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LG And Telecom Firms Hold Talks To Unveil New Phones

Published Nov 4, 2009
South Korean electronics manufacturer LG is in talks with regional telecom operators to offer its new range of smartphones based on the new Windows 6.5 operating system for the first time in the region by next month.

"Negotiations are on with operators based in Saudi Arabia, the UAE, Egypt, Turkey, Jordan and West Africa. The smartphone range comprises 'Times', 'Laila' and two other ranges. As all customers don't require data packages it will also be made available through the retail network," said Mohammad A El Yassir, General Manager (mobile phone devices unit) of MEA sales operations at LG
The company has worked with telecom operators in South Africa for its complete range of mobile phones.

"South Africa is dominated by operators, as the market penetration for low- to high-end phones are high. In this region, the market is more of a retail-oriented one and operators are extremely profitable," he said.

"They don't want to subsidise and offer phones like in Africa and Europe. There, customers get into long-term contracts as the phone is subsidised. The business model adopted by Gulf-based operators makes the phone expensive," said El Yassir.

In this region it works with distribution partners such as Axiom, Xpin Africa, Comtel and i2. LG has also been working with Microsoft to give joint presentations to operators and also for training LG employees on the new operating system.

LG has always preferred working with retail channels and leaving the choice on the consumer. In markets where there are many operators, it gets complex for customers," said El Yassir.

"The other smartphones available through regional player etisalat are niche ones, while we are available across the segment. Therefore for an operator such as etisalat, they don't have to focus so much on distribution for an iPhone or Blackberry."

As competitors get ready to launch Google Android-based smartphones in the region, LG is also looking to launch its first smartphone based on Google's operating system in January.

"All these new launches are in line with the strategy of the mobile division, which has only been active since last year. Our competitors have downsized headcounts and been complacent, but we have done just the opposite," said El Yassir.

In fact, LG has worked with etisalat on the netbook front by offering data packages for UAE consumers.

At the time of launch, LG had offered a free one-month 10 giga byte mobile business data package for etisalat's business customers with a 3G+ Netbook.



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