Low Cost Branded HandSets - Frequently Asked Questions (FAQs)
1. Service / warranty - is the OEM re-manufacturer located in India?
No they are in Asia – the administration hub is Hong Kong.
They will consider locating a re-manufacturing / repair operation in
India once there is critical mass. Open to establish full-fledged
operations in India.
2. Does the re-manufacturer filter out / identify 'STOLEN' handsets?
Yes they do – there is a secure policy in place to capture and remove non
bona fide, suspect and toxic handsets at source through the software.
3. How about the pricing? Like, if a quote for $ 40> for a high
end Motorola ' MOT V 31 ' handset is available, can this be matched?
Yes, final pricing will be delivered if there is a forward move. Pricing has a number
of parameters to be discussed and then it can be arrived at which is good for both
buyer and seller. Open to discussion and negotiations .
4. If an operator/retailer wants to take it ahead with the re-manufacturer
OEM, how to go about it?
No problems. KTMT would raise the level to its Principals for Asia operations located
at Hong Kong and arrange for the meeting based upon formal request from the operator/retailer
.
5. Is it possible to get a sample of high end and low-end handsets for evaluation?
Yes. KTMT will arrange for it. Any specific model required may be indicated.
6. What are the Govt / TRAI guidelines for import of these handsets and who would
do the importing?
Operator/ customer may decide. This is typically as per the current process
in place approved by DoT. Operators keep importing these handsets for bundling
with their SIM cards or selling through their stores.
7. Would KTMT arrange to provide the NOC for operator to bundle with existing
OEMs handsets such as Nokia, LG etc as it is felt that their brand may get
affected by recycled/refurbished handsets?
There is no requirement of any NOC from OEMs as it is perfectly legal to retain
the original brand so long as any replacement parts used are original or OEM and
NOT duplicate/pirated parts. This is the industry standard and governed by
international copyright laws.
The brand is never changing. It is still Nokia, Samsung, LG, Motorola or Sony Ericsson.
Thus, there is no legal reason for obtaining any NOC as a quid pro quo to the sale
of these handsets.
No such queries have been raised by the OEMs in Americas and EU where low cost branded
refurbished handsets and OEM handsets both are being sold in millions by top operators
like AT&T, Sprint, Rogers Wireless, Bell Mobility and Virgin Mobile. Like wise,
OEMs like Motorola and RIM as also global retailers like Walmart, Best Buy and Costco
sell both types of handsets.
8. Can used handsets be imported into India?
This is a common activity in India with used handsets being exported to India from
Dubai and Hong Kong. There is no government restriction .
9. Can the re-manufacturer OEM come to India for discussion?
Yes, most welcome. This can be arranged easily. The operator/retailer needs to issue
an invite for the visa formalities .
10. What are government guidelines or regulation on the import of re-cycled phones?
There are no separate guidelines from DoT/TRAI/TEC on import of handsets. The only
imperative is valid IMEIs as given by GSMA. Thus, these handsets are to be imported
as if these are normal handsets, which have GSMA, approved IMEIs.
11. What is the market demand for low cost branded handsets vis-à-vis
other low cost handsets being manufactured in China, Korea, Taiwan etc?
Primary research done by KTMT suggests that 65 % customers prefer low cost branded
handsets of Nokia, Samsung, LG, Motorola and Sony Ericsson vis-à-vis other low cost
handsets.
12. How does bundling of low cost branded handsets help operator in increasing
its market share of customers?
80 % customers from tier 2, tier 3 and tier 4 markets prefer value bundling. They
feel confident that apart from gaining price advantage they would get necessary
attention for warranty replacement/repairs more easily through operator recognized
channels vis-à-vis just dealers. These 80 % target customers help in increasing
the market share of operators who launch promotion schemes with value bundles.
13. Who would give support for software glitches occurring in refurbished
handsets, as the software is from OEM, eg, NOKIA, proprietary? In
other words what is the status of software in the refurbished handsets? How
and who will give support and tailoring of the software as per the customer
requirements?
The handsets come with 12 months warranty like OEMs. Thus, these would be provided
warranty service just like the OEM handsets. There is no difference in that and
customer need not worry on account of this. For the buyer, the handset is still
a branded one and would thus be treated like that in its warranty period.
14. Are both GSM and CDMA handsets are available?
Yes, both GSM and CDMA handsets are available.