Vodafone launches low cost handsets

Vodafone, which is entering India through the acquisition of GSM operator Hutch, has launched two low-cost handsets for the emerging markets, including India. The handsets are being priced in the $25-$45 range (Rs 1,015-Rs 1,827) depending on the model and the local market conditions.

The new handsets, Vodafone 125 and Vodafone 225, are part of the company’s ongoing commitment to expand access to mobile in emerging markets, where mobile technology and networks are often the only viable and cost effective telecoms service. The handsets are, therefore, key to offering a range of services, particularly in rural areas where mobile penetration is often at its lowest, Vodafone said in a release here today.

China's ZTE Corporation is manufacturing the handsets, under an agreement signed between the two companies in December 2006.

The Vodafone 125 is a black & white model, while the Vodafone 225 is a colour model.

The move by the UK giant comes after the major Indian CDMA operator - Reliance Communications - launched low-cost black & white handsets priced at Rs 777 and colour handsets at Rs 1,234. Tata Teleservices, the other CDMA operator, reduced prices of its existing handsets by Rs 80, making it the lowest priced mobile phone at Rs 770 in the country.

The Finnish handset-maker Nokia followed suit by launching a series of low-priced handsets.

Vodafone Egypt, Vodafone Romania and Vodacom (South Africa) will be the first countries to launch the two handsets in the next few weeks.