Smarter and more fashionable

I. Christianto, Contributor, Jakarta

It's common now everywhere you look to see people using their cellular phones to talk or to send an SMS. Sometimes the scene can get a bit tiring, as if people cannot be separated from the magic tools of the millennium.

The mobile phone has become a must-have thing. Those producing cellular phones are now competing to create even more innovative and hi-tech products. Presently, mobile phone makers are competing to offer web-enabled cellular phones that are also attractive in terms of "intellectuality", dimensions and general performance and appearance.

Globally, it is predicted some 50 million people will be surfing the Internet on their cellular phones this year. The figure is estimated to increase fourfold within the next three years.

Cellular phones are increasingly resembling palm-sized computers, with functions such as data synchronization with PC applications. Mobile communications devices are set to bring much more than a telephony experience. Using them will rather be an exciting global and multimedia communications experience.

In accordance with the development of the third generation (3G) technology projected for application in the very near future, cellular phone producers are preparing terminals with high-speed access capabilities up to 384kbps, enabling high-end applications such as voice, data and image transferring, but also video conferencing via a cellular phone.

Some cellular phone makers have introduced terminals converged with other features such as radio, MP3, digital camera, GPS (global positioning system) and PDA (personal digital assistant).

For instance, Sony Ericsson, the joint venture between Japan's Sony and Sweden's Ericsson, recently revealed its new product, the P800. This is described as a smart phone with color touch screen, built-in camera and Internet access facilities, and can run on GSM (Global System for Mobile communications) and GPRS (General Packet Radio Service) networks.

The handset can also download video clips, function as an organizer, and view Powerpoint, Word or Excel files. It can also connect wirelessly to a Bluetooth-enabled headset or PC. It can also show a color picture of the person who is calling.

And the world's leading cellular maker, Nokia of Finland, has announced a comparable hi-tech contrivance, the 7650, which will also include a digital camera and multimedia messaging functionality. The product will hit the market later this year.

Some other makers like American Motorola have created sophisticated devices which converge several tools into a multimedia function. Motorola recently announced its first 3G product, the Motorola A820 which provides tech-savvy consumers with a full range of communications and entertainment features which enable users to download movie clips and customize messages with either video or audio files, for truly personalized communications around the globe.

Earlier, Benefon, which is not a well known brand in Indonesia, introduced Benefon Esc!, which is a smart cellular phone with mapping and personal navigation capabilities.

Meanwhile, French Sagem has introduced the WA3050 mobile phone, which is also a touch-screen PDA with built-in WAP/GPRS (Wireless Application Protocol/General Packet Radio Service), fax and data capabilities. It has advanced features such as an agenda, word processing, spreadsheet and so on.

Mitsubishi Electronics has brought out the Trium Mondo which features WAP, 14.4 kbps data, phone, personal organizer and pocket PC, web browser, touch screen with 16 gray levels, MP3 reader, PDA compatibility, GPRS, fax and data capabilities.

Since cellular phones have become part of the daily lives of many people, they have also turned into fashion statements. So terminal producers are making handsets with the latest technologies, designs, as well as stylish touches.

For some people, their cellular phones represent their status and help them establish an image.

An example of a fashionable and stylish handset is Nokia's Vertu, which falls in an entirely new category in mobile communications. Vertu, one of the world's most exclusive personal communications instruments, offers not only a mobile phone, but also craftsmanship, precision engineering, proven technology, high performance and a unique personal service.

The device, to be launched later this year, will be available in a range of exclusive material options, including casings in platinum, 18 carat white gold, 18 carat yellow gold and stainless steel, as well as sapphire crystal. Previously, Motorola and Ericsson launched exclusive gold-plated handsets.

In term of innovative models, Motorola has prepared the V70, a handset blending fashion, function and design, aimed for style- minded consumers who desire a progressive and ultra-modern phone. With a never-before-seen rotating cover and circular display, the Motorola V70 blends a futuristic form with urban elegance.

The number of cellular phone users has been steadily increasing annually. A U.S.-based research company, Strategy Analytics, recently stated that around 412 million mobile phones were sold worldwide in 2001, an increase of 8 percent from the previous year. The company predicted the figure would reach 454 million this year.

However, another market research company, Gartner Dataquest, reported global handset sales saw slower growth last year as some markets became saturated. The mobile phone market had a 60 percent average growth rate between 1996 and 2000, but has now seen sales to consumers decline by 3.2 percent, to 399.6 million mobile phones last year. It was the first such drop in the history of the cellular phone industry.

Gartner said the removal of subsidies by operators and the burgeoning second-hand market had also slowed the industry. Handset manufacturers have failed to introduce new features to convince consumers to replace their old units, according to the report.

Industry analysts believe the global market will surge by some 10 percent this year with some 430 million mobile handsets being sold around the world, driven by increased availability of phones with GPRS, Bluetooth, color screens and multimedia messaging and functions. However, consumers will ignore the devices if operators fail to provide good networks and services.

In accordance with the significant growth rate of global cellular phone users, the number of users in Indonesia has also surged dramatically. There are 16 cellular operators in the country, including the top five of PT Telkomsel, PT Satelindo, PT Excelcomindo Pratama, PT Natrindo of the Lippo Group and PT Indosat MultiMedia Mobile (IM3), which is the newly established subsidiary of state-owned telecommunications firm PT Indosat.

Data from state-owned telecommunications provider PT Telkom show there were about 5.3 million cellular phone subscribers last year with the number expected to increase to 11 million this year.

Analysts predict some 1 million to 1.5 million new handsets will be sold annually. They say leading brands in Indonesia include, by ranking, Nokia, Siemens, Samsung, Ericsson and Motorola. For comparison, according to Gartner Dataquest, the world's big five cellular makers in 2001 were Nokia, Motorola, Siemens, Samsung and Ericsson.

Indonesia's market has some special characteristics. Many people change their handsets according to the latest trends. They buy and use the latest models only to show that they are fashionable, though they do not really know how to use the built- in features.

That's why cellular phones makers like Nokia, Samsung and Siemens gradually promote new products worldwide, including in Indonesia.

Hasan Aula, the general manager of Nokia Mobile Phones Indonesia, said the company was aiming at all segments in the country, including the top, middle and lower markets.

"For example, in the fashion category (N8210, N8250 and N8310), design, color covers, will play an important role in influencing end users. This will determine the value of what they purchase. For the classic segment, the N6210, features are the important thing," he said, adding that popular features now included ring tones, picture messaging and logos.

Farid Manan of PT Dian Graha Eletrika, the agent of Siemens AG for mobile services in Indonesia, said rapid technology developments had left makers competing to create new products

"Therefore, those who want to follow the trend always try to use new products," he said. Consequently, he added, the price of some products might decrease soon after the newest models are launched on the market.

However, producers which have good distribution will be able to control the prices.

Idris Effendi of PT Samsung Electronics Indonesia said the price of Samsung handsets were stable though the products had been out for some time, a result of its good distribution system.