I’m going quite a step back (March 12th 2012) but this one needs to be looked at before “the large one” can be taken care of.
EDIT: Never mind the previous, Tomi repeats this as recent as 6th of July 2012. More at end of post.

I am stunned by news from Nokia today. We hear that Nokia is terminating Nokia Money, the Nokia mobile payments solution it has launched in several countries in Asia including India the second largest mobile phone market on the planet behind only China, and other big Asian countries like Pakistan.” [1]

Yes, I was stunned too. I heard a lot of the service and it sounded like a good business plan. Of course, it is possible that giants like Visa and Mastercard are entering the field and Nokia Money just didn’t look like a contestant. What do I know?
My opinion is irrelevant, since I’m here to address the invalid data in Tomi Ahonen’s post. Namely this one:

Now we hear that Nokia Money will be terminated. After Nokia had recruited 1.2 million paying consumers to its Nokia Money service (which is not free – it has a registration fee), now Nokia gives 3 months for those customers to deplete their Nokia Money accounts and then the mobile payment service will be discontinued. Nokia will also return its mobile banking license to the Reserve Bank of India etc. Note, as the India banking regulator tells that there are currently about 10 million mobile banking users in India, Nokia had achieved a 12% market share in the early going of a market that will soon pass 100 million users – most people in India do not have regular banking accounts and don’t use such ‘common’ payment methods to many of my readers here, as credit cards etc.” [1]

Wait… Nobody. How about we have… Invalid data?

Tomi links us to The Hindu Business Line article. [2] It should be noted that when commenters on his blog said 1.2 million is invalid figure, he said it is in the article and they should read it themselves. He’s right:

Nokia had launched mobile money in 2010 through a partnership with YES Bank. Subsequently, it signed up with Union Bank to offer services such as bill payments and money transfer.
It had also launched the service independently under the Nokia Money brand which has about 2 lakh subscribers. In total, there are about 1.2 million subscribers using the Nokia service across all three platforms.” [2]

So… what on earth is “2 lakh”? Wikipedia helps: “A lakh is a unit in the South Asian numbering system equal to one hundred thousand” [3]

So… Nokia Money service (which is not free – it has a registration fee) user base of 1.2 million just dropped to 200 000? I guess we could go forth with Tomi Ahonen and read comments from his blog. There we have additional link to Banking Business Review article about it: “According to the firm, it has a customer base of more than 100,000 users“. [4] Very well, we now know it’s between 100 000 and 200 000. Since Nokia official was “more than 100 000”, I’d assume it’s closer to 100 000 than 200 000. But let’s be really fair and use 200 000.

Nokia Money (the service being shut down) had less than 200 000 subscribers. Over 1 million subscribers were using YES Bank or Union Bank services that were somehow co-operated with Nokia. It is unclear from the news above if Nokia ever had any benefit of those. But that was no the point of article of Mr. Ahonen, he focuses on Nokia Money. And if 1.2M was 12%, 200 000 is 2%. With its own service Nokia is having 2% of the market after 2 years. (The duration of service comes from Tomi Ahonen’s blog). That means 98% of the market is taken by other companies. And let’s get this straight – majority of those actually do financial business as their core operation. Assuming Nokia does at least SOME KIND of co-operation with one of the larger ones, they can easily have over 2% of the market going through their devices again in a time span of less than 2 years.

Strategically sensible move – plausibly.
Numbers of Tomi Ahonen – FUD.

Now I’m repeating myself here: “People from league of Tomi Ahonen DO NOT make elementary mistakes like writing a long blog based on invalid numbers. They simply DON’T do that – unless it is deliberate and intentional.”

And Tomi takes it again July the 6th, 2012:
Elop sold the Nokia Money project which had alredy taken 12% of the mobile money market of India (the world’s second largest mobile market, and one where very few have traditional banking accounts).” [5]
Cannot be accidental. Has to be deliberate.


[1] http://communities-dominate.blogs.com/brands/2012/03/how-to-surrender-war-of-ecosystems-nokias-elop-sets-ever-more-platforms-on-fire-nokia-money-killed-t.html

[2] http://www.thehindubusinessline.com/industry-and-economy/info-tech/article2985226.ece?homepage=true&ref=wl_home

[3] http://en.wikipedia.org/wiki/Lakh

[4] http://onlinebanking.banking-business-review.com/news/nokia-to-exit-from-mobile-money-services-business-160312

[5] http://communities-dominate.blogs.com/brands/2012/07/the-sun-tzu-of-nokisoftian-microkia-mirror-mirror-on-the-wall-whose-the-baddest-of-them-all-waterloo.html

Guideline for commenting:
I hate the way Tomi Ahonen deletes criticizing comments from his blog. However, I plan to follow three of his principles: I’ll delete comments that are

  1. Personal insults to someone
  2. Duplicates
  3. Spam

In addition, if you wish to challenge my previous posts, please comment to those.