Emerging Market Handset Programme

Emerging Market Handset Programme

Since the launch of the GSMA's Emerging Market Handset (EMH) Programme, the mobile industry has driven the wholesale cost of mobile phones to below US$30 and the 3GSM Congress in Singapore saw Motorola, once again, selected to supply the phase two handset. 

Phase two began in June 2005 when the second 'Invitation to Strategic Partnership' was issued to vendors. The GSMA programme, which is chaired by Erik Aas, the Chief Executive of Grameen Phone Ltd. of Bangladesh, selected Motorola on nine strict criteria: price, functionality, logistics capability, service support, brand, marketing support, form factor, usability & strategic commitment.

"Motorola won thanks to a combination of a portfolio starting from sub-US$30, together with other key factors such as after-sales support, local service, brand presence and a choice of low-cost handset models including an exclusive product, the C113a for this programme" said Rob Conway, Chief Executive and board member of the GSMA at the 3GSM World Congress in Singapore.

Motorola submitted two handsets in its proposal - the C113 and the C113a which was specifically designed for the EMH programme. The C113a 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 when the 10 operators (AIS, Bharti, BPL, Globe Telecom, Hutchison Essar, IDEA Cellular, MTN Group, Orascom Telecom, Telenor and Vodacom) who are supporting phase two, expect to order about 6 million of these handsets from Motorola.

"To get below US$30 per handset is a milestone achievement," saidCraig Ehrlich, Chairman of the 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 huge swathe of people in developing countries."

The Wider Picture
As part of its wider 'Connecting the Unconnected' initiative the GSMA is also working to tackle the other costs ownership - regulation, taxation & service - in addition to encouraging ways to flatten the user payment curve. The recently published emerging markets taxation study is one such example of our other initiatives in this area. This report reveals that punitive tax levels in some developing countries are pushing up the price of handsets and mobile services beyond the means of many people