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.