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CDMA Handsets: The All-Korean Affair

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VoicenData Bureau
New Update

Forget MTNL’s ugly and bulky looking Garuda WLL mobile handsets that

became a talk in Mumbai and Delhi a few years ago when they were launched.

People were concerned about the advantages it offered rather than its looks

which made it so successful that MTNL ran out of capacity and had to stop taking

any fresh applications for new handsets. There is a huge expectation in the

market for WLL services. This has become more interesting as CDMA handsets have

shed the age-old image of ugliness and have acquired a new, sleeker look, and

are equipped with all features, including data capabilities, which were

perceived to be only GSM’s forte. Companies are also working on developing

slim folder-type handsets. Vendors are also developing tri-mode and dual-band

handsets and even the ones that support Bluetooth. One of the key advantages of

CDMA is that the handset used for IS-95 service can be used in the CDMA 2000

networks as well, unlike GSM networks where handsets need to be changed with

every intermediary technology on path to 3G.

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Korean Battle Enters India



Korean triumvirates Samsung, LG, and Hyundai, have gained the first mover

advantage and have launched phones that have helped shed the negative perception

about CDMA phones. The three players are busy chalking out strategy for the CDMA

market in India. More launches are in the offing in the coming months. Some

non-Korean vendors are also planning to come out with CDMA handsets very soon.

Hyundai: Working on Strategy



On Hyundai’s strategy on the CDMA front, K Srinivas, manager telecom,

Hyundai Curitel says, "It is too early to chalk out a strategy, but we are

one of the earliest players in the market and we look forward to be a part of

the growing market for CDMA handsets." On the future of CDMA in India, he

says, "Once Reliance starts its services, the picture will become

clearer." He feels that fixed wireless handsets for PCOs is going to be a

major driver for CDMA in the country due to its ease of deployment. As regards

to open market availability, Srinivas feels it would encourage the flourishing

of the gray market."

LG: Opposed to Open Market Sales



The LG terminal division of LG Electronics has a liaison office in India.

The major success of its operation was an order of $100 million from Reliance

for the supply of CDMA handsets. LG is also supplying fixed wireless terminals

to BSNL for its rural telephony rollout, and to MTNL for its rollout in the TNF

areas. The company has about 25 CDMA phone models for the global market. On the

question of LG’s plans and expectations from the Indian market, KK Kushwaha,

LG’s vice-president, CDMA terminal, says "Our expectations are that the

CDMA market in India will grow very rapidly. This will happen due to low rentals

and low tariffs as announced by TRAI. LG is considering India as one of the most

important markets for CDMA terminals." Regarding alliance with operators,

Kushwaha says, "LG will cooperate with major operators to make an effort to

promote CDMA, by providing and developing new models taking into consideration

the requirement of operators and their customers. The end goal is always to

satisfy the customer’s customer. And we are going to focus on CDMA 3G1x models

which will be superior to GSM." On the issue of pricing of handsets, he

says, "LG will provide competitive products in the Indian market and set up

a fully dedicated service 

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CDMA Handsets: Feature-rich

No SIM card required 

High spectral efficiency 

Data speed up to 144 kbps 

Short messaging services

Call forwarding

Call waiting

Call conferencing 

Caller line identification

Increased talk time and standby time

network across the country in order to provide better

after-sales services to the end-user. At present, we are not looking at

establishing the distribution network, but if the market conditions require, we

will change according to the market needs." On the question of selling

handsets in the open market, he commented that LG would never promote the gray

market for CDMA terminals. Kushwaha says, "With the 3G 1x CDMA

infrastructure now being made available, we hope there won’t be any gray

market for 3G1x phones." On the issue of perception of CDMA handsets being

bulky and ugly, Kushwaha says that it used to look ugly earlier due to the

specification that battery should support talk time of four hours, which

warranted a thick extended battery, making the phone bulky and awkward looking.

Models that provide two-and-half hour talk time are as sleek and smart as GSM

phones." On the issues of call drops and quality of voice on the CDMA

network, Kushwaha says, "For the call drops and quality of voice, it is not

the handset but the quality of network and congestion on the network that plays

the main role."

Samsung: Focussed on private operators 



Samsung, which claims to be the number 1 CDMA handset player in India, in

terms of market share, is also bullish about the way the market is growing. The

company’s clear strategy is to focus on the private basic operators, not

state-owned operators like BSNL and MTNL. According to Shashin Devsare,

"Samsung’s products bring value for money to the operators and

subscribers and we do not want to be perceived as the manufactures of only cheap

phones". He says Samsung 

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"We

do not have any imme diate plans but if the market grows and we

see the potential, we are open to the idea of manufacturing

here"

Shashin Devsare



 
senior

manager (telecom) Samsung India

would participate in the government tenders only

if quality product is one of the important specification apart from price.

Devsare says, "Samsung will want to remain as price competitive as

possible, without compromising on quality." He supports open market

availability of CDMA phones as this would give consumer the choice. On the

strategy vis-à-vis GSM and CDMA, Devsare says, "We have competencies to be

present on both the fronts." On the question of manufacturing Samsung

handsets in the country, he says, "We do not have immediate plans but if

the market grows and we see the potential, we are open to the idea of

manufacturing here."

"We

have a complete range of CDMA handsets, but we are evaluating the

options and trying to understand the market"

Shudhin

Mathur




general manager, Sony Ericsson

Other Vendors: Still way behind



Most non-Korean GSM vendors have been slow to react and have preferred not

to launch any models in India. According to Mohit Kapoor, country manager,

mobile phone division (South-West Asia), Alcatel, "We are studying the

situation and would think of entering the market at an appropriate time."

Alcatel, in fact, does not have a CDMA model at present. Nokia is toying with

the idea of launching some CDMA handsets later this year. According to Sudhin

Mathur, general manager, Sony Ericsson, "We have a complete range of CDMA

handsets, but we are evaluating the options and trying to understand the

market."

Sudesh Prasad

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