Mobile Retailing

Nokia profit drops 69 percent in fourth quarter

2009-01-24T22:17:00.000-08:00

Nokia Corp., the world's top mobile phone maker, said Thursday its profits fell 69 percent in the fourth quarter as the world economic downturn slowed handset sales.
Net profit was euro576 million ($743.62 million), down from euro1.84 billion in the same period in 2007.
Sales dropped 19.5 percent to euro12.7 billion ($16.4 billion), from euro15.8 billion.
The results came in below expectations, sending Nokia shares down 4 percent in Helsinki to euro9.82 ($12.68).
The Finnish company gave a bleak outlook for the industry, saying it expects global mobile device volumes to drop 10 percent in 2009 compared to last year. Last month, it predicted a 5-percent decrease.
Chief Executive Olli-Pekka Kallasvuo said the industry has been hit by "weaker consumer confidence, unprecedented currency volatility and credit tightness."
"We are taking action to reduce overall costs and to preserve our strong capital structure. This is clearly our top priority in the current economic environment," Kallasvuo said.
The company said it would slash costs at its handset unit by euro700 million annually, but didn't give any details.
Nokia shipped 113 million handsets in last three months of 2008, down 15 percent from the same period a year earlier. As a result, its share of the global handset market fell to 37 percent, down from 38 percent in the previous quarter and 40 percent in the fourth quarter of 2007.
The company said it expects to maintain its current market share in the first three months of 2009, and maintains its target of increasing market share in the full year.
"From an operational and structural perspective Nokia is still in a very good position," said Neil Mawston, a telecom analyst at Strategy Analytics in London. "It has a very efficient very effective supply chain."
He added, however, that Nokia's product portfolio is "looking relatively weak," especially in smart phones, where it is losing ground to Apple Inc.
A higher proportion of lower-end phones continued to push down the closely watched average selling price of Nokia handsets. It was euro71 in the quarter, down 14 percent from euro83 in same period a year earlier, but only 1 percent lower than in the third quarter of 2008.
Nokia said it sold less handsets in all regions, including China where sales dropped the most in the quarter — by 36 percent compared to the same period in 2007.
Earlier Thursday, South Korea's LG Electronics Inc. — one of Nokia's main rivals — said its mobile phone shipments grew 8 percent in the fourth quarter, though the company swung to a net loss because of other units.
One bright spot in Nokia's report was Nokia Siemens Networks, which supplies equipment for fixed and mobile networks. The joint venture with Germany's Siemens AG, saw operating profit grow 15.4 percent to euro225 million in the quarter. By contrast, Nokia's key mobile device unit reported a 61-percent drop in operating profit

Apple iPhone 3G vs RIM BlackBerry Storm Mobile

2009-01-24T22:16:00.000-08:00

A mobile phone review balancing the Apple iPhone 3G and RIM BlackBerry Storm in the easiest terms. The two smartphones are the hottest devices on the market.

Which smartphone is better? Our Apple iPhone 3G vs RIM BlackBerry Storm is based on simple everyday features for mobile phone users. Both phones have their pros and cons. One mobile device does not truly win over the other.

The smartphones are nearly alike as a multimedia phone. They both have breathtaking audio, video, photos, games, and include applications. Both have multi-touch screen capabilities.

The Internet portion of the phones is different. The BlackBerry Storm includes additional mobile applications such as Lotus Notes and Novell GroupWise. Each phone runs on a different mobile operating system.

The two smartphones have an Internet Web browser, personal e-mail, and Exchange. However, the Apple iPhone has Wi-Fi connectivity which the BlackBerry Storm lacks.

RIM BlackBerry Storm has a better 3.2 megapixel camera which features flash, auto focus, and video recording. The iPhone has a 2 megapixel camera and lacks all the additional features including flash auto focus and video recording capabilities.

Apple iPhone comes with either 8GB or 16GB of memory. The Storm comes with 1GB eMMC preloaded and also includes an 8GB micoSD card. The BlackBerry device is expandable to 16GB microSD.
Unpredictably, display size and resolution are different. The BlackBerry mobile has a 3.2 inch display running at 480x360 pixels. The iPhone display is 3.5 inches with a 480x320 pixel resolution.

We also calculated the weight of each smartphone while the battery was in the device. Storm weighs in about 5.5 ounces while the iPhone is 4.7 ounces.

Physical dimensions are nearly the same. The Storm is 4.4x2.4x0.6 inches while Apple's smartphone is 4.5x2.4x0.5 inches. As you can see, they are both virtually the same size.

Battery life is somewhat fascinating. The Storm has 360 hours standby and 5.5 hours talk time. However, the iPhone has 300 hours standby and 10 hours talk time running on 2G. This is a big difference in the two phones.

In a nutshell, it pretty much comes down to this. If you buy the iPhone, you don't get the extra camera and video recording features. If you buy the BlackBerry Storm, you don't get Wi-Fi capabilities.

The two smartphones do offer genuine support and each have their own online app store. The RIM BlackBerry app store is fairly new. This article was only intended to compare the phone features and not their app store support options

Swan Telecom to roll out mobile services by second quarter

2009-01-24T22:01:00.000-08:00

Swan Telecom, a part of the diversified Mumbai-based Dynamix Balwas Group, says it will end all controversies surrounding it by rolling out second generation (2G) GSM mobile phone services anytime between April and June.

"We received spectrum for 13 circles from the Department of Telecommunications (DoT) and we will roll out our services between April and June," Dynamix Balwas marketing vice president Ruth Varsulkar told IANS.

Swan Telecom kicked off a row after it received space in the 2G spectrum, as it did not have a single subscriber or any experience in the telecom sector. The 13 circles include prime zones such as Tamil Nadu, Karnataka, Maharashtra and Mumbai.

The controversy spiralled after the company went on to sell a 45-percent stake to the UAE-based Etisalat for $900 million, taking the company's book value to $2 billion - even before it had launched its services.

Communications Minister A. Raja was charged with flouting the regulator's norms in allocating of 2G spectrum on preferential treatment to Swan and another new entrant, Unitech Wireless.

The now-estranged government ally, the Communist Party of India-Marxist, questioned the government's "first-come first-served" principle and the resultant alleged loss of Rs.60,000 crore (Rs.600 billion/$13.2 billion) to the exchequer.

The minister has since claimed that the allocation of spectrum was purely based on the regulator's policies and clarified that both Swan and Unitech had merely diluted their stake and that it wasn't an outright sale.

Swan Telecom said all controversies will be eventually put to rest. "We are serious, long-term players. Everyone will get the answer once we are in the field. We will prove ourselves once we launch our product," said Varsulkar.

She also said the company would most likely share infrastructure to save on operating costs.

Another company official, requesting anonymity, said the entire controversy was the handiwork of a cartel operating against new players. "Everybody here is insecure, and it takes little to shake them."

Swan Telecom's holding company, Dynamix Balwas, has several business verticals - realty, hospitality, dairy and more recently, telecom.

The group also owns the property that Le Royal Meridien hotel operates near Mumbai's international airport. Dynamix is an equal partnership between Mumbai businessmen Shahid Balwa and Vinod Goenka.

RCom starts GSM mobile in Mumbai; offers Rs 900 free talktime

2009-01-05T00:54:00.000-08:00

In a move that could trigger another tariff war among mobile operators, Anil Ambani-led Reliance Communication today launched GSM
services in Mumbai and offered free talk-time worth Rs 900 spread over three months.

"New subscribers would get Rs 10 talk-time every day for the first 90 days and has offered tariffs of Re one a minute for local calls and STD would cost Rs 1.50 per minute on any network," Dinesh Gulati, head of Western region, said.

After consuming Rs 10 during the day, the subscribers can use top up cards with denominations ranging between Rs 10 to Rs 500 with the same tariffs.

When contacted Ambani said, "In 2003, Reliance changed the face of the telecom sector in India. Through our nationwide GSM launch coupled with company's continued focus on our number one CDMA Network, we will once again endeavour to re-write the rules of the industry by offering an unbeatable coverage, quality services and above all the value for their money."

Over and above the free-talk time, the Reliance GSM customers will get unlimited calling on Reliance network (both GSM and CDMA) absolutely free between 10 PM to 6 AM through out Mumbai, Maharashtra and Goa, giving access to seven million Reliance phones in the region.

The new GSM SIM cards would be available for Rs 25 with a validity of six months, Gulati said, adding the initial plan has been designed keeping in mind the subscribers in sub-Rs 300 mobile expenses.

He said the company was working out various other pre-paid tariff plans and would announce during the next three months.

DoT working on Mobile Number Portability to meet June timeline

2009-01-05T00:26:00.000-08:00

Working towards meeting timeline of June 2009, Department of telecom will shortly issue clarifications to the bidders on the Mobile

Number Portability norms, after which it will start
accepting applications from the prospective firms to act as agencies for porting numbers.

The Government has already held the pre-bid conference last month and is about to issue clarifications queries of the operators on the same. The bids are scheduled to be opened on February 5, said an official. The prospective bidders will act as clearing houses and database for the MNP system.

The implementation roadmap for MNP is for Metros and category A circles by middle of 2009 and in the entire country by the end of 2009.

DoT is also likely to take a decision shortly if it is in the ambit of existing norms to allow users to shift between GSM and CDMA services of the same operator before the full-fledged Mobile Number Portability starts between two operators.

The intra-operator MNP is possible with two operators in the Indian context -- Reliance Communications and Tatas, who have both GSM and CDMA operations. While RCom has announced its pan-India GSM services recently, Tatas do have spectrum for GSM service but are yet to start the service.

Tatas have already sided with the GSM operators on this issue, who have opposed the intra-operator portability.

iPhone disconnects in India

2008-11-15T05:48:00.000-08:00

India may have the world’s fastest growing wireless market, but Apple (AAPL) didn’t set its hopes particularly high when it launched the iPhone 3G there in August. It reportedly shipped only 50,000 units to its partners on the subcontinent, with plans to double that number by the end of the year.
If so, those partners may have a lot of unsold iPhones on their hands come January. According to a long postmortem published this week in the Delhi-based newspaper Mint, Apple has sold only 11,000 iPhones in India, a country of 1.14 billion that buys 8 to 10 million cellphones a month.
“IPhone’s launch in India has been dubbed the biggest failure of a top-notch brand from a well regarded company in recent times,” wrote Priyanka Mehra and Shauvik Ghosh in a piece that underscores the difficulty of adapting Apple’s U.S.-based smartphone strategy to markets around the world.
Price, according to the authors, is only part of the problem. Although most Indians buy cheap cellphones on a pre-paid basis, there were plenty of potential customers who could afford the 31,000 rupees ($716 at the time) that Bharti Airtel and Vodafone Essar were charging for the 8GB iPhone. According to Mint, Nokia (NOK), Samsung and RIM (RIMM) are all doing good business in India selling smartphones that cost even more.
But Steve Jobs had announced before the launch that Apple would be priced at $199 globally — less than 10,000 rupees — a promise he couldn’t deliver on in India because local cellphone companies don’t subsidize cellphones with lock-in clauses the way carriers routinely do in the United States and Europe.
“This built a false hope in the minds of those consumers who wanted to buy it and turned away those who could have actually bought it,” Prathap Suthan, creative director of advertising agency Cheil Communications India, told Mint.
Moreover, he says, Bharti and Vodafone, lacking experience in the complex Indian retail environment, dropped the ball in terms of marketing and distribution. By selling iPhones exclusively at their own outlets, they’ve antagonized the big retail chains that dominate the market in India.
“A brand like Apple need not be told that an iconic product needs iconic advertising, a solid marketing push,” says Suthan, “The company failed to strike a connect with Indian consumers.”

New Strategy by Hotspot and other retailers

2008-09-06T01:50:00.000-07:00

Organised mobile retailers like HotSpot and Mobile NXT have found a new way to deal with competition from mom & pop stores: make neighbourhood retailers their franchisees to sell mobile phones and accessories under their brand.
Currently, more than 70% of the mobile retail sector is unorganised and market analysts believe there is a huge potential for the franchise model. “The return on investment (RoI) for the franchisee is somewhere around 60-65%.
It will allow us to expand our presence and enter deep into the cities,” says HotSpot CEO Sanjeev Mahajan. HotSpot has recently adopted the franchise model with 25 stores operational in Delhi alone and has plans to expand to 100 such stores besides the 400 company-owned, company-operated (co-co) stores across the country.
“Customer experience and pricing is the crux of this business. Therefore, we provide stock management, professional training for the in-store sales team, and an after-sales customer support at all our franchised stores. The role of the franchisee is restricted to the operational level,” says Mobile NXT CEO Vijay Menon.
Mobile NXT adopted the franchise model in tier-II and tier-III cities across India in 2007. The company operates more than 55 stores all over the country.
Mr Menon, however, concedes that the franchise model in mobile retailing is difficult to adopt since there is no uniqueness in the product and the return on investment is not very attractive.
That is why players like Subhiksha and Mobile Store are refusing to join the bandwagon. They believe the franchise model is not profitable at this stage, given the low profit margins and low market penetration.
“We are concentrating on a co-co model based on pricing. We don’t think franchise model is the way to go, since the business already accounts for low margins; expanding through franchise would dent the margins further,” says Subhiksha president-marketing Mohit Khattar. Subhiksha operates the largest chain of mobile stores with around 1,300 stores all over the country.
Mobile Store CEO Rajiv Agarwal also feels that the franchise model in the current scenario does not hold much ground. “There is the risk of our brand value being diluted. This is a business where you cannot allow your service proposition to get diluted,” says he. Mobile Store has significant presence in the country with more than 800 stores.
However, RPG Cellucom head-marketing Biswajit Pandey feels that with improving margins and marketing strategies, the franchise model may take the front stage in future. The company currently operates over 25 stores.
“It’s a win-win situation since it allows rapid expansion and presence in local areas for the franchiser and an opportunity for the traditional retailer to enter the newfound trend of organised retail. Moreover, the operational costs in case of franchise model is low in comparison to co-co model, giving both the parties a better RoI,” says global management consulting firm Technopak chairman Arvind Singhal.

3G rule tweak to help CDMA players

2008-08-27T22:35:00.000-07:00

Entry costs for 3G services in the CDMA platform are likely to be lower as the government takes steps to modify auction rules for CDMA operators.

Top telecom officials said a limited bidding among a few CDMA players, led by Reliance and the Tatas, was likely to ensure a lower price per circle compared with GSM bids for the same circle.

According to the earlier rule, 3G licences would be allocated to the CDMA player with the highest subscriber base provided it was willing to pay the same price that the biggest GSM operator was paying in that particular circle. In CDMA, therefore, auctions were not necessary.

“This (GSM price) would have been high considering the large number of domestic and foreign GSM players keen on entering the fast growing Indian telecom sector,” said telecom analyst Sudipto Basu.

Analysts also contend that with only one slot available in the coveted 800 megahertz (Mhz) band, few domestic and international players will want to enter the CDMA auction, leading to lower bidding rates. “Besides, far fewer players exist in the CDMA space compared with GSM mobile telephony,” Basu said.

Reliance Communications, Tata Teleservices, Bharat Sanchar Nigam Ltd and new entrant Sistema-backed Shyam Telecom are the main contenders for third-generation CDMA rollout.

Mahesh Uppal, director of Com First (India), said, “Auction of 3G CDMA spectrum will bring in transparency in the system and reveal the market price for CDMA radiowaves.”

The government has also decided to fix the base price for 3G frequencies in the 800MHz band at a fourth of what GSM operators will pay for 3G frequencies. The base price for 1.25 MHz of radiowaves in the 800MHz band will be Rs 40 crore for metros and category A circles, Rs 20 crore for category B circles and Rs 7.5 crore for category C circles.

While the department of telecom (DoT) has made additional provision for allocating spectrum in the 450MHz and the 1900MHz bands for CDMA operators, technical experts said that these bands were inferior compared with the 800Mhz band.

Auction schedule

The DoT today revised the time schedule for the process to appoint an agency for the 3G e-auction. The pre-bid conference for receiving the request for proposals for the designated agency was to start tomorrow.

It will now start on September 8 and consequently all the earlier dates have been revised. The submission of technical and financial bids will be on September 22 instead of September 3, said an official statement.

Nokia N85

2008-08-27T06:46:00.000-07:00

Specs & features:

• 2.6-inch OLED screen
• N-Gage gaming
• Music with in-built FM transmitter
• 5 megapixel auto-focus camera
• Carl Zeiss optics
• Dual LED flash
• Geotagging
• 3.5G HSDPA
• Wi-fi
• Bluetooth (A2DP)
• 8GB microSD card
• RDS radio
• 3.5mm audio jack
• A-GPS support

“The Nokia N85 was created to be more than the sum of its parts, offering a complete mobile entertainment package designed for connecting, sharing and discovering,” said Juha-Pekka Sipponen, Director, Nokia N-series. “The iconic Nokia N-series dual slider design has evolved to become smaller and sleeker while integrating the newest features and services to deliver the best mobile experience to date.”

The Nokia N85 is pre-loaded with at least 10 made-for-mobile N-Gage gaming titles and a voucher to activate one full game license. Dedicated gaming keys light up when the device is in landscape gaming mode to further enhance a user’s gaming experience.

The new Nokia N79 multimedia smartphone is both lighter and more capable than its predecessor, the N78

2008-08-27T06:42:00.000-07:00

Nokia today unveiled the Nokia N79 candybar multimedia smartphone, which joins the Nokia N85 as the latest additions to the Nokia Nseries range. The Nokia N79 offers a full range of multimedia capabilities, including integrated navigation, music with FM transmitter, high-speed connectivity, web browsing and a 5-megapixel camera.

Aimed at style conscious users who don't want to compromise on functionality, the Nokia N79 comes with Xpress-on smart covers that are available in five colors: Light Sea Blue, Espresso Brown, Olive Green, White and Coral red. A combination of three of these comes with each Nokia N79.

The Nokia N79 sports a 5-megapixel camera with Carl Zeiss optics, though the lens is slightly less capable than the one found in camera phones such as thesony ericsson c905 and the nokia N82. Still, the Nokia N79 offers a range of camera features such as autofocus, dual LED flash and VGA video recording. Images can also be geotagged to specific locations. The Nokia N79 comes packaged with a 4GB microSD card, and a sliding lens cover helps protect the lens when not in use.

A Friendster widget will also be made available for the Nokia N79 via the WidSets service. This will allow users to browse Friendster friends' profiles, view and post shoutouts, upload pictures taken with their handset, and browse their own and friends' photo albums. Furthermore, the Nokia N79 will offer the Nokia Download! store, which offers third party entertainment content, the latest in mobile gaming and dynamic applications (widgets).

Nokia Maps lets users explore and navigate new surroundings by accessing more than 15 million points of interest (POI). Built-in AGPS providing turn-by-turn navigation comes with a three month integrated license on the Nokia N79.

The convergence of photos, music and navigation in the Nokia N79 is combined with high-speed 3.5G HSDPA and Wi-Fi. Additionally, the Nokia N79 features the Nokia Mini Map browser, Bluetooth 2.0, TV out (video cable sold separately), and DLNA support.

The Nokia N79 boasts a 2.4" screen, a talk time up to 3.5 hours and operates on Quadband GSM and HSDPA networks. The phone measures 4.3 by 1.93 by 0.59 inches and weighs 3.42 ounces, making it slightly lighter yet more capable than the Nokia N78. Compare the two smartphones here.

The Nokia N79 is expected to hit European store shelves in October 2008 for 350 euro, while it should appear in the U.S. in November 2008 for approximately $500.

LG launches CDMA LG10000 to take on iPhone

2008-08-25T02:45:00.000-07:00

The competition for the Iphone seems to be getting hotter by the day. After a slew of releases by GSM band competitors now LG has launched a CDMA Handset to compete with it. The LG10000 can be used on the Reliance mobile network in India. It is a clamshell model with a 2.8 inch touchscreen and QWERTY keyboard.

It has a memory of 8 GB and a 2 megapixel camera. The phone is compatible with Microsoft Exchange Server and is capable of HTML browsing. It has 240 minutes of talk time and 480 minutes of standby time.

The phone has been in the US markets for some time now and is being sold as Voyager. It has been one of the main competitors to Iphone. The war for market share has shifted to India with this launch.

The phone is likely to be priced between Rs 22,000 and Rs 25,000. It will be available in all reliance exclusive and retail outlets.

Samsung Mobile eyes 15% market share

2008-08-23T05:07:00.000-07:00

Samsung Telecommunications India, the number two mobile handsets maker in the country, plans to double its market share in the next 10 months by increasing mobile manufacturing capacity at its Noida plant.
At its Noida unit, Samsung Telecom plans to increase capacity from 9,00,000 units to 1 million units per month this year.

Sunil Dutt, country head at Samsung Telecom, said the firm is targeting a 15% market share in India within 8-10 months through increasing capacity, greater communication with consumers and expansion of its distribution channels. "We have more than 300 distributors in the country," he said.

The company has up to 60% volume coverage in the country and commands a market share of 8% in the mobile handsets segment.

"We have almost 40 models in the market across every price segment and will soon launch a new model 'Omnia', which is Samsung's answer to other high-end phones," Dutt said. The company will focus on rural areas and first-time and new consumers there.

"In rural areas, beyond 5,100 towns, our share is slightly less than our national share, and that is expected to grow as we are building our infrastructure there," Dutt said.

Samsung Telecom is also expanding through retail outlets such as Sangeetha, Subhiksha, Mobile Store, Hot Spots, Reliance Retail, Croma and others and plans to launch a limited number of Samsung mobile exclusive stores. "We don't have exclusive stores for mobiles right now but we may plan a limited number of stores," Dutt said.

The company is targeting a 30% growth for 2008. It contributes 30% to Samsung India's revenues of over $1 billion.

Samsung Telecom also launched its Beat 270 phone in its music phone portfolio this week.

In India, IPhone 3G More Likely a Consumer Device

2008-08-23T04:28:00.000-07:00

As India prepares for the launch of Apple's iPhone 3G on Thursday night, analysts and potential users here said the product will more likely be a device for consumers rather than a business phone.

The iPhone 3G will find more favor among consumers, at least initially, because the business segment already has established products like Research in Motion's Blackberry, said Anshul Gupta, principal research analyst at Gartner. The device is perceived more as a lifestyle product right now, he added.

"We would not deploy the iPhone 3G in our business until the product is proven in a business environment," said K. Purushottam, executive director of Wep Solutions India, an IT services company in Bangalore. Purushottam said he might buy the product for personal use.

Potential customers are also concerned about how the iPhone 3G integrates with existing business applications and their security policies, said Sanjay Anandaram, co-founder of the venture fund JumpStartUp.

Two Indian service providers, Bharti Airtel and Vodafone Essar, are launching the iPhone 3G with much fanfare from midnight tonight. But it seems unlikely that the product will see mass market adoption here any time soon.

One big factor, already reported, is that India does not yet have any 3G networks operational. Airtel and Vodafone have cautioned that some of the phone's capabilities will not be immediately available upon launch. The government has announced plans to auction 3G spectrum this year, and the commercial roll out of 3G services is expected only in the first half next year.

In addition, an Apple spokeswoman said earlier this month that music and video downloads from Apple's iTunes music store would not be available to Indian customers, though they will be able to download applications from the App Store.

Smart phones accounted for only 4 percent to 5 percent of mobile phones sold last year, and their share is likely to grow to only about 7 percent this year, said Gupta, who includes the iPhone 3G in the category of smart phones. This segment of the mobile phone market is expected to grow faster than others, however, partly because of growing awareness of the utility of smart phones, he added.

Airtel and Vodafone may have passed up an opportunity to increase sales by their high pricing for the iPhone 3G in India. Both operators will offer the product with 8G-bytes of flash memory for 31,000 Indian rupees (US$715), a high price by Indian standards. The 16G-byte version is priced at 36,100 rupees.

If the pricing were more competitive, the iPhone 3G would have a chance of dramatically shifting the Indian market towards smart phones, Gupta said.

A number of people said they backed out of buying the iPhone 3G because of the high price. They had expected the service providers to offer the phones at a lower price after bundling them with service contracts.

People are still expected to crowd the stores selling the device. The iPhone is seen here as an iconic and unique device, meaning some customers will not be put off by its price, Gupta said.

"There is a buzz around this phone, because it takes a mobile phone to the next level of multiple functions in a single device," said Purushottam. The iPhone 3G attempts to bring communications, entertainment and office functions onto one device, though getting the full benefit of this functionality will require 3G networks, he added.

Nokia Unveils Nokia 6210 Navigator Mobile Phone

2008-08-23T02:03:00.000-07:00

Taking navigation and maps to the next level, Nokia introduced Nokia 6210 Navigator the company’s first GPS-enabled mobile device with an integrated in-map compass for pedestrian guidance.

The Nokia 6210 Navigator comes with Nokia Maps 2.0 and offers real-time voice and visual turn by turn guidance using in-built GPS support, optimized one-box map search, 2D/3D and night mode map views, opportunity to tag and share your favourite locations, save and share routes amongst many other interesting features. The 6210 Navigator comes pre-loaded with maps of 8 cities in India and a 6 months navigation bundle,

Launch of Nokia 6210 Navigator further strengthens Nokia’s GPS-enabled phone portfolio. Nokia now has ten devices in the market that combine personal navigation capabilities with smartphone connectivity. These include Nokia 6110 Navigator, Nokia 6220 Classic, Nokia N95, Nokia N95 8GB, Nokia N82, Nokia N78, Nokia E71, Nokia E66 and Nokia E90.

Speaking at the occasion Mr. Devinder Kishore, Director Marketing Nokia India said, “With location-based services expanding rapidly into mobile communications devices, this industry is poised for growth. As per a recent study conducted by Nokia, Navigation has become one of the top five mobile services globally - others being imaging, music, SMS and gaming.

“With the launch of Nokia 6210 Navigator, users in India will be able to enjoy the benefits of world class navigation with a device that not only navigates, but also communicates,” he added.

Kishore further added, “To give a true and ‘live’ Navigation and mapping experience, we have rolled out a unique initiative wherein Navigation cabs will be stationed across hundreds of our outlets in the 8 navigable cities to give users a first hand experience of this exciting service. This will help users have an indepth understanding of the concept of maps and navigation.”

Nokia 6210 Navigator comes with the pre-installed maps of eight cities including Delhi & NCR, Jaipur, Ahmedabad, Pune, Mumbai, Chennai, Bangalore & Hyderabad. Maps of additional Indian cities will be added on an on-going basis.

Combined with an ‘accelerometer’ which measures changes in direction and orientation, the in-built map compass in Nokia 6210 Navigator makes it easy to follow the map when strolling about on foot. When turning the device, the map automatically maintains its orientation. The integrated Nokia Maps 2.0 application plots the quickest route to the desired destination and illustrates it on the map.

The Nokia 6210 Navigator supports assisted GPS (A-GPS), which enables a faster first GPS fix. The device is ready for use out of the box, even without a SIM-card. While maps of 8 Indian cities are pre-loaded on the device’s 1 GB memory card.

The device also features a 3.2 megapixel camera, MP3 player and stereo FM radio. The Nokia 6210 Navigator is based on S60 software, allowing users to download and use thousands of new applications in addition to the ones already found on the device.

Price and Availability: The 6210 will be sold in two ways - standalone and a combo pack: Nokia 6210 Navigator standalone: MRP Rs. 18, 219/- ; Nokia 6210 Navigator combo: MRP Rs. 20,039/-

Samsung F480

2008-08-17T23:20:00.000-07:00

Samsung F480 (Tocco) CHARACTERISTICS

General	Network	GSM900 / GSM1800 / GSM1900 / HSDPA
	Introduced	2008 Q1
	Status	Available
	Form factor	Block
	Antenna	Internal
	SAR Value	0.898 W/Kg

Size	Weight	101 g (including battery)
Size	Dimensions	98.4 x 55 x 11.5 mm

Display	Type	Graphical
	Colours	TFT touchscreen, 262K colors
	Size	240 x 320 pixels

Memory	Numbers	1000
	Outgoing Calls	30
	Received Calls	30
	Lost Calls	30
		- Photocall - microSD (TransFlash)

Ringtones	Polyphonic	Yes
Ringtones		- MP3

Networking	GPRS	Yes, Class 12 (4+1/3+2/2+3/1+4 slots), 32 - 48 kbps
	Modem	Yes, EDGE, Class 12
	3G	Yes, HSDPA 7.2 Mbps
	USB	Yes
	Bluetooth	Yes, 2.0 with A2DP
	WAP	Yes
	Browser	Yes, WAP 2.0/xHTML, HTML
	Email Client	Yes
		- Instant Messaging

Features	Vibration	Yes
	SMS	Send / Receive
	MMS	Send / Receive
	Camera	Yes, 5 MP, 2592x1944 pixels, autofocus, video, flash
	Java	Yes
	Changeable Games	Yes
	Games	Yes
	Clock	Yes
	Alarm	Yes
	Calculator	Yes
	T9	Yes
	Handsfree	Yes
		- H.264/H.263/MPEG4 player - MP3/AAC/AAC+ player - Organiser - Document viewer

Standard Battery	Type	Li-Ion
	Amperage	1000 mAh
	Standby Time	250 hours
	Talk Time	3 hours

Tatas to invest Rs 6,000 cr in GSM

2008-08-09T21:23:00.000-07:00

Tata Teleservices has said it will invest Rs 8,000 crore over the next 24 months to expand its telecom networks. Of this, about Rs 6,000 crore would go in building a pan-India GSM network, while the remaining Rs 2,000 crore would be used to strengthen its existing CDMA networks. Tata Teleservices managing director Anil Sardana told ET that the company would launch GSM services across India by March ’09.

Tata Teleservices will also launch BlackBerry handsets for its customers by September. “The platforms are ready and the soft launch has already taken place. We are sorting out some minor issues in logistics before we launch it finally,” Mr Sardana said.

The development assumes importance as the company’s plans to launch BlackBerry services have been held up since last year. The department of telecom has not cleared the proposal citing security fears. But the Tatas are launching Blackberry services as all major operators, including Bharti Airtel, Reliance Communications, Vodafone Essar and Idea Cellular, are already offering it.

Tata Teleservices has a subscriber base of 27 million on the CDMA platform and the company is betting big on bagging a significant chunk of the new additions over the next four years. “We are targeting a customer base of 35 million plus by March ’09 and 100 million by 2011. By then, we expect to have 55 million new users on our upcoming GSM platform,” Mr Sardana said.

He did not rule out the possibility of taking the acquisition route to meet the 100-million target. On the CDMA platform, the company offers services in 19 of India’s 22 telecom circles. It will launch CDMA-based mobile services in the remaining three circles — Assam, North East and Jammu & Kashmir — within the next couple of months.
Tatas’ GSM foray may, however, be delayed as the DoT is likely to take time to provide the company with radio frequencies.

“We are concerned about the delay as this will impact our rollout plans. We have paid for the GSM frequencies but the allocation has not happened yet,” he added.

The Tatas also plan to leverage their ‘superior network quality’ and customers services in a bid to get customers from other operators when number portability kicks off in India. On the company’s plans to offload 49% stake in the hived off passive infrastructure and tower arm, Mr Sardana said the process was on.

“We are looking at different business models and are yet to finalise a partner who will get a 49% stake in the company,” he added. Asked if Tata Teleservices planned to bid or acquire mobile licenses abroad, he said the company would continue to focus on the Indian market. “Expansion in the global markets will be through Tata Communications (VSNL). They already have mobile operations in Nepal, Sri Lanka and South Africa and will continue to evaluate other options,” he said.

Nokia E66

2008-08-09T03:34:00.000-07:00

Nokia E66 CHARACTERISTICS

General	Network	GSM900 / GSM1800 / GSM1900 / HSDPA
	Introduced	2008 Q2
	Status	Available
	Form factor	Slider
	Antenna	Internal

Size	Weight	121 g (including battery)
Size	Dimensions	107 x 49 x 13 mm

Display	Type	Graphical
	Colours	TFT, 16M colors
	Size	320 x 240 pixels
		- Five-way scroll key

Memory	Outgoing Calls	30
	Received Calls	30
	Lost Calls	30
	Shared Memory	110 MB
		- microSD slot card (up to 8GB), hotswap - Photocall - 128 MB SDRAM Memory - ARM 11 369 MHz processor

Ringtones	Polyphonic	Yes
Ringtones		- Monophonic, MP3, True Tones

Networking	GPRS	Yes, Class 32, 100 kbps
	Modem	Yes, EDGE, Class 32, 296 / 177.6 kbps
	3G	Yes, HSDPA, 3.6 Mbps
	WLAN	Yes, WLAN 802.11b/g
	USB	Yes, 2.0, microUSB
	Bluetooth	Yes, 2.0 + EDR, A2DP
	WAP	Yes
	Browser	Yes, WAP 2.0/xHTML, HTML
	Infrared	Yes
	Email Client	Yes
		- Symbian OS 9.2, Series 60 v3.1 UI - Instant Messaging - Push to talk

Features	Vibration	Yes
	SMS	Send / Receive
	MMS	Send / Receive
	Camera	Yes, 3.2 MP, 2048x1536 pixels, flash, autofocus, QVGA video recording (VGA 22fps), secondary videocall camera
	Java	Yes
	Changeable Games	Yes
	Games	Yes
	Clock	Yes
	Alarm	Yes
	Calculator	Yes
	To-Do List	Yes
	Voice Dialing	Yes
	Voice Memo	Yes
	T9	Yes
	Handsfree	Yes
	FM Radio	Yes
		- Built-in A-GPS and Nokia Maps - MP3/AAC/MPEG4 player - Office applications - Blackberry connectivity

Standard Battery	Type	Li-Ion
	Amperage	1000 mAh
	Standby Time	264 hours
	Talk Time	7 hours 30 minutes

Nokia E71 Phone

2008-08-06T08:22:00.000-07:00

Nokia E71 CHARACTERISTICS

General	Network	GSM900 / GSM1800 / GSM1900 / GSM850 / HSDPA
	Introduced	2008 Q2
	Status	Available
	Form factor	Block
	Antenna	Internal
	SAR Value	1.33 W/Kg

Size	Weight	126 g (including battery)
Size	Dimensions	114 x 57 x 10 mm

Display	Type	Graphical
	Colours	TFT, 16M colors
	Size	320 x 240 pixels
		- Full QWERTY keyboard - Five-way scroll key

Memory	Outgoing Calls	30
	Received Calls	30
	Lost Calls	30
	Calendar Notes	Yes
	Shared Memory	110 MB
		- 128 MB SDRAM Memory - ARM 11 369 MHz processor - microSD slot card (up to 8GB), hotswap - Photocall

Ringtones	Polyphonic	Yes
Ringtones		- Monophonic, MP3, True Tones

Networking	GPRS	Yes, Class 32, 100 kbps
	Modem	Yes, EDGE, Class 32, 296 / 177.6 kbps
	3G	Yes, HSDPA, 3.6 Mbps
	WLAN	Yes, WLAN 802.11g
	USB	Yes, 2.0, microUSB
	Bluetooth	Yes, 2.0 + EDR, A2DP
	WAP	Yes
	Browser	Yes, WAP 2.0/xHTML
	Infrared	Yes
	Email Client	Yes
		- Symbian OS 9.2, Series 60 v3.1 UI - Push to talk - Instant Messaging

Features	Vibration	Yes
	SMS	Send / Receive
	MMS	Send / Receive
	Camera	Yes, 3.2 MP, 2048x1536 pixels, flash, autofocus, QVGA video recording (VGA 22fps), secondary videocall camera
	Java	Yes
	Changeable Games	Yes
	Games	Yes
	Clock	Yes
	Alarm	Yes
	Calculator	Yes
	To-Do List	Yes
	Voice Dialing	Yes
	Voice Memo	Yes
	T9	Yes
	Handsfree	Yes
	FM Radio	Yes
		- Built-in A-GPS and Nokia Maps - MP3/AAC/MPEG4 player - Office applications - Blackberry connectivity

Standard Battery	Type	Li-Po
	Amperage	1500 mAh
	Standby Time	408 hours
	Talk Time	10 hours 30 minutes

Nokia 7610 Supernova

2008-08-06T07:06:00.000-07:00

Nokia 7610 Supernova CHARACTERISTICS

General	Network	GSM900 / GSM1800 / GSM1900 / GSM850
	Introduced	2008 Q2
	Status	Coming soon
	Form factor	Slider
	Antenna	Internal
	SAR Value	0.54 W/Kg

Size	Weight	99 g (including battery)
Size	Dimensions	98 x 48 x 15 mm

Display	Type	Graphical
	Colours	TFT, 16.7M colors
	Size	320 x 240 pixels
		- Five-way Navi Key

Memory	Outgoing Calls	30
	Received Calls	30
	Lost Calls	30
	Shared Memory	64 MB
		- microSD memory card, up to 2 GB (512 MB microSD card included)

Ringtones	Polyphonic	Yes, 64 voices
Ringtones		- Video, MP3, AAC, eAAC+

Networking	GPRS	Yes, Class 32, 100 kbps
	Modem	Yes, EDGE, Class 32, 296 kbps
	USB	Yes
	Bluetooth	Yes, 2.0
	WAP	Yes
	Browser	Yes, WAP 2.0/xHTML
	Email Client	Yes
		- HSCSD as data modem (up to 28.8 kbps) - Symbian Series 40 3rd Edition UI - Nokia Audio Xpress messaging - Instant messaging with presence

Features	Vibration	Yes
	SMS	Send / Receive
	MMS	Send / Receive
	Camera	Yes, 3.2 MP, 2048x1536 pixels, dual flash, autofocus, CIF and VGA video recording (15fps), 8x digital zoom
	Java	Yes
	Changeable Games	Yes
	Games	Yes
	Clock	Yes
	Alarm	Yes
	Calculator	Yes
	To-Do List	Yes
	Voice Dialing	Yes
	Voice Memo	Yes
	T9	Yes
	Handsfree	Yes
	Changeable Faces	Yes
	FM Radio	Yes
		- 2.5 mm AV connector - TV out - Music player (MP3, AAC, and eAAC+) - Theme Colouriser - Yahoo! Go

Standard Battery	Type	Li-Ion
	Amperage	860 mAh
	Standby Time	300 hours
	Talk Time	5 hours 40 minutes

Samsung new launch - i850 INNOV8

2008-08-06T02:49:00.000-07:00

General	Network	GSM900 / GSM1800 / GSM1900 / GSM850 / HSDPA
	Introduced	2008 Q3
	Status	Coming soon
	Form factor	Slider
	Antenna	Internal

Size	Dimensions	106.5 x 53.9 x 17.2 mm

Display	Type	Graphical
	Colours	TFT, 16M colors
	Size	240 x 320 pixels
		- Accelerometer sensor for auto-rotate - Optical Mouse

Memory		- 8/16 GB internal memory - 128 MB RAM - microSD (TransFlash), up to 8GB

Ringtones	Polyphonic	Yes
Ringtones		- MP3

Networking	GPRS	Yes, Class 10 (4+1/3+2 slots), 32 - 48 kbps
	Modem	Yes, EDGE, Class 10, 236.8 kbps
	3G	Yes, HSDPA 7.2 Mbps
	WLAN	Yes, Wi-Fi 802.11 b/g, DLNA
	USB	Yes, 2.0
	Bluetooth	Yes, 2.0 with A2DP
	WAP	Yes
	Browser	Yes, WAP 2.0/xHTML, HTML
	Email Client	Yes
		- Symbian OS v9.3, Series 60 rel. 3.2 - Instant Messaging - Push Email

Features	Vibration	Yes
	SMS	Send / Receive
	MMS	Send / Receive
	Camera	Yes, 8 MP, 3264x2448 pixels, autofocus, image stabiliser, video(VGA@30fps, QVGA@120fps), flash; secondary videocall camera
	Java	Yes
	Changeable Games	Yes
	Games	Yes (2): FIFA 2008, Asphalt
	Clock	Yes
	Alarm	Yes
	Calculator	Yes
	To-Do List	Yes
	Voice Dialing	Yes
	Voice Memo	Yes
	T9	Yes
	Handsfree	Yes
	FM Radio	Yes
		- Built-in GPS receiver - A-GPS function - Camera images geo-tagging - Smart reader, auto-panorama shot, smile shot, blink shot - DivX/H.263/H.264/WMV/MP4 player - Video editing - MP3/eAAC+/WMA/AMR/RealAudio player - 3.5 mm audio output jack - Organizer

Standard Battery	Type	Li-Ion
	Amperage	1200 mAh
	Standby Time	310 hours
	Talk Time	8 hours 30 minutes

Most Expensive Mobile

2008-08-06T02:10:00.000-07:00

Most expensive phone of the world - Front

Most Expensive Mobile

2008-08-06T02:06:00.000-07:00

Most expensive phone of the word - Back

3G in India by mid 2009

2008-08-05T03:42:00.000-07:00

With the Government issuing guidelines for 3G, high speed mobile downloads and live television on mobile will finally become a reality by middle of 2009. But customers in Delhi or Mumbai may not have much to look forward to.

Due to spectrum constraints, there are merely three Global System for Mobile (GSM) operators that can offer 3G services. With one slot already reserved for MTNL and the other two open for global bids, customers in Delhi and Mumbai may end up missing the 3G bus if they don’t switch operators.

But customers in Tamil Nadu, Karnataka and Kerala could have as many as 10 operators to choose from.

"Subject to the availability of 3G spectrum, we will have five operators to start with and gradually we may go up to having ten operators. In Mumbai and Delhi, however, we can only have 2-3 operators,” Communications and IT Minister D Raja said.

Even private GSM operators admit that limited spectrum will lead to overbidding and could render 3G services unaffordable.

"If there is a supply constraint and demand excess, obviously there will be overbidding, which could make 3G very expensive in Delhi and Mumbai," Director General, Cellular Operators Association of India (COAI), T V Ramachandran cautions.

But analysts say it is unlikely that the big GSM players like Airtel and Vodafone will not bid aggressively to ensure they get 3G spectrums, primarily because most customers with an appetite for 3G are locked in the two networks.

The MobileStore launches Online Sales operations across 11 cities

2008-08-04T07:41:00.001-07:00

The MobileStore (TMS), the one stop mobile solution retail chain announced the launch of Online Sales operations. The website is launched with a capacity to serve 11 cities across India in the phase one which will eventually extend in all locations pan India. Ms. Malaika Arora-Khan inaugurated the website – www.themobilestore.in at The MobileStore store located in South Mumbai.

The site would be operational in 11 cities across India; namely Mumbai, Bangalore, Delhi, Chandigarh, Ludhiana, Hyderabad, Kolkata, Chennai, Cochin, Ahmedabad, Pune.The website will host features like blog, reviews, search a handset with select features, registration, news and also latest offers available at The MobileStore.

Mr. Rajiv Agarwal, CEO, The MobileStore Ltd said that, “After successfully launching 600 stores across the country, this is yet another customer friendly initiative from The MobileStore which would enable the customer to purchase the latest in mobile segment without stepping out of his residence or office. Currently, online sales is operational in Mumbai and with the launch of its operations today we plan to deploy services to 10 additional cities in phase one and eventually across India”.

The online shopping enabled website will allow The MobileStore to get closer to its web and tech savvy buyer. The website is very user friendly and makes it extremely simple for the user to purchase a product, the customer can make a choice of a phone using features and also shortlist on the basis of brands.

Ms. Arora- Khan who was present at The MobileStore to launch the Fly Hummer mobile phone said, “Online Shopping is the buzz of the youth today with many of them going tech savvy and rely on web for info on the latest gizmos. This initiative from The MobileStore is in sync with youth today.” Ms. Arora Khan accessed The MobileStore online shopping enabled website and made a purchase of a Fly Hummer mobile.

The site will update the visitor on the latest in the handset, accessories and gizmos market through its news feature. The site will be periodically updated with offers available across The MobileStore outlets.

The MobileStore has plans to roll out 2500 stores across India in 600 cities within the next two years. The MobileStore stands strong as on today with 600 stores across India and many more rolling at the rate of 3 stores per day.

In an effort to help consumers make informed decisions, “The MobileStore” is equipped with trained professionals who have undergone an extensive training program on products and brands available at the store, thereby allowing them to provide the right kind of guidance to the customer.

The MobileStore hosts a variety of brands like Nokia, Motorola, Sony Ericsson, Samsung, LG and Fly to name a few. The MobileStore Ltd. has also tied up with all leading service operators including Airtel, Vodafone, Idea, Tata Indicom and Reliance Mobile offering the consumer a wide bouquet of options. The stores are company owned and company run.

9TH GLOBAL SUMMIT ON FRANCHISE & RETAIL

2008-08-04T07:07:00.000-07:00

Over 225 franchise business investors, franchisors, chain store operators, suppliers, new entrepreneurs, retailers and professionals from franchise, retail and real-estate sector gathered at the 2-day Conference that proved to be an educational and networking forum designed to provide a unique learning opportunity. Now, in its 9th edition, the conference has educated thousands of franchise owners and executives about the ways of successful and profitable franchise growth. The conference featured prominent industry experts in franchisng, retail and branding who educated the delegates with unique franchise and retail knowledge.

Day 1 started with Visionary Franchisors panel which featured India’s leading franchisors like Major Rajan, ED, VETA; Raajiv Sharma, CEO, Motilal Oswal; Rakshit Hargave, Business Head, Hindustan UniLever; Vikas Kapoor, JGM, Eureka Forbes Group; Viraj Gandhi, MD, Medicine Shoppe; and Ramneek Bakshi ,CEO, L.J. Hooker. The session was lead by Arun Khetan, President, Educomp, and the panel educated the attendees on the opportunities that lie ahead for a prospective business investor. In the second session, retail synopsis were done by Hemchandra Javeri, CEO, Home Solutions, Future Retail, where he made an intelligent insight into integrating franchising format in the retail environment. Brand Building in Franchising was minutely explained by Brand Guru Jagdeep Kapoor, Chairman, Samsika Marketing Consultants, which was highly well taken by the attending audience.

After a lunch-break, Sumeet Mehta, CEO, Zee Education, gave a presentation on businesses where distribution formats support franchising and explained how it fit there in his interesting presentation themed “Moments of Truth”. International Franchise Session hosted franchisors from all over the globe including Stephen Herzog, CEO, Fernwood Fitness, Australia; Erik Mallon, Executive VP, My Gym, USA; Peter Breach, Chairman, Coffee Republic, U.K.; and Rolf G. Kirst ,MD, Franchise Pool International, Germany.

Franchise Capsule elaborated on negotiating and selecting the right franchise, establishing the foundation of the franchise relationships, regular & open communications between channels, support system by the franchisor and much more, conducted by Sudip Bandyopadhyay, Director & CEO, Reliance Money; Dhruva Chandrie, CEO, Next; and Sunil Dewan, CEO, Body Control International. A thought-provoking session on Microfranchising for offering opportunities to rural areas was delivered by Jason Fairbourne, Director, Microfranchise Initiative, BYU, Utah; Arunesh Singh, Founder, SCOJO Foundation; and Ninad Vengurlekar, VP, IL&FS Education &Technology Services Limited. The day concluded with a discourse on ways to source financing for franchisors and their franchisees delivered by Sujai Raina of the HDFC Bank, the top franchise lender in India.

Day 2 was a retail summit which started on a powerful note on Store Operations by Shashank Pathak, VP, Gitanjali Lifestyle and In-store Branding by Rajiv Gupta, MD, LeagueOne India. A crucial note on Initiating Business through Franchising was delivered by international expert Ross Bridgman, IBO, Australia. Retail solutions for enhancing the retail business were given by Dhruv Prashar, COO, Decube Retail Solutions. Real estate solutions in retail were addressed in an open panel debate by Shubranshu Pani, JLL Meghraj and Dheeraj Dogra of Ansal API. Post Lunch saw a powerful retailer panel comprising of Nandkumar Awatramani, MD, Food Factory Express; Dharmesh Sodah, Director, World Gold Council; Atul Ahuja, CEO, Apollo Pharmacy; Rolf G. Kirst, MD, Franchise Pool International, Germany; Saraswati A, ED, GordonMax, Malaysia; Allan Yeng, Interasia & Associates; and Manjunath Jyothinagar, CEO, Gitanjali Lifestyle. They discussed on various aspects of running a retail business, right from managing a retail enterprise to empowering your manpower, international best practices in branding and advertising, opportunities in retail, franchising in retail and allied areas. The Conference concluded with a powerful panel conducting a retail debate comprising of Rajiv Agarwal, CEO, The Mobile Store; Akhil Chaturvedi, Chairman, Provogue Industries; and Farah Malik, ED, Metro Shoes. The debate was led by Hemant Kalbag, Principal, AT Kearney.

The delegates who came from various parts of the country left rejuvenated and armed with both big new ideas and practical suggestions on how to grow their businesses. The speakers, exhibitors and visitors reached a consensus that Franchise India attracted serious-minded attendees who are eager to buy a franchise or want to start their own independent business. The conference as well as expo ended on a high and very impressive note.

China mobile phone restructuring paves way for 3G rollout

2008-07-29T03:19:00.000-07:00

China has hugely restructured its telecommunications industry to pave the way for a roll-out of 3G technology.

A worker talks on his mobile phone while fixing a street light in front of a 2008 Beijing Olympic Games logo in Qingdao
A worker talks on his mobile while fixing a street light in Qingdao

The country's second largest mobile phone operator, China Unicom, sold 43.17m of its subscribers to China Telecom, a fixed-line operator, for 110bn renminbi (£8.12bn). At the same time, Unicom and China Netcom, a fixed-line operator that covers much of southern China, merged to create a company worth £30.2bn.

The deal means that China will have three mobile phone operators rather than two when it rolls out 3G, and that two of those will also have a fixed-line business. China Mobile, the world's largest mobile phone operator with 380m subscribers, is the only standalone mobile company.

"The ministry of information industry has promised that it will grant the 3G licences after the restructuring is complete, probably at the end of this year or the beginning of the next," said Steven Liu, an analyst at DBS Vickers in Hong Kong.
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The roll-out of 3G has been severely delayed in China because of problems with the country's proprietary TD-SCDMA technology.

However, commercial trials have now taken place in 10 cities, including Beijing, Shanghai, Guangzhou and Shenzhen and 3G is expected to be provided for the Olympic Games.

Samsung, an official sponsor, has provided 15,000 handsets to officials at the Games, in a bid to forge relationships ahead of the distribution of the licences.

Although handset makers will have to spend vast sums on creating phones compliant with the Chinese technology, the vast market is too tempting to miss out on.

Unicom has sold its CDMA subscribers, who use a mobile phone technology unique to China and different from the GSM standard used by most of the rest of the world. The company retains its 127.6m GSM subscribers.

Chang Xiaobing, chief executive of Unicom, said the deal would help Unicom to "focus on the development of our GSM mobile business and the building of a solid foundation for our forthcoming 3G business".

He added that the tie-up with Netcom would create a fully integrated telecoms operator, able to provide a "full spectrum" of services.

China Telecom, for its part, has pledged to spend at least 80bn renminbi on its newly acquired mobile network and could pose a decent challenge to China Mobile's hegemony. It has stated an aim of having 100m CDMA subscribers in three years.

Vodafone has a 3.3pc stake in China Mobile, while Telefonica, the Spanish company, will have roughly a 3pc stake in the merged Unicom business.

Tough call for iPhone in India

2008-07-23T02:20:00.000-07:00

Nokia, Motorola, Sony to take on Apple in Sept.

Global mobile phone majors Nokia, Motorola, Sony Ericsson and others are offering a slew of products including touchscreen and music capable handsets in India to counter the might of Apple's iPhone, which is expected to hit the markets in September.

Handset vendors in the world's fastest growing mobile phone market have worked out the strategies, to be ready for the onslaught of the iPhone.

US-based Motorola, which already has an array of smart phones in the country, recently launched ROKR E8 in India. A music phone, it has features such as FastScroll navigation wheel (a navigation wheel like that in iPods) and haptics technology that transforms the device from a phone to a music player in one touch. This is in addition to other touchscreen phones including the MOTOMING A1200 and MOTOROKR E6.

"Customers are interacting more on their mobile phones — making and receiving calls, messaging, listening to music, taking photographs and sharing content with colleagues among others. As a result, the mobile phone has evolved to a lifestyle device intrinsic to everyday communication," Motorola Mobile Devices Senior Director, Sales & Distribution (India & Southwest Asia), Lloyd Mathias said.

Sony Ericsson is launching several new models in the high-end segment. Some of these include the X1i (a touchscreen phone with Qwerty keyboard and GPS facilities) under its Xperia series, the W980i (Walkman range) and C905i under the Cyber-shot range (with an 8-mega pixel camera).

"We are confident our line-up of current and forthcoming models will help us consolidate our leadership among the top-3 GSM handset players in India," Sudhin Mathur, General Manager, Sony Ericsson India.

Besides the basic telephone service, there is a huge potential for different value-added services in mobiles. We believe the introduction of Next Generation Network in India will truly enable users to experience the power of 3G-enabled handsets, he added.

Nokia, the leader with over 40 per cent of the global market share, is gearing up to offer touchscreen products soon. The Finnish company, which sold 60.5 million devices globally in 2007, has already rolled out 13.3 million converged devices in the second quarter of 2008.

According to a Nokia spokesperson, "The iPhone is an interesting device and it is great to see other companies share our vision of connected multimedia devices. We strongly believe that traditional single-purpose, non-connected devices such as MP3 players and cameras will be marginalised and overtaken by converged multimedia devices in the future."

Samsung is expecting its SCH-M800 Instinct, a high-end touch screen mobile phone, and Samsung F700 (another smart phone) to take on the new iPhone.

Two major GSM service providers - Vodafone Essar and Bharti Airtel - are bringing the iPhone to India.

Retail Hiring Slows Down

2008-07-22T08:11:00.001-07:00

The slowdown in the economy has affected the India's booming retail sector witnessed in the past two years and there appears to be a slow down in the fresh hiring, particularly at the middle and senior management levels with a flowdown in the previous quarter that is expected to continue ito the present quarter as well.

According to a news report in the Economic Times retail sector hiring will be flattish in the coming months. "On the managerial side, we have already filled a major part of our requirements. Since the back-end is firmly in place, we do not need to add too many people." Reliance Retail president and chief executive (Lifestyle) Bijou Kurien said.

The retail sector is also expected to see some rationalisation in salary levels. Increments this year are expected to hover around 10%-15% compared to an average 25% last year.

The retail sector is also in a cautious mood now because of the depressed macro-economic environment and high rentals severely impacting consumer spending and growth plans, respectively.

In fact, there is a ready pool of talent waiting to be absorbed as several small brands struggle to survive and employees are restless to move from companies that have not been performing too well. "This is a good time to hire talent at sensible salaries," Tommy Hilfiger India CEO Shailesh Chaturvedi said.

However, the slow down will not affect the front-end job growth, yet. According to the Retailers Association of India, at least 200,000 people would be required by the industry in the next 2-3 years, a major chunk being on the front end where there has been a continuous shortage.

Companies are also likely to increase the scope of work of existing employees. They seem to have gone into a consolidation phase in the last three months.

After enjoying a rather unexpected, lucky and historical run of high growth rates averaging 8.8% during the last five years giving a sense of confidence abroad about the Indian economy, the picture has now changed for the worse. Lower growth is anticipated in the current year. Early projections by different agencies vary from a low of 7% by JP Morgan Chase to a more optimistic 8-8.5% by the ministry of finance and the Reserve Bank of India.

These projections in the state of economy have started affecting the retail consumer. The slow down is already visible in the hotel industry and retail sales are expected to slow down. The uncompleted Malls have slowed down their completion plans. In such a scenario, retail sales are bound to come down and the industry is pro-actively gearing up for the change.

Indian Retail: An Overview

2008-07-22T08:01:00.000-07:00

As organised retailers carve out a bigger piece of the retail pie for themselves it’s an exciting time for the retail sector. By Dominic K

Emerging markets such as India and China are the final frontier for retail taking the focus away from saturated Western markets. Since 2001, 49 global retailers entered 90 new markets, but at the same time, 17 retailers left markets in 2005.

The Indian retail industry in valued at about $300 billion and is expected to grow to $427 billion in 2010 and $637 billion in 2015. Only three percent of Indian retail is organised. Retailers of multiple brands can operate through a franchise or a cash-and-carry wholesale model.

Retail is India’s largest industry, accounting for over 10 percent of the country’s GDP and around eight percent of employment. Retail in India is at the crossroads. It has emerged as one of the most dynamic and fast paced industries with several players entering the market. That said, the heavy initial investments required make break even hard to achieve and many players have not tasted success to date. However, the future is promising; the market is growing, government policies are becoming more favourable and emerging technologies are facilitating operations.

Retailing in India is gradually inching its way to becoming the next boom industry. The whole concept of shopping has altered in terms of format and consumer buying behavior, ushering in a revolution in shopping. Modern retail has entered India as seen in sprawling shopping centres, multi-storeyed malls and huge complexes offer shopping, entertainment and food all under one roof.

The Indian retailing sector is at an inflexion point where the growth of organised retail and growth in the consumption by Indians is going to adopt a higher growth trajectory. The Indian population is witnessing a significant change in its demographics. A large young working population with median age of 24 years, nuclear families in urban areas, along with increasing working-women population and emerging opportunities in the services sector are going to be the key growth drivers of the organised retail sector.

Initially, this was about Indian corporate houses rolling out malls and supermarkets, but with Wal-Mart coming into the Indian market, the era of the superstore is dawning. Unlike the kirana stores that served us for decades, this new breed of retail chains is heavily dependent on IT.

Wal-Mart, the world’s largest retailer, and Bharti Enterprises have signed a Memorandum of Understanding (MoU) to explore business opportunities in the Indian retail industry. This joint venture will mark the entry of Wal-Mart into the Indian retailing industry.

The biggest competitor for Bharti-Wal-Mart is likely to be Reliance Retail, the retail wing of Reliance, which had planned to establish 10,000 stores by 2010. It had already opened 11 pilot stores under the “Reliance Fresh” format in Hyderabad.

All these trends and developments present a great business opportunity for software and hardware vendors from across the globe. Indian solution providers are targeting this segment have reason to rejoice. For while organised retail occupies a miniscule two to three percent of the overall Indian retailing industry, that is poised to change.

In spite of the prospects being good things aren’t quite as rosy when it comes to awareness of IT systems. In most cases, organised retailers in India have installed solutions that help them automate transactional systems.

With the retail sector in India undergoing a transformation due to the entry of large corporate houses, IT managers and CIOs are now looking forward to know how IT can help them achieve the business goals of their organisations.

Standards-based architecture and software support all kinds of mission-critical IT applications for enabling greater efficiency, significant cost savings, and new business value. The critical activities that can be handled by IT are finance and accounting, business intelligence, vendor development and management, supply chain management, merchandising and inventory management, facilities management, stores management, customer relationship management, branding, marketing, sales promotion and HR.

Like any other vertical, retail also stands to benefit from elaborate IT set-ups. However, this is subject to the scale and size of the organisation, as well as an objective assessment of its requirements. Key common challenges that can be tackled through IT implementations include accurate merchandising, improved planning, increasing profitability, enhancing customer experience, strengthening store operations, improved workforce management, and improving the supply chain. This is in fact one of the key imperatives facing retailers in India, to have a robust and scalable supply chain that will facilitate rapid growth.

Since a basic objective is to make data available to users and customers, proper IT implementation and superior IT infrastructure ensure that in spite of getting minimal details, the retailer captures the right information, which flows to everyone from the back office staff to the head office managers. The entire information flow must be seamless. A retail business works on a network environment because the stores connect to one another as well as to supplier sites. This is because in the retail business quick response is the key to success. Proper IT implementation also ensures that investment in retail reduces substantially.

This article was first seen on: http://www.networkmagazineindia.com/200703/coverstory01.shtml

Dark days for mobile grey market

2008-07-22T05:35:00.000-07:00

The organised mobile retail sector is fast clamping down the grey market for mobile handsets. According to Indian Cellular Association (ICA), the share of the grey mobile handset market came down from 60% in 2006 to just 10% in 2007.

“The share of the grey market has come down considerably due to various factors, the most important being the reduction in duties. Many enforcement measures have been taken over the years to check the mobile handset grey market,” said ICA national president Pankaj Mahindroo.

The import duty on mobile phones has been reduced from about 16% to around 4%. Industry participants also believe that the shift from grey market to the legal market is by and large on the account of growing number of mobile retail stores.

“The mobile stores provide accessibility to the consumers. Our mobile stores are at all the visible locations, so consumers can walk in anywhere and get the best deals possible,” said Subhiksha marketing vice-president Mohit Khattar.

Industry analysts say that a huge grey market exists because of the differential of around 10% to 25% between legal and grey handset prices.

With growing competition in the organised mobile retail market, players are offering products at lower prices. This, in turn, helps counter the grey market and bolsters footfalls in these stores.

“Consumers can buy high-end, genuine branded handsets with guarantee of replacement or repair through the mobile retail stores. Trust is the predominant factor that consumers are turning towards the branded retail stores,” said HotSpot CEO Sanjeev Mahajan.

Consumers are opting for accessibility and do not mind paying extra for it. The grey markets operate from a few areas in a city. On the other hand, mobile stores are more easily accessible as they are located in all prominent markets.

The growing brand consciousness among the people, analysts say is also propelling the consumers to approach branded mobile retail stores. Mobile phone retail chains like Mobile Store, Mobi Retail, RPG Cellucom, currently account for just 7% of the overall mobile handset market, which has a market share of Rs 15,000 crore.

“Currently, the impact of mobile retail stores on the grey market is minimal. However, considering the rapid growth rate of organised mobile retail, its contribution is set to increase in the next 3-4 years,” said retail consultancy Technopak Advisors chairman Arvind Singhal.

Though the grey market in mobile phones has reduced, a large (75%) grey market still exists in mobile phone accessories such as batteries and chargers, which are often available at one-tenth the price of company branded accessories. Last year, the mobile phone makers asked finance ministry to reduce 34% duty on imported accessories, but nothing concrete has happened as yet.

Motorola sues ex-mobile exec over Apple iPhone job

2008-07-21T22:53:00.000-07:00

Financially ailing Motorola has slapped Michael Fenger, a former executive of mobile phones, with a lawsuit for allegedly violating a non-compete pact and landing in a position to reveal trade secrets at Apple, a company that has taken Motorola's crown with the second-generation iPhone.

The lawsuit alleges that Fenger -- who is now Apple's VP of global iPhone sales -- received "millions of dollars in cash, restricted stock units, and stock options" in return for inking an agreement not to work for a competitor for two years after leaving Motorola.

Fenger took the job at Apple on March 31 of this year, less than a month after leaving his position at Motorola, where he was senior VP of mobile devices for Europe, the Middle East and Africa (EMEA), according to Motorola's complaint.

Filed in Illinois on Thursday, the suit doesn't claim that Fenger stole any documents, but it does purport that Fenger "cannot perform his duties for Apple without inevitably disclosing Motorola's trade secrets."

Motorola's phone sales have taken a nosedive over the past two years due to its ongoing failure to produce a successful follow-on to the Razr.

After the ousting of Ed Zander as CEO last year and the subsequent departure of Padmasree Warrior, who moved on to Cisco, many other staff departures followed in a massive restructuring fueled by the desire of majority shareholder Carl Icahn to spin off Motorola's mobile phones as a separate division. Now that Icahn is also snapping up Yahoo stock, the activist shareholder is becoming an increasingly influential figure at yahoo. too.

Motorola's Brain Drain have included the resignations in March of Stu Reed, who had briefly headed up Motorola's Mobile Devices Unit, and Kenneth Keller, who'd been in charge of Motorola's marketing.

Motorola's lawsuit also charges that Fenger helped to lure two other Motorola employees to Apple. Motorola is asking the court to stop Fenger from working for Apple for two years and to prohibit him from soliciting or hiring Motorola employees, or disclosing confidential information about Motorola.

Meanwhile, this week, Rita Lane, former chief of Motorola's supply chain division, also reportedly joined Apple.

The suit against Fenger isn't the first action Motorola has taken against an ex-employee. In another legal case, Motorola sued Rob Garriques, another former head of its mobile unit, who is now at Dell. Motorola has also prevailed in enforcing a non-complete agreement signed by its former COO, Mike Zafirovski, who left the struggling Motorola to become Nortel Networks' CEO.

MTN debacle may upset RComm’s GSM plans

2008-07-21T01:45:00.000-07:00

Anil Ambani-led Reliance Communications Ltd’s (RComm) failure to seal a merger deal with South African giant MTN could hamper its ambitious pan-India GSM rollout plans.

An alliance with MTN would have helped RComm build a vast GSM network, given the South African firm’s GSM operations across 21 countries. It would also have emboldened the company to negotiate from a stronger position with vendors because of its operational scale.

Telecom analysts feel the MTN fiasco, on issues related to right of first refusal (RoFR) with Reliance Industries Ltd (RIL), would severely inhibit any future M&A deal of the company.

RComm, the country’s second largest mobile operator, provides CDMA-based mobile services pan-India, while its GSM footprint is minimal with presence across eight category C circles. However, last year, under the dual technology policy, the government cleared its GSM plans and allocated it start-up 4.4 Mhz GSM spectrum in the remaining 14 circles.

The company plans to begin GSM services by the end of the fiscal, and according to some reports, is planning to build a capacity of 80-100 million lines.

A deal with MTN would have catapulted RComm ahead of Bharti Airtel Ltd, the country’s largest service provider, which currently has a subscriber base of over 69 million with a market share of 32.71%. It would also have created the world’s seventh largest telecom entity.

In the GSM space, where RComm’s wholly-owned subsidiary Reliance Telecom is present, it has up to eight million subscribers with a 3.63% marketshare, according to the latest figures from the Cellular Operators Association of India. RComm has 42 million subscribers in the CDMA segment, going by the latest figures of the Association of Unified Service Providers of India.

According to analysts, it is clear that RComm would have to venture in the GSM domain on its own as there’s hardly any scope for an acquisition in the domestic market. The process of consolidation is more or less complete in the domestic market with BK Modi-led Spice Communications being recently acquired by AV Birla Group’s Idea Cellular Ltd for over Rs 2,700 crore. Though there are new licencees available for deals, acquiring them does not make sense as they have neither a subscriber base nor networks.

Meet tomorrow's mobile phones

2008-07-21T01:38:00.000-07:00

The cookie-cutter approach to designing mobile phones could disappear in the next few years as designers get more daring and more personal.

"All phones today do the basics well," says Shiv Bakhshi, an analyst at research firm IDC. "But that won't be enough in the future."

We asked a dozen designers and industry leaders to predict how mobile phones will change and to guess when the technology behind the new concepts will be available.

Here are some concept phones, which, like concept cars, are meant to demonstrate new ideas, not serve as prototypes of actual soon-to-be-released devices.

Noika Corp's Morph is made of flexible materials that mimic the suppleness of spider's silk. It is designed to, well, morph between what looks like a traditional mobile phone and a bracelet. "Using nanotechnology, the phone can change its personality to become whatever is most suitable for the task at hand," says Tapani Ryhanen, head of strategic research at the Nokia Research Center in Ruoholahti, Finland.

The phone's electronics are expected to be so small that they'll be invisible to the naked eye. This will let designers make the phone transparent, Ryhanen says.

The Morph could also help you live more healthfully, says Nokia. An array of microscopic sensors could measure environmental hazards, such as carbon dioxide levels, or sense a diabetic's blood-sugar balance.

Technology timeline: Seven to 15 years

Created by Massimo Marrazzo of Turin, Italy-based design firm Biodomotica, the Handphone has a microphone shaped like a ring that slips on the end of your pinky. The speaker is on another ring that slips on your thumb, and a circular phone controller and radio sit on the back of your hand, held on by elastic string.

Anyone who has ever motioned toward his mouth and ear with outstretched pinky and thumb to imitate making a call will know how to use Handphone. "The gesture is natural for people," says Marrazzo.

By definition, Handphone is not hands-free, but dialing, picking up and hanging up can be done with voice-activated controls.

Technology timeline: Available now

The P-Per is a thin device that looks like two iPhones glued together. "It has a [touch] screen on each of its two sides," says Karole Ye of independent design firm Chocolate Agency, in Shenzhen, China. "Mobile phone and messaging are on one, and a camera on the other."

Technology timeline: Three or four years

Istanbul, Turkey-based designer Emir Rifat Isik's Packet phone is a foldable device that's about a centimeter thick and just 5 centimeters (about 2 inches) square when it's folded up.

"The idea was to put all the possible functions in the smallest area and make them easy to use," says Isik.

If you fold open the top and bottom squares, the Packet looks like a traditional flip phone with a speaker and screen at the top, a microphone at the bottom and a dial pad in the middle.

If you want to type an e-mail or surf the Web, you fold open the two sides to create a cross-shaped smart phone. There's a split keyboard at the sides, a pointer at the center and a screen at the top. "All interaction will be by touching the screens," says Isik.

Technology timeline: A couple of years

James Scott, a researcher at Microsoft Research Cambridge in England, is developing a phone with force sensors embedded at corners so that hand actions like stretching, squeezing and bending can be used as commands. For instance, you could turn the phone on and off by squeezing or pulling it, or advance a Web page by twisting the device

Gee Pee handsets are here

2008-07-21T01:13:00.000-07:00

BHUBANESWAR, July 20: Gee Pee Infotech private limited, the Kolkata-based telecom conglomerate launched its exclusive range of GSM mobile phones ‘Gee Pee, Always with you’ in the state here yesterday. The mobile phone brand had earlier been launched in West Bengal, Jharkhand and north-east India in its first phase of expansion.
The immediate target sales for Orissa after launch will be 5000 pieces per month, while after three months the target will be 25,000 pieces per month, Gee Pee sources said.
“Due to immense response and queries we received nationally after the test-launch of the mobile brand in West Bengal, we were forced to launch it nationally before our scheduled time frame”, said Mr Bijay Agarwal, managing director, Gee Pee Infotech Pvt Ltd. Among others state culture, energy and IT minister Mr Surjya Narayan Patro and textile & handlooms, fisheries & Animal resource development minister Mr Golak Bihari Naik were present at the launch ceremony.
"The mobile phones, ranged between Rs 1200 and Rs 6000, come in eight attractive yet affordable colour models," Mr Agarwal informed. The unique features of the mobile phone, as claimed by the MD are, dual sim-cards in single phone, business double cards in single phone, display FM with antenna without headphone, high colour resolution, super long standby batteries, MP3/MP4, phone without battery, low end basic phones, touch screen and all other regular features.

Videocon likely to buy Motorola' handset biz

2008-07-19T23:11:00.000-07:00

Diversified business group Videocon today said its talks to buy out the mobile handset business of US-based Motorola are at 'initial' stages.

"The talks with Motorola are at very initial stage," group CMD Venugopal Dhoot said at an Assocham seminar here, while declined to give a deadline for the deal.

With Motorola planning to separate its mobile business from other operations, consumer electronics major Videocon had said that it had bid to acquire Motorola's mobile handset business.

According to analysts, Motorola's handset business is worth about $3.8 billion and its handsets account for 15 per cent market share globally.

Videocon is in the race for Motorola's handsets as the company feels the company will have synergy with its upcoming telecom services operations with such a business under its fold.

The company has got licences for 22 circles and will be launching the services in the circles soon, through its subsidiary Datacom.

Videocon recently said it would start rolling out telecom network from mid-August and is eyeing to garner about 10 per cent market share in the Indian telecom market in five years.

Videocon, which has got licence for pan-India operations, has got spectrum in three circles and is awaiting for the rest.

The company is also ambitious about 3G services. "With our technical tie-up with various companies it would be very easy for us to roll out 3G also as soon as the government announces," he added.

Sangeeta Mobile retail chain - An introduction

2008-07-19T05:24:00.000-07:00

Sangeetha one of the top few chains of mobile phone showrooms in India...sangeetha always offered innovative and customer friendly schemes. It was the first to introduce, interest free installment deals, insurance on handsets like long free service installment deals, and many more for the customer’s real benefit.
This "throng” and popularity have remained at the same pinnacle from the days of Gramophone in 1974,When sangeetha commenced operations, till Today’s age of cell phones.

Why should they patronize sangeetha?
Because……….

It is one of the top few chains of Mobile Phone showrooms in India even when big players with deep pockets have entered the race.
Sangeetha always offered innovative and customer friendly schemes. It was the first to introduce, interest-free installment deals, insurance on handsets life long free service and many more for the consumer’s real benefit.
Sangeetha has a tie-up with Tanishq.
Sangeetha has a ti-up with 70mm online DVD rental company.
Sangeetha has won the national award for the best interiors in the Telecom retail category.
At different periods sangeetha offers its customers fantastic schemes like return air tickets, 5-star hotel stay etc.

This has happened with the utmost trust and faith of legion of Sangeetha’s patrons increased from the Gramophone days. Trust that Sangeetha would be in the fore front whenever any new and interesting market development happens.

L . Subhash Chandra
CEO` Sangeetha Mobiles

Subhash Chandra serves as CEO of Sangeetha Mobiles. He is an innovator, leader and visionary who believes in leading from the front. He has been an inspiration to all the employees in his organization and an excellent role model to the people in the mobile industry. Born on 21st Jan 1966, he graduated from National College in flying colors. At the young age of 16, he started his career as a sales person in sangeetha mobiles. His hard work, dedication and creativity have made him the head of one of the top chains of mobile phone showrooms in India.

Sangeetha always offered innovative and customer friendly schemes. It was the first to introduce interest free installment scheme. One of the largest Mobile retail outlets chain in India, with more than 40 showrooms, is safe in the hands of the experienced leader, Subhash Chandra. The credit and responsibility of leading this successful organization rests on his broad shoulders.

Consumer satisfaction has always been his priority. Little wonder, that an organization which had the turnover of 1 crore in 1981 is expecting a turnover of 200 crores this year.

His dynamism, efforts and leadership qualities are exemplary.

A pioneer, a Leader and a legend, that’s Subhash Chandra

Mobile retail chain launched in Bangalore

2008-07-19T04:59:00.000-07:00

Mobile NXT, India’s first retail chain specialising in mobile products and services will be launched in Gurgaon within a week.

The concept stores will offer a complete range of handsets from top five brands, 100 accessories, after sales services, value added services, data transfer facilities and an exchange programme. They will also have kiosks from which music, ringtones and wallpapers can be downloaded, he said.

Romy Juneja, Founder and COO, MobileNXT, says the Bangalore headquartered company is being backed by a consortium of investors with $5 million investment.

According to founder and CEO Vijay Menon, the chain store model in telecom business is proven globally.

In the first year, 31 stores will be opened, followed by 97 in the second and 170 in the third year.
A Rs 380 crore turnover is our business plan for the third year.
Primary focus will be on Tier-II and Tier-III cities.

I think the company has identified a definite business opportunity as the Indian mobile user is indeed underserved as far as the after sales service is concerned. The average lifetime of a mobile is 18-24 months and if the chain manages to keep the customer happy, he will continue to give business by way of service fees, accessory sales and handset upgrades. Mobile content and other VAS offer the upside to such businesses. The key to success in any service business is customer service and responsiveness to his needs.

It also remains to be seen if the strategy and execution succeed in making it a viable business and how do they address the following issues.

Capital expenditure required for setting up a nationwide retail chain
Choice of retail route - in Malls, Superstores or Shopping area
Thinning of margins on hardware
Cost of human-support and service

Indiantelevision.com's interview with Essar Telecom Retail CEO Rajiv Agarwal

2008-07-19T04:18:00.000-07:00

The mobile retailing space is hotting up in India. Essar Telecom Retail, an Essar group company has entered mobile retailing in India with the launch of its "The MobileStore" outlets across the country. The basic aim is to be a complete telecom solutions provider.

It has tied up with global media firm Virgin to provide the backend solutions like customer care. This marks Virgin's entry into India's burgeoning mobile sector. Virgin founder Richard Branson believes that this is an opportunity for the two parties to fundamentally change the face of mobile retailing in India.

Indiantelevision.com caught up with Essar Telecom Retail CEO Rajiv Agarwal for a quick chat on the plans.

Excerpts:

Could you give me an overview of Essar's mobile retailing initiative?
This is a chain of retail stores that will serve as one stop shop for the needs of the mobile consumer. We are looking to fill a void that is present in the retail market. Today we have international players on the operators side, on the manufacturers side. But on the retail side we do not have an organised player. The customer is the most important element as all these people are working for him/her.

As the number of mobile subscribers, users becomes more and more the market is becoming more complicated, which has created a void. Our aim is to come up with total telecom solutions for the customer.

What are the different products and services being offered?
One can buy cell phones, get repair services, do bill collection. We also have value added services like ringtones. We have media services like games, DTH connections, ipods, cameras. All are fast moving.

What is the synergy that the group has in setting up telecom retail?
Essar has decided to be in retailing in all their core businesses. We have been in telecom over the last 12 years. Our aim is to get closer to the customer. We have knowledge and awareness about telecom.

As per research, what does the mobile user expect from a mobile retail chain and how is Essar going about fulfilling his/her needs?
The mobile customer is looking for a range of products that he can touch and feel. He/she wants a store that is next to his house. He wants value for money, after sales service.

Why did you decide against going the franchise route for your stores?
There would have been the risk of our brand value being diluted. Also you have to manage many entrepreneurs if you walk down that road. This is a business where you cannot allow your service proposition to get diluted.

The franchise route would have meant that there would have been no difference between us and any other mobile store.

'We have media services like games, DTH connections, ipods, cameras. All are fast moving'

Given that Indians are an extremely price sensitive won't it be difficult for mobile retail to make a margin and have sustained revenue?
That is the case for any product. We have developed our business model keeping this in mind.

What is the investment being made and how many stores are being set up?
In the next three years we are setting up 2,500 stores at an investment of Rs 1,250 crores (Rs 12.5 billion) across 600 cities.

Over 70 stores have already been launched in places like Mumbai, Delhi, Kolkata, Hyderabad. In the next six to eight weeks we will have opened up another 100 stores. In the next six months we would be operating 700 stores.

The stores are in three formats - large (1,000-1,500 sq ft), medium (800-1,000 sq ft) and compact (200-500 sq ft). The ratio being identified is 20:60:20 across large, medium and compact stores respectively.

We are looking at a breakeven of three years for the business. The stores will cost between Rs 500,000 - Rs 5 million each to set up.

What are the factors looked at to select each location?
You look at places where customer footfalls are high. This could be in a mall or on a busy street. We will have the shop in shop concept to a certain extent going forward. Around 15-20 per cent of the stores will be in Metros.

In terms of revenue how much comes in from where and who are the companies you have tie-ups with?
Handsets contribute to 75 per cent of our revenues. We have tie-ups with all the major manufacturers like Nokia, Motorola, Sony. Mobile repairs are our core area. We have trained people in our stores who can look after the problem. We have straight tie-ups with the manufacturers and operators.

We have a tie-up with Mauj Telecom for mobile games. For DTH there is Tata Sky, Dish TV. There are also opportunities for in-store advertising and merchandising.

Could you talk about the back end solutions that have been put in place?
We have a tie-up with Virgin. They bring retail knowledge in terms of softer skills in terms of customer relationship management. The deal is for brand licensing, technical and consultancy services.
Virgin will provide their expertise in the areas of branding, marketing, customer care, store operations and staff training.

We chose Virgin as that brand stands for good quality, brilliant customer service, innovation, fun and good value.

Finally what marketing activities are being done to create awareness?
We are airing ads during the broadcast of the cricket World Cup. A large portion of mobile users will be watching the event. We will also be doing a lot of print and outdoor activities.

This Article was first seen on: http://us.indiantelevision.com/interviews/y2k7/executive/Rajiv_Agarwal.php

Chinese hi-tech handsets for Rs 2000!

2008-07-19T04:08:00.000-07:00

Nearly six months after the Chinese government de-licensed its mobile handset industry, the Indian markets are being flooded with unbranded Chinese phones.

And this time, these are not entry-level phones but mid-level, feature-rich products at aggressive prices between Rs 2,000 and Rs 5,000. Most of these, branded mobile manufacturers said, would cost consumers at least three to five times more if they came from them.

Mobile manufacturers through the Indian Cellular Association (ICA) estimate that 600,000 to 800,000 Chinese unbranded phones are making their way to India every month, accounting for 8 to 10 per cent of GSM-technology mobile phones sold in the country.

According to research firm IDC, China shipped 85 million GSM handsets in the last fiscal. And it says China's percentage share is likely to go up since these phones offer swanky features ranging from 3 megapixel camera, terrestrial TV, music and MP3 players.

Also leading branded mobile stores have started stocking such phones and are even offering warranties. For instance, Spice Group-owned mobile retail chain HotSpot imports Chinese mobile phones and provides its own warranty and back-end service support for the handset.

"Demand for feature-heavy phones is increasing by the day, and Chinese phones are extremely high-end ones in the price range of Rs 2,000 to Rs 6,000," said Sanjeev Mahajan, CEO, HotSpot, adding, "The margins for such products are also more lucrative for us. On a Chinese phone we can earn margins up to 15 per cent; on branded phones we earn merely 5 to 6 per cent."

But branded mobile manufacturers are stumped with the growing numbers. The issue of anti-dumping duty has been discussed with the government but rejected because most of the leading branded manufacturers too make and import phones from China.

"This is an open and competitive industry and these products come through an open channel. The entry of Chinese products follows a fair amount of competition for all players," said Sunil Dutt, country head for Samsung's mobile business in India.

There are others who are concerned. "It will be a compromise on the part of the consumer in terms of quality and value for money," said Lloyd Mathias, marketing director, Motorola, highlighting the need for stricter norms for quality control.

Article courtesy: http://www.rediff.com/money/2008/jul/19mobile.htm

New comp? Hit a mobile store!

2008-07-19T04:02:00.000-07:00

The next time you walk into your trendy branded mobile retail store you might come out buying an MP3 player, a Sony Play Station or even a laptop rather than a mobile phone.

Saddled with very low margins which are making the business not viable in many cases, mobile branded retail stores are now increasingly turning their focus on their non-mobile handset business.

Organised retail, which started off with a market share of less than 1 per cent two years ago, has now grown in stature with the big boys entering the fray, and currently has a 15 per cent share. Companies such as Spice's Hot Spot, RPG group's RPG Cellucom, Essar's Mobile Store, Subhiksha and Kishore Biyani's ConvergeM (which has three mobile branded stores) have all entered the business hoping to make big bucks.

And their share of the total business is expected to increase to 40 per cent in another two to three years. The retail market for mobile phones — handset, accessories and airtime — is valued over Rs 70,000 crore and growing at the rate of 15-20 per cent.

That is the good news. The bad news is that sales margins of mobile phones are being squeezed due to cut-throat competition from the mobile players who are playing the pricing game in order to gain market share.

Worse, prices of phones are being reduced continuously, adversely impacting margins of the retailers. And new players especially telcos such as Reliance Communications are also planning to get into the business by leveraging their large retail reach through the Reliance Web World.

"Turning to other products that can be used on the move, including MP3 players, cameras and mobile accessories, is a natural evolution that's taking place in this market" said Sanjeev Mahajan, CEO, Hotspot (mobile retail arm of Spice Group).

He points out that while the profit margins in the mobile handset business is 3 -4 per cent, profit margins in mobile accessories are almost 40 per cent and in other music and gaming products, it is 15 -20 per cent. So it makes sense to stack other related products too.

The company has already shown a tangible shift in this direction. Last year, the company earned 95 per cent of its revenue from the mobile hand set business, which declined to 85 per cent this year and is expected to go down to 60 per cent in the next few years.

Similarly, RPG Cellucom, a part of the RPG group, is aiming at balancing its mobile hand set business with its non-mobile business that includes laptops, mobile accessories and music devices.

"We get 75 per cent from our mobile business, 15 per cent from our laptop business and rest from other products. Our focus is on establishing ourselves as mobile service providers which includes other products other than mobile handsets," says Biswajit Pandey, head, marketing, RPG Cellucom.

This article was first seen on: http://www.business-standard.com/common/news_article.php?leftnm=10&bKeyFlag=BO&autono=328550

Hot Spot appoints OMS as media agency

2008-07-19T04:00:00.000-07:00

OMS (Optimum Media Solutions), the specialist media independent division of Mudra Group, has been appointed the media agency for telecom retailing chain – Hot Spot. The scope of work includes media planning, buying and implementation and the size of the account is estimated to be about Rs 18 crores.

Sanjeev Mahajan, CEO, Hot Spot, said, "Hot Spot retail currently has approx 300 stores across the country which we intend to take up to 1500 stores by year-end. Given our aggressive expansion and growth plans, we felt the need to partner with an agency which shared our passion and brought value to the table when it came to innovative thinking and a strategic direction."

Sanjeev Mahajan adds, "The Indian consumer needs a better shopping experience in mobile retailing. A mobile phone is something that everybody wants to own today, and while working on this concept, we want the customers to have a wide range of choices before him through our retail stores. We are targeting specific communities as we want to be in every major town and every major market, the idea is to give the consumer a shopping experience in his own area."

Bipin Narang, Vice-president, Marketing, Hot Spot, said, "The marketing plans right now are largely focused on the expansion plans. The consumer today will not walk a long distance to buy the airtime solutions or a handset. The idea behind the expansion is to open a store near the consumer, while offering not just the mobile handset, but all kinds of accessories, including data cards, Bluetooth accessories, airtime solutions and products connected with the mobility arena like MP3, X-Boxes, laptops or anything that enhances the mobility of the person."

Chandradeep Mitra, President, OMS, said "It feels wonderful when clients see media agencies as partners, rather than vendors. Hot Spot has aggressive expansion plans and it will be our endeavor to derive maximum bang for the buck in reaching audiences in newer markets."

Added Niti Kumar, Business director and Head of Delhi branch, "Mass media will play a critical role in Hot Spot's marketing plans, and we're currently in the process of devising unique solutions to tap the diverse markets that the brand is entering."

Sanjeev Mahajan, CEO Hotspot on mobile retailing

2008-07-19T02:57:00.000-07:00

It's not difficult to see what's keeping Sanjeev Mahajan, CEO, Hotspot, the mobile retail chain of Spice Corp, on his toes. In the face of stiff competition from rival retail chain brands -- Mobile Store, Subhiksha Mobile and M Bazar, to name a few -- in the telecom products segment, he's turning aggressive to secure a leadership position for Hotspot.

So the over two-year-old chain is targeting 1,000 mobile phone and accessories' outlets under the Hotspot brand name by the end of the year. "We are opening an outlet a day and we already have 325 Hotspots in important cities," says Mahajan.

Interestingly, though, Mahajan is not the only one thinking big. Subhiksha Trading Services' Managing Director R Subramanian also intends to double his Subhiksha Mobile stores � both in the standalone format and the shop-in-shops -- from the current 740 outlets.

"In the last one year, Subhiksha Mobile has grown much larger than the others (read rivals) not only in terms of the number of stores but also in terms of volumes as well, to become the largest telecom products retailer," claims Subramanian.

Clearly, the mobile handset market is buzzing with new branded retail chains such as Reliance and Aditya Birla Group entering the fray and the existing chains expanding their foorprint.

Take Pantaloon Retail's JV with Axiom of Dubai, for instance. The company is re-branding its standalone retail chain Mport to Axiom stores, which is among the largest telecom products chain in West Asia.

The mass market products will continue to be sold under M Bazar, its shop-in-shops at the Big Bazar outlets, while the lifestyle products will find their way into Axiom. By the end of the year, M Bazar will grow from 100 to 428 outlets, while the company will open 35 Axiom stores by then.

The lure of the telecom products market is easy to explain. India's cell phone market adds eight million subscribers every month. The replacement market is close to 55 per cent already (in Delhi, the figure is 60 per cent). A BCG research says that by 2010, India's replacement market will be 70 per cent.

Put together, the size of the handsets market is about Rs 70,000 crore (Rs 700 billion) a year. Commenting on why Pantaloon entered telecom retail, its spokesperson says: "It is a bulk volume business. The margins are made on total volumes sold."

Needless to say, the opportunity is enormous. The industry has been dominated by the unorganised players -- nearly 500,000 mom and pop stores sell phones, recharge cards and accessories.

What's the USP of the branded chains that are rolling out nationally, compared to the neighbourhood shopkeeper stocking mobiles?

"Their inventory is limited while we will stock phones priced between Rs 1,000 and Rs 50, 000," points out Mahajan of Hotspot. Besides, the branded chains promise high-quality service as they enter full-scale servicing tie-ups with different phone brands.

Hotspot hopes to beat competition by offering hi-end cameras, iPods and laptops at its 450 sq feet to 600 sq feet showrooms. This is in addition to mobile phones, memory cards, pouches and other accessories that it already stocks.

On the cards are other VAS (value-added service) products. While music videos were introduced two months ago, a full-length feature film on a chip will be the next big thing at Hotspot. "You could watch this film on your mobile screen. And the USP is that we are offering legal content," says Mahajan.

Subhiksha, meanwhile, is offering "only the lowest and best value on all handsets" at its stores. Subramanian says that the share of sale of VAS products and personal electronics in its portfolio is low "but over the next three to six months we hope to make significant progress in this direction".

Will the mom and pop stores selling phones shut shop as branded chains grow? "No. Have the 'kirana' shops closed down because of branded food chains?" asks the Pantaloon executive. "Besides many of them will become franchisee of the bigger brands," adds Mahajan.

Organised retail, which started off with a market share of less than 1 per cent two years ago, now enjoys 15 per cent share. This will swell to 40 per cent in another two to three years. Of course, once FDI in retail is cleared by the government, Sanjeev Mahajan's job could only get tougher with expert international retailers such as Crazy Jones and Eurosat setting their foot in India.