GSM Association announces new phase for emerging markets initiative

Press release
5 minute read
: With the success of the GSM Association's (GSMA) initial drive to make affordable mobile communications a reality in emerging markets, the GSMA today announced a new phase for the initiative with an Invitation to Strategic Partnership issued to handset manufacturers for the supply of the next Ultra-Low Cost handset to developing markets. Telenor has a seat in the GSMA Management Board and manages the tender process in this initiative.

"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 programme. At the right entry level we believe there is the potential for over a hundred million new connections per year."

Open to handset manufacturers worldwide, the result of the selection process will be announced at the 3GSM World Congress Asia in Singapore at the end of September, with new handsets expected to be available from Q1 2006. The objective for the second phase is to achieve a sub US$30 handset price-point, with a similar volume target as the first phase of six million handsets within the first six months.

GSMA Board sponsor for the process is Arve Johansen, CEO Telenor International Mobile & GSMA Board sponsor of the Phase 2 steering committee and Erik Aas, CEO of Telenor-owned GrameenPhone in Bangladesh and chair of the committee, which comprises GSM operator networks serving emerging markets.

"Operating in developing markets means that we are dealing with the challenges on a day-to-day basis," said Erik Aas. "We must ensure that the realities of the issues faced by developing countries are addressed. This programme seizes the initiative and pushes the potential."

The GSMA's determination to create a sustainable Ultra-Low Cost handset segment has ignited huge global support. Motorola won an initial supply tender earlier this year, and is already on target to meet the programme's anticipated volume of six million units.

The Ultra-Low Cost handset programme forms a major part of the GSMA's Emerging Markets Initiative. Although 80 per cent of the world's population has wireless coverage, today's 1.3 billion GSM users represent only 25 per cent of the potential.

"The price of the handset is only one hurdle. We are also pushing hard for further positive changes that can be effected by governments, such as more flexible regulatory decisions and a more favourable approach to taxation. In addition, we are encouraging innovative payment mechanisms that could further positively reduce the barriers to ownership, said Rob Conway, CEO of the GSM Association and Board Member."

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About the GSM Association:
The GSM Association (GSMA) is the operator-led trade association representing the global mobile industry. Encompassing technical, commercial and public policy initiatives, the GSMA focuses on ensuring wireless services work globally, thereby enhancing the value of mobile services to individual customers and national economies while creating new business opportunities for operators and their suppliers. At the end of 2004, the Association embraced more than 660 operator members serving more than 1.3 billion customers across 210 countries and territories. More than 150 manufacturers and suppliers support the Association's initiatives as key partners. The GSM community accounts for 75% of the digital mobile phone market worldwide.

For further information contact:

Scott Engebrigtsen, Manager Corporate Press Office
Telenor. Tel. +47 90043484

Mark Smith, GSM Association
Tel: +44 (0)20 7759 2300 (London)