The TB710 binaural phone headset from Hong Kong's Accutone has an extendable soft-metal headband to fit different head sizes.

Wireless models gather pace, but wired models continue to top product offerings.

Despite its secondary product line status, the call center headset supply market in Greater China is expanding slowly with wired and wireless headsets available. Production volumes will likely continue growing at a moderate pace, but the product range will nonetheless expand to comprise different types of headsets based on number of channels used in sound reproduction, design, transmission direction, noise technologies used and connectivity.

Wired headsets dominate supply in mainland China, Taiwan and Hong Kong. Wireless models have been building momentum, with Bluetooth the de-facto technology of choice by makers. However, cost and demand considerations will delay makers' adoption of wireless headsets, especially as suppliers have yet to establish market footprint in the international scene to be able to compete with foreign powerhouses such as Jabra and Plantronics. Wireless phone headsets have been on the market the past few years, but supply is not expected to significantly dent the market share of wired models in the next two years. Performance issues such as dropped calls and poor battery life have also hounded makers of wireless call center headsets, causing these to be excluded by most large-scale call centers. Due to the small market, some suppliers do not bother to release wireless models anymore.

Mainland China's call center headset supply market experienced stable growth in 2007. Some makers project a 5 percent growth this year, although most companies see steady market performance. In Taiwan, small demand has been discouraging headset makers to expand their production facilities and boost R&D efforts. Price competition and rising material costs are also major challenges for many Taiwan suppliers.

In Hong Kong, the call center headset supply industry has not been exempted from the market consolidation that has been undergoing globally the past years. Many call center headset suppliers in the region have become inactive in the line, with most of their models two years old or older. Many companies have shifted their focus to other voice and audio products for the consumer electronic, mobile phone and personal computer markets, and even the surviving players are not keen to expand their product portfolios.

Notwithstanding the rather bleak prospects, many makers believe continued growth in the global call center industry will provide the much needed catalyst for Greater China's headset market. Other growth drivers for call center headsets are the growing number of enterprises with their own customer service hotlines and the burgeoning SOHO sector that requires employees to be constantly on the phone. As business communication requirements become stricter, technical, health and safety issues surface, pushing upgrades in the performance and quality of headsets.

	Hong Kong's Accutone offers the lightweight H30 monaural headset, which features a voice tube microphone and aluminum body.

Greater China's supplier base for call center headsets exceeds 100 companies. The line, however, remains a secondary product in the region despite growth in recent years in both the product type and the call center industry in general. Since call center headsets cater to a niche application market, the majority of makers in Greater China focus their production on PC headsets, which reach a broader market. Makers have also been confronted with decreasing profit margins and fierce competition, forcing many suppliers to explore more profitable product lines.

Mainland China is the main production center for phone headsets. Hong Kong suppliers' factories are mostly located in Guangdong, Jiangsu and Fujian on the mainland. Global leading brands Plantronics and Jabra also have factories in Suzhou, Jiangsu and Xiamen, Fujian, respectively.

Mainland China has 80 to 100 makers of call center headsets. Guangdong, which has a strong supply chain for audio products, is the main hub for producing call center headsets. Most call center headset makers on the mainland have a monthly output of about 3,000 to 6,000 units.

Hong Kong has only about five suppliers of call center headsets, including Accutone Technologies Ltd, Globe Audio Products Mfy Ltd and Innovation Technology Co. Ltd. Most companies produce different voice and audio products such as earphones, headphones, mobile phone headsets, and PC headphones and headsets.

The supplier base in Hong Kong is unlikely to change in the next six months. Until call center headsets reach full commodity status, no new supplier is expected to enter the line. Some may even exit the line.

Taiwan's production of call center headsets is centered on Taipei. There are less than five makers active in this field. The suppliers can be divided into two types: makers of headset products and makers of phone accessories.

Companies in Taiwan admit that foreign makers from the US and Japan, such as Plantronics, Panasonic, Toshiba, GN Netcom (Jabra) and VXI Corp. (Blue Parrot), dominate this product line. High product development costs in the face of small volume orders and stiff competition also contribute to the slow growth of the Taiwan supply market. Makers face the challenge of ensuring quality while limiting price increases to remain competitive against not only mainland China and Hong Kong makers, but also international brands.

	Mainland China's Comfortcomms offers the HPM-81 binaural headset, which features an ear cushion that provides extra comfort for extended wear in a call center environment.

Several companies forecast sales growth this year and the next few years despite the small status of the line compared with other headset products.

Shenzhen On-Prosperity Technology Co. Ltd generated more than $1 million in sales in 2007. The company expects to push this up to $3 million in 2008.

Dongguan CSZ Electronic Fty specializes in mobile phone earphones, multimedia headsets, microphones, RCA cables and call center headsets. At present, call center headsets account for a small percentage of the company's sales. Nonetheless, the company forecasts a stable sales situation for the line in 2008.

Comfortcomms Electronics Co. Ltd manufactures call center headsets, computer headsets, ANR/SRS headphones, audio headphones, mobile phone handsfree products, walkie-talkie headsets and Bluetooth headsets.

Hong Kong's Accutone produced an average of 40,000 call center headsets per month during 2007. This year, Accutone projects at least 10 percent growth in its call center headset shipments.

Globe Audio can produce 3 million audio products per month, mainly earphones and headphones.

Taipei-based Yueh Jhr Co. Ltd has a monthly production capacity of 100,000 call center headsets. It generates about $500,000 in sales from phone headsets per month, 20 percent of the company's total sales revenue.

Some companies such as Hetronic Communications Inc. focus on the product design while outsourcing production to other factories. Hetronic is applying for a patent for the company's touch-type Bluetooth match system. The headset features quick search and setup.

	Yueh Jhr of Taiwan has launched the HS-100 headphone, with 20Hz to 20kHz frequency response, 150ohm impedance and 96dB±2dB sensitivity.

Supply in Greater China is dominated by wired call center headsets. Many companies do produce both wired and wireless models, but they expect that given the small demand for the latter, wired models will continue to take up the bulk of their production in the months ahead.

For instance, Accutone is the only supplier in Hong Kong to have released wireless models. Despite this development, the company's output is dominated by wired headset models.

Taiwan makers offer both wired and wireless models. Wired models mostly feature over-the-head design. According to makers, trendy ID is not a major product development priority compared with comfort to support prolonged headset use. Thus, ABS is the most commonly used material to enable light weight and durable units.

Makers acknowledge the importance of technical knowledge in order to develop a unit with good audio quality and phone compatibility. Since call center headsets are not universal in the way analog or digital headphones are, they need to be designed with specific functions and compatibility factors in mind. Developing headsets compatible with desk phones is a big challenge for Taiwan makers, as are external design and audio quality. Some companies such as Yueh Jhr and Hetronic can offer headsets with universal cords to fit most types of phones, but ‘exclusive' headsets are deemed competitive.

Yueh Jhr offers a phone headset that comes with a universal switch box that can fit most desk phones. The company offers headsets with ABS cases and head band made of steel bar and PVC. The company's wireless models are priced $10 higher than wired headsets.

Hetronic offers headset and telephone sets available in wired and wireless versions that can be used in homes, enterprises and call centers. Hetronic can also provide call center software solution and installation.

A wired call center headset from Hetronic in ABS housing and with a switch box lists at $2 to $3 each. The company's HD-01 is a wired phone headset that supports a speaker with 27mm diameter and 32ohm impedance.

The company's R&D focus for its call center headsets will be on ease of wear and voice quality.

Only a few makers in Greater China are currently concentrating on wireless models. The main reason curbing the adoption of wireless technology is the unstable market demand for wireless models. High technology investments and the increase in production costs are also contributory factors.

Many makers are focusing instead on improving audio quality. Most suppliers are adopting noise suppression technologies, and some use circumaural design to enlarge the contact area in the ears and reduce the background noise by more than 20 percent. Another approach is to use better-quality speakers and microphones.

In terms of product design, makers are reducing the product weight and improving comfort.

Suppliers are likewise adopting more stringent QC measures. In mainland China, headsets undergo several tests before shipment. These tests include housing and audio tests, as well as SNR tests.

The testing procedures vary from one company to another, with larger companies generally implementing stricter and more complex tests. Products that are shipped to the US are tested to comply with a specific sound level requirement, dB range and acoustic shock protection to avoid injury from prolonged use.

Available wireless models use either Bluetooth or RF. Beginning this year, Bluetooth's role in the wireless headset sector will be felt more strongly. Wireless call center headsets usually adopt Bluetooth 1.2 or 2.0.

Since Bluetooth technology is controlled by the chipset suppliers, Taiwan makers are only focusing on the hopping feature and auto search technology of the products.

Hetronic, which supplies both wired and wireless headsets, builds its wireless models around Bluetooth. Its BHS-868 wireless headset uses a CSR BlueCore3-MM solution. It supports Bluetooth 1.2 Class 2, HSP, HFP, A2DP and AVRCP. It can be used for music listening with remote control and Skype communication. It can be worn in three ways: ear dongle, tie clip and neck chain.

Aside from headsets, Hetronic also offers telephones that support Bluetooth connection to headsets. According to the company, the current telephone offering requires a converse box to connect with a Bluetooth headset. The company added that one-third of the budget is spent on the Bluetooth-enabled telephone and headset.

The company's combination Bluetooth telephone and headset is suitable for medium-sized call centers with less than 60 operators.

	The OPS-905 professional call center headphone from mainland China's On-Prosperity features a mono-directional microphone and noise reduction.

Call center headsets from mainland China are classified into omnidirectional and mono-directional types. An omnidirectional headset can evenly receive sound coming from every direction. Mono-directional types have noise cancellation function to filter out 75 percent noise interruption.

Value-added functions and features include quick disconnection, mute button and adjustable volume. Other than these, makers are paying much attention to the cosmetic design of their headsets together with product performance and reliability.

Due to the increasing awareness of the health hazards arising from prolonged use of headsets, a growing number of headsets designed for ease of use are now being offered in mainland China. These call center headsets generally adopt ECM microphones, which ensure stable working performance and sensitivity during long periods of time.

Enameled copper wire is used by some companies to improve sound quality. Non-oxygen brass enameled wire can be found in high-end models. To avoid compromising the audio quality, which may be influenced by the oxidation of the connector plug, the connectors of high-end headsets are gold-plated.

Comfortcomms provides more than 10 models of call center headsets, some of which feature quick disconnection. One of the company's popular models is the HSM-1002, which features a high-quality earphone cushion.

On-Prosperity has launched the MicTube, which conveys the sound to the microphone and reduces the environment noise. The OPS-0903 has a mono-directional microphone for enhanced noise reduction.

Prices of call center headsets from mainland China vary according to the materials used, functions supported and designs.

On average, a headset with a microphone and an RJ-45 interface lists at $1 to $2 each. A set with a dialing box is priced from $25 to $35.

Suppliers of call center headsets in Hong Kong have been broadening the range of their products and price points to be able to cater to a wider spectrum of customers. Basic, low-cost models are available from most suppliers, and a few companies can offer a host of add-on features that enhance voice quality and contribute to greater user comfort.

Product releases comprise monaural and binaural models with ear-hook and over-the-head designs. Slim, minimalist profiles, voice-tube microphones and aluminum casings have been introduced to create lighter, high-performance models. Some companies use noise-canceling DSPs to filter out noise not only for the speaker, but for the microphone as well.

Accutone strives to strike a balance between professional-level acoustics and cost effectiveness. Many of its headsets have built-in acoustic shock protection (ASP) circuitry and quick-disconnecting cable. The company's TM363 is an over-the-head headset with a noise-canceling microphone.

Accutone has introduced call center headsets that are also suitable for executives and professionals. The TB710VT is an over-the-head binaural headset with a pre-amplified microphone that attunes to the outgoing volume level. Its voice-tube microphone is connected to a bendable arm to fit different face shapes.

Accutone's wireless offerings include the WT88, an over-the-head wireless headset that utilizes 2.4GHz DSS wireless technology with 40 channels.

Two models from Accutone are designed to be paired with DECT phones: the DT30 and DT818. To further promote itself as a one-stop solution provider for call center equipment, Accutone also provides telephone amplifiers, adapters and headset adapter cables. Forthcoming from the company are 2.4GHz wireless headsets.

Globe Audio's ST-1000 is an in-the-ear monaural headset with a 13mm ferrite speaker, 32ohm impedance and 94±4dB sensitivity. It is available with 1.2m, 1.8m or 3m cable.

Call center headsets are more expensive than PC and mobile phone headsets. Entry-level call center headsets range from $9 to $18 per unit. High-end, wireless models can reach $100 each.

In 2008, interviewed suppliers project less than 10 percent general increase in average prices.

	The CSZ506 monaural headset from mainland China's Dongguan CSZ features a lightweight design and super bass earphones.

Most headset makers' sales revenue from this line comes from exports. Wired headsets take up the majority of shipments. Products are shipped under OEM and ODM terms to Europe, the US and some parts of Asia.

In Taiwan, some products are shipped to telecom operators or customer service centers. Since some products are shipped on a project basis, it is difficult to determine the sales figures for the interviewed companies.

Hetronic ships about 300 units monthly. The company plans to explore new markets in Europe, Japan and the US in 2008.

Europe is Hong Kong's Accutone's top export market. Globe Audio caters primarily to telecom operators and ODM/OEM customers from North America and Europe.

Hong Kong makers generally target enterprises, telecom operators, large firms with their own customer service teams, and business process outsourcing (BPO) contact centers. The consumer and SOHO sectors are secondary target markets. Most suppliers prefer OEM and ODM arrangements to own-brand promotions.

Mainland China's On-Prosperity shipped 8,000 units of three mono-directional call center headset models in 2007. On-Prosperity exports all of its call center headsets to the US, Europe and the Middle East.

Dongguan CSZ ships its products to Europe, the Middle East and Southeast Asia.

Most of Comfortcomms' products are produced under OEM arrangements and are shipped overseas. Some of the company's OEM customers include Matsushita/Panasonic, AT&T, Hosiden, Uniden and Labtec.