Motorola wins sub-$30 phone deal

The GSM Association has announced it has awarded Motorola a deal to produce sub-$30 handsets for operators in the developing world.

The GSMA and Motorola struck up a relationship earlier this year, when the GSMA selected the US phone maker to produce a sub-$40 handset at this year's 3GSM trade show in Cannes.

According to the Association, 10 operators have signed up to distribute the ultra low-cost handsets, which are expected to put mobile telephony into the hands of up to 100 million new users.

CEO of the GSMA Rob Conway said Motorola had been selected for the deal due to its aftersales support and local service, as well as the exclusive bargain-basement handset, the C113a, it will be manufacturing for the GSMA's programme.

The C113a will provide 450 minutes of talk time and 330 hours of standby, and is expected to be available from early next year in emerging GSM markets including Bangladesh, Malaysia and Yemen.

With the two billionth mobile subscription made earlier this month, analysts have found that most new growth for mobile subscriber numbers is still coming from developing economies.

However, the GSMA called on the governments of such countries to reduce taxes on mobile devices or risk putting them beyond the means of ordinary people.