Opening Speech (2):

Launch of PHS/GSM Dual-Mode Handset and Its Impact on FITEL's Operation



from Dr. Hann-Bin Chuang, First International Telecom Corp. (FITEL)

     Today I'd like to introduce the PHS/GSM dual-mode handset. An outline of this dual-mode handset (G1000) newly put on the market is as follows. G1000 is made by Sanyo Electric, Co. Ltd. list priced at NT$15,000 (approx. $446) and equipped with two TFT screens with 65,536 color, built-in CCD camera with 110,000 pixel and flash, Polyphonic with 32 chord etc. Main functions are PHS SMS including the Group Sending, E-mail, MiMi (Mobile Information Mobile Internet) with quick access key, WiWi (Wireless Internet Wireless Information), Group Mode, Japan Roaming etc.
     Especially, as for the Japan Roaming function, it's quite convenient for travelers among China, Japan, Taiwan. because the GSM is not available in Japan. As for the GSM function, it's limited to only basic one such as Voice, SMS etc. because this dual-mode handset is designed PHS-centric and accordingly the GSM is additional.
     Standby in both PHS and GSM modes is available thanks to its Dual Standby Mode function and phone book with 500 entries and 2MB shared memory can be used in both modes commonly. As for the standby mode, three modes PHS/GSM dual standby, PHS only standby, GSM only standby can be selected. The next model which automatically changes the standby mode according to the area conditions is now being planned as well.
     Brief development history of this model is as follows, product idea was proposed in 2002, development project started in October, 2002, and the product was launched in April 21, 2004 at the same time when the PHS service started in Kaohsiung next to Taipei.


Fig.1 [Click the image to enlarge]
     Fig.1 is the monthly sales of G1000 comparing with other modelsEfor total PHS activated users. In April, 2004 the beginning of launch, activated G1000 users were 23,000 and have steadily been increasing after that. It's expected to be 120,000 by the end of 2004. It can be said that this is a great success from the Taiwan market standpoint. Traffic revenue showed a big growth after the launch of G1000 in April, 2004.
     Fig.2 shows the subscribers and ARPU by each model already launched before. An ARPU for G1000 subscribers is the highest and 25-29 year old male users are its main users.
     As for the feedbacks from users, there are demands for low price, longer talk/standby time, sharing SMS message box by both PHS and GSM modes, Call waiting function between PHS and GSM mode, higher resolution built-in camera etc.




Fig.2 [Click the image to enlarge]
     In conclusion, G1000 successfully satisfied the needs of high ARPU customers and those who are traveling frequently and have the needs of carrying two handsets.
     What needs more improvement would be high power consumption, high price, user friendliness (SMS boxes commonality), feature enhancement etc.
     What next model should have would be a standard low cost color screen, voice only without camera, higher resolution screen with advanced data capability, dual-mode possibility with Wireless LAN etc.