Yet another European-based company is entering the U.S. digital handset market, trumpeting its communications and manufacturing expertise, particularly in Global System for Mobile communications technology.
A U.S. division of Siemens A.G. hopes to eventually grab a double-digit slice of market share when it begins selling digital GSM handsets next year.
Earlier this summer, Netherlands-based Philips Electronics NV announced its intention to enter the worldwide digital handset business, with an eye on the U.S. market.
Motorola Inc. controls at least 40 percent of the U.S. handset market. Nokia Mobile Phones holds roughly 20 percent, followed by Ericsson Inc., with about 10 percent. The rest of the market is divided between Asian manufacturers, such as Fujitsu, which has 1 percent.
Siemens Wireless Terminals is expanding and renovating its cordless phone factory in Austin, Texas. The factory builds about 750,000 phones there now, primarily customer premise equipment. Ground is being broken to expand the plant and the new product will be the g1050 GSM phone that operates at 1900 MHz.
The first commercial shipments of g1050 will be in second quarter 1997, although those phones probably will be built in Germany. GSM phones are expected to roll out of the Austin plant in first quarter 1998.
Siemens also will build phones based on the Code Division Multiple Access standard, to operate on 800 MHz or 1900 MHz networks. CDMA phones may be available in first quarter 1998 as well, Siemens said. Siemens Wireless has research and development headquarters in Dallas.
The phones will contain software and microprocessor chips manufactured by other Siemens subsidiaries. Siemens Wireless is a division of Siemens Rolm Communications and Siemens USA.
Siemens wants to sell the phones to wireless operators that own the networks, and perhaps later to retailers, said Thomas Jasny, Siemens Wireless vice president of sales and service.
“The operators have an interest in reclaiming distribution of phones,” Jasny said. The handsets can be branded with the operator’s name on the front, and Siemens on the back.
Siemens Wireless expects that some of the special features of the g1050 GSM phone will make the product distinctive and attractive to both first-time users and experienced business professionals.
It has a high resolution, 64-character graphic display with four rows of 3200 pixels. Soft keys can be labeled with text or icons.
“This is a two-dimensional grid for pictures or text,” said Michael Palacios, Siemens Wireless product manager. As the phone powers up, the display contains a moving scene of the phone reaching out for the network. A network operator could request a program that displays the operator’s logo as the phone powers up, Palacios said.
The phone offers dynamic character sizing that adjusts as digits are entered. The numbers are about 18 points tall, at the largest.
The phone will use a full-size Subscriber Identity Module card, the size of a credit card. The SIM card could be used for non-phone operations as well, such as banking. Siemens believes the full-size SIM card with non-phone capabilities is a distinctive step into the future for U.S. users. The card also is a way for operators to directly connect with customers.
The g1050 GSM phone weighs about 7 ounces, is 6.22 inches tall and 2.36 inches wide. It uses a standard lithium ion battery with 105 minutes of talk time and 27 hours of standby time; charge time is about two hours.
The earpiece is replaceable, for personal preference satisfaction.
Siemens AG is a $60 billion manufacturer, well known in the telecommunications arena for switching equipment. Siemens said it dominates 22 percent of the worldwide communications market sales.
Siemens also is a partner in another wireless joint venture active in the U.S. wireless market. Florida-based Siemens Stromberg Carlson sells 1900 MHz infrastructure equipment and is promoting PACS technology, a low-tier network for personal communications service providers.
