Motorola wins GSMA contract

Thu Sep 29, 2005 2:18 am            

Motorola selected to supply affordable and robust handsets for second phase of programme to ‘connect the unconnected’

Singapore, September 27: The mobile industry has driven the wholesale cost of mobile phones to below US$30 as part of the GSM Association (GSMA) programme to make mobile telephony affordable for people in developing countries.

“To get below US$30 per handset is a milestone achievement,” said Craig Ehrlich, Chairman of the GSMA, the global trade association for the world’s GSM mobile operators. “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 huge swathe of people in developing countries.”

Five of the 10 mobile phone manufacturers that submitted proposals for the second-phase of the GSMA’s Emerging Market Handset programme came in with offers to produce sub-US$30 handsets, demonstrating the breadth of industry interest in this initiative.

At the 3GSM World Congress in Singapore, Rob Conway, Chief Executive and board member of the GSMA, announced today that Motorola has been selected to supply the phase-two handset. “Motorola won thanks to a combination of a sub-US$30 cost, together with other key factors such as after-sales support, local service, brand presence and a choice of low-cost handset models,” said Conway.

The 10 operators supporting the second phase of the GSMA’s Emerging Market Handset programme expect to order about 6 million of these low-cost handsets from Motorola. The GSMA programme, which is chaired by Erik Aas, the Chief Executive of GrameenPhone Ltd. of Bangladesh, is supported by some of the leading operators in emerging markets – AIS, Bharti, BPL, Globe Telecoms, Hutchison Essar, IDEA Cellular, MTN Group, Orascom Telecom, Telenor and Vodacom.

"The start-up price is the single most important criteria for connecting the unconnected in emerging markets. The GSMA Emerging Market Handset initiative is a major step towards reducing the start-up 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, "added Erik Aas, CEO GrameenPhone.

Motorola submitted two handsets in its proposal - the C113 and the C113i (TBC) which was specifically designed for the Emerging Market Handset programme. The C113i (TBC) offers talk times of up to 450 minutes and up to 330 hours of standby, reducing the need for frequent recharging. The handsets will be available early in 2006.

The Emerging Market Handset programme forms a key part of the GSMA’s “Connecting the Unconnected” initiative that has attracted widespread industry and government recognition.

"'Connecting the unconnected' is a rallying cry across Motorola," said Ron Garriques, president of Motorola Mobile Devices. "In emerging markets, consumers and operators want mobiles that meet specific performance requirements while exceeding expectations for quality, reliability and design. Additionally, they want all of this at a value price. I'm proud that the GSMA has once again chosen Motorola as its partner for this important opportunity to fuel economic development and growth."

Motorola also won phase one of the programme with its family of handsets based on the C114 platform.

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. "We view the advent of the ultra-low cost handset as one of the single greatest catalysts to affordability of mobile communications in years,” says Alan Hellawell, an analyst with Lehman Brothers in Hong Kong.

The GSMA expects the cost of handsets to continue to fall as chipmakers and other component suppliers increasingly focus on this potentially huge market.

The GSMA also highly commended a low-cost handset proposal from TCL & Alcatel Mobile Phones Ltd. "T&A Mobile phones is very honoured to have its efforts to serve emerging markets recognized by the GSM Association,” says TCL & Alcatel CEO Fei Liu. “Building on our key company values of flexibility, innovation and entrepreneurship, we are committed to delivering high-value handsets tailored to local requirements under the Alcatel brand."

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. The Association has just 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.

“Not only do we have to reduce the price of handsets coming out of the factory gate,” said Conway, “We also have to reduce the handset price on the street and the cost of using a mobile phone – and that means taking a long hard look at the impact of taxes.

“We believe reducing taxes will accelerate take-up and help businesses and individuals in developing countries to reach out and connect with each other and with the developed world,” he continued. “Taken together, these initiatives represent a concerted, unified programme to extend communications and connect the unconnected.”
Ends

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.

The Association embraces more than 670 operator members serving 1.5 billion customers across more than 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.

Sun Jun 25, 2006 3:58 pm         

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