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PHILIPS ISIS SET TO GAIN GROUND

NEW YORK-Philips Consumer Communications L.L.P., has embarked on plans at home and abroad to market aggressively its new ISIS Advanced Mobile Phone Service/Narrowband Analog Mobile Phone Service handsets.

The Dallas-based joint venture between Lucent Technologies Inc. and Philips Electronics North America Corp. began selling ISIS in the fall. Philips said the handset offers up to six hours of talk time and 70 hours of standby time when used with the optional 1600 Milliamperes Hour (mAh) Nickel Metal Hydride battery. It also runs on disposable alkaline batteries.

This month, KMart Corp. launched a chain-wide promotion of the ISIS phone in its more than 2,000 stores. The handset is being marketed as part of the CellEaser prepaid cellular program of Shared Technologies Cellular, Wethersfield, Conn., and its retail partner, Direct to Retail Associates L.P., Framingham, Mass.

“This is … one of the first times retailers have been provided with a national footprint program for selling cellular phones with a self-service customer program,” said Raymond J. Wysocki, president of Direct to Retail.

“Self-service cellular potentially is the next VCR or microwave for all retailers in terms of incremental volume and profits. It’s a product that will sell in all classes of trade, from mass merchants to chain drug stores to wholesale clubs and even, eventually, supermarkets.”

Direct to Retail develops strategies for marketing consumer products through direct response TV advertising.

Shared Technologies Cellular offers cellular rental, prepaid and activation services nationwide. It offers phone-rental services through car-rental agencies, airlines and hotels. STC sells prepaid and standard activation services coast-to-coast through national retail outlets. It can offer cellular services to approximately 94 percent of the U.S. population in its capacity as a reseller for major carriers, including AirTouch Communications Inc., Bell Atlantic Mobile, GTE Wireless, 3607 Communications Co. and United States Cellular Corp.

Meanwhile, in Thailand, Philips said it became the first handset vendor this year to launch an inexpensive analog model-the ISIS. As a new entrant into the Thai marketplace, the company’s goal is to sell 40,000 of the phones this year, according to a report by Worldsources Inc.

“Philips has a clear policy that, although the Thai market is experiencing a downturn, it is necessary to lay down a strong platform for the brand as [the country] prepares for economic recovery,” said Umrung Sriboonlert, senior executive at Philips Consumer Communications.

To create a strong presence, he said Philips is working closely with cellular carriers to facilitate distribution of its ISIS handsets.

Philips has been flexible and cooperative, according to Somyot Woraprechapinich, senior marketing executive at Total Access Communications, one of five wireless carriers headquartered in Bangkok.

“At first we talked about importing Philips handsets in U.S. dollars. Later, they agreed to quote in Singapore dollars, and finally in Thai baht,” he said.

Another Bangkok-based cellular provider, Advanced Info Services Ltd., announced plans to attract consumers on tight budgets to buy inexpensive mobile phones by lowering their monthly fees for service.

Ericsson Inc., Motorola Inc. and Nokia Corp. so far have had the Thai market to themselves, according to Worldsources. Motorola plans to launch a low-end analog phone this year. Philips seeks to compete with other new Thai market entrants, Dancall, Siemens Wireless Terminals and Mitsubishi Wireless Communications Inc.

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