RCom will launch cheapest business phone by end December 2008

Reliance Communications (RCom) is going to launch cheapest business phone in India, with a price tag of Rs. 10,000

[The cheapest business phone, at present, is priced at Rs. 15000]

At present Blackberry and Nokia are leaders in this segment.

RCom’s smart phone will have usual Business phone capabilities+ QWERTY keyboard+ 3G capabilities, but NO CAMERA.

Some interesting facts about mobile market In India:

Total no. of mobile connections in India: 300 million or 30 crore

Total no. of business phones in India: 90 Lakh (3% of total mobile connections)


Analysis: With the 3G and 4G services going to be auctioned by the end of January 2009; RCom is trying to get ahead in the race of 3G and 4G market. As the normal mobile market is already cluttered, with players getting lower margins; business phone segment(which will be using third generation services) is “growing fast" and would bring high revenues for the players.
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