FINAL 2 - NOKIA’S HISTORY OVERSEAS Fredrik Idestam an...

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NOKIA’S HISTORY OVERSEAS Fredrik Idestam, an engineer, established a wood-pulp mill in 1865 manufacturing paper in southern Finland near the banks of a river. A strong demand for paper in the industry was present. The company's sales attained a good reputation helping Nokia grow rapidly. Nokia exported paper to Russia first, then to the United Kingdom. Nokia’s factory employed a fairly large workforce which created a small community around it. Southern Finland now has a community called Nokia which still exists on the riverbank. Finnish Rubber Works, a manufacturer of Rubber goods, merged together to sell goods under the brand name on Nokia. World War II had ended and Nokia acquired a major part of shares from the Finnish Cable Works. Finnish Cable Works had grown quickly due to increasing need for power transmission, telegraph networks, and telephone networks in World War II. The ownership of Rubber Works merged with Cable Works. All three companies merged to form the Nokia Group in 1967. The Electronics Department generated 3 percent of Nokia’s net sales, providing work for 460 people in 1967 when the Nokia Group was formed (Nokia, 2007). The telephone exchanges consisted of electro-mechanical analog switches during the beginning of the 1970’s. Nokia successfully developed the digital switch known as the Nokia DX 200, replacing the prior electro-mechanical analog switch. The Nokia DX 200 allows computer controlled telephone exchanges, which still is the foundation for Nokia's network infrastructure. Introduction of mobile network began enabling Nokia’s 1
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production to invent Nordic Mobile Telephony (NMT), the world's first multinational cellular network in 1981. The NMT was introduced in other countries. Global System for Mobile Communication (GSM) was launched, helping Nokia start the first series of GSM phones (Nokia, 2007). Early 1990’s brought an economic recession in Finland which created an increase in Nokia’s sales of GSM phones. The recession is the main reason for Nokia to be considered one of the most important companies in Finland. Nokia supplied GSM systems to 59 operators in 31 countries in August 1997.
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FINAL 2 - NOKIA’S HISTORY OVERSEAS Fredrik Idestam an...

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