Motorola wins cheap phone deal

AMSTERDAM – Motorola will sell more than six million mobile phones for less than US$30 (N$192) each in a new programme to bring very cheap handsets to developing markets, industry body the GSM Association said on Tuesday.

The cost per handset will dip below US$30, compared to US$40 in the first Emerging Market Handset (EMH) programme awarded in February, which was also won by US-based Motorola. Ten operators in developing markets have promised to buy about six million of the two models Motorola will submit to the programme, including the new C113, a model which is exclusive to the programme, and the C113, which is available under the first EMH programme and will be made cheaper.”I think we’re going to exceed that six million by a significant amount,” said Ben Soppitt, programme manager of emerging markets at the GSM Association, adding that demand for very low cost mobile phones has grown in recent months.The GSM Association, which initiated the cheap handset programme that is part of its aim to “connect the unconnected”, groups the world’s mobile telecom service providers.Under phase one of the programme, Motorola had supplied a low-cost model which was made available in 17 developing countries – India, South Africa, Nigeria, Congo, Egypt, Algeria, Tunisia, Bangladesh, Turkey, Thailand, the Philippines, Malaysia, Indonesia, Pakistan, Yemen, Sri Lanka and Kenya.These countries have a total population of 1,8 billion people.Around 75 to 80 per cent of the world’s population live in areas already covered by mobile communication systems, but only 25 per cent own and use a handset, largely because of the cost.Over two billion people around the world own a mobile phone.The second EMH programme runs from January 1 2006.Motorola also introduced several other, more expensive handsets that are affordable for lower-income consumers.In the second EMH programme, Motorola beat many competitors eager to expand in the high-volume segment of very cheap mobile phones, where most of the future growth of the sector is expected to lie.”In the first programme, vendors had to be persuaded to participate.This time, many volunteered.Fifty per cent of the proposals were sub-US$30 handsets.So the decision was based on quality, attractive design, brand, logistics, after-sales support and global service,” Soppitt said.The GSMA commended a low-cost handset proposal by TCL & Alcatel Mobile Phones Ltd.Other bidders remained unnamed.A 10 percentage point increase in mobile phone users in a country increases gross domestic product by 0,6 per cent, the London Business School has found.The initial purchase of a mobile phone is the biggest hurdle for most low-income consumers with no monthly salary who live on a few dollars a day and rarely have cash to afford models at US$100 or more.The GSMA programme, chaired by Aas, is supported by some of the leading operators in emerging markets including AIS, Bharti, BPL, Globe Telecom, Hutchison Essar, IDEA Cellular, MTN Group, Orascom Telecom, Telenor and Vodacom.-Nampa-Reuters-AFPTen operators in developing markets have promised to buy about six million of the two models Motorola will submit to the programme, including the new C113, a model which is exclusive to the programme, and the C113, which is available under the first EMH programme and will be made cheaper.”I think we’re going to exceed that six million by a significant amount,” said Ben Soppitt, programme manager of emerging markets at the GSM Association, adding that demand for very low cost mobile phones has grown in recent months.The GSM Association, which initiated the cheap handset programme that is part of its aim to “connect the unconnected”, groups the world’s mobile telecom service providers.Under phase one of the programme, Motorola had supplied a low-cost model which was made available in 17 developing countries – India, South Africa, Nigeria, Congo, Egypt, Algeria, Tunisia, Bangladesh, Turkey, Thailand, the Philippines, Malaysia, Indonesia, Pakistan, Yemen, Sri Lanka and Kenya.These countries have a total population of 1,8 billion people.Around 75 to 80 per cent of the world’s population live in areas already covered by mobile communication systems, but only 25 per cent own and use a handset, largely because of the cost.Over two billion people around the world own a mobile phone.The second EMH programme runs from January 1 2006.Motorola also introduced several other, more expensive handsets that are affordable for lower-income consumers.In the second EMH programme, Motorola beat many competitors eager to expand in the high-volume segment of very cheap mobile phones, where most of the future growth of the sector is expected to lie.”In the first programme, vendors had to be persuaded to participate.This time, many volunteered.Fifty per cent of the proposals were sub-US$30 handsets.So the decision was based on quality, attractive design, brand, logistics, after-sales support and global service,” Soppitt said.The GSMA commended a low-cost handset proposal by TCL & Alcatel Mobile Phones Ltd.Other bidders remained unnamed.A 10 percentage point increase in mobile phone users in a country increases gross domestic product by 0,6 per cent, the London Business School has found.The initial purchase of a mobile phone is the biggest hurdle for most low-income consumers with no monthly salary who live on a few dollars a day and rarely have cash to afford models at US$100 or more.The GSMA programme, chaired by Aas, is supported by some of the leading operators in emerging markets including AIS, Bharti, BPL, Globe Telecom, Hutchison Essar, IDEA Cellular, MTN Group, Orascom Telecom, Telenor and Vodacom. -Nampa-Reuters-AFP

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