Nokia seals Japanese, Canadian contracts; Cellstar enters Asia-Pacific Rim

Mobile Phone News, March 20, 1995

Nokia Mobile Phones signed two major agreements that promise to put its phones in the hands of more people on two continents. CellStar Corp. also announced an agreement with Motorola Inc. that will allow the Dallas-based company to begin wholesale distribution of cellular telephones and accessory products in the Asia-Pacific region.

Specifically, Nokia Mobile Phones Japan K.K. signed a sales agreement with DoCoMo, the cellular unit of NTT, which will allow DoCoMo to sell Nokia's digital portable handsets through its sales network in Japan. Nokia estimated the value of initial deliveries to be worth $50 million. DoCoMo President K. Oboshi suggested that other equipment suppliers might have opportunities for such contracts.

"As DoCoMo begins exploring digital communications opportunities beyond voice, in our 9600-bps service, we look forward to possible further cooperation with top manufacturers like Nokia to help meet the needs of our customers," Oboshi said.

DoCoMo, the leading mobile phone operator in Japan, has more than 2 million subscribers to cellular networks. Japan is the second largest cellular market in the world with more than 3.5 million subscribers at the close of 1994. Digital networks were launched commercially in the country last year.

Nokia also signed its largest Canadian contract to date last week. The company will supply Mobility Canada with phones for the second phase of the Canadian carrier's consumer-oriented Liberti program. Nokia estimated the value of the contract at $100 million (Canadian).

Under the agreement, Mobility Canada will distribute the Nokia 101 portable handset and the LX12 mobile phone through the Liberti program. The phones will be sold directly to consumers through a network of 4,000 dealers including Sears, Radio Shack, Office Depot, General Motors dealers and Grand & Toy.

Mobility Canada is extending the Liberti program, launched in October 1994, to include all 12 of the member companies that comprise Mobility Canada. Liberti targets first-time cellular customers and requires no start-up fees except for the first month's service charge.

In another distribution agreement announced recently, CellStar Corp. will sell Motorola cellular products in the Asia-Pacific region through CellStar Pacific Pte Ltd., its newly established Singapore-based joint venture company. CellStar Pacific anticipates beginning sales during the company's second quarter ending May 31.

CellStar currently distributes Motorola products in the People's Republic of China and throughout the United States and Latin America. In addition, the company recently announced joint ventures in South Africa and India for the distribution of cellular phones and accessories.