Nokia to have its own retail-distribution model: Will this help them in regaining lost market share??

aggressive marketing will help increase market share for that period.

then it is maintenance

this uggestion completely biasing in favour of nokia but at different side a normal customer behavior before invecting money think for a better one which cold be from others brond too.

As you said, it is a value added service to Indian community. It will have an edge over other phone by doing this. Of course, the price tag has impact on the purchaser because, of availability of choice. Music & camera feature can not assure a selling but, the enhancing facility  to use these (MMS, Video call/conferrencing etc.) need to be improved in the forthcoming years. Overall, this will give a positive impact on population.

Store in Store is more of a marketing technique than it is retail. The objective is to capture the customers attention and influencing it, at the point of sale. To this extent Nokia should be able to improve their sales figures by a noticeable margin. Still it is highly unlikely that Nokia will be able to recapture all the marketshare that it has lost to competition since there will always be a customer segment who prefer the cheaper manufacturers. What customers now have on their side is CHOICE and that's here to stay.

I think they can regain their lost market share with added services like this since PC and broadband penetration is low in India, it is important to build a retail distribution model to take services to the masses, this will be a platform which will have immense possibilities and the potential to transform the services business as they can tap their huge dealer network.