Beijing Communication Corp is planning to introduce "Little Smart" wireless phones equipped with removable personal identity module (PIM) technology early next year to further consolidate its market share.

"We are conducting trial tests for such a phone. And it performs as well as ordinary phones," said an official with Beijing Communication Corporation, a subsidiary of China Netcom Communication Corp.

"But we are not in a hurry to commercialize the services as only a few phone manufacturers can provide the phone now," said the source who refused to be named.

"We expect to launch the service early next year as many handset makers are able to produce the phone then," he said.

The removable PIM card is a small module, similar to a GSM SIM (subscriber identity module) card, which stores the subscriber's account information.

By storing information on a PIM card instead of programming it directly into a phone, subscribers can easily buy a new phone and simply move the PIM card containing all of their information from their old phone to a new phone without having the operator perform any programming.

Currently, "Little Smart" phones sold in market are all embedded, meaning the PIM card is integrated into the phone.

Sources close to the company said Beijing Communication Corp is currently working with several little smart phone producers to work out a standard for the handset with embedded PIM technology.

The "Little Smart," also called Xiaolingtong, is built onto the existing fixed-line network and lures users with low per minute rates, one-way charges and cheap monthly fees. It does not allow roaming between cities.

UTStarcom Inc introduced the first PAS (Personal Access System) handset model with removable PIM technology -- UT228 PAS handset -- at the PT/Expo Comm 2004 late last month in Beijing.

"With the new PIM card technology, users will be able to upgrade to newer PAS handset models without the hassle of having to change their phone number or lose private information stored on their existing handsets, such as phone directories or text messages," said Ying Wu, CEO and chairman of UTStarcom China.

For subscribers who visit multiple cities, having different PIM cards from different cities allows them to have local numbers and local service in each city using the same phone, he said.

Analysts also believe operators will benefit from PIM card technology because it will make the management of the PAS service more efficient and decrease operating costs associated with the technological personalization of PAS handsets.

The introduction of PIM card technology is also expected to enhance the PAS handset replacement market.

Currently, the replacement rate for PAS handsets is approximately 2 per cent, which is significantly less than the replacement rate percentage for GSM and code division multiple access (CDMA) handsets worldwide.

(China Daily November 4, 2004)