Motorola is likely to dominate the ULCH segment

Motorola is likely to dominate the ULCH segment

The development of the ultra low-cost handset (ULCH) is key for addressing low income emerging market subscribers. The endorsement by the GSMA has help the Emerging Market Handset Program (EMHP) flying. But the handset is only a portion of the cost, and it is also important to reduce costs across the handset value chain. Motorola has been selected twice as the EMHP vendor, and gained experience in that segment. So, it is likely that it will remain ULCH segment leader for some next years. Sales of new ULCHs will reach 36m in 2007 and almost 48m devices in 2010, just a drop of water in the ocean of total new device sales by 2010, but could account for over 10% of new handset sales in India or Africa.