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Low-cost handset programme extended

By Damaria Senne, ITWeb senior journalist
Johannesburg, 16 Feb 2006

Motorola and the GSM Association (GSMA) are extending their programme to ship ultra-low-cost handsets to emerging markets for a further six months, ending in December 2006, the companies announced.

In February last year, the GSMA awarded Motorola a six-month contract to ship ultra-low-cost handsets to emerging markets, including Africa and Asia. Motorola committed to start shipping the handsets in the second quarter of 2005.

A second contract was awarded in September 2005 for an additional six months, ending June 2006. This contract has been extended for a further six months from July to 31 December 2006, according to a Motorola spokesperson.

Motorola is on track to exceed its target of 12 million handsets shipped to 50 countries - in line with the first two contracts, the company says.

With the extension of the programme, Motorola expects to ship over 20 million handsets into poor countries by the end of 2006.

Ten operators in emerging markets, including MTN and Vodacom in SA, are taking part in the programme. Locally, the C117, C118, C118v, C113, C113a, C168, C139 and C261 handset models, designed specifically for the programme, are available through the network operators.

Another entry-level mobile handset, the Motorola W220, launched this week. The handset incorporates an FM radio, addressing the need in communities where radio is the only source of information and entertainment, the company says.

Network solutions

Motorola also announced Motorola Reach, a range of network solutions it says will help telecoms operators to cost-effectively service both densely populated and remote rural areas, while at the same time complementing the ongoing handset agreement with the GSMA.

The solutions feature GSM base stations, wireless backhaul offerings, a media gateway and alternative power sources.

The global mobile industry has reached more than two billion subscribers, with 810 million handsets shipped worldwide in 2005, according to Motorola. A further increase of 15% to 930 million handsets shipped worldwide in 2006, with strong demand coming from emerging economies, is predicted.

Related story:
Low-cost handsets arrive in Africa

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