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Vodafone claims cheapest mobile phone

Vodafone takes concept of 'cheap' to a new level with the $15 (€12) Vodafone 150

By CAROLINE GABRIEL

Published: 16 February, 2010

READ MORE: Africa & Middle East | Vodafone | Handset

Visitors to Mobile World Congress may love the glitzy smartphones, but just as significant are the handsets geared to the other main growth market, emerging economies. As Marvell showed off its processor platform for a $100 smartphone, and Texas Instruments discussed stripped-down OMAP designs for lower cost devices, Vodafone took the concept of 'cheap' to a new level with a handset that it plans to sell for €12 ($15).

The $15 Vodafone 150 and the $20 Vodafone 250 will both sell in those developing markets where operators generally do not subsidize phones, such as India. It is pushing the gadgets out initially in eight African markets - Democratic Republic of Congo, Ghana, Kenya, Lesotho, Mozambique, Qatar, South Africa and Tanzania - plus India.

They support voice and SMS, and the key added value service for Vodafone in these territories, mobile payments. The 250 has an FM radio and color screen. The products are manufactured by TCL of Taiwan using a customized feature set and packaging design created for Vodafone.

"The cost of mobile handsets can be one of the most significant barriers for people in accessing and benefiting from the growing number of socially valuable mobile services," Vodafone group director of terminals Patrick Chomet said.

Other phonemakers offer handsets around the $20 mark, including HTC and ZTE, plus some white label and Chinese suppliers. But as customers in emerging economies show rising demand for web services, the real challenge is bring new functionality to these gadgets without increasing the cost too much. Software houses like Myriad work on creating apps platforms from Java that emulate some of the experience of a smartphone, while vendors are chasing the sub-$150 touchscreen handset, with an open OS such as Android.

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