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Celcom (M) Bhd has teamed up with Malayan Banking Bhd (Maybank) to offer the bank's customers mobile financial services through Maybank2u (M2U) Mobile Service. “The service is Celcom's first mobile banking application using general packet radio service (GPRS), third generation (3G) and 3.5G. It will give Maybank customers the opportunity to conduct mobile financial banking and transactions on their handsets,” Celcom chief operating officer Datuk Zubir A. Rasid said at the agreement signing ceremony yesterday. Zubir described the partnership as a “win-win'' partnership as 40% of Maybank customers were Celcom users. “Therefore, we can leverage on each other's advantages to be more competitive in the market,” he said. Celcom has 150,000 3G subscribers while Maybank has 750,000 active Internet banking users. Zubir said M2U also provided value-added services such as daily market and economic news and media highlights, as well as a mobile financial calculator at an additional charge. The service will be available early next month. It will be free for the first three months, after which Celcom will charge RM3 monthly for unlimited usage. Currently, the service is available only on 30 handset models, including Nokia and Motorola. “We hope to increase to more models by year-end,” Zubir said, adding that Celcom had allocated RM1mil for M2U mobile advertising and promotions. Zubir said Celcom and Maybank planned to introduce more new products and services to further enhance their customer service. M2U Mobile is the third collaboration between Celcom and Maybank, the other two being Maybank2e.net and the short messaging service prepaid top-up facility. Maybank senior executive vice-president Datuk Johar Che Mat said the new service was another testimony to the bank's success in maintaining its leadership in Internet banking. “It represents the convenience of having a mini Maybank2U service via mobile handsets,” he said, adding that Celcom users would only need to register and activate the service at any Maybank automated teller machine and via Maybank2U.com. Johar added that the bank was confident that M2U Mobile would become a powerful brand. “We are also looking for opportunities to collaborate with other telecommunications players to offer similar services to our customers in the future,” he added. -theStar

Now that the dust has finally settled after the race amongmobile operators to offer third-generation (3G) services, the two that have entered the fray are facing the stark reality - dismal take-up rates. Of the 110,000 3G subscribers at end-March, 60,000 were signed up with Celcom (M) Bhd and the balance 50,000 with Maxis Communications Bhd. Considering all the excitement over 3G just last year, interest seems to have fizzled out and industry experts believe it is time Celcom and Maxis take more drastic action - such as dishing out free handsets - to accelerate the migration from 2G/2.5G to their 3G platforms for which they have invested millions of ringgit. Celcom was first to introduce 3G to Malaysia on May 17 last year. Maxis followed suit on July 1 with its creative pricing that forced Celcom toreview its pricing plans. Celcom is targeting 150,000 3G users by year-end and expanding coverage nationwide by July 2007. Maxis has its own projections and coverage expansion strategy. Both hope their subscribers will take the migration path, but some users want to know what “pull factor” is there for them to migrate to 3G. Several mobile users interviewed were of the view that handset cost was the biggest cost component for a user to migrate to 3G. Cost of services was another factor but if handsets could be subsidised heavily, that cost element was removed or minimised. However, a review of the pricing packages was also necessary and content should be upgraded for people to stay on the network, they said. Globally, 3G take-up rate has not been too fantastic but the numbers are trickling in as more handsets are available in the world. A recent study on the Australian market revealed that “intelligent pricing and user education” could help accelerate migration to 3G from 2G/2.5G. The report cited the “Apple iPod as a classic example of how a technology has changed the way we consume music within a relatively short time and carriers can learn from that example.” 3G handset cost in Malaysia has dropped by more than 50% from a year ago when handsets were priced at RM1,900 to RM3,000. Now 3G handsets are priced from about RM900 to RM2,900. The number of models has also doubled and more models are expected to be launched in the second half year. Nokia Malaysia customer and market operations marketing manager Geraldine Wong said Nokia offered 11 3G models in Malaysia and planned to launch more in the second half year. Nokia 3G phones are retailed from RM999 to RM2,800. Motorola's six 3G models were priced from over RM900 to RM2,900, said Motorola Malaysia mobile devices business marketing manager Zulkifli Mat Jusoh, adding that “more exciting” models were in the offing. Several other 3G models available in the market include three from Samsung and a number from Sony Ericsson. As technology matured and production capacity increased, Nokia forecast demand would shift to 3G phones from 2.5G phones. “With better efficiency in economics of scale production and demand, mobile handsets will begin to capture lower price tier segments,” Wong said. There is a huge gap in pricing between 2G and 3G handsets and observers are saying this should be removed so that the “customer would be indifferent to which generation of handset he is buying.” Worried that handset cost affecting the 3G take-up rate, the GSM Association approved an initiative to create a “3G for all” this week. There will be a core set of common requirements for 3G handsets to create economies of scale. Such a move would help drive cost of manufacturing of this high-tech device down. The GSM Association represents 690 GSM mobile phone operators across 213 countries. It said this weekend would be a historic milestone as the second billionth GSM mobile phone user got connected. theStar

Celcom (M) Bhd will expand its third-generation (3G) coverage to the whole nation by mid-July, said chief executive officer Datuk Shazalli Ramly. He said by expanding the scope of the company's 3G services to other parts of the country, Celcom hoped to expose Malaysians to its full capabilities and, in turn, boost the take-up rate of 3G. “As of right now, certain areas are still undergoing testing, but Celcom 3G would be commercially available to all Malaysians on July 15,” he said at a media briefing yesterday. Shazalli said Celcom was also pioneering innovative mobile content, such as the world's first-ever short messaging system (SMS) in colour, SecretSMS and Xpax Legenda Tan Sri P. Ramlee. Celcom (Malaysia) Bhd CEO Datuk Shazalli Ramly at the launch of Celcom's new developments in 3G on Thursday. “Our 3G product roll-outs would also include Disney and Marvel Mobile content, all of which are one-of-its-kind in Malaysia,” he said. Shazalli added that Celcom planned to introduce the SMS service in colour to non-Celcom users by the third quarter. “Hopefully, it can even be in Chinese characters,” he said. In addition to the expansion of Celcom 3G and new development in content, the company will also be introducing 3GX, a technology which is said to be four or five times faster than 3G, and 15 times faster than the general packetradio service. “Via 3GX, Celcom customers would soon be among the first in the country to be empowered with the fastest mobile broadband access,” Shazalli said. He added that he hoped customers would “jump onto the 3G bandwagon” with all these additional services. Shazalli noted that Celcom was on track to achieving its target of 150,000 3G subscribers by year-end.

comScore Networks, a leader in the measurement and analysis of consumer behavior and attitudes, today released an analysis of the online research and purchase behavior of consumers in the wireless phone market. comScore revealed that consumers were most likely to research newly released and “trendy” models, with the Motorola RAZR V3C topping the list during the first quarter of 2006. Other models securing spots on the most researched list include the Palm Treo 650, the Palm Treo 700W, and the Motorola Pebl.

The Motorola Q is the latest phone to be released, with Verizon Wireless positioned as sole provider of this model for a limited time. As a measure of interest in the model, comScore found that the Motorola Q product page on the Verizon Wireless Web site received slightly more than 100,000 unique visitors in the second half of May, 2006.

Price is a Driving Factor When Purchasing a Phone

comScore also analyzed trends in ordering cell phones online, among new and existing customers, at major carrier and wireless sites in the first quarter of 2006. Not surprisingly, low-cost – or no-cost – models topped the list. The Sony Ericsson Z520A, available through Cingular, was the most frequently ordered model, with more than two-thirds of these phones provided at no cost to the customer. The Nokia 6101 (T-Mobile) and 6102 (Cingular) phones ranked second during the first quarter of 2006. More than two-thirds of the Nokia 6101/6102 phones were also provided at no cost to the customer.

“Consumers are researching the latest wireless phones online in great numbers, by either visiting product pages or conducting searches for specific models at the leading engines,” said Brian Jurutka, director of marketing solutions at comScore. “The top 10 models sold accounted for nearly half of all phones ordered by consumers at major wireless sites in the first quarter – with Motorola capturing the highest share at 38 percent.”

Nokia announced today that it has started deliveries of the Nokia 6233 phone, a classically designed 3G model tailored for work and entertainment. In a true case where business meets pleasure, this feature-rich device is ideal for eventful days at work or more relaxed days at home.

This sleek 110-gram model offers a 2 megapixel camera, a large QVGA color screen, a digital music player, stereo speakers and a broad range of features and applications which take full advantage of WCDMA services.

"The Nokia 6233 brings the many benefits that 3G offers to a broader range of consumers," says Aage Snorgaard, Senior Vice President, Broad Appeal, Mobile Phones, Nokia. "This feature filled phone balances performance with a classic and sophisticated design to suit all occasions. As 3G gains even greater mass-market attraction, we are confident this product will be extremely popular with consumers."

The latest Nokia model phone to feature the Series 40 Platform 3rd Edition, the Nokia 6233 ensures that 3G services and applications can be accessed easily and intuitively. Supporting the latest messaging, browsing, music and video standards, the Nokia 6233 features a brilliant 320 x 240 QVGA display, with an 'Active Standby Mode' that gives immediate access to the most-used applications.

In addition to having all the latest features to stay connected to work, the Nokia 6233 doesn't forget how to have fun. With exciting new 3G services, such as streaming multimedia audio and video content, consumers can download the latest business news as well as sports highlights of their favorite teams.

The Nokia 6233 has a talk time of up to 3 hours and a standby time of up to 2 weeks and is expected to retail for approximately 325 EUR before applicable taxes or subsidies.

The rise in call minutes, SMS traffic and demand for data services during the World Cup is expected to boost cellular companies' (celcos) earnings in the second quarter this year.

But can the World Cup be the catalyst for boosting 3G (third generation) take-up rate in the country for Celcom (M) Bhd and Maxis Communications Bhd? As at end-March, Celcom had over 60,000 3G subscribers while rival Maxis had 50,000.

Some industry experts do not think so but the two celcos are gung-ho that a boost in the 3G take-up can be expected.

Maxis, in an e-mail response to queries from StarBiz, said: “Based on the compelling content offered and the widespread interest in World Cup, we do expect an increase in 3G take-up.’’

Celcom said: “The World Cup would definitely help boost demand for 3G.’’

Celcom’s rationale is that people can use 3G to watch replays of goals and latest news or results and that should improve the take-up rate.

It added that from a technological point of view, 3G was much better as it provided the subscriber with visuals and better content than 2G, which was only available in text form.

But Celcom said its “subscribers do not need to be a 3G user to enjoy the content that it is providing for the World Cup.’’ It claimed to offer “fantastic content for all our customers, be they 2G, 2.5G or 3G (users). We are offering World Cup updates, competitions, quizzes and lots more, just so that our subscribers' World Cup experience will be more memorable.’’

Maxis is the main local broadcast sponsor of the FIFA 2006 World Cup, for which it is spending RM60mil. It also has content for its 2G users. “Our 2G customers have much to look for during the World Cup tournament. Apart from content that requires video streaming, all other content is available via 2G,’’ it said.

Maxis had expected the SMS volume to hit two million and had predicted a modest 5% growth in traffic volume but would not offer revenue projections or any figures for the 3G take-up rate.

Industry experts are of the view that many mobile users will not switch to 3G just because of the World Cup, as live matches are available on television. “There will be a small rise in 3G subscriber base,’’ said an industry expert.

A research house, in a report, had predicted that the World Cup fever factor would lift call minutes, SMS traffic volumes and demand for data, which would be a positive earnings catalyst in the second quarter for both domestic and international operations of the celcos.

“We expect a myriad of issues to dominate the operating landscape in the second quarter, with focus largely on respective celcos defending market and expanding overseas ventures that remain in the growth stages of the telco cycle.

“With Telekom Malaysia Bhd (Celcom’s parent) and Maxis' ventures in Indonesia and India taking a sizeable amount of resources, both financially as well as operationally, we anticipate a quarter of mild gains from overseas earnings in the second quarter,’’ the report said.

It added that the starter kit price war had dissipated and the focus was now shifting to products/service offerings as key differentiation factor.

“While the ongoing price war is likely to persist, starter kit prices are not expected to drop any further as it would only encourage marginal users and advocate higher churn rates. We see pricing competition develop at the product/service level rather than the barrier to entry level,’’ the report said.

Maxis had 40% share of Malaysia’s cellular market as at end-March, followed by Celcom with 35%, and DiGi at 25%. -theStar