Tue, Feb 20, 2007 - Page 6 News List

Cellphone simplicity may activate new market for seniors

AFP , BARCELONA, SPAIN

It could be the answer to grandma's prayers: a mobile phone designed specifically for the over-65s that aims to take the fear out of technology and get the elderly connected.

A small Austrian company shrugged off the buzz of innovation and youth-oriented marketing at the 3GSM mobile phone trade show last week and showcased a simple handset for the growing "grey market."

"Our market research showed that the elderly have problems using complicated phones," said Reinhard Handlgruber, export manager for Emporia Telecom, which is based in Linz. "What they want is a big screen, a big key pad and an easy to use menu."

Emporia carried out market research in rest homes and discovered latent demand for mobile or cellphones from the over-65s.

The handset they developed has no digital camera, Internet access or instant messaging capabilities, but it does include a button to call relatives or friends in an emergency, is compatible with hearing aids and can run on regular AAA batteries.

"There are 110 million people over 65 in Europe and Russia and only 17 percent have mobile phones," Handlgruber said.

None of the mainstream handset manufacturers has launched an oldies phone, but some appear to recognize that enthusiasm for new products and flash handsets is not shared by everyone.

Vodafone recently teamed up with French manufacturer Sagem to offer its "Vodafone Simply" service of easy-to-use phones and simple billing.

US manufacturer Motorola is launching its "Motofone" model worldwide, an ultra-low-cost set aimed at users in the developing world and those looking for a basic handset in rich countries.

"In Europe we found that it was the unconnected over-50s that expressed most interest in the phone," said Andrew Morrow, European product line manager for Motorola. "It was those who have never owned a mobile phone because they thought it was too complicated and the display was too small."

Kim Heikkinen of Idem, a Finland-based mobile phone design consultancy, says that no major manufacturer has successfully developed a phone for seniors who are bamboozled by mobile technology.

"The problem for the bigger brands is that if it looks like a product for old people then buyers won't want to relate to it. It's a difficult marketing proposition," he said. "But it's an interesting challenge and no one has done it right yet."

Emporia has sold 50,000 sets since August, Handlgruber said, and the group is currently expanding out of its core Austrian and German market.

Analyst Gavin Byrne of research group Informa believes the company has found a niche and that the emergence of such a product illustrates changes under way in the handset market.

"I do feel there's a market for this kind of device," he said. "It's difficult to quantify, but growth of handset sales is slowing in developed countries and it is a question now of finding segments that are undeserved."

Finnish manufacturer Nokia, which has a strong reputation for simplicity, has so far desisted from launching a special phone for the elderly.

The group's market research has not proved the existence of a significant number of technophobe senior citizens, company spokesman Doug Dawson said.

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