Huawei plans to enters country's WCDMA market
The Jakarta Post, Jakarta
Telecommunications equipment provider Huawei Technologies Co. Ltd. plans to enter the country's Wideband Code Division Multiple Access (WCDMA) market beginning in the fourth quarter of this year.
WCDMA is a form of 3G, a third generation advanced technology which enables cellular subscribers to enjoy several services such as video streaming and video conferencing via cellular phones, in addition to much faster data transfer.
It is a more advanced form of technology than that of Global System for Mobile Communication (GSM) and CDMA -- currently available in the country.
"Based on our roadmap, starting in December, we will release GSM-3G handsets on the market," PT Huawei Tech Investment Senior Account Manager Bimbo Abimanyu told The Jakarta Post recently.
As a start, the China-based networking and communications equipment company introduced its latest range of 3G mobile phones in Indonesia at the 2005 CDMA Exhibition in Jakarta, which ended on Sunday.
The new Huawei devices include the U626, U326 and the new E600 data card. The U626 and U326 are supported by WCDMA at 2100 MegaHertz (MHz).
Bimbo said that the company could not yet reveal the prices for each phone, which are aimed at middle- to low-end users.
"Through the exhibition we were hoping to acquire responses from CDMA's potential market in Indonesia," Bimbo said.
Huawei's Oliver Mu said his company was still trying to get more information through various surveys and research about the Indonesian market.
A recent survey by market research firm Strategy Analytics, indicated that the increase in 3G mobile phones globally would grow by 100 percent to reach 40 million units by 2005 -- (http://mobile.huawei.com/news_e/allnews.htm).
The spread of 3G networks will stimulate the growth of 3G subscribers and demand for its terminals which provided by firms such as Huawei, which produces wireless terminal products.
Huawei's wireless terminal products includes UMTS/GPRS, CDMA and GSM mobile phones.
"To expand the market, we will have to find ourselves more strategic business partners," he said, adding that the company is cooperating with domestic telecommunications operators such as Bakrie Telecom, Indosat and Telkom.
Bakrie Telecom is one local operator of CDMA-based phone services, with the Esia as its main product. As for Telkom and Indosat, both are engaged in CDMA and GSM-based phone services.
CDMA technology, that allows the development of fixed- wireless phone services, was first introduced in the country about two years ago. However, it is quickly gaining in popularity as it offers rates almost equivalent to the rates of fixed-line services and is much cheaper than GSM rates.
In fact, the fast-growing CMDA market has moved GSM operators to cut their rates and come up with their own attractive packages.
Bimbo revealed that last year the company booked US$10 million in terminal sales.
"We expect that this year's domestic sales will grow by up to 200 percent," he said, adding that Huawei currently ranked second in China after ZTE Corporation.
Worldwide sales of Huawei's products are expected to reach $7 billion this year with 10 percent generated by mobile phone sales, as reported by Dow Jones newswire in November.(001)