Cellphones that can handle dual-SIM cards are likely to be big sellers during the World Cup games, as tourists seek ways of staying in touch with home, and trimming call costs while in SA.
The little-known handsets have been available in SA since mid-2007, but until recently have not been big sellers in the market. Arthur Goldstuck, MD of World Wide Worx, says the phones are “completely unknown” in the local market as they are niche products.
He explains that the phones are not made by mainstream manufacturers, which puts people off buying them as they are unknown.
However, despite this, Goldstuck sees opportunities for the phones to benefit tourists coming to SA, and local people who want to benefit from on-net calls, but don't want to be constantly swapping SIM cards.
Goldstuck explains that up 10% of urban cellphone users are using multiple SIM cards. “There is a strong need for something that addresses this need.”
The phones allow travellers to make and receive calls off both SIM cards. He says the devices work like normal cellphones, but have two buttons to answer calls, one for each SIM.
Big plans
AG Cellular MD Franco di Blasio says the company, which designs a range of dual-SIM phones locally, will “do a big push this year” to punt the phones at tourists. November and December were the company's best months since launching, he adds.
“In the past 12 to 18 months, we have launched several new handsets with dual-SIM card and dual-standby technology. This enables the user to have any two SIM cards in the phone and active at the same time,” he explains.
The company's phones are sold through retailers, such as the Edcon and Foschini group, locally, as well as suppliers in the Southern Africa Development Community region. Prepaid contracts are sold through Bayport Cellular.
AG Cellular, which has 200 field staff and a head office complement of 60 people, is seeking to grow the brand and its reach locally and internationally, says Di Blasio. “We have big plans for 2010 and all that this year brings; we are already looking at new models and technologies to keep us ahead of the game.”
Late last year, ThL Mobile released the Mi-TV, an analogue TV phone that can receive and record broadcasts from e.tv and the SABC, and features the capacity to hold two SIM cards.
Sales growth
Edcon, which sells a range of six dual-SIM phones, expects the 2010 World Cup to grow sales of the handsets.
Lloyd Waldeck, executive manager of group communications at Edcon, says the range of dual active SIM phones is targeted at travellers who usually have high phone bills when they roam. Edcon is the first national retailer to sell the dual-SIM phones.
He explains that the company's decision to stock dual-SIM phones was not in preparation for 2010, but that the amount of tourists coming into SA should bolster sales. The country expects about 500 000 tourists in mid-year when the games kick off.
Waldeck says the phones, which retail from R1 000, will allow tourists to keep their international SIM cards active, but acquire a local card to benefit from local calling rates. He adds that, while the range is niche, it is selling well, and has beat expectations. “Customers that see it, love it.”
Mixed response
Waldeck explains that the phones are not SIM card dependent and are sold without a contract, or without the requirement to buy and activate a SIM card. He is not aware of any of SA's cellular networks offering the phones for sale.
Goldstuck says the network operators are unlikely to expand their range to include dual-SIM phones. “Network operators count on customers to keep one SIM card deeply embedded in the phone for the life of the phone.”
Vodacom does not currently offer or sell dual-SIM cellphones. However, a spokesman says the cellular operator has roaming agreements with most operators in the world, and expects tourists to roam on local networks or purchase a Vodacom SIM card, to stay connected with family and friends.
Cell C, conversely, welcomes the concept of a dual-SIM phone. Sean van der Westhuizen, the company's operations executive, says although it does not currently offer the phones, the handsets offer exciting opportunities.
“Cell C believes it presents an opportunity to gain new customers. Many tourists will want to take advantage of the products and rates of local network providers, while at the same time use their own SIM cards to roam in order to stay in touch with family and friends,” says Van der Westhuizen.
Julia Lamberth, Ernst & Young's telecoms sector leader, says there is a huge target market for the handset. She explains that subscribers who have two SIM cards to benefit from discounted call rates would be able to take advantage of not having to swap cards around.
She adds that the phones could also tap into the African market, where many people have two SIM cards.
Related story:
Analogue TV phone released in SA
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