Huawei plans to enters country's WCDMA market

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)