Mon, Feb 14, 2005 - Page 11 News List

It's a cellphone buyers' market

BARGAINS Phone companies and service providers are going all out to lighten people's hung baos, but with the market already saturated it is an uphill task

By Lisa Wang  /  STAFF REPORTER

But the big drawback of the Nokia 2560 is its monotonous ring tones. Impoverished individualists should set their phone to vibrate to avoid embarrassment.

Consumers living an austere life also can get an almost free phone if they sign up for a new number. Sign a service contract with Taiwan Cellular Corp (台灣大哥大) and you can have a sporty Motorola entry-level C155 bar phone, with a color screen and 400-minute battery life for voice calls, for just NT$1. Other options include the Nokia 2300 and BenQ M100.

And it is not only GSM telecom operators that are looking to exploit the market. Taiwan's only PHS (personal handyphone systems) telecom service provider, First International Telecom Corp (大眾電信), is joining the battle, celebrating the Year of the Rooster, by offering its first handset for free with a 2-year service agreement.

First International now has 800,000 subscribers, out of the nation's total 20 million mobile users, after expanding its coverage down to Taichung and Kaohsiung last year from Taipei.

For users of the low-radiation PHS systems, First International now offers 15-percent off for the dual-mode G1000 made by Japanese Sanyo Electric Co, bringing down the price to NT$13,500, from NT$15,900.

G1000 was a hit in Taiwan after its launch last February because of the convenience and lower voice tariffs.

The handset is the first handset allowing mobile users to remain connected by choosing to use a GSM system, if they are out of their PHS area. At the same time, users can pay half the prices GSM operators charged when calling from PHS numbers.

In addition to the G1000, First International also offers 10-percent off for the Sanyo J100 at NT$9,900 down from an original price of NT$10,900.

Market Conditions

But launching a crop of lower-priced mobile phones does not guarantee an encouraging sales performance in saturated markets like Taiwan, says Bruce Chiu (邱致忠), a vice president of Taiwan's No.2 handset chain Senao International Co (神腦國際).

As Taiwan's mobile penetration has already exceeded 100 percent, which means virtually everyone has a cellphone and some people have more than one, handset makers can only rely on demand for advanced handsets, Chiu said.

There is no urgent need for consumers to buy a new phone during the New Year holiday, Chiu said.

"Taiwanese consumers are smart. They won't buy until the best time as mobile phone makers and telecom operators are offering discount packages and new models all year around," Chiu said.

"We feel the sentiment is much weaker this year," Chiu said.

He expects handset sales may only have about 15-percent growth this year, compared to over 20 percent in the past.

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