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To: DaveMG who wrote (13135)	7/30/1998 12:59:00 PM
From: DaveMG	Read Replies (3) \| Respond to of 152472

Here's something else: CDMA Facing Tough Market In Thailand. 07/22/98 Newsbytes -------------------------------------------------------------------------------- Full Text BANGKOK, THAILAND, 1998 JUL 22 (NB) -- By Usanee Mongkolporn, The Nation. It's an enticing choice in the US, booming in Hong Kong, and embraced by most Koreans, but CDMA (code division multiple access), the world's most successful new cellular technology by subscription growth rate, is having a tough time getting a foothold in Thailand. Since it was launched in Bangkok late in April, the investor -- the Communications Authority of Thailand (CAT) and its partner Tawan Mobile Telecom -- have won about 1,500 customers, 15 percent of its three-month projection for the code-division multiple access phone system. "It's quite disappointing," a senior CAT executive said Tuesday. The economy, alone, may not be to blame. The executive admits that there are several factors that prevent the high-quality cellular system from being accepted in the Thai market. The product itself is technologically proven and the promotion is unique compared with other cellular systems' promotions. Some people consider CAT-Tawan's offer of 100 percent free air time and 50 baht ($1.22) cheaper monthly fees could be the best offer of all operators. However, as it turns out, CDMA subscribers use the handsets for commercial purposes -- one of the major problems for cellular operators as such subscribers abandon the phones once the promotion ends. Market leader Advanced Info Service Plc (AIS) expressed worries that its revenue projection could be affected as service cancellation caused by the cellular phones' commercial usage is growing. The CAT board of directors has recently permitted Tawan to extend the promotion campaign to August 16, expecting to get more customers who might care to make free phone calls until the middle of next year. But the promotion may not be strong enough when considering the CDMA network's coverage. The CAT is waiting for a government planning agency to approve its 1.2 billion baht ($29.30 million) investment request to expand the current coverage in Bangkok and the central area to other key provinces. The plan comprises the purchase of three switches, each of which could accommodate about 30,000 numbers. Tawan's earlier projection was to win a total of 25,000 customers by the end of this year. Setting aside consumers' lower purchasing power, CAT and Tawan have found that their product is too expensive. A CDMA handset is now priced at about 34,000 baht, including the registration costs. Meanwhile, there are only two choices: Qualcomm and Sony -- both names little heard by Thais. "Tawan is a small company," a veteran in the cellular business said. "They do not have funds enough to order a big quota from the suppliers. And CDMA handsets have pricing problems themselves." While its competitors AIS, Total Access Communication, and Digital Phone Co have vast distribution channels locally and in the provinces, Tawan has found it is handicapped. An industry source said Tawan's plan to cooperate with TAC, which had planned to launch its own CDMA service, failed after both companies' executives were embroiled in business conflicts. As a result, a well-known cellular mobile brand, Motorola, could not be made available to the Thai market. The industry source said TAC's parent United Communication Industry blocked the distribution of Motorola to Tawan. The CAT hopes that with CDMA technology will become a platform for the next generation of digital cellular development and help it migrate its current 45,000 customers now using an analogue system to a digital one. According to a recent Ericsson's study, at the end of May, GSM has still been mostly used in the digital phone market, while AMPS800 is still the most popular in the analog market. Exchange rate: $1 = 40.95 baht Reported By Newsbytes News Network: newsbytes.com