Mobile ULC2 Alliance claims world's lowest-cost smart entry phone

Details: Category: Devices & Platforms; 03 March 2008; 8790 views

Claiming that it will play a real part in bridging the Digital Divide, an alliance of hardware and software vendors took the opportunity of the Mobile World Congress to announce that they had joined up to develop the world's lowest-cost smart entry phone that can enable email and web-based messaging functions. The new Smart Entry Phone (SEP), which is specifically targeted at emerging markets, will also enable simultaneous access to all leading communication portals such as MSN, ICQ, Chikka or Yahoo.

Developing Telecoms has published several reports over the past two years where companies and organisations have made claims that they have achieved the lowest-cost pieces of equipment in a particular field. While we can not endorse any particular product or service, we submit these notes in the general interest of readers of our site. While we are happy to describe SEP, we would ask our readers to look at the story entitled "Spice Corporation launches sub-US$20 phone" and then make their conclusions. In any case, we welcome our readers' views on this subject.

In the case of the SEP, the phone retails at under US$25 and is intended to provide affordable services such as picture downloads to third-world countries. One of the key benefits includes the unique ability to set up a service in the user's native language.

The new alliance of companies styles itself the Mobile ULC2 Alliance and comprises Infineon Technologies, Jurong Technologies Industrial Corporation, TJAT Systems and Brightstar Corporation. The division of duties in this project is clear from the start:

Infineon will develop the technology platform;
TJAT Systems will enable all mobile messaging and integrated services;
Jurong Technologies will integrate Infineon's technology platform and other systems to produce the SEP;
Brightstar will be the worldwide distributor of the new handset.

The new alliance believes that its SEP will remove the affordability barrier in offering the lowest costs and that in turn means high-end functions such as email, localised services and IM. The ULC2 Alliance also believes that the SEP offers both network operators and consumers in emerging markets "a ground-breaking new development by combining exceptionally low operational costs with no requirement for additional infrastructure purchases."

The Alliance draws on the expertise of ABI Research, which predicts that the developed markets' high saturation rates mean that over 80% of new mobile phone subscribers in the next five years will come from emerging markets. ABI Research's projections are also used by the Alliance to claim that by 2011 almost one out of every four handsets shipped globally will be an ultra low cost handset. India will be the biggest market in the next five years, growing from a little over nine million handsets in 2006 to more than 116 million handsets in 2011.

Further support comes from market research firm Gartner, which estimates that mobile instant messaging will gain huge momentum. This year alone, 2.8 trillion messages will be sent via that channel, up 19.6% over 2007. Revenues are expected to grow by 15.7% to US$60.2 billion this year.

Belief in Asia as a key area comes from Cheang Chee Ming, President and CEO of Jurong Technologies: "We believe that there is a huge market potential for such a product, particularly in Asia, where Internet usage and wireless handset subscription are both at an all-time high. Thus, we are pleased to have secured a valuable partner in Brightstar, who will be marketing the new SEP worldwide, starting from Asia-Pacific.

Gideon Drori CEO of TJAT, the mobile instant messaging company, describes the new grouping as "an unselfish alliance" and that only such an alliance "could have produced such an important breakthrough, especially significant for countries lacking communication and digital infrastructure - finally truly bridging the Digital Divide. The new SEP will be affordable by all segments of society giving everyone the ability to communicate. We are convinced that this is a truly life-changing development."

Professor Dr Hermann Eul, Member of the Management Board of Infineon Technologies AG and Head of the Communication Solutions Business Group, takes up the question of the Digital Divide: "The demand for low-cost, easy-to-use mobiles is constantly increasing, particularly in the emerging markets. Yet while this is so, many people still don't want to be without functions normally offered only in the high-end segment. Our server-based instant messaging solution achieved together with TJAT gives our target group low-cost access to mobile internet."

* Founded in 2005, Tjat has over 1.8 million users with recorded daily traffic exceeding 45 GB. The TJAT Messaging Service is a browser-based mobile clientless solution that can be used to mobilise communications through existing Instant messaging communities. Tjat's portfolio includes tCHAT (a simple but powerful IM solution), tMAIL (mobile email), tSPACE (remote media and file library), tPIX (personal remote storage for sharing media) and tBRIDGE (a SIP-/IMS-based IM service.

** Established in 1986, Jurong Technologies provides Electronics Manufacturing Services (EMS) to Original Equipment Manufacturers (OEM) and Original Design Manufacturers (ODM) in the wireless communication, hard disk drive, networking, PC peripherals and industrial sectors. Headquartered in Singapore Jurong Technologies has a wide manufacturing footprint with seven production facilities in Singapore, Malaysia, China (Suzhou and Tianjin), Indonesia (Batam), Thailand and Brazil (Jaguariuna).

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