Now, 3G handsets to cost $100
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[June 14, 2006]

Now, 3G handsets to cost $100

(Ecomonic Times, The (India) (KRT) Via Thomson Dialog NewsEdge) Jun. 14--NEW DELHI -- The next generation of multimedia mobile services, which is expected to be introduced in India soon under 3G would not be a preserve of the rich. GSM Association (GSMA), representing mobile operators around the world using GSM technology, has initiated a programme to make 3G services a mass market service.



Currently, the biggest hurdle to make 3G mass market is the cost of the handset, which can access the high-tech multimedia services.

GSMA is looking to partner with handset vendors to develop a low-cost 3G handset to drive usage in emerging markets like India, which could cost just about half of the current price. The cost averages around $200-250 internationally or about Rs 10,000 at the lower-end.



Speaking to the media in Delhi on Tuesday, Craig Ehrlich, chairman, GSMA, said, "We would like it to come down to sub-$100 levels early next year, assuming 3G services are launched by '06-end in India." This programme was under discussion in the meeting of board members of GSMA, which took place in Delhi on Monday.

Rob Conway, CEO, GSMA, said, "Our 3G handset initiative will allow far more people to take advantage of the video clips, mobile music, internet access and many other multimedia services now enjoyed by more affluent users in the developed world."

This would run parallel to GSMA's Emerging Market Handset programme, under which it is already working with vendors to develop low-cost handsets with basic functions. Under the programme handset prices have already come down to the sub-$30 level.

Meanwhile, GSMA also announced that this weekend would mark a milestone for the industry body with GSM subscribers around the world hitting the 2bn-mark.

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