Cheap Phones for Third World

Wednesday, July 6, 2005

Coverage is growing in developing countries, but phones are still too expensive.

With growing wireless phone coverage, even in the poorest parts of the globe, cell phone manufacturers want to lower the cost of their devices to encourage stronger demand in developing countries.

The GSM Association (GSMA) announced on Monday that it is pushing down the target cost for mobile phones to below $30.

?The next phase of our initiative aims to drive even greater affordability, through sustainable products, at even lower cost than the first phase of the program,? said Craig Ehrlich, chairman of the GSM Association. ?At the right entry level we believe there is the potential for over 100 million new connections per year.?

As the United States and European markets for cell phones become increasingly saturated, cell phone makers have to look to the needs of the other 5 billion people on the planet, most of whom cannot afford cell phones with cameras and digital music players.
Story found here.

Source: Red Herring