Samsung Plans to Invest US$20mn in the Next 2 Years

The Argentine unit of Korean hardware manufacturer Samsung plans to invest US$20mn in the next two years in a move to become leader in the mobile phone handset market, newspaper Infobae reported the company as saying.

According to Samsung's telecommunications marketing director for Latin America Sung Hoan Kim, the company is focusing on selling high impact equipment as Samsung intends to increase penetration in the high value segment.

The company is planning to launch 14 new mobile devices in the local market this year.

"This year the market will reach 28 million [mobile] users. Nearly 11 million mobile telephones will be imported and we have 14% market share. Expectations for next year are similar," Kim said.

However, Kim said that to see market growth operators would need to invest in infrastructure to upgrade their mobile telephony networks.

"People now can not use 100% of services mobile devices that operators could offer because networks are not yet prepared for that," he added.

According to the executive value added services and not voice are generating profitability for companies.

Kim pointed out that services such as number portability and internet access were essential to boost growth in the use of mobile phones.

"To offer a better service cells should be added and bandwidth needs to be expanded. Speed is money," Kim said.

The company also expects to target the smartphone market but not immediately as the company believes the network is not prepared and there is not sufficient volume.

"We want to introduce more sophisticated phones into the market but network is not yet prepared for them and there is not the necessary market volume... More than 50% of phones in the region cannot support GPRS," Kim said.

The executive also said it is difficult to sell equipments directly to public due to subsidies offered by carriers.

BNAmericas.com"

Posted to the site on 13th September 2006