Information Madness

Idea Cellular, India's fourth-biggest mobile phone carrier by subscribers launched two low-cost smartphone models today as it wants to boost the usage of third-generation (3G) wireless data services in a price-driven market. Idea, which is part of India's Aditya Birla group, will sell the smartphones at 5,850 Rupees (id="mce_marker"10) and 7,992 rupees, respectively. Idea will also bundle free data services as an introductory offer.

The touch screen smartphones, based on the Android operating system, are being sourced from Chinese firms Huawei and ZTE as per Idea's managing director Himanshu Kapania. He also added that the company was also studying if it could enter the tablet PC market. Idea does not want to compete with handset makers. They want to provide a low entry point for smartphones for customers. Smartphones accounted for six percent of the total mobile device sales during this last quarter and this share is likely to increase to eight per cent by next year.

With more than 870 million mobile connections, India is the world's second-biggest wireless services market after China. Indian mobile carriers including Idea launched 3G networks this year after paying a total of more than $20 billion to buy 3G radio airwaves in a state auction last year.

There is no time frame given for the increased 3G smartphones’ penetration and also an increase in the average revenue per user.

Idea’s main objective here is to create an ecosystem for 3G penetration and to hit an affordable pricing point. They have no intention of subsidizing these handsets for their users.

Idea has tied up with Chinese firm Huawei to source 2.8-inch screen smartphones to be sold at Rs. 5,850, and with another Chinese company ZTE to source its 3.5-inch screen Blade smartphones to be sold at Rs 7,992.