Nokia, the world's leading mobile communications player, is exploring a closer and more sophisticated partnership with China Mobile Communications Corp (CMCC), the world's largest mobile operator.

Last week, the Finnish company for the first time offered CMCC an exclusive mobile phone design Nokia 6102.

Based on Nokia 6101, a new model Nokia developed specially for global operator partners, Nokia 6102 carries the CMCC logo, installs China Mobile's specific menu and branded service access, operator start-up and shut-down graphics and tones.

Meanwhile, the color, covers and antenna design were made according to CMCC requirements. The handsets, which will be produced in Nokia's manufacturing bases in China, will be released in the second quarter of this year.

This is the first time Nokia has offered a special design to a single operator, according to Timo Toikkanen, Nokia's vice-president in China. "This reflects Nokia's renewed operator customization strategy," he said.

Nokia has clearly decided to work harder to increase relations with operators and the special design marks an important step in this direction, he added.

"We look at the deal as an important step to our strategic partnership," he said.

With competition in the mobile communication sector getting fiercer, operator customization is at the heart of Nokia's strategy for mobile growth, said Olli-Pekka Kallasvuo, Nokia's executive vice-president of mobile phones.

"For the first time, we will offer industrial design customization for global GSM operators who are keen to have exclusive designs for their customers. We believe that this will truly be a win-win-win move for consumers, operators and Nokia."

In the past, CMCC also ordered a large batch of handsets from Nokia and other manufacturers with CMCC logos.

"It got deeper and earlier involvement from CMCC, and the cooperation extended to industrial design, software and hardware," said Colin Giles, Nokia's senior vice-president based in China.

Analysts say the new operator customization strategy, especially the cemented ties with China Mobile, is a good way for Nokia to enhance its leading position in the Chinese market at a time when rival companies such as Samsung and Sony Ericsson are catching up quickly with diversified choices and competitive prices.

However, Giles said the production volume of Nokia 6102 has not yet been decided. "The production will be decided according to CMCC's demand," he said. "But we are optimistic."

He added that if CMCC agrees, the Nokia 6102 will not only be sold in CMCC outlets.

Toikkanen did not rule out the possibility of Nokia initiating a similar relationship with China Unicom, China's second-largest mobile operator, which runs both GSM and CDMA networks.

"Nokia wants to form cooperation with all kinds of operators and China Unicom is on the list," he said.

With the Chinese market becoming more and more important for Nokia, the company is also actively developing partnerships with other operators such as China Netcom and China Telecom, he said.

Nokia retained its No 1 position in the Chinese mobile phone market in every month last year.

"We will carry on the trend in 2005," said Toikkanen. "Especially in the CDMA market where Nokia is a late comer, there will be more room for development of Nokia."

Nokia continues to expect the overall mobile device market in 2005 to grow approximately 10 percent in volume and the growth in China will be in line with the global market, he said.

(China Daily February 23, 2005)