Tapping the growing CDMA handset market

Tapping the growing CDMA handset market

I. Christianto, Contributor, Jakarta

Just like vendors of the Global System for Mobile
Communications (GSM), most of the tried-and-true Code Division
Multiple Access (CDMA) handset manufacturers continually
introduce more advanced and smarter gadgets to win the hearts of
their customers.

Each player plans to combine various functions in one single
device that is more user-friendly and advantageous, and embedded
with high-tech, stylish touches.

Some people now expect multimode terminals with a palm-size
digital assistant in a compact, full-color screen device enabling
them to speak into the handset without using their voice at
normal volume. Such a handset can be used in meetings, cinemas or
funerals without disturbing others.

For example, Samsung, one of the world's leading handset
makers, has introduced a device with the so-termed whisper-mode
function, which allows the user to speak into the handset at low
volume, the device automatically adjusting the speaker's voice to
an audible level at the receiver's end.

Fashionable, sophisticated handsets are always in demand,
particularly in a lucrative market like Indonesia. The total of
cellular users in the country has increased significantly in
recent years.

Three GSM and three CDMA carriers operate in Indonesia at
present. The CDMA providers include TelkomFlexi (Flexi) of PT
Telkom, Esia of PT Bakrie Telecom and Fren of PT Mobile-8
Telecom.

Due to its promising future, CDMA will likely lead the
cellular industry. An indicator is the global CDMA handset
shipments that rose 49 percent versus GSM's
13 percent last year. Should global market conditions also
hold true in Indonesia, sales of CDMA handsets will increase more
than those of GSMs in the near future.

However, domestic CDMA carriers continue to face challenges
such as investment to provide better services; therefore the
harvesting era for CDMA handsets will need more time here.

The Indonesian Cellphone Association forecasts new handset
sales this year could reach some 6 million, including 1.5 million
CDMA handsets.

Generally, the pattern of cellular phone demand
in Indonesia comprises 65 percent low-end, 25 percent medium and
10 percent high-end devices. As a matter of fact, cellphone
producers are now benefiting from booming emerging markets,
including Indonesia, where they sell relatively cheap handsets to
first-time buyers.

Dozens of CDMA cellphone brands are now available in the
market. Most have dual bands as the carriers are operating on 800
MHz and 1900 MHz. Among the brands are Motorola, Nokia, Samsung,
LG, Kyocera and Sanex. Others include Sendo, Modottel, SS, ZTE,
Verxion and others.

Samsung will officially launch its Kimera series, a CDMA2000 1
X capable handset in the Indonesian mobile phone market in the
middle of March.

"The new Samsung handset will allow users to take the
advantage of the superiority of the CDMA2000 X 1 technology,
which allows its users to transmit data at high speed," said Agus
Sugiharto, assistant to the marketing manager of PT Samsung
Electronics Indonesia's IT Division.

Agus is optimistic that with its attractive design and
features, the new Samsung handset will be able to compete with
other brands of the same class.

"The CDMA2000 1X - based Kimera handset is the right option
for those who appreciate high-speed data transmission," he said.

Nokia, the market leader in the country's handset market, is
among those entering the Indonesian CDMA handset market. Last
year, Nokia marketed five CDMA handset series in Indonesia. They
included the 3585, 3586, 6385, 2280 and 3105 series.

"We will launch the 6585 in March and the 6255 camera phone in
April to meet the growing demand for CDMA handsets from
Indonesian cellular users," said Hasan Aula, general manager of
Nokia's Indonesia representative office.

Hasan said that the demand for Nokia's CDMA smart and trendy
3105 series was better compared with that for other types.

According to him, CDMA handsets were generally used by
Indonesian customers as their second phone or as an alternative
to their GSM handset.

"This group of buyers are the main target of Nokia, in
addition to those who really need CDMA cellular for their daily
activities," he added.

Hasan is also upbeat that Nokia, which is now the market
leader in the GSM cellular market in Indonesia, will also be able
to dominate the CDMA cellular market.

As the leading CDMA handset brand in Indonesia, currently with
a market share of about 40 percent, Sanex also plans to launch
even more types in accordance with the platforms set by any
carrier, such as the wireless broadband EV-DO (Evolution of Data
Only) prepared by Fren.

From Modottel, there are WTE-300 and WTE-32, both for
the 800-MHz band. The latter is dual band, designated for a
Fren or Flexi. This brand also ha the WCE-800 with WAP browser.

Not too different from GSM handsets, most CDMA terminals are
distinguished by a compact, lightweight, ergonomic design, which
is comfortable to hold and easy to use. Each appears with
attractive display and keypad. They are mostly dual or tri-mode
digital or multiband (operating on 800 MHz, 1900Mhz and in
digital as well as analog format).

Users in Indonesia will also see in the near future the
much more precious CDMA handsets. The enhanced features in CDMA
handsets basically include Internet/web/e-mail access, Java-
enabled, messaging service, voice-activated dialing,
speakerphone, games and productivity tools including voice memo,
calculator, contact directory, alarm clock, timer or stopwatch.
Users also seek color display, built-in camera and polyphonic
ring-tones.

The phones usually have great talk time and standby time
in digital mode. Phones that feature calendars, e-mail, pictures,
music and other services in one device, just like PDAs, have also
been one of the fastest-growing new categories.

The wireless industry predicts the demand for push-to-talk
services will experience huge growth over the next few years. It
is forecast the number of people using this kind of service will
drastically grow from some 2.5 million nowadays to more than 350
million worldwide by 2008. Push-to-talk is a one-touch, walkie-
talkie function in a handset.