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Mobile Phone Bottom Feeders: Exploring the Depths of Handset Design,
Gadget Lab is awash in high-end smartphones. We’re practically swimming in multi-core processors, cutting-edge display technology, and 4G bandwidth. Ice Cream Sandwich? We eat it every day for lunch.
We’re gadget enthusiasts. We’re literally paid to test the industry’s hottest superphones. But while we’re playing around with top-shelf hardware, what are less-passionate, less-demanding consumers actually buying? After all, not everyone will be purchasing an elite smartphone this year. Across the planet, the wireless industry will put some very crappy phones in the pockets of people who just aren’t interested in (or can’t afford) the latest features and specs.
Last week’s CTIA Wireless show in New Orleans was ground zero for bottom-feeding mobile phone hardware. Have you heard of Plum Mobile? The company makes the Might, shown above. How about Unnecto? These are not household names. Nonetheless, these manufacturers and others almost equally as obscure descended on the convention to strike deals with wireless carriers. Gadget Lab was there to see their handsets up close.
If any of the following phones strike your fancy, let us know, and we’ll call them in for review. If nothing else, spending more time with bottom-feeding handsets should remind us just how much we love high-end smartphones -- and that we should never take our jobs as gadget critics for granted.
Plum Mobile Might and Debut
Plum Mobile isn’t Samsung, but the company has a phone that looks almost exactly like the Galaxy Note -- and it’s running a version of Android that looks a lot like HTC’s skin of the Google operating system. As far as bottom-feeders go, Plum knows how to make hardware for the low-end that looks, at first glance, like the high-end.
This year was Plum’s CTIA debut. At a year and a half old, the company has so far built its name selling feature phones in the Caribbean, Latin America, India and the Middle East. This summer, however, Plum is getting into Android phones with the release of the Note lookalike Might smartphone, as well as a 7-inch tablet called the Debut. Both feature dual SIM card slots, 1GHz single-core processors, and Google’s Android 2.3 OS, aka Gingerbread.
"Nobody knows who we are and that's why we're at CTIA," Pablo Tessitore, a Plum spokesman, told Wired.
The Debut tablet is unique in that it can make phone calls -- "something the iPad and Samsung tablets can't do," Tessitore said. The Might, meanwhile, has a 5-inch screen and features a chassis that is a nearly spot-on match to the Note.
Tessitore acknowledged that the similarities between the Might and the Note are striking, but said Plum doesn’t want to be known for selling lower-priced, knock-off devices. "We're not copying them at all," he said of Samsung. "We're just filling a need of our customers for a Note-style device at a better price point."
Plum didn’t announce prices for the Might or the Debut, but other devices in its lineup sell from $20 to $200 for unlocked hardware.
ZTE Era and Warp
ZTE is a Chinese brand that’s been making lower-priced phones for the U.S. market for a number of years, selling its wares through carries such as Sprint, Boost Mobile, Cricket and others. And while ZTE had some higher-end handsets to show off at CTIA, those phones won't be headed stateside. All we’ll be getting from ZTE are bottom-feeders.
At left is the new ZTE Era, which will go on sale later this year in Asia. The Era has a quad-core processor, 4.3-inch capacitive touchscreen, 8GB of storage, and a 1080p rear video camera. It runs on Google's Android 4.0 (Ice Cream Sandwich) operating system, and will be sold abroad in a number of colors such as copper, blue and silver.
To the right of the Era is the Warp, one of ZTE's top U.S.-bound handsets, which can be had for about $180 as a pre-paid phone from Boost Mobile. The Warp features a 4.3-inch touchscreen and 2GB of built-in storage, and runs on Android 2.3. ZTE has no plans to bring the Era and other high-end handsets from Asia to the U.S., said Barbara Tate, a ZTE spokeswoman. So lower your ambition levels -- you’ll take the Warp, and you’ll like it, damn it.
Unnecto Drift, Pro, Eco and Quattro
Unnecto is another obscure, no-name brand that made its CTIA debut this year with a lineup of bargain-basement feature phones shod in flamboyant plastic bodies. Besides looking like they were purchased from gumball machines, the Unnecto handsets feature dual-SIM card slots and run on 2G networks -- no 4G to be found here, boys and girls. The company's phones range in price from about $50 to $250, unlocked and free of any carrier contract.
On the high end of the company's low-end range is Quattro, which will launch in June as the company's first 3G phone, as well as the only Unnecto handset running Google's Android OS (version 2.3 Gingerbread). The Quattro also features a 5MP rear camera and a single-core CPU. Now that’s some fancy phonery.
Pictured from left to right, you’ll find the Drift, Pro, Eco and Quattro. The Drift sells for $70, while the Eco is priced at $50. The price points for the Pro, also going on sale in June, and the Quattro haven't yet been finalized, said Sarah Mogin, a spokesperson for the company.
Huawei Ascend D Quad and P1s
Finally, a company many people have heard of. Most North American gadget enthusiasts aren’t interested in the manufacturer’s phones, of course, but its name isn’t completely obscure.
Huawei is a bottom-feeding handset and tablet maker with high-end aspirations. Aiming for greater, more positive brand I.D. in the States, the company brought to CTIA two new handsets that look good enough to push Huawei's image forward. And, indeed, the Huawei lineup was more compelling than just about anything being shown off by the company’s similarly low-end peers.
The Huawei Ascend D Quad, on left, features a 4.5-inch, 720p touchscreen, an 8MP rear camera and a 1.3MP front camera. It’s also running Android 4.0, a rarity among no-name smartphones. Powering the D Quad will be a Huawei-designed 1.5GHz quad-core CPU the company is calling the K3. Watch out, Nvidia and Samsung -- there’s another player in the quad-core mobile game!
At right is the Ascend P1s, a stylish phone with a plastic back in various colors -- red, white, black. Huawei says it’s one of the thinnest phones in the world at 0.26 inches thick. The P1s also features a 4.3-inch touchscreen, Android 4.0 and a dual-core 1.GHz processor. Intrigued? We are.
Pricing and carrier options for the D Quad and the P1s haven’t yet been announced, Huawei spokeswoman Jannie Luong told Wired. Later this year, Huawei also plans to launch its first handset running Microsoft's Windows Phone OS, Luong said.
Emporia Click, RL2... and a Bunch of Other Obscure, Narrow-Use-Case Handsets
Austrian phone maker Emporia Telecom isn't looking to make the fastest, the thinnest or even the best-selling phones in the world. It has no high-end aspirations. Instead, it wants to sell handsets to the elderly, the hard of hearing, and anyone with poor eyesight.
You’ll find three design hallmarks in every Emporia phone: large number keys on the front (because most smartphones are designed for humans with bionic vision), blinking lights on the top (because missed calls and messages too often stay missed), and rugged, durable build quality (because accidents happen).
On the back of each handset is an "emergency call" button that can be programmed to dial five different numbers in the event of an emergency.
"When an elderly person has an emergency or a problem, and they need to call someone quick, sometimes 9-1-1 isn't the best option," said Greg Foley, the president and CEO of Emporia's U.S. division. "Sometimes you just want to call a friend, a family member, a loved one."
Emporia's phones are launching this summer at prices between $40 and $130, and carrier announcements will come soon, Foley said. From left to right, the five-phone lineup consists of the Click, the RL2, the TALKcomfort, the SOLIDplus and the Telme (up top).
Kyocera Rise and Hydro
Kyocera, like Huawei, is another bottom-feeding brand that’s looking to increase its prestige via two new handsets sporting improved build quality and specs -- the Rise (left) and the Hydro.
"We're not going to be Samsung or Apple this year, and we're not going to win the Android arms race either," said Bill Veasy, a Kyocera field sales manager. "But we are shooting for that mid-tier opportunity. We can offer better products than what's out there today for the mid-tier."
Both of the new handsets, which haven't yet been given public release dates or price points, run Android 4.0 and feature 3.5-inch, 480x320 touchscreens, 1GHz single-core Qualcomm Snapdragon CPUs, 3.2-megapixel rear cameras, and 2GB of built-in storage paired with 512MB of RAM.
The Rise features a slide-out keyboard, while the Hydro touts a hard plastic body that Veasy says can take a lot of abuse.
Konka T6100 and T610
Chinese electronics maker Konka Group isn't planning on selling its bottom-feeder phones in the U.S. any time soon, but it was at CTIA looking to make some deals for other parts of the globe.
The company manufactures (and sells all over the world) feature phones, smartphones, TVs, refrigerators, washing machines and even air conditioning units under its own brand and others, Leonard Xin, a vice general manager at Konka, told Wired.
At CTIA, Konka was looking to meet mobile phone distributors, as well as other electronics makers and suppliers, Xin said. Konka builds smartphones that run on Google's Android operating system, as well as touchscreen feature phones that run on a custom-built OS that looks a lot like Google’s OS, but can’t run mobile apps.
At left is the Konka T6100, which features a 3.5-inch, 480x320 display, a single-core CPU and a 2MP camera. It’s running Google's Android Gingerbread OS. To the right is the T610, which runs on Konka’s Android lookalike software.
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3G tariff war imminent as Bharti cuts rates up to 70%,
In an aggressive bid to improve the slow uptake of 3G services, the country’s largest mobile operator, Bharti Airtel, on Thursday slashed tariffs in various plans by as much as 70 per cent across circles.
The move is expected to kick off a price war, with other operators working out their plans of action. A senior executive of Idea Cellular says, “We will have to look at the new tariffs, review them and take a decision based on the local competition, wherever we are in the same market. There are lots of markets where we offer services, along with Vodafone. The decision depends on how strong we are in a circle as well.”
Idea had over 2.6 million active 3G subscribers in March this year. These subscribers contributed to the incremental average revenue per user of Rs 90, besides voice and value-added service usage. Bharti has about eight million 3G users.
TELEPHONY GOING CHEAP
Bharti’s tariff plans for 3G services; it offers such services in 13 circles
Tariff (Rs) Old New
100* 200 MB 300 MB
450* 1,200 MB 2 GB
45 30 min 150 MB
450 1,200 MB 2 GB
1,500 10 GB
*Postpaid plans, rest prepaid
The volume-based browsing (pay as you go after using your free limit) rate on 3G will now cost 3 paisa/10 KB from 10 paisa/10 KB earlier, applicable for non-pack users
15-20 million
Estimated user base of the 3G mobile market; around 2% of the total
919 million
Total mobile user base
Rs 70,000 crore
Amount spent by operators in buying spectrum and rolling out networks
Analysts say they expect most operators to join the bandwagon. “In the Indian telecom market, tariff cuts have been followed with immediate effect. Price reduction can increase penetration, but how much of this will lead to volumes for services like 3G will have to be seen,” said Jaideep Ghosh, partner at KPMG Advisory Services.
Angel Broking analyst Ankita Somani says, “The move by Bharti will definitely increase volumes for the company. Except in the metros, the uptake of 3G services has been quite slow. Despite having 3G-enabled handsets, people are not availing 3G services because of high prices.” Somani, however, says the data services contribution to Bharti’s mobile revenues is not growing, while there is an increasing trend in the case of Idea Cellular, adding the price cut will boost the data revenues for the company.
Nearly 18 months after 3G mobile services were launched, the number of 3G subscribers is merely 15-20 million, which constitutes less than two per cent of the total GSM subscriber base of 919 million. Operators say the active subscriber base that uses the service regularly does not go beyond 10-12 million. Most operators had formed their business plans expecting that at least 10 per cent of the current subscriber base would shift to 3G services. They clearly overestimated the market. The silver lining is that fewer than 10 per cent of the existing GSM users have 3G-enabled phones. About 15 per cent of incremental devices sold in the market are 3G-enabled.
However, the six operators who provide the service have forked out a staggering Rs 70,000 crore to buy spectrum and roll out networks in their circles. Inadequate returns have forced them to use the expensive spectrum primarily for 2G voice services. The dismal uptake also made Communications and IT Minister Kapil Sibal recently admit that 3G services were not a success.
Bharti, along with other GSM players Vodafone and Idea Cellular, has been critical of telecom regulator Trai's recommendations on spectrum auction, saying the reserve price recommended would increase 2G mobile tariffs as much as 100 per cent in some circles.
Bharti has used different models to provide more value to customers (see chart). One, it has increased the amount of data usage while keeping the pack price the same as earlier. Two, for those who pay according to usage, it has slashed tariffs from from 10 paisa per KB to three paisa per KB.
Bharti’s data revenue, which include SMS, contribute about 14.4 per cent to total revenues.
The company is aggressively pursuing the data market and has launched 4G services in two circles, Kolkata and Bangalore. 4G services offer speeds much higher than 3G but there is no voice service in 4G.
The whole telecom industry has been battling intense competition, with dipping profits. Bharti had posted a decline of 28.19 per cent in its consolidated net income, the ninth straight quarterly drop, at Rs 1,006 crore for the fourth quarter ended March this year.
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Jamaican loyalty to BlackBerry wanes,
Android, iPhone making inroads in smart phone market
Steven Jackson, Business Reporter
Jamaicans adore BlackBerry smart phones, which are three times more popular than rivals, but since January, usage of Android devices and iPhones have spiralled and now account for half of the market for the first time, according to local experts as well as trend data from Google.
It signifies a shift in preference in the J$2 billion annual SMS text and mobile data market.
"Most people have BlackBerrys and they are choosing a second phone," said Coren Smith, corporate manager at phone store Fimi Wireless.
Jamaica offers global peculiarities, including more cellphone subscribers at 3.1 million than the actual 2.7 million population; and also a fierce loyalty to BlackBerry in an increasingly iPhone-curious world.
Rivals increasing market share
Smith expects BlackBerry to remain dominant in Jamaica for at least three more years, but says rivals will continue gaining incremental market share.
Jamaicans seem to prefer BlackBerry for its messaging but choose its rivals for apps and web browsing.
"Our customers are becoming more discerning and so we have seen an increase of approximately 60 per cent in the sale of Samsung Android devices throughout our dealer stores," said Jason Corrigan, commercial director at mobile provider Digicel.
Trend data from Google on Jamaica suggests that the dominance of BlackBerry slightly declined in this market year on year, while iPhone usage increased from one-quarter to one-third of the market year on year.
Comparatively, Samsung not only overtook Nokia locally last year, but now accounts for about one-quarter of smart phones in Jamaica. All smart phones contain identifying tags - such as message 'sent from BlackBerry' - and Google Trends compiles and ranks data searches initiated from specific countries.
Experts say that the rise of the rival phones stem from individuality and features, as well as pricing to a lesser degree. These phones retail for roughly US$400 but will cost hundreds more based on add-ons and mark-ups.
"It is important to note that smart phone users choose a device based on lifestyle demands. But a unifying feature of this group is the need to always be online and connected," said Kalando Wilmoth, regional head of corporate communications at mobile operator LIME.
Pricing key factor
Additionally, Wilmoth said pricing is a factor in selling iPhones, which LIME distributes in Jamaica and across its Caribbean markets.
"So, the price of the iPhone is a key driver of the demand. Along with a monthly plan, customers can walk out of a LIME store with an iPhone for a little as J$5,199 plus GCT," said Wilmoth. "Other well-known features include the many apps and the personal assistant, Siri, the picture quality, and other multimedia content."
Samsung's selling card relates to the local acceptance of its Android platform, which integrates effortlessly with Google websites.
"The appeal of the Android phones is unique to those users who enjoy the compatibility with the Google platform and the access to a wide range of sources for entertainment and multimedia content," said Wilmoth, who added that essentially, lifestyle, rather than price, determines the choice of smart phone.
Google Trends currently indicates that for every 100 BlackBerry Internet searches initiated in Jamaica, there is a corresponding 32 for iPhone, 24 for Samsung and 20 for Nokia.
Globally, iPhone is three times more popular than BlackBerry, which dominates in most of South and Central America and the Caribbean. South Korean-based Samsung this year overtook Nokia to become the world's largest phone company.
Latest data from Jamaica's telecom regulator, the Office of Utilities Regulation, indicate that the growth in the market of top-end smart phones aided the doubling of mobile data revenue to J$609 million in the December 2010 quarter over year earlier levels.
Jamaicans also talked 33 per cent longer on their cellphones, totalling 1.78 billion minutes for the December 2010 quarter.
But more critical for the bottom lines of the mobile-, fixed- and Internet-service providers was the J$11.3 billion, or 16 per cent, decline in revenue for the October to December period, compared with the corresponding three months a year earlier.
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Mobile Phone Bottom Feeders: Exploring the Depths of Handset Design,
We’re gadget enthusiasts. We’re literally paid to test the industry’s hottest superphones. But while we’re playing around with top-shelf hardware, what are less-passionate, less-demanding consumers actually buying? After all, not everyone will be purchasing an elite smartphone this year. Across the planet, the wireless industry will put some very crappy phones in the pockets of people who just aren’t interested in (or can’t afford) the latest features and specs.
Last week’s CTIA Wireless show in New Orleans was ground zero for bottom-feeding mobile phone hardware. Have you heard of Plum Mobile? The company makes the Might, shown above. How about Unnecto? These are not household names. Nonetheless, these manufacturers and others almost equally as obscure descended on the convention to strike deals with wireless carriers. Gadget Lab was there to see their handsets up close.
If any of the following phones strike your fancy, let us know, and we’ll call them in for review. If nothing else, spending more time with bottom-feeding handsets should remind us just how much we love high-end smartphones -- and that we should never take our jobs as gadget critics for granted.
Plum Mobile isn’t Samsung, but the company has a phone that looks almost exactly like the Galaxy Note -- and it’s running a version of Android that looks a lot like HTC’s skin of the Google operating system. As far as bottom-feeders go, Plum knows how to make hardware for the low-end that looks, at first glance, like the high-end.
This year was Plum’s CTIA debut. At a year and a half old, the company has so far built its name selling feature phones in the Caribbean, Latin America, India and the Middle East. This summer, however, Plum is getting into Android phones with the release of the Note lookalike Might smartphone, as well as a 7-inch tablet called the Debut. Both feature dual SIM card slots, 1GHz single-core processors, and Google’s Android 2.3 OS, aka Gingerbread.
"Nobody knows who we are and that's why we're at CTIA," Pablo Tessitore, a Plum spokesman, told Wired.
The Debut tablet is unique in that it can make phone calls -- "something the iPad and Samsung tablets can't do," Tessitore said. The Might, meanwhile, has a 5-inch screen and features a chassis that is a nearly spot-on match to the Note.
Tessitore acknowledged that the similarities between the Might and the Note are striking, but said Plum doesn’t want to be known for selling lower-priced, knock-off devices. "We're not copying them at all," he said of Samsung. "We're just filling a need of our customers for a Note-style device at a better price point."
Plum didn’t announce prices for the Might or the Debut, but other devices in its lineup sell from $20 to $200 for unlocked hardware.
ZTE is a Chinese brand that’s been making lower-priced phones for the U.S. market for a number of years, selling its wares through carries such as Sprint, Boost Mobile, Cricket and others. And while ZTE had some higher-end handsets to show off at CTIA, those phones won't be headed stateside. All we’ll be getting from ZTE are bottom-feeders.
At left is the new ZTE Era, which will go on sale later this year in Asia. The Era has a quad-core processor, 4.3-inch capacitive touchscreen, 8GB of storage, and a 1080p rear video camera. It runs on Google's Android 4.0 (Ice Cream Sandwich) operating system, and will be sold abroad in a number of colors such as copper, blue and silver.
To the right of the Era is the Warp, one of ZTE's top U.S.-bound handsets, which can be had for about $180 as a pre-paid phone from Boost Mobile. The Warp features a 4.3-inch touchscreen and 2GB of built-in storage, and runs on Android 2.3. ZTE has no plans to bring the Era and other high-end handsets from Asia to the U.S., said Barbara Tate, a ZTE spokeswoman. So lower your ambition levels -- you’ll take the Warp, and you’ll like it, damn it.
Unnecto Drift, Pro, Eco and Quattro
Unnecto is another obscure, no-name brand that made its CTIA debut this year with a lineup of bargain-basement feature phones shod in flamboyant plastic bodies. Besides looking like they were purchased from gumball machines, the Unnecto handsets feature dual-SIM card slots and run on 2G networks -- no 4G to be found here, boys and girls. The company's phones range in price from about $50 to $250, unlocked and free of any carrier contract.
On the high end of the company's low-end range is Quattro, which will launch in June as the company's first 3G phone, as well as the only Unnecto handset running Google's Android OS (version 2.3 Gingerbread). The Quattro also features a 5MP rear camera and a single-core CPU. Now that’s some fancy phonery.
Pictured from left to right, you’ll find the Drift, Pro, Eco and Quattro. The Drift sells for $70, while the Eco is priced at $50. The price points for the Pro, also going on sale in June, and the Quattro haven't yet been finalized, said Sarah Mogin, a spokesperson for the company.
Finally, a company many people have heard of. Most North American gadget enthusiasts aren’t interested in the manufacturer’s phones, of course, but its name isn’t completely obscure.
Huawei is a bottom-feeding handset and tablet maker with high-end aspirations. Aiming for greater, more positive brand I.D. in the States, the company brought to CTIA two new handsets that look good enough to push Huawei's image forward. And, indeed, the Huawei lineup was more compelling than just about anything being shown off by the company’s similarly low-end peers.
The Huawei Ascend D Quad, on left, features a 4.5-inch, 720p touchscreen, an 8MP rear camera and a 1.3MP front camera. It’s also running Android 4.0, a rarity among no-name smartphones. Powering the D Quad will be a Huawei-designed 1.5GHz quad-core CPU the company is calling the K3. Watch out, Nvidia and Samsung -- there’s another player in the quad-core mobile game!
At right is the Ascend P1s, a stylish phone with a plastic back in various colors -- red, white, black. Huawei says it’s one of the thinnest phones in the world at 0.26 inches thick. The P1s also features a 4.3-inch touchscreen, Android 4.0 and a dual-core 1.GHz processor. Intrigued? We are.
Pricing and carrier options for the D Quad and the P1s haven’t yet been announced, Huawei spokeswoman Jannie Luong told Wired. Later this year, Huawei also plans to launch its first handset running Microsoft's Windows Phone OS, Luong said.
Emporia Click, RL2... and a Bunch of Other Obscure, Narrow-Use-Case Handsets
Austrian phone maker Emporia Telecom isn't looking to make the fastest, the thinnest or even the best-selling phones in the world. It has no high-end aspirations. Instead, it wants to sell handsets to the elderly, the hard of hearing, and anyone with poor eyesight.
You’ll find three design hallmarks in every Emporia phone: large number keys on the front (because most smartphones are designed for humans with bionic vision), blinking lights on the top (because missed calls and messages too often stay missed), and rugged, durable build quality (because accidents happen).
On the back of each handset is an "emergency call" button that can be programmed to dial five different numbers in the event of an emergency.
"When an elderly person has an emergency or a problem, and they need to call someone quick, sometimes 9-1-1 isn't the best option," said Greg Foley, the president and CEO of Emporia's U.S. division. "Sometimes you just want to call a friend, a family member, a loved one."
Emporia's phones are launching this summer at prices between $40 and $130, and carrier announcements will come soon, Foley said. From left to right, the five-phone lineup consists of the Click, the RL2, the TALKcomfort, the SOLIDplus and the Telme (up top).
Kyocera, like Huawei, is another bottom-feeding brand that’s looking to increase its prestige via two new handsets sporting improved build quality and specs -- the Rise (left) and the Hydro.
"We're not going to be Samsung or Apple this year, and we're not going to win the Android arms race either," said Bill Veasy, a Kyocera field sales manager. "But we are shooting for that mid-tier opportunity. We can offer better products than what's out there today for the mid-tier."
Both of the new handsets, which haven't yet been given public release dates or price points, run Android 4.0 and feature 3.5-inch, 480x320 touchscreens, 1GHz single-core Qualcomm Snapdragon CPUs, 3.2-megapixel rear cameras, and 2GB of built-in storage paired with 512MB of RAM.
The Rise features a slide-out keyboard, while the Hydro touts a hard plastic body that Veasy says can take a lot of abuse.
Chinese electronics maker Konka Group isn't planning on selling its bottom-feeder phones in the U.S. any time soon, but it was at CTIA looking to make some deals for other parts of the globe.
The company manufactures (and sells all over the world) feature phones, smartphones, TVs, refrigerators, washing machines and even air conditioning units under its own brand and others, Leonard Xin, a vice general manager at Konka, told Wired.
At CTIA, Konka was looking to meet mobile phone distributors, as well as other electronics makers and suppliers, Xin said. Konka builds smartphones that run on Google's Android operating system, as well as touchscreen feature phones that run on a custom-built OS that looks a lot like Google’s OS, but can’t run mobile apps.
At left is the Konka T6100, which features a 3.5-inch, 480x320 display, a single-core CPU and a 2MP camera. It’s running Google's Android Gingerbread OS. To the right is the T610, which runs on Konka’s Android lookalike software.
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3G tariff war imminent as Bharti cuts rates up to 70%,
The move is expected to kick off a price war, with other operators working out their plans of action. A senior executive of Idea Cellular says, “We will have to look at the new tariffs, review them and take a decision based on the local competition, wherever we are in the same market. There are lots of markets where we offer services, along with Vodafone. The decision depends on how strong we are in a circle as well.”
Idea had over 2.6 million active 3G subscribers in March this year. These subscribers contributed to the incremental average revenue per user of Rs 90, besides voice and value-added service usage. Bharti has about eight million 3G users.
TELEPHONY GOING CHEAP
Bharti’s tariff plans for 3G services; it offers such services in 13 circles
Tariff (Rs) Old New
100* 200 MB 300 MB
450* 1,200 MB 2 GB
45 30 min 150 MB
450 1,200 MB 2 GB
1,500 10 GB
*Postpaid plans, rest prepaid
The volume-based browsing (pay as you go after using your free limit) rate on 3G will now cost 3 paisa/10 KB from 10 paisa/10 KB earlier, applicable for non-pack users
15-20 million
Estimated user base of the 3G mobile market; around 2% of the total
919 million
Total mobile user base
Rs 70,000 crore
Amount spent by operators in buying spectrum and rolling out networks
Analysts say they expect most operators to join the bandwagon. “In the Indian telecom market, tariff cuts have been followed with immediate effect. Price reduction can increase penetration, but how much of this will lead to volumes for services like 3G will have to be seen,” said Jaideep Ghosh, partner at KPMG Advisory Services.
Angel Broking analyst Ankita Somani says, “The move by Bharti will definitely increase volumes for the company. Except in the metros, the uptake of 3G services has been quite slow. Despite having 3G-enabled handsets, people are not availing 3G services because of high prices.” Somani, however, says the data services contribution to Bharti’s mobile revenues is not growing, while there is an increasing trend in the case of Idea Cellular, adding the price cut will boost the data revenues for the company.
Nearly 18 months after 3G mobile services were launched, the number of 3G subscribers is merely 15-20 million, which constitutes less than two per cent of the total GSM subscriber base of 919 million. Operators say the active subscriber base that uses the service regularly does not go beyond 10-12 million. Most operators had formed their business plans expecting that at least 10 per cent of the current subscriber base would shift to 3G services. They clearly overestimated the market. The silver lining is that fewer than 10 per cent of the existing GSM users have 3G-enabled phones. About 15 per cent of incremental devices sold in the market are 3G-enabled.
However, the six operators who provide the service have forked out a staggering Rs 70,000 crore to buy spectrum and roll out networks in their circles. Inadequate returns have forced them to use the expensive spectrum primarily for 2G voice services. The dismal uptake also made Communications and IT Minister Kapil Sibal recently admit that 3G services were not a success.
Bharti, along with other GSM players Vodafone and Idea Cellular, has been critical of telecom regulator Trai's recommendations on spectrum auction, saying the reserve price recommended would increase 2G mobile tariffs as much as 100 per cent in some circles.
Bharti has used different models to provide more value to customers (see chart). One, it has increased the amount of data usage while keeping the pack price the same as earlier. Two, for those who pay according to usage, it has slashed tariffs from from 10 paisa per KB to three paisa per KB.
Bharti’s data revenue, which include SMS, contribute about 14.4 per cent to total revenues.
The company is aggressively pursuing the data market and has launched 4G services in two circles, Kolkata and Bangalore. 4G services offer speeds much higher than 3G but there is no voice service in 4G.
The whole telecom industry has been battling intense competition, with dipping profits. Bharti had posted a decline of 28.19 per cent in its consolidated net income, the ninth straight quarterly drop, at Rs 1,006 crore for the fourth quarter ended March this year.
Raj Rajput [ MBA ]
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Mexico América Móvil ,
Spain Telefónica (Movistar, O2 & Vivo)
France Orange,
Norway Telenor,
Russia Beeline,
Singapore SingTel,
Malaysia Axiata Group Berhad,
China China Unicom,
Finland/Sweden TeliaSonera,
Saudi Arabia Saudi Telecom Company (STC)
South Africa MTN Group
United Arab Emirates Etisalat ,
India Reliance Communications ,
Germany T-Mobile ,
United States Verizon Wireless ,
Russia MTS ,
United States AT&T Mobility
China China Telecom,
Indonesia Telkomsel,
India Idea Cellular,
India BSNL,
India Tata Teleservices,
Italy Telecom Italia / TIM
Malaysia Maxis Communications
Turkey Turkcell
Qatar Qtel
Spain Telefónica (Movistar, O2 & Vivo)
France Orange,
Norway Telenor,
Russia Beeline,
Singapore SingTel,
Malaysia Axiata Group Berhad,
China China Unicom,
Finland/Sweden TeliaSonera,
Saudi Arabia Saudi Telecom Company (STC)
South Africa MTN Group
United Arab Emirates Etisalat ,
India Reliance Communications ,
Germany T-Mobile ,
United States Verizon Wireless ,
Russia MTS ,
United States AT&T Mobility
China China Telecom,
Indonesia Telkomsel,
India Idea Cellular,
India BSNL,
India Tata Teleservices,
Italy Telecom Italia / TIM
Malaysia Maxis Communications
Turkey Turkcell
Qatar Qtel
Mobile Opreter,
China China Mobile ,
United Kingdom Vodafone,
India Airtel,
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Jamaican loyalty to BlackBerry wanes,
Android, iPhone making inroads in smart phone market
Steven Jackson, Business Reporter
Jamaicans adore BlackBerry smart phones, which are three times more popular than rivals, but since January, usage of Android devices and iPhones have spiralled and now account for half of the market for the first time, according to local experts as well as trend data from Google.
It signifies a shift in preference in the J$2 billion annual SMS text and mobile data market.
"Most people have BlackBerrys and they are choosing a second phone," said Coren Smith, corporate manager at phone store Fimi Wireless.
Jamaica offers global peculiarities, including more cellphone subscribers at 3.1 million than the actual 2.7 million population; and also a fierce loyalty to BlackBerry in an increasingly iPhone-curious world.
Rivals increasing market share
Smith expects BlackBerry to remain dominant in Jamaica for at least three more years, but says rivals will continue gaining incremental market share.
Jamaicans seem to prefer BlackBerry for its messaging but choose its rivals for apps and web browsing.
"Our customers are becoming more discerning and so we have seen an increase of approximately 60 per cent in the sale of Samsung Android devices throughout our dealer stores," said Jason Corrigan, commercial director at mobile provider Digicel.
Trend data from Google on Jamaica suggests that the dominance of BlackBerry slightly declined in this market year on year, while iPhone usage increased from one-quarter to one-third of the market year on year.
Comparatively, Samsung not only overtook Nokia locally last year, but now accounts for about one-quarter of smart phones in Jamaica. All smart phones contain identifying tags - such as message 'sent from BlackBerry' - and Google Trends compiles and ranks data searches initiated from specific countries.
Experts say that the rise of the rival phones stem from individuality and features, as well as pricing to a lesser degree. These phones retail for roughly US$400 but will cost hundreds more based on add-ons and mark-ups.
"It is important to note that smart phone users choose a device based on lifestyle demands. But a unifying feature of this group is the need to always be online and connected," said Kalando Wilmoth, regional head of corporate communications at mobile operator LIME.
Pricing key factor
Additionally, Wilmoth said pricing is a factor in selling iPhones, which LIME distributes in Jamaica and across its Caribbean markets.
"So, the price of the iPhone is a key driver of the demand. Along with a monthly plan, customers can walk out of a LIME store with an iPhone for a little as J$5,199 plus GCT," said Wilmoth. "Other well-known features include the many apps and the personal assistant, Siri, the picture quality, and other multimedia content."
Samsung's selling card relates to the local acceptance of its Android platform, which integrates effortlessly with Google websites.
"The appeal of the Android phones is unique to those users who enjoy the compatibility with the Google platform and the access to a wide range of sources for entertainment and multimedia content," said Wilmoth, who added that essentially, lifestyle, rather than price, determines the choice of smart phone.
Google Trends currently indicates that for every 100 BlackBerry Internet searches initiated in Jamaica, there is a corresponding 32 for iPhone, 24 for Samsung and 20 for Nokia.
Globally, iPhone is three times more popular than BlackBerry, which dominates in most of South and Central America and the Caribbean. South Korean-based Samsung this year overtook Nokia to become the world's largest phone company.
Latest data from Jamaica's telecom regulator, the Office of Utilities Regulation, indicate that the growth in the market of top-end smart phones aided the doubling of mobile data revenue to J$609 million in the December 2010 quarter over year earlier levels.
Jamaicans also talked 33 per cent longer on their cellphones, totalling 1.78 billion minutes for the December 2010 quarter.
But more critical for the bottom lines of the mobile-, fixed- and Internet-service providers was the J$11.3 billion, or 16 per cent, decline in revenue for the October to December period, compared with the corresponding three months a year earlier.
Raj Rajput [ MBA ]
Mobile Reviews Expert
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Raj Rajput [ MBA ]
Mobile Reviews Expert
On Line Assistence :
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