What Nokia should do next

Rather than mimicking Apple or Samsung smartphones in North America and Europe, Nokia should look through its archives - and to its success in Africa - for inspiration.

In the end, I decommissioned my £10 Nokia 1100 out of vanity three years ago. It had survived countless mishaps, including one memorable death-defying dive into a cup of hot tea. Unlike my iPhone, its battery could trundle along for at least a week and no app could be more useful than its built-in torch during a power cut.
 
After Microsoft announced its purchase of Nokia’s mobile phone business for £4.7bn on 3 September, analysts made much of the Finnish firm’s struggles to compete with Samsung and Apple in the smartphone market. But what if, rather than focusing on its weaknesses, the phone giant had the confidence to play to its strengths? Nokia is still the market leader in emerging economies, especially across Africa. The Nokia 1100 was one of the world’s bestselling phones, with a quarter of a billion sold globally, and these cheap, reliable handsets continue to transform the way some of the world’s poorest people live and work.
 
There are now more mobile phone users in Africa than in North America or Europe, the World Bank reported in 2012, but unlike in developed economies there’s still plenty of room for growth. World Bank figures also show that market saturation varies from 28, 38 and 48 mobile phone subscribers per 1,000 people in Eritrea, the Central African Republic and Ethiopia, respectively, to 1,049.2 per 1,000 in the Seychelles. Phone-makers may have to expect low margins when selling to some of the poorest, but there is money to be made in low-cost, highvolume goods.
 
Nokia’s sturdy feature phones don’t attract the same hype as the latest Apple product but African consumers make considerable sacrifices for their mobile phones. According to research conducted by iHub, a Nairobi-based tech community, phone users in Kenya are willing to forgo meals, or walk home instead of taking the bus, to save for phone credit. Phones such as the Nokia 1100 are comparatively low-tech but across emerging economies they have proved arguably more valuable, and certainly more transformative, than any other modern tech gadget.
 
For millions of Africans without bank accounts, mobile money transfer companies such as Kenya’s M-Pesa are overhauling the way many do business and are plugging gaps in the continent’s weak financial infrastructure. The research firm Gartner predicts that mobile payments will rise to $235.4bn by 2013 – and even my old Nokia can be used to transfer funds. Volatile currencies, repressive financial regulation and low bank penetration have led to mobile phone minutes being used as currency in African countries as diverse as Egypt, Nigeria and Zimbabwe.
 
Mobile phones are being used in all sorts of innovative ways, whether by offering crop insurance to Kenyan farmers via M-Pesa, or linking health workers in rural Mali to health-care experts to assist in proper diagnosis.
 
Even in Africa, demand for the Nokia 1100 won’t last. The company’s sales across the continent are declining. Nokia’s challenge now is to use its market clout to lead the way in low-cost smartphones designed for the African market, and its competitors aren’t just Apple and Samsung, but home-grown African companies such as Mi-Fone, headquartered in Mauritius.
 
Perhaps, rather than mimicking Apple or Samsung smartphones, Nokia should look through its archives for inspiration – a long battery life and sturdy design will be essential to a bestselling, lowcost smartphone, and a built-in torch would be wonderful.
Relics from another age: discarded Nokia mobile phones. Image: Getty

Sophie McBain is a freelance writer based in Cairo. She was previously an assistant editor at the New Statesman.

This article first appeared in the 16 September 2013 issue of the New Statesman, Syria: The deadly stalemate

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Fark.com’s censorship story is a striking insight into Google’s unchecked power

The founder of the community-driven website claims its advertising revenue was cut off for five weeks.

When Microsoft launched its new search engine Bing in 2009, it wasted no time in trying to get the word out. By striking a deal with the producers of the American teen drama Gossip Girl, it made a range of beautiful characters utter the words “Bing it!” in a way that fell clumsily on the audience’s ears. By the early Noughties, “search it” had already been universally replaced by the words “Google it”, a phrase that had become so ubiquitous that anything else sounded odd.

A screenshot from Gossip Girl, via ildarabbit.wordpress.com

Like Hoover and Tupperware before it, Google’s brand name has now become a generic term.

Yet only recently have concerns about Google’s pervasiveness received mainstream attention. Last month, The Observer ran a story about Google’s auto-fill pulling up the suggested question of “Are Jews evil?” and giving hate speech prominence in the first page of search results. Within a day, Google had altered the autocomplete results.

Though the company’s response may seem promising, it is important to remember that Google isn’t just a search engine (Google’s parent company, Alphabet, has too many subdivisions to mention). Google AdSense is an online advertising service that allows many websites to profit from hosting advertisements on its pages, including the New Statesman itself. Yesterday, Drew Curtis, the founder of the internet news aggregator Fark.com, shared a story about his experiences with the service.

Under the headline “Google farked us over”, Curtis wrote:

“This past October we suffered a huge financial hit because Google mistakenly identified an image that was posted in our comments section over half a decade ago as an underage adult image – which is a felony by the way. Our ads were turned off for almost five weeks – completely and totally their mistake – and they refuse to make it right.”

The image was of a fully-clothed actress who was an adult at the time, yet Curtis claims Google flagged it because of “a small pedo bear logo” – a meme used to mock paedophiles online. More troubling than Google’s decision, however, is the difficulty that Curtis had contacting the company and resolving the issue, a process which he claims took five weeks. He wrote:

“During this five week period where our ads were shut off, every single interaction with Google Policy took between one to five days. One example: Google Policy told us they shut our ads off due to an image. Without telling us where it was. When I immediately responded and asked them where it was, the response took three more days.”

Curtis claims that other sites have had these issues but are too afraid of Google to speak out publicly. A Google spokesperson says: "We constantly review publishers for compliance with our AdSense policies and take action in the event of violations. If publishers want to appeal or learn more about actions taken with respect to their account, they can find information at the help centre here.”

Fark.com has lost revenue because of Google’s decision, according to Curtis, who sent out a plea for new subscribers to help it “get back on track”. It is easy to see how a smaller website could have been ruined in a similar scenario.


The offending image, via Fark

Google’s decision was not sinister, and it is obviously important that it tackles things that violate its policies. The lack of transparency around such decisions, and the difficulty getting in touch with Google, are troubling, however, as much of the media relies on the AdSense service to exist.

Even if Google doesn’t actively abuse this power, it is disturbing that it has the means by which to strangle any online publication, and worrying that smaller organisations can have problems getting in contact with it to solve any issues. In light of the recent news about Google's search results, the picture painted becomes more even troubling.

Update, 13/01/17:

Another Google spokesperson got in touch to provide the following statement: “We have an existing set of publisher policies that govern where Google ads may be placed in order to protect users from harmful, misleading or inappropriate content.  We enforce these policies vigorously, and taking action may include suspending ads on their site. Publishers can appeal these actions.”

Amelia Tait is a technology and digital culture writer at the New Statesman.