Trends, trials and tribulations of mobile phones

Trends, trials and tribulations of mobile phones

K. Basrie, The Jakarta Post, Jakarta

In Jakarta, a cell phone is the most easy-to-grab and easy-to-
resell item for thieves, particularly the notorious kapak merah
(red axe) street gang.

The ever-burgeoning appeal of the mobile handset has been
greeted by outlaws worldwide. In Britain, for example, a handset
is stolen every 45 minutes, according to a report, forcing the
British government to blame the cell phone industry for not doing
enough to make mobile phones less attractive targets to thieves.

But who wants to produce and buy a cell phone the size of a
car battery, like the first handsets introduced here in the early
1990s?

What the market has today is a vast range of models, sizes,
functions and prices. The old-style clunky handsets are no longer
available on the market, but a mobile phone with the price of a
brand new car will be ready in the next few weeks.

Dubbed "Vertu", named after Nokia's new subsidiary, the
handset embedded with jewels is offered at US$4,500 (stainless
steel), $11,000 (18 carat yellow gold), $13,000 (18 carat white
gold) and $20,000 (platinum).

Coming with a scratch-resistant sapphire crystal face and ruby
bearings for smooth and precise keystrokes, Nokia claims the
phone isn't only about looks. It embodies 'Evolutionary
Technology', which allows the technology in the phone to be
upgraded seamlessly with new advancements, while keeping the
external casing the same.

If that doesn't convince you, maybe the reception and voice
quality will. Boosted by a new antenna for extra sensitivity and
a hi-fidelity audio system speaker for rich full-bodied sounds,
the phone promises to be an aural experience.

A Vertu user will have access to receive expert information on
travel, entertainment and make hotel reservations by pressing the
dedicated key.

Vertu, Nokia said, will work within the U.S., Europe and Asia
Pacific.

Although it was unveiled four months ago in Paris, dealers in
Roxy and Casablanca -- two popular spots in Jakarta for
guaranteed, not guaranteed and secondhand handsets -- said they
can't wait to see the gadget.

"Don't underestimate Indonesians, because wealthy locals here
are willing to spend an enormous amount of money to show off,"
commented a visitor at Casablanca.

As exclusive as its price, Vertu, however, is only available
through Vertu Galleries and by personal appointment at Vertu
Private Client Suites, located at certain high-class shopping
areas around the world. Thus, Vertu is clearly designed for top-
class celebrities and figures.

As the global mobile phone market is said by many analysts to
have started facing a gloomy signal, the Finnish giant Nokia and
its rival handset makers -- Siemens, Motorola, Samsung, Sony
Ericsson, -- are speeding up efforts to successively introduce
new products with their eyes focusing in certain prospective
spots in Asia, particularly densely-populated China.

Since last year, China has overtaken the U.S. to become the
country with the largest number of mobile phone users.

According to the country's Ministry of Industrial Information,
China, at the end of July last year, already had 120.6 million
mobile phone users, or about 10 percent of its 1.3 billion
population.

The Chinese government even expects the total number to hit
260 million by the end of 2005.

It means that the country offers a huge potential opportunity
for both mobile phone operators and handset producers, as only
one in 10 people in China own mobile phones, compared to four in
10 people in the U.S., and one in two in Japan and Europe.

Analysts say the growth in China is fueled by increased
competition, lower prices and the rise of prepaid services.

The trend in China also illustrates the rising mobile phone
usage across Asia. During 2000, the number of people using
mobiles rose by 50 percent to 230 million across the region.
Analysts expect this to continue, pointing out the growing trend
of new stylish cellular phones and strong demand for mobile
Internet services.

In Indonesia, home to a population of over 210 million, the
number of people who have gone wireless totaled 6.57 million last
year, almost double the 3.67 million users in 2000. In 1996, the
number of users was just 567,000.

It is believed that cellular phone users will soon outnumber
fixed-line customers, who, according to state telephone monopoly
PT Telkom, totaled 7.2 million at the end of last year.

In the past two years, the Jakarta market alone witnessed the
arrival, as well as the departure, of dozens of new models from
major players such as Nokia, Siemens, Samsung, Sony, Ericsson and
Motorola.

Many come in tempting styles with a slim shape, various
colors, awesome features and stunning accessories. Some others
are only able to make a touch-and-go attempt, due to the lack of
response from the market, which has become extremely tough and
selective.

A stylish appearance, long battery life, easy-to-use and user-
friendly keypads and functions, up-to-date software, durable,
wide bandwidth, comfortable aftersale service with inexpensive
spare parts, lower radiation and Internet accessibility are among
the common considerations that most new or veteran cellular phone
users should have in mind.

Jargon such as GPRS, SMS, MMS, WAP, 3G, Kbps, Mbps, FOMA,
VCDMA, W-CDMA, CDMAOne, remains just jargon for many people here
as most of the cellular phones currently used in Indonesia rarely
use such facilities.

"It's too slowly and very costly," admitted Dwi Septiani, an
entrepreneur, referring to wireless access to the Internet via
cellular phones. "I just consider its appearance and functions,
that's it," said Dwi, who regularly purchases newly arrived
products and resells her old collection at the secondhand market
in Roxy and Casablanca.

In London, Reuters reported last Thursday that tens of
millions of new mobile phones trade on the secondhand market
worldwide every year because phone makers cannot make accurate
forecasts of consumer demand.

Last year alone, some 30 percent of all phones produced could
not be sold to consumers at the official price tag, because they
were either too expensive or too simple and clunky or featured an
unpopular design or the wrong color, the report quoted a market
research by Mloop, an independent Internet-based trading point
for cell phones.

Stock imbalances, resulting from erroneous demand forecasts
for the overall global market, as well as for specific models,
amounted to almost 80 million handsets in 2001 with a combined
value of $8 billion, it said.

Two-thirds of the 80 million phones were heavily discounted,
mostly by operators offering a free or cheap handset with a new
subscription. The rest were bought by traders, who tried to find
buyers on the global secondhand market.