Ornamental or really functional?

Jonminofri Nazir, Contributor, Jakarta

Huge leaps and advancements have been made in technology. Most of the advancements are far beyond the expectations of many, such as the Internet. Though currently quite a number of people do not have an e-mail address, the Internet is today easily accessible through a cellular phone.

These small cellular phones now have many features. While its main function is still voice communication, its other newer functions are spellbinding. For instance, today's cellular phones can be used to purchase Coca Cola or in some countries for paying toll road fees.

It also functions as a pocket computer or Personal Digital Assistant (PDA), which makes it more versatile. All these functions are due to the application of advanced technology and the latest information technology to cellular phones.

The question is: Are all these sophisticated features really necessary or are they just additional decorations to differentiate each product from their competitors?

It is not that easy to answer the question. However, what is certain is that with advanced features a new product can make an easy entry into the market, become famous and get a good positioning.

The example here is one of the country's cellular operators: Indosat Multi Media Mobile (IM3).

"We are the pioneer for GPRS in Indonesia," said Hasnul Suhaimi, president director of IM3, which is conducting a heavy campaign of multi media mobiles in the country.

General Pocket Radio Service (GPRS) is basically a means of transmitting data, which enables the user of a cellular phone to access the Internet at high speed.

Another example comes from Samsung, a cellular manufacturer that has pioneered new features on its products. "Until now, we rank number three in terms of Indonesia's cellular market share," said Ade Kurniawan, marketing manager of PT Samsung Electronics Indonesia.

What both IM3 and Samsung are doing is making the maximum use of hi-tech features to acquire a more significant market share.

Viewing the way the market is responding, this strategy has paid off. At least IM3 is now widely known as the cellular operator that has introduced a significant amount of pioneering work. It is not only related to GPRS, but also other services, which are made possible by the application of GPRS.

As a newcomer - entering the market in August last year - IM3 realizes that in order to be well accepted by the market it needs to have a distinct product differentiation.

Hence it has decided to make the utmost use of the latest technology by applying GPRS, which is also known as the 2.5 generation. This decision was taken based on the fact that other cellular operators are still at the second generation stage, mostly using GSM 900, while only a few operate on GSM 1800 at certain locations. In the very near future the cellular industry will introduce the third generation (3G) technology, which will make it possible for cellular users to see each other on the screen.

Other features that are being developed are Unified Messaging Service (UMS), Multimedia Messaging Service (MMS) and Video Streaming.

UMS is an integrated package of voicemail, fax and e-mail that can be accessed through cellular phones and the Internet (Wireless Application Protocol or WAP and Website). MMS makes it possible to send and receive messages in the form of text, color pictures, photos, animation as well as audio and video clips. The cellular industry promises that both these services generated by GPRS will be enjoyed by consumers this year.

The questions asked by many in the cellular industry, as well as consumers, is whether GPRS and the variety of services derived from it are really needed by the market.

Certainly, the answer is that many consumers do not require them yet, because most of them still use cellular phones for voice communication just like fixed telephones, while some also use them for Short Message Services (SMS). However, apart from the fact of whether the technology is required or not, this new hi-tech appliance by IM3 has positioned this company as the cellular operator with the most advanced technology to date, though cellular phones with GPRS capability are still limited in number.

Samsung cellulars also incorporate a strategy similar to IM3's to enter the country's market by providing numerous previously unknown features and facilities.

For instance, Samsung claims it uses durable material for its cellulars to avoid damage should they fall from a great height. Though they cannot be categorized as a hi-tech invention, the resistance and durability of Samsung cellulars illustrate the manufacturer's strategy in product differentiation.

Cellulars with hi-tech features differ on three aspects: high resolution screen color, ring tone and double screen.

Called the "True I", Samsung SGH-T100, for instance, contains 4049 colors on its wide screen, which is capable of presenting up to seven lines of text. Due to its rich colors, Samsung also makes another function available: filing digital photos. This makes the cellular function a mini album. Its ring tone is another hi-tech feature, as Samsung is the first cellular manufacturer to present 16 musical instruments with crystal clear sound reproduction due to its cooperation with Yamaha.

Samsung, according to Ade Kurniawan, prefers to apply high technology on such features rather than on software functions such as GPRS, although in the near future it is going to launch cellulars with GPRS. Similarly, when the telecommunications industry was dazzled by the Wireless Application Protocol (WAP) facility, Samsung came later with this technology.

Even though it has not yet been mass produced, high technology has helped certain players in the cellular world, such as IM3 and Samsung, to reach their desired positioning in the market. These two represent examples of major players that have penetrated the market successfully by making the most of advanced technology.