MobileActive.org

Post Date

06.06.05

Author

| Eric Gundersen

Cell phones need to be cheaper so that more people in developing countries can plug in. Lower cost communication options can help in so many aspects of poor people’s lives, from facilitating the finding of more accurate information on market prices to organizing to speak out against a government that often neglects them.

Bringing cell phones to the masses around the world is also a huge market place for producers to tap. But right now the price of handsets is still prohibitive for may poor people. Cellular-News recently published the article, $25 cellular handset achievable within two years (http://www.cellular-news.com/story/13029.php), looking at industry expectations for lower prices over the next several years.

“Among respondents to the survey, 80% reported a belief that a low-end GSM handset with a total bill-of-materials cost of US$25 can be achieved within two years or less, while 51% believe this level can be reached within one year or less. In addition to electronic and mechanical components, the cost of the handset as presented in the survey was defined to include battery, testing, final assembly, software and IP licensing, and product packaging.”