Reliance handsets now at just Rs 777

BANGALORE: Reliance Communications has unveiled a new range of Classic handsets, which will be priced at an unbelievable Rs 777. Based on feedback from customers and a growing need for a sub Rs 1,000 handset in the market, the company has launched this new range of three feature rich handsets namely Classic 202, 204 and 203, at prices starting from Rs 777 and going upto Rs 888.

S P Shukla, president (personal business), Reliance Communications said, the company wants to ensure that consumers have the option of choosing between an affordable range of handsets.

"These sub Rs 1,000 phones will ensure that customers can buy a brand new phone instead of opting for a second hand model. By leveraging our economies of scale we are able to offer cheaper yet feature rich handsets," he said.

Currently the cheapest handsets are priced between Rs 1,400-1 ,600 like those offered by Spice Telecom, Motorola (MotoFone) and Tata Indicom. Players like Spice Telecom have already announced plans to unveil a "People's Phone" priced below Rs 1,000.

Most handset makers are also planning to manufacture handsets in this price range to tap into the rural market in India. But so far none of the companies has launched a model in the sub $20 or Rs 1,000 range.
According to some, in the CDMA space, operators like Reliance have been able to lure customers to buy phones at lower rates by tagging a connection alongwith the equipment. So by assuring the presence of the customer on their network for the validity of the connection they are able to make good on the lowered rates for the handset itself. But players like Nokia, LG and Samsung have said they do not plan to foray into this region of sub $20 phones as this will hurt their margins.

The Reliance Classic range of phones come with a SIM card and one can choose between a prepaid and post paid connection. Customers will have to make a one-time payment. All models have FM radio enabled on them.
Shukla said these handsets are not assembled in India but refused to disclose the location.

He also added that last year alone the company sold close to 12 million handsets making it the second largest marketer of mobile phones in India.