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Nokia Sees Opportunity In China's CDMA Field.(A)
Byline: MIKE ANGELL
Nokia Corp. on Monday said it plans to build CDMA cell phones in China, stepping up against stiff U.S. and local competition in what one day likely will be the world's biggest cell phone market.
Nokia already has a large share of China's cell phone market. But there it just sells handsets that use CDMA's rival technology GSM, Nokia's strength. China, though, a few years ago started promoting CDMA as a way to help stimulate local cell phone manufacturers. CDMA has fewer barriers to entry than GSM.
Finland's Nokia wants to compete in CDMA with Chinese firms as well as Chinese market leader Motorola Inc. of the U.S.
A Big Opportunity
"Nokia's been losing some market share," said Rohit Goel, an analyst with J.P. Morgan Securities. "The local firms have been gaining since China's government first licensed CDMA networks."
GSM, which stands for Global System for Mobile communications, dominates in Europe.
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