Economic Times

Friday, September 02, 2005

Now, a mobile phone for just Rs 1000!

BANGALORE: A brand new mobile phone for Rs 1,000? Sounds like a dream or a brand promotion?

Not really. Companies here are firming up plans to come out with a phone that would cost just about Rs 1000 by next year.

With 2 million new mobile subscribers every month, India, the fastest growing wireless market in the world, is going one step ahead of the magic figure of sub-$40 and aiming at a "dream phone for the common man".

Currently, the fastest selling lowest cost mobile phones from Nokia, Motorola and Samsung fall in the range of Rs 2,500 -Rs 3,000.

Not only market leaders like Nokia and Motorola but also design companies like Quasar and Elcoteq and cellular operators too are looking at this ultra low cost segment.

Leading chip firms like Texas Instruments (TI), Philips and Infineon have come out with low cost chips — that are the heart of the mobile phone comprising 40% of the cost of the phone.

Today, Nokia is not ruling out the possibility of a Rs 1,000 entry level phone. Says Sanjeev Sharma, country manager, Nokia India, "We are continuing to work with silicon firms on reducing the cost of our entry level phone and next year we should have an ultra low cost phone in this price range."

The story is the same with Motorola too. Says Narendra Nayak, director, business development, high growth markets, Motorola India, "Our marketing strategy is to lower the entry barrier. We think this is do-able and are getting the right technologies and platforms in place."

Bangalore-based Quasar Innovation, an Indian design house is in talks with a leading original equipment manufacturer (OEMs) and a cellular operator for an ultra low cost phone.

Declining to reveal any names, RK Duttt, CEO, Quasar, "OEMs and cellular operators are realising that these phones are going to drive the market and are going for the jugular at Rs 1,000."

Although Samsung has no plans right now for this, Aseem Warsi, head of marketing, mobiles, Samsung says next big wave for wireless growth will come from smaller towns and low cost phones will be the key driver.

"Every OEM will have a strategy for this and we will be working on this but at this point of time, we are concentrating on high end models."

The Indian manufacturer BPL also has a team of 30 engineers working on an low cost phone, says CR Menon,CEO, BPL Ltd.