New GSMA Emerging Markets Initiative

The GSMA had already launched in February an initiative to make affordable mobile communications a reality in emerging markets. The first step was a procurement of some 6m low-cost handsets, won by Motorola with a $40 mobile phone. A new phase has been set up: a new ultra low-cost handset. The objective is now to achieve a sub $30 handset, with a similar volume target of 6m units within the first 6 months. This initiative also includes pushing hard for further positive changes made by local governments, such as more flexible regulatory decisions and a more favorable approach to taxation. The result of the selection process will be announced at the 3GSM World Congress Asia in Singapore at the end of September, with new handsets expected to be available from 1Q06. The potential market is assessed to be 100m units a year.