SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 168.42+0.2%10:01 AM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Clarksterh who wrote (122449)8/19/2002 7:20:54 PM
From: waitwatchwander  Read Replies (2) of 152472
 
Disposable phone ready for UK launch

commsdesign.com

By Maria Langham
EE Times
August 19, 2002 (5:29 a.m. EST)

In stark contrast to the high-spec smartphones that companies have planned for 2.5G and 3G, a Californian start-up is readying the UK launch of a stripped-down, disposable mobile phone.

Hop-On has set a price of $40 for its CDMA and TDMA phones in the US and stripped it of its most expensive parts, such as the LCD and much of the memory. The phone comes with 60 minutes airtime prepaid; further calls are available through a top-up system at up to 30¢ a minute.

Peter Michaels, Hop-On CEO, said: "We will introduce further deals in the future and cost will also depend on the retailer." The company plans to launch a GSM model in the UK within the next 90 days.

Michaels said: "We have received an order for a million phones in the UK and a million in Spain from private groups, whose names we cannot yet disclose. I think they will first be marketed at holidaymakers going abroad.

"We shall use what we learned from launching our product in the US to releasing it in the UK. The UK models will be similar [in design]. But later we shall also introduce a model with a basic LCD for SMS text messaging as we understand that it is very big in the UK."

The phone can be returned for recycling and customers will receive $5. Phone numbers will also be recycled.

The company has raised the expected price of the GSM model from its originally planned level of $29 to $40, and claims it has more orders than it has capacity to make the phones.

But Neil Mawston, a senior analyst in global wireless practice at Strategy Analytics, disagrees with Michaels' optimism: "I do not see any business usage for it and it will struggle in the developed world. Operators will not want to distribute the phone because they are trying to push expensive devices such as 3G phones.

"Disposable phones obviously can't do that. Also, end users nearly always trade up from their old phones and do not trade down. This leaves Hop-On with just a niche in the market. I am surprised they have not chosen to target Africa or China instead.

"I don't think Hop-On will reach the millions in usage in the short-term, although low spenders may be grateful."
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext