1 © 2006 Nokia

Nokia in North America

Tim EckersleySenior Vice President

Customer and Market Operations

2 © 2006 Nokia

Wireless Industry Growth Expected To SlowSlowdown Driven By Saturation And Declining ARPUs

0

50

100

150

200

250

300

2001

2002

2003

2004

2005

2006

E20

07E

2008

E20

09E

2010

E

0

20

40

60

80

100

120

140

160

180# subs(M)

Subscriber and revenue growth expected to slow to ~2-4% annual growth...

Revenue($B)

Revenue# Subs

CAGR ’01-’05 CAGR ’06-’10

10.5%14.7% 3.7%

2.4%

Industry subscriber and revenue growth 2001-2010

Source: IDC U.S. Wireless Consumer 2006-2010 Forecast; Strategy Analytics Wireless Operator Performance Benchmarking, March 2006; Bear Stearns U.S. Wireless Market, April 2006

• Driven by high saturation in core segments and declining ARPUs

• Carriers consolidating to derive scale benefits

•Top 4 carriers increased share from 71% to 83% from 2001-2006

• Industry recently performing well along key dimensions, with strong churn and data revenue growth

• National Retailers Have ~16% ofwireless market...majority of their sales are prepaid products with 41% CAGR

• Carriers and non-traditional competitorspushing industry slowly towards convergence

3 © 2006 Nokia

USA Market Subscription Growth Forecast

0

30

60

90

120

150

180

210

240

270

2002 2003 2004 2005 2006E 2007E0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Subscriptions Growth

(M) Subscribers Subscriber Growth

Source: Nokia estimates

4 © 2006 Nokia

USA Market Replacement Volume Forecast

-10

10

30

50

70

90

110

130

150

2002 2003 2004 2005 2006E 2007E 0%

5%

10%

15%

20%

25%

30%

35%

40%

Volume Growth

(M) Volume Replacement Growth

Source: Nokia estimates

5 © 2006 Nokia

0

20

40

60

80

100

120

140

160

180

200

2001

2002

2003

2004

2005

2006

E20

07E

2008

E20

09E

2010

E20

11E

2012

E

(in m

illio

ns)

0%5%10%15%20%25%30%35%40%45%50%55%60%65%70%

Volume Total renewal rate

USA Replacement Volume Forecast

Replacement rates are strong and with higher ASP

0

20

40

60

80

100

0 50 100

Handset prices by buyer type, US Marketg

Pricebracket(%)

$75–99

>$200

<$50

$100–149

$50–74

$150–199

Upgraders

ReplacementFirsttime Other

56%

42%

…and result in sales of higher value handsets with advanced features and style

Upgrade & replacement sales increasingly dominate volume sales…

Source: Nokia Market Analysis

6 © 2006 Nokia

Significant 3G Device Growth in US Market

0

50

100

150

200

2003 2004 2005 2006E 2007E

Mar

ket V

olum

e (m

)

WCDMA

DO

GSM

CDMA

iDen

TDMA

Source: Nokia estimates

<10%

7 © 2006 Nokia

Convergence Drives Carrier Strategies

We are uniquely qualified to deliver “three screen”

services

Educating consumers is a top priority

TVInternetWireless

Experiences

Multi-radio devices

Enabling infrastructur

eVideoVoice

Internet

Messaging

Unified Core

Convergence

8 © 2006 Nokia

Distribution landscape

0%20%40%60%80%

100%

Q403 Q204 Q404 Q205 Q405 Q206

Carrier Controlled Carrier Influenced

Source: Telephia 2Q06 Device Report

Operator Controlled vs. Influenced Distribution Channels

Operators have continued to dominate the distribution landscape…

• MVNO entry has not led to significant disruptions in retail distribution

• National retail continues to have the most success in prepaid

• Independent retailers shrink in footprint as Operators partner with exclusive agents and national retail

9 © 2006 Nokia

Carriers Rely On Multiple Channels To Reach Customers

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q4 2003 Q2 2004 Q4 2004 Q2 2005 Q4 2005 Q2 2006

COR + Exclusive agent

E-store

National Retail(1)

Customer Service

Other OnlineKioskNon. excl dealersOther

Channel Size Trend Q4 ’03-Q2 ‘06

Source: Telephia US Device report Q2 06

10 © 2006 Nokia

Working with Carriers to maximize National Retail

Nokia

National Retailer

Nokia phones

proposed

CarrierNRO / NAM

filter

NRO filter

Nokia phones at Retail

CarrierSelection

Carrierportfolio

SlottedNokia phones

Develop fact based value proposition

Link products to actual retail segments

Win-win business case-incremental volumes to

retailer and carrier

Leveraging Nokia’s strengths and insights along all portions of the value chain to deliver incremental sales in Retail channels

and create win-win situations

Carrier

11 © 2006 Nokia

Leveraging Share of Voice is Critical in North America

$636

$763

$840

$30

$855

$704

$646

$742

$641

$615

$605

$40$81

$28$37$24$69

$24$36$28

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

Q1 '04 Q2 '04 Q3 '04 Q4 '04 Q1 '05 Q2'05 Q3'05 Q4'05 Q1'05 Q2'06

Total Carrier Spend Total Manufacturer Spend

Carrier vs. Manufacturer Media Spend (M$)

Milli

ons

Source: Telephia Q2’06 Ad Insights

12 © 2006 Nokia

USA Business model remains largely the same

Handset subsidies

Retail commissions

Operator influenced

distribution

Device locking

Current market changes are unlikely to

change fundamental industry forces

13 © 2006 Nokia

Total Channel Management Capability

Cingular Verizon Wireless

T-Mobile USA

Sprint-Nextel

USA Market

Walmart

Best Buy

Radio Shack

Dealer Agents

MVNO

B2B

E-Store

Carrier Online

Core Retail

Convergence

•Dynamic interaction between channels

•Increasing penetration and replacement market alters business drivers

•From product sell-in to total channel understanding

CON

SUM

ER SEGM

ENTATIO

N

14 © 2006 Nokia

Committed to Winning in North America

Investing in New Technologies

Joint Portfolio Creation NA Dedicated R&D

Shared Portfolio

Vision

15 © 2006 Nokia