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29 March 2024

IP-enabled phones set to grow in region

Hans-Burghardt Ziermann Managing Director and CMO, Gigaset Communications. (XAVIER WILSON)

Published
By Nancy Sudheer

Gigaset Communications, the Germany-based manufacturers of cordless telephones, believes that with VoIP (voice over internet protocol) policies opening up in the Middle East, IP-enabled phones will be the growth area in this region.

"The company also grew 40 per cent in the Middle East last year, the highest in emerging markets, inspite of the global recession," said Hans-Burghardt Ziermann, Managing Director and Global Chief Marketing Officer at Gigaset. In the UAE, the company is already working with telecom operators to launch its IP-enabled phones, he said.

 

Will Gigaset ever venture into the mobile phone segment?

Gigaset did not participate in the mobile phone boom. Therefore, [it] was not affected by the bust last year. Non-classical suppliers such as Apple were not affected, but at the same time, classical suppliers such as Motorola and Nokia were badly hit due to market conditions and the emergence of new competition. We didn't see the need to venture into a new product segment as consumers were still continuing to spend money, particularly in markets such as Spain, the UK and the Netherlands.

Would the company consider moving to a newer platform?

We would continue to remain a cordless voice supplier and would not want to move to new product segments. As a company, we would want to expand into cordless voice, hands-free communication and wearable devices. Consumers don't want to use their mobile phones at home as they want to be comfortable. Gigaset will look at devices used for communication at home, that are hands-free with a high voice quality. Another area is the SOHO (small office home office) environment with cordless office applications. This will be done by maintaining our strength in cordless voice.

Isn't the company limiting its growth on one platform?

There are already biggies in the mobile segment and we don't intend to compete with a Nokia, Samsung or Apple. As Gigaset is a divestment of Siemens, we don't plan to change the direction of the company. We continue to see growth in communication at home with product differentiation and enhancement in that area. Another trend we see is that the 'B' brands will disappear from the market. Additionally, the number of corded telephones is currently more than that of cordless. In a market such as India, just 50 per cent of fixed lines are cordless. With income growing in that country, there is huge market potential. Even in a market such as the US, all home communication is decked and analogue. As telecom operators globally get into triple play where you have communication between TV, voice and internet, data pipes will be provided in people's homes as they distribute packets according to customer requirements. Therefore, operators will need phones to install triple play. As quality of voice, feature sets and multiple handsets gains relevance, they realise the advantage of home cordless communication. Voice will also depend on connectivity and the data pipe, but beyond that we don't want to compete in the mobile arena. In the future, touch will be a new platform for Gigaset. With the iPad becoming a de facto [yardstick] of quality, even in home devices, touch-based products will make an entry, eventually. Gigaset is already working on products in this segment. It will be for high-end communications at home, where it will have applications integrated on the phone related to home.

In the Middle East, especially the UAE, with a 200 per cent penetration of mobile phones, how would Gigaset survive the tough competition?

We are not competing in the mobile segment as we focus purely on the home segment. We are focused on decked, which has room to grow, replacing the analogue market globally. In the Middle East, with VoIP policies opening up, IP-based phones is the area of growth.

Bandwidth will increase along with voice quality, encouraging users to purchase IP phones. As technologies like triple play develop, IP-connected phones will replace decked telephones. With applications like Skype, international calls will get more attractive in terms of pricing, and as we have hybrid solutions that help consumers to switch from analogue to PSTN to mobile, there is a growth market for IP phones. Customers don't have to change communication habits but have a new way to communicate. In countries like India, as most of the population communicates on mobile, as fixed lines are not available in many areas, there is huge market potential but at the same time a challenge.

How did the global recession impact the company?

A few of the major markets saw a positive effect, mainly because the consumer preferred to stay at home; they wanted to cut down on travelling and communicate from home. The company grew 40 per cent in the Middle East last year – which is the highest in the emerging markets – in spite of the global recession. As an organisation, we got out of home media, wireless side for modems and gateways, focusing on cordless voice and IP phones. Overall, the company grew at 10 per cent, with higher numbers coming from emerging markets.

How many units did you sell globally last year?

Last year, we sold 14 million units globally, but as Gigaset has high-end products, the unit figures are less while revenue is still high. In individual product lines, there is an eight to 10 per cent growth in units. In the Middle East, Gigaset has sold half a million units, which has remained consistent.

PROFILE: Hans-Burghardt Ziermann Managing Director and CMO, Gigaset Communications

Ziermann is responsible for the company's global marketing and sales business, product management and corporate communications. A graduate in Computer Sciences, Ziermann is a member of the VARTA Microbatteries executive board and has held managerial positions at VIAG Interkom, France Telekom and Motorola, among others.