LONDON-The GSM Association has invited mobile-phone vendors to join in a strategic partnership to supply ultra-low-cost handset to unconnected citizens in developing markets.
“Effective communication is one of the key catalysts for economic growth. The GSMA is bringing together operators and vendors to address the affordability issues of mobility in emerging markets,” said Craig Ehrlich, chairman of the GSM Association. “The next phase of our initiative aims to drive even greater affordability, through sustainable products, at even lower cost than the first phase of the program. At the right entry level we believe there is the potential for over 100 million new connections per year.”
The GSMA said the initiative is open to handset manufacturers worldwide, and the result of the selection process will be announced at the 3GSM World Congress Asia in Singapore at the end of September. New handsets are expected to be available beginning in the first quarter of 2006, said the GSMA. The objective for the second phase is to achieve a handset price-point below $30, with a similar volume target as the first phase of 6 million handsets within the first six months.
The ultra-low cost handset program forms a major part of the GSMA’s Emerging Markets Initiative. Although 80 percent of the world’s population has wireless coverage, today’s 1.3 billion GSM users represent only 25 percent of the potential.
