| Indian consumers will soon have one of the cheapest mobile phones in the world. Priced at Rs 777 ($19), the SIM-based “Classic 202”, which boasts of features like FM radio, polyphonic ringtones,address book, amongst others, was launched by Reliance Communications (RComm) today.
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| This is significantly lower than the existing entry-level prices of black and white handsets at around Rs 1,000 and colour handsets at Rs 1,400-Rs 1,800 from the Tatas, the other significant CDMA mobile service provider.
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| The handset range, which is being manufactured in China, has two other low-end models that were also launched today. They are Classic 204 and Classic 203 and are priced at Rs 844 and Rs 888, respectively, much lower than the existing entry-level phone prices.
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| These phones are SIM-enabled, allowing consumers to move from one CDMA service to another, a flexibility hitherto available only on GSM handsets.
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| The company said the offer would last as long as there were enough phones. Executives said the Classic 202 is a black and white phone that shows a colour screen when it is switched on.
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| Announcing the launch, RComm President (personal business) S P Shukla said: “We believe that this would provide customers looking at
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| second-hand phones an opportunity to buy a new handset. The lowering of handset prices would also increase the telephony penetration in the country.”
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| India’s present telephony penetration stands at 14.7 per cent and the company hopes to sell around 3 to 4 million such handsets a year.
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However, a senior executive of a leading mobile manufacturing competitor said, “Our belief is that the company is subsidising the cost of the handset to get new customers.”
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| DIAL P FOR PRICE
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| The lowest prices that competitors offer
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| Tata CDMA black and white phones Rs 999
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| Tata CDMA colour phones Rs 1399
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| Nokia black and white GSM phones Rs 1699
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| Nokia GSM colour Rs 2200 |
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