Mobile phone ownership is a necessity for most Czechs, yet telecommunications data indicate there are more mobile phones in use than the actual number of citizens in the country. Still, mobile phone manufacturers see other opportunities on the market. Victor Saeijs, Nokia's managing direrctor for the Czech Republic and Slovakia, talks with The Prague Post about the market situation here and what changes are expected with the eagerly-awaited launch of 3G technology.

1. This summer was a hot one on the telecommunication market as new operators, namely Spain's Telefónica and Britain's Vodafone, entered the market. Has this affected mobile phone manufacturers here? Do you expect any changes soon?

We welcome Telefonica and Vodafone to the Czech market. Nokia works closely with all three operators, both at the local and global levels. In that respect, we do not foresee any major changes. We believe that the international experience of all three operators can contribute to the development of the Czech telecom market. Also vice versa, best practices of the Czech market can be shared and applied in other European markets. We see some of that happening already.

2. One of the major changes that could affect mobile phone manufacturers, including Nokia, will be the launch of number portability. Do you think this could bring about the end of subsidized-phone sales, since operators will not be able to bind clients with bonus gifts?

The experience in other countries where operators subsidize mobile devices is that switching between operators is limited after the introduction of number portability. What will happen in the Czech Republic will entirely depend on the strategies of the three operators. We do not believe that the scheme of subsidized sales will cease to exist, as it will continue to be an important part of the operators' loyalty programs.

3. If the volume of sales of subsidized phones drop, how will it affect your pricing policies? Would you consider reducing prices of some models in order to make them more attractive on the market?

Probably not. We do foresee that mobile device growth could be slightly lower than this year, but that depends on factors other than subsidies. As Nokia, we provide a full range of devices, from premium business devices, like the Nokia 9300, N70 or 8800, to very attractively priced phones like 1600 or 1110. Depending on the budget of the consumer, we have a Nokia model that fits his or her requirements.

4. According to recent market research, mobile phones are the third most popular item bought on credit in this country. Does that indicate that mobile phones are still too expensive for Czechs or that Czechs are rather keen on new and expensive models?

I would say the second statement is true. Czechs are very keen on replacing their phones, and are in the forefront in Europe when it comes to mobile communications. We see the Czech market growing in volumes by 20 percent in 2005 so far (versus 2004). This is substantially higher than other European countries with similar high penetration levels. Mobile phones are still high-interest items for many Czech consumers.

5. Nokia phones are the most popular among the young generation of Czechs. Do you perceive the young generation here as a particularly interesting market segment? What do you think is the most appealing feature of mobile phones for the young set?

The young segment is most perceptive of both design and technological innovation and, as such, it is very important for Nokia, both from the short- and long-term perspectives. According to our latest research findings, some of the most important features for young people include design and music. More importantly, for young people a mobile phone/device is an embodiment of their social status and their approach to their environment. Nokia realizes this and combines young people's needs with a very innovative brand approach.

6. Last year the number of multimedia messages [MMSs] sent via mobile phones tripled in this country. Did you take it as a signal that phones that do not support MMS have no future on this market?

The MMS growth is indeed very encouraging. Most of the Nokia devices support MMS and it has more or less become a standard feature on our devices. Although a lot of the traffic is MMS content downloaded from various sites, we also believe based on the steep growth of camera phones sold in Czech Republic that more and more people are sending each other photos via MMS.

7. How about the fast-approaching launch of 3G technology in this country? Could 3G create a new battlefield for mobile phone makers in their fight for clients?

We believe 3G will provide a new growth impulse to our business. Think about sharing live video, making a video call with your loved ones or colleagues or even using high-speed to connect to the Internet or company Intranet for business purposes. How about downloading songs via the network into your mobile device, playing fast, highly interactive online games with your friends, watching a short movie or music clip on your mobile? These are just a few examples of what 3G will enable us to do. With Nokia's No. 1 position in 3G worldwide and best-selling 3G devices like the Nokia 6680 and N70, we are ready and well positioned to lead this growth.

8. What do you think will be the key to success in attracting clients to 3G hardware — the quickest possible introduction of 3G hardware or a reasonable price?

We believe that in the early phases it will be about showing the benefits and the real exciting things you can do with 3G devices and services. After that, as an industry, we will indeed need to bring prices to mass consumer levels, which includes reasonably priced Nokia devices.

9. The 3G technology further upgrades mobile phones' functions. What do you think could be another step up? What other function would you like to see on your mobile?

The sky is the limit, really. I believe we will see in the future new exciting ways to bring entertainment into mobiles, with new ways to view, listen, share and engage movies, music, games, etc. Also in the area of corporate usage, Nokia now, and in the future, will bring full office functionality and connectivity to your mobile device. Wherever you are, your office is with you. That will be connected with new ways to screen and filter the communication so that the information overload we all experience nowadays will become better manageable. This should lead to higher efficiency and, eventually, to more time to spend on family and hobbies. At Nokia we strive to make the technology invisible to the user, to make our day-to-day lives as pleasant and easy as possible.

10. Recent research conducted by telecommunications operators and banks show that while people here report lost or stolen payment cards within 28 hours, lost mobile phones are reported within an hour on average. Given that, do you think Czech people can be rational when mobile phones are at stake?