Modu, an Israeli startup, has introduced a new concept in the cell phone segment that will enable consumers to update their cell phones to suit their seasonal needs without having to actually change phones. Customization in the cell phone industry is still in the infant stage. Modu plans to launch a phone module that can fit into different interchangeable jackets. Different jackets are being planned to suit the needs of different customer segments.

 

On its own, the tiny phone module is smaller than the current iPod Nano and will function as a basic cell phone but its ability to pop into different jackets will transform it into smart phones of amazing capabilities. The jackets would provide all the extra features needed for a smart phone but would not be able to function as a phone without the Modu. Modu would provide the essential circuitry that would connect it to the wireless network and the jackets would merely enhance its capabilities. The compatibility of the cell phone with different carriers would be provided by the Modu and the jackets would be add-ons that would not have to be tested and can be added at any time that is convenient to the consumer.

 

Modu would be available on Oct. 1st initially in three countries - Israel, Italy and Russia. The company has partnered with leading carriers Telecom Italia (News - Alert) SpA in Italy, OAA Vimpel Communications in Russia and Cellcom Israel Ltd to provide the services. The price is estimated to be around $280 for the Modu along with two jackets. The company expects to introduce more jackets later. Heavy discounts by the carriers can also be expected when consumers sign up for extended period contracts. Modu plans to extend its services to the US on a later date.

 

"The carriers really are interested in having more and more customers coming through their stores, rather than signing up and coming every two years to sign a new contract and get a new phone," said Daniel Amir, a chip analyst at Lazard Capital Markets in San Francisco. He called the Modu a potential "game changer" in the cell-phone industry.

 

Customization offered in cell phones is currently limited to changing the phone’s color. Lot of players including Sony (News - Alert) are exploring ideas which can offer consumers increased customization and transform their cell phones to different gadgets with detachable components. The jackets provided with Modu would be customized to suit the tastes of consumers in the different countries - cartoons in Russia to tap the growing kid segment and rugged designs to suit the soldier base of Israel. Other possibilities for the jacket include a full keyboard or gadgets with greater Internet capabilities.

 

However, the current technology adopted by Modu for data transfer is GPRS, which makes data, transfer much slower. Modu is in the process of overcoming this drawback to enable fast data transfer.

 

Different industry players are introducing new products to differentiate themselves. The Israeli startup’s Modu will be one such forward-looking product to hit the market. For more information, please visit http://www.modumobile.com/

 

 

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