Nokia First Century: 1865-1967

The first Nokia century began with Fredrik Idestam's paper mill on the banks of the Nokianvirta river. Between 1865
and 1967, the company would become a major industrial force; but it took a merger with a cable company and a
rubber firm to set the new Nokia Corporation on the path to electronics...

1865: The birth of Nokia

Fredrik Idestam establishes a paper mill at the Tammerkoski Rapids in south-western Finland, where the Nokia story
began

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

1898: Finnish Rubber Works founded

Eduard Polón founds Finnish Rubber Works, which will later become Nokia's rubber business.

1912: Finnish Cable Works founded

Arvid Wickström starts Finnish Cable Works, the foundation of Nokia's cable and electronics businesses.

1937: Verner Weckman, industry heavyweight

Former Olympic wrestler Verner Weckman becomes President of Finnish Cable Works.

1960: First electronics department

Cable Works establishes its first electronics department, selling and operating computers.

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.

1967: The merger

Nokia Ab, Finnish Rubber Works and Finnish Cable works formally merge to create Nokia Corporation.

The Move To Mobile

The newly formed Nokia Corporation was ideally positioned for a pioneering role in the early evolution of mobile
communications. As European telecommunications markets were deregulated and mobile networks became global,
Nokia led the way with some iconic products...

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.
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.

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.

Mobile phones go handheld in 1987

The original mobile phones were heavy, bulky and usually permanently installed in cars.
But 1987 saw a breakthrough: Nokia launched the Mobira Cityman, the first handheld mobile phone for NMT
networks and a model that was to become a classic.
Seal of approval
Nokia’s mobile phones got a big publicity boost in 1987, when Soviet leader Mikhail Gorbachevwas pictured using a
Cityman to make a call from Helsinki to his communications minister in Moscow. This led to the phone’s affectionate
nickname of the "Gorba".
Vital statistics
The Mobira Cityman 900 weighed 800 grams and had a price tag of 24,000 Finnish Marks (approximately EUR
4,560).

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:1992-1999:
In 1992, Nokia decided to focus on its telecommunications business. This was probably the most important strategic
decision in its history.
 As adoption of the GSM standard grew, new CEO Jorma Ollila put Nokia at the head of the mobile telephone
industry’s global boom – and made it the world leader before the end of the decade...

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.

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.

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 web

2003: 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.