Slashdot Mirror
How Great Cheap Phones Never Get to the U.S.
prostoalex writes "Gary Krakow from MSNBC is impressed with Motorola's C116 phone only to find out that that the phone is not available in the US. The reason? 'A very, very basic GSM handset that handles incoming and outgoing calls as well as SMS messages, the C116 is sold all over the world -- except for the United States. It's not sold here because it's too cheap!' The phone is targeted for emerging markets, where people don't like to tie themselves into monthly contracts, and with little value proposition presents little interest to US wireless operators."
“IMAGINE a magical device that could boost entrepreneurship and economic activity, provide an alternative to bad roads and unreliable postal services, widen farmers’ access to markets, and allow swift and secure transfers of money. Now stop imagining: the device in question is the mobile phone.”
“It is increasingly clear that, when it comes to bridging the ‘digital divide’ between rich and poor, the mobile phone, not the personal computer, has the most potential.”
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Mobile phones and development
Calling an end to poverty
Jul 7th 2005
From The Economist print edition
Mobile-phone firms have found a profitable way to help the poor help themselves
[Image] (Still Pictures)
ALL eyes are on what governments can do to end poverty, with aid, debt relief and trade top of the agenda at this week’s G8 summit. But what about the role that business can play--and, in particular, technology firms? It is increasingly clear that, when it comes to bridging the “digital divide” between rich and poor, the mobile phone, not the personal computer, has the most potential. “Emerging markets will be wireless-centric, not PC-centric,” says C. K. Prahalad, a management scholar and author of “The Fortune at the Bottom of the Pyramid”, a book that highlights the collective purchasing power of the world’s 4 billion poorest people and urges firms to try to profit from it.
Mobile phones have become indispensable in the rich world. But they are even more useful in the developing world, where the availability of other forms of communication--roads, postal systems or fixed-line phones--is often limited. Phones let fishermen and farmers check prices in different markets before selling produce, make it easier for people to find work, allow quick and easy transfers of funds and boost entrepreneurship. Phones can be shared by a village. Pre-paid calling plans reduce the need for a bank account or credit check. A recent study by London Business School found that, in a typical developing country, a rise of ten mobile phones per 100 people boosts GDP growth by 0.6 percentage points. Mobile phones are, in short, a classic example of technology that helps people help themselves.
But despite rapid subscriber growth in much of the developing world, only a small proportion of people--around 5% in both India and sub-Saharan Africa--have their own mobile phones. Why? The price of handsets is the “biggest obstacle” to broader adoption, says Alan Knott-Craig, boss of Vodacom, which runs networks in five African countries. Azmi Mikati of Investcom, which runs networks in Africa and the Middle East, estimates that the number of users would double in those markets if the cheapest handset cost $30 instead of $60.
Ringing the changes
Handset-makers earn most of their profits from fancy phones sold to consumers in rich countries, where on average a handset costs around $200 (before operator subsidies). But as markets have become saturated in the rich world, manufacturers have started to realise that their future growth depends on catering to the needs of developing nations. As a result, they have been working with operators to develop new extremely cheap handsets and to boost adoption in the poor world.
Several operators from developing countries teamed up earlier this year under the auspices of the GSM Association, which promotes the use of GSM, the world’s dominant mobile-phone standard. They invited the handset-makers to bid for a contract to supply up to 6m handsets for less than $40 each. The contract was won by Motorola. Delivery of handsets began in April. The low cost is not due to cross-subsidy from high-margin handsets or “corporate social responsibility” funding, insists David Taylor of Motorol
I moved back to India last year after spending 10 years in the US. I found that the cab drivers here have better mobile phones than most people in the US. I guess it has to do with monopolies and regulations..
from the end... "The color model, the C155, is available in the United States, sold by the prepaid wireless company TracFone online and through retail outlets such as Wal-Mart. For $29.98, you get the phone and the right to buy pay-as-you-go phone services. Telefonica MoviStar sells the C116 phone in Mexico and other Spanish-speaking countries."
me jumping with kites I make...
Paul Grosfield - the quicker picker upper.
Personally, I want to tell Ma'Bell to take her phone and shove it where the sone don't shine. Give me something that I can hack and create my own programs on instead of this bubblegum mainstream crap anyday!
The Rapture is NOT an exit strategy.
The phone is targeted for emerging markets, where people don't like to tie themselves into monthly contracts, and with little value proposition presents little interest to US wireless operators.
The wireless operators won't tell you this - for obvious reasons - but you're absolutely NOT required to purchase your phone from them. The bottom line is that you can aquire an unlocked, factory-direct phone from places like eXpansys. After that, simply call the carrier to do an ESN swap or in the case of GSM place the SIM in the new phone.
The trick, of course, is knowing the technology your carrier supports. I don't expect that to be an issue for this crowd.