An innitative kicked off by the GSM Association in an effort to develop “ultra-low cost” mobile handsets for the developing countries. The handset is priced at $30 to $40 to make it affordable for the poor. Motorola has launched the first such phone built on its new C114 platform for durability and long talk time. Motorola will ship 6 millions of this handsets in the second quarter of 2005. It’s estimated that potential market for this segment is about 100 million per year.
I think this is a great first step to connect a world of unconnected. Although some 80 percent of the world’s population has wireless coverage, only 25 percent can afford to use mobile services. It will have a significant impact in my project as mult-nationals enter the emerging markets. It’s exciting!