Surf till you drop on your mobile

The pager is history. More than 10 years ago, this device was very popular in Indonesia and could be seen attached to every executive's belt.

The era of the pager ended when the first affordable mobile phones were introduced. With superior features and flexibility, mobile phones enable people to communicate with each other easily either through voice call or short message service (SMS). Mobile phones offer many benefits. First, people can keep in touch anywhere and anytime with their family, friends and business associates. Second, with advancements in technology, many phones are equipped with additional features such as music player, digital camera and Internet connection.

Although the average retail price of mobiles in Indonesia is lower than in neighboring countries such as Singapore and Malaysia, Indonesia is an important market for mobile phones considering its vast population compared to other countries in Southeast Asia. Mobiles retail here for 34 percent and 31 percent less than in Singapore and Malaysia respectively.

The Indonesian mobile phone market is generally divided into Global System for Mobile communication (GSM) and Code Division Multiple Access (CDMA). Based on a GfK retail tracking study, GSM mobile phones dominate the market with a more than 80 percent share. Although people may have both technologies in a single handset (GSM-CDMA), so far the demand for dual phone handsets is minimal (1 to 2 percent of total demand).

In the GSM market, users can access the Internet through their mobile phones as long as their phones have the General Packet Radio Service (GPRS) feature. This is the basic Internet connection through a mobile phone network. If users want to have a faster Internet connection, they can use a 3G capable handset.

Even though 3G capable mobiles were first retailed here in January 2004, it was not until September 2006 that a 3G network was available. The segment has since grown significantly, with 3G mobile sales accounting for 21 percent of total mobile phones sales. Price-wise, 3G mobiles are relatively more affordable than before. For example, the first 3G mobile in January 2004 retailed for Rp 4.4 million, whereas today's average price is Rp 2.8 million. The cheapest 3G mobile sells for less than Rp 1 million. Based on GfK research, there are more than 100 models of 3G phones on the market.

The latest available technology in the GSM mobile phone industry is 3.5G technology. This is also known as High Speed Downlink Packet Access (HSDPA) capable handsets. With this technology, Internet access using mobile technology is faster. It is claimed that connection speed can reach up to 3.6 Mbps, depending on area of access.

Mobiles with the HSDPA feature have dominated 3G sales in Indonesia since December 2008. Among 3G handsets, HSDPA equipped phones account for 51 percent of total sales. The average retail price of HSDPA mobiles is Rp 3.5 million, while the cheapest sells for Rp 1.45 million. Yes, it is very affordable! By spending an extra Rp 500,000, you can surf the Net with your phone with more comfortable connection speed.

Meanwhile in the CDMA market, using a mobile phone for surfing the Internet is not as popular as with GSM users. The recent technology in CDMA industry to boost the speed for Internet connection through a mobile phone is called CDMA EV-DO (Evolution Data Optimized). Although this technology equals 3G technology in the GSM industry, it takes time for users to get used to this technology. Some say the limited area coverage is of major concern. This is the challenge for CDMA operators to change the image about their service. Once the image is changed, we are quite certain that sooner or later users will consider this technology, as a more affordable rate is offered by CDMA operators.

Nowadays, the number of people accessing the Internet through their mobile phone is increasing. There are various reasons why this is becoming popular. One reason is the support from network service providers and mobile operators in offering very affordable rates for accessing the Internet through their service. It is apparent that we don't need additional devices, just a mobile phone, plus a little money for unlimited usage so we can surf till we drop!