To: Jon Koplik who wrote (31256 ) 5/28/1999 5:05:00 PM From: Ruffian Respond to of 152472
Mot Making Up Ground> From the May 31, 1999, issue of Wireless Week Motorola Making Up Digital Ground By Bruce Felps Further evidence of Motorola Inc.'s handset resurgence surfaced last week with its latest sale of code division multiple access phones. The company strengthened its digital presence by winning a 1 million unit sale of StarTAC and SC3160 CDMA phones, along with accessories, to Bell Atlantic Mobile Inc. Following the big sale, the question now becomes whether Motorola can maintain its digital momentum. At least one analyst firm thinks so. Cahners In-Stat Group earlier this year released findings that show Motorola regaining most of the huge handset ground it once held. In-Stat sees Motorola clawing its way back to the No. 2 position, behind only juggernaut Nokia Corp., edging out Ericsson Inc. in the handset pecking order. Cahners In-Stat is a division of Cahners Business Information, which publishes Wireless Week. Independently, the carrier agrees with In-Stat's findings. Jack Plating, Bell Atlantic Mobile executive vice president and COO, said Motorola's newfound commitment to digital technology, specifically CDMA, played a large part in placing the order. The fact that Motorola added to its digital manufacturing capacity also weighed into BAM's decision. One of the cappers, though, came from the manufacturer's work toward third-generation products. "We made sure they're committed to CDMA browsers, [short messaging service] and e-mail capabilities," Plating said. "They're coming from the [Wireless Application Protocol] standpoint of the industry." Regardless of Motorola's stature among handset makers or its push to 3G, the purchase fills an immediate need for BAM. With what Plating called "a significant number of DigitalChoice customers" selecting the StarTAC, the company needed to ensure a plentiful stock for what it thinks will be the next 12 months. The company also will put pressure on competing carriers that sell the StarTAC because BAM prices it at $299 while some other carriers sell the phone for as much as $499. The retail price for SC3160 has not been established. Another buying-habit shift can be found in the purchase order placed by BAM. Hands-free kits rank high among the accessory items the carrier bought from Motorola. Plating said about 20 percent to 25 percent of subscribers opt for hands-free packages, which indicates a growing acceptance of the safety feature. In total, the 1 million unit order represents "a relatively large business proposition" for Motorola, said Denise Gibson, vice president and general manager of U.S. strategic accounts operations for Motorola's Personal Communications Sector. More important, though, the sale reaffirms Motorola's position as a big-time player in the handset game because of BAM's reputation as a wireless leader along the East Coast. BAM "represents a significant customer of ours, particularly in the Americas," Gibson said.