile usage grows in the world’s emerging markets, Nokia will continue to develop
affordable mobile devices that can contribute to increased economic growth and
quality of life.

At the same time, mobile communications is converging with computing, digital

imaging and the internet, making it possible for people to use handheld devices for
filming video, listening to music, playing games, surfing the web and more. Nokia is
shaping this converging industry, pushing it forward with cutting-edge products and the
development of open standards.
Nokia’s success story is built on constant innovation. Our very human technology is all
about enhancing communication and exploring new ways to exchange information.
That’s why Nokia will never stop finding new ways of connecting people.

2007
Nokia recognized as 5th most valued brand in the world. Nokia Siemens Networks
commences operations. Nokia launches Ovi, its new internet services brand.

2008
Nokia's three mobile device business groups and the supporting horizontal groups are
replaced by an integrated business segment, Devices & Services.

Where does Nokia manufacture its products?

At the end of 2009, Nokia operated a total of 15 manufacturing facilities in Brazil, China,
Finland, Germany, Hungary, India, Mexico, the Republic of Korea and the United
Kingdom. See map.

 How many people does Nokia employ?

Nokia had 123 553 employees at the end of 2009.

 What are Nokia's revenues and profits?

Nokia's reported net sales were 41.0 billion in 2009, with a reported operating profit of
EUR 1.2 billion.