The subsidised cellphone system used by the network operators has done much to lower the cost of entry and boost the market, says Philippe Kubbinga, Sony Ericsson sales director for SA.
Speaking in Cape Town last night at the South African launch of his company's new range of cellphones, Kubbinga said: "The cellphone subsidies have lowered the cost of entry into the market for people who otherwise may not be able to afford the more expensive phones. The system has worked well and I think it should continue."
The issue of the network operators subsidising cellphone costs on their contract offerings has come under the spotlight as the regulator - the Independent Communications Authority of SA - raises concerns about the minimum 24-month commitment involved in such contracts.
Last night Sony Ericsson launched several models into the South African market. These included the first Walkman-branded phone - the W800 - expected to be the competitor to the Apple/Motorola iTunes phone that is rumoured to be launched this week. The W800i comes with an in-phone digital music player and CD ripping software, which allows users to drag and drop the music from their CDs onto the phone.
Another new phone is the K750, which Sony Ericsson says is the first of its type to have a 2MP camera with auto-focus.
"That phone is the pinnacle of our strategy on imaging. It is for those who really want a good camera," Kubbinga says.
Other phones featured were the K600, a 3G phone and the V600 models. The latter is customised for the Vodafone Live offering from Vodacom, while the former is a generic model that will be offered through MTN and Cell C.
Kubbinga says all the models will be made available on a contract basis through the networks.
The W800 Walkman phone will be available from the fourth quarter, while all the other models are available immediately.

