GSMA Makes Mobile Phones Cheaper
CEO of GrameenPhone, Erik Aas. chairs the programme, which is supported by some of the leading operators in emerging markets - AIS, Bharti, BPL, Globe Telecom, Hutchison Essar, IDEA Cellular, MTN Group, Orascom Telecom, Telenor and Vodacom.
Opening new market segments
"To get below USD 30 per handset is a milestone achievement," said Craig Ehrlich, Chairman of the global trade association for the world's GSM mobile operators, GSMA. "Today's news cements the formation of a whole new market segment for the mobile industry and will bring the benefits of mobile communications to a great number of people in developing countries."
![Rob Conway, Chief Executive and board member of the GSMA visiting Oslo earlier this year.]( "Rob Conway, Chief Executive and board member of the GSMA visiting Oslo earlier this year.")
Appreciated initiative
The Emerging Market Handset (EMH) programme forms a key part of the GSMA's "Connecting the Unconnected" initiative that has attracted widespread industry and government recognition.
Motorola won phase one of the programme, during which EMH handsets were supplied into 17 countries through 10 participating operators. These countries included India, South Africa, Nigeria, DRC, Egypt, Algeria, Tunisia, Bangladesh, Turkey, Thailand, Philippines, Malaysia, Indonesia, Pakistan, Yemen, Sri Lanka and Kenya. These markets have a total population of about 1.8 billion. Motorola has also been selected to supply the phase-two handset.
Cheaper handsets
Analysts say these handsets have allowed far more people to take advantage of mobile communications. For example, the arrival of the Motorola C115 in India helped boost Indian GSM operators' monthly net customer additions by one third to 1.6 million in June, according to a report by Lehman Brothers.
The GSMA expects the cost of handsets to continue to fall as chipmakers and other component suppliers increasingly focus on this potentially huge market.
Economic growth
The GSMA is also looking at what can be done to remove other barriers preventing more people in developing countries from using mobile phones, such as taxes on handsets and services. In 2005 the association published a report revealing that punitive tax levels in some developing countries are pushing up the price of handsets and mobile services beyond the means of many people.
"The startup price is the single most important criterion for connecting the unconnected in emerging markets. The GSMA Emerging Market Handset initiative is a major step towards reducing the startup price, and will fuel significant economic growth, as well as major social changes, when so many new people can communicate directly from their home or on the move," said Erik Aas.
"We are strongly committed to offering affordable mobile services to as many people as possible, and the ultra low-cost handset initiative directly addresses the issue of providing effective mobile communication in emerging markets." Arve Johansen, Senior Executive Vice President of Telenor's international mobile operations.