In 1865, an engineer named Fredrik Idestam established
a wood-pulp mill and started manufacturing paper in southern
Finland near the banks of a river. Those were the days when
there was a strong demand for paper in the industry, the company's
sales acheived its high-stakes and Nokia grew faster
and faster. The Nokia exported paper to Russia first and then
to the United Kingdom and France. The Nokia factory employed
a fairly large workforce and a small community grew around
it. In southern Finland a community called Nokia still exists
on the riverbank of Emäkoski.
Finnish Rubber Works, a manufacturer a Rubber
goods, impressed with the hydro-electrcity produced by the
Nokia wood-pulp (from river Emäkoski), merged
up and started selling goods under the brand name on Nokia.
After World War II, it acquired a major part of the Finnish
Cable Works shares. The Finnish Cable Works had grown
quickly due to the increasing need for power transmission
and telegraph and telephone networks in the World War II.
Gradually the ownership of the Rubber Works and the Cable
Works companies consolidated. In 1967, all the 3 companies
merged-up to form the Nokia Group. The Electronics
Department generated 3 % of the Group's net sales and provided
work for 460 people in 1967, when the Nokia Group was
In the beginning of 1970, the telephone exchanges consisted
of electro-mechanical analog switches. Soon Nokia successfully
developed the digital switch (Nokia DX 200) thereby
replacing the prior electro mechanical analog switch. The
Nokia DX 200 was embedded with high-level computer
language as well as Intel microprocessors which in turn allowed
computer-controlled telephone exchanges to be on the top and
which is till date the basis for Nokia's network infrastructure.
Introduction of mobile network began enabling the Nokia
production to invent the Nordic Mobile Telephony(NMT),
the world's very first multinational cellular network in 1981.
The NMT was later on introduced in other countries. Very soon
Global System for Mobile Communication (GSM), a digital mobile
telephony, was launched and Nokia started the development
of GSM phones. Beginning of the 1990 brought about
an economic recession in Finland. (Rumour has it that Nokia
was offered to the Swedish telecom company Ericsson during
this time which was refused) Due to this Nokia increased
its sale of GSM phones that was enormous. This was the main
reason for Nokia to not only be one of the largest but also
the most important companies in Finland. As per the
sources, in August 1997, Nokia supplied GSM systems
to 59 operators in 31 countries.
Slowly and steadily, Nokia became a large television
manufacturer and also the largest information technology company
in the Nordic countries. During the economic recession the
Nokia was committed to telecommunications. The 2100
series of the production was so successful that inspite of
its goal to sell 500,000 units, it marvellously sold 20 million.
Presently, Nokia is the number 1 production in digital
technologies, it invests 8.5% of net sales in research
and development. Also has its annual Nokia Game.