Budget cell phone market booms

Hanoi (VNA) - The budget cell phone market is enjoying a boom when mobile phone service providers are shifting their attention to low-income customers.

S-Fone is a leading business in the race with the launch of six new handset
models branded eCo priced at between 270,000 and 499,000 VND each, the
lowest price in the market. More than 100,000 eCo handsets were sold after
just one month.

Together with the launch of cheap and convenient handsets, S-Fone also
offered a special promotion programme which presents newly activated eCo
subscribers with 1.5 million VND in their accounts.

Following S-Fone, the most popular mobile service provider in the country
MobiFone also plans to introduce its low-priced cell phones with attractive
subscription packages.

Recent market surveys revealed that the demand for low-range cell phones is
on the increase. The demand for this product has risen to 70 percent of
market share from around 50 percent at the end of last year. It is predicted
that 90 percent of first-time mobile phone users will choose a cheap model.

Telecom businesses explained that customers are attracted by not only easy
to use functions and cheap prices of the product but also cheap subscription
fees and attractive promotion programmes offered by service providers.

The fee race among mobile phone service providers has enabled consumers
with modest income to access the service.

Models priced between 599,000-950,000 VND each made by Nokia, Motorola,
Samsung and Sony Ericsson are also selling very well while S-Fone said it is
unable to meet demand for eCo handsets.

The German market research company GFK forecast that Vietnam 's mobile
phone retail market will grow by around 35 percent this year.-Enditem