Mobile phone business thriving 'amid crisis'

JAKARTA (JP): The economic problems over the past two years have not discouraged Jakartans to buy mobile phones, distributors of cellular phones said on Wednesday.

They said that even during the economic downturn, sales of mobile phones were booming. Distributors noted the trend and believed cellular phones were a promising business which would last for the next five to 10 years.

One of the mobile phone distributors at ITC Roxy Mas shopping center in West Jakarta claimed that he could sell up to 5,000 mobile phones per day, of mostly the newest model, with average prices of Rp 2 million (US$295).

Other distributors said they could sell 200 mobile phones per day even during the low season. However, that happened only once this year; two weeks after the general election in June, when most businesses were sluggish for nearly a month.

One of the distributors said that he had invested Rp 2 billion in the business and enjoyed good profit thus far.

Some retailers said the mobile phone business increased after last year's riots in May. Many people bought the phones for easy communication access with relatives to ensure them about their safety. Mobile phones seem to answer their need.

Since then business has continued, and about 400 retailers in Roxy Mas claim they can sell at least four mobile phones a day.

Just a hobby

Many customers agree that mobile phones are trendy and important for business or daily activities.

"It's like a hobby. I feel a little bit insecure without holding it," said Titi, a housewife. She told The Jakarta Post that she had two mobile phones and planned to buy another.

Another customer, Michael, who is an employee, said he traded his cellular phone in for the latest model once every three months. "I get bored using the same phone for too long," he added.

A film actress, who asked for anonymity, said she owned five mobile phones. She claimed that she needed all five to help her career and protect her privacy. "I have never given two of my cellular's numbers to anyone but my family and boy friend," she explained.

Consumers in the capital city can buy either licensed or unlicensed mobile phones which are available in most retail shops.

Licensed phones are sold at a higher price than unlicensed ones because they include a 10 percent value-added tax imposed by the government. Owners of licensed phones can enjoy better service if it breaks.

The unlicensed phones, known as black market (BM) goods, provide no guarantee. (04)