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Number portability takes effect

Two models show a new clamshell Nokia handset, the Nokia 6060, at a product launch in Taipei yesterday. The handset is the firm's 14th new model this year. PHOTO: WANG YI-HUNG, TAIPEI TIMES

The launch of mobile number portability will not boost domestic handset sales as the major wireless telecommunications operators are being conservative about promoting the new service, industry insiders said yesterday.

The new service, which started yesterday, will allow mobile users to switch operators without changing their cellphone numbers, marking further liberalization of Taiwan's telecom market, the nation's telecom regulator said in a statement.

"As there are no indications that Taiwan's three major operators will launch aggressive campaigns, we don't think that NP [number portability] will have a huge boost to handset sales," Loren Shuster, general manager of Nokia's Taiwan branch, said yesterday.

Instead, they are focusing on building their third-generation (3G) customer base, Shuster said.

Handset sales are expected to grow around 10 percent to 68 million units from 61 million units last year after local operators led by Chunghwa Telecom Co.

(中華電信) started offering 3G services in July, according to a forecast by the Market Intelligence Center (MIC, 市場情報中心), a market researcher based in Taipei.

Bruce Chiu (邱致忠), a vice president at the nation's No.2 handset retailer, Senao International Co (神腦國際), shared a similar view.

"I'm not optimistic about the impact of number portability on handset sales," Chiu said.

Taiwan's primary wireless telecommunications service providers are lukewarm about cooperating with the government's policy to promote the new service, which means they won't offer premium handsets to lure new subscribers as is typically done during promotions, he said.

Only few users, around 15 percent of Taiwan's 20 million mobile subscribers, will consider changing operators, according to a forecast by Taiwan's second-largest mobile operator Far EasTone Telecommunications Co (遠傳電信).

Nokia is planning other measures to stimulate sales. As in other markets, Nokia is launching lower-priced mobile phones in Taiwan to cement its market position.

"With low-priced handsets, Nokia is narrowing its gap with bigger rival Motorola in Taiwan, from 4 percentage points to the current 1 percentage point," MIC analyst Marty Kung (龔俊光) said.

Nokia is taking market share from local brands, which now only have a total 20 percent share, down from 27 percent at its height, Kung said.

Nokia, the No.2 mobile phone vendor in Taiwan, tracks closely behind Motorola Inc with its market share rising to around 22 percent in the second quarter.

"Nokia's fourth quarter sales [for the Taiwan branch] will be strong because of a better product portfolio," Shuster said on the sidelines of the launch of the Nokia 6060, a clamshell priced at NT$5,600.

Nokia plans to put four more low-priced models on the market later this quarter, Shuster said.
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