Reliance set to launch world’s cheapest internet phone.

We have all seen the reliance Classic phones which were priced at a mere 777 and provide the aam aadmi with the functional cellphone. Relaince sold 30 lakh pieces of this cellphone. Relaince continues to dominate the cheap phone market but of recent is facing stiff competition from the Samsung counter part who are producing GSM colour phones in the range of Rs 1000.

To continue its dominance Reliance has yet again ready to launch a new cell phone for Rs 480 or $10 which will also have GPRS 2G capability, Making it the cheapest internet phone in the world!

Reliance will target the 600 million rural population and targets to sell around 1 million pieces a year in the rural and semi-urban areas

What’s really important about the handset launch is

* Increasing usage of mobile internet : As per TRAI’s numbers, mobile internet users are 14 times more than the broadband users.
* Opportunity in rural VAS : this is an untapped area and companies like Reuters have already started rolling out services like up-to-date, local and customized commodity pricing information, news and weather updates etc.

So, essentially there is a strong market out there and Reliance has the reach and deep pockets to penetrate into this “bottom of pyramid” market, where lies the real cash cows.

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