Reliance handsets for Rs 777

Mumbai

May 4th, 2007

India's second largest private telephony major Reliance Communications (Rcomm)
has lowered the entry level of mobile phone pricing in the country by launching
a series of entry-level handsets. The Anil Ambani group Company has launched
color mobile phones with prices starting at Rs 777 in the country, which is
almost half of the existing color handset prices of Rs 1,600.

At present, the entry-level phones in the country are in the range of Rs
1,000 per black and white handset, while color handsets are priced at around Rs
1,600 to 1,800 per piece. Sagem and Motorola are among other major manufacturers
providing entry-level B&W and color handsets in the country.

Rcomm has launched 'Classic 202' priced at Rs 777, along with 'Classic 204' and
`Classic 203' that are priced at Rs 844 and Rs 888, respectively. The company is
looking at converting the second-hand phone sales in the country by the launch
of these handsets.

According to Reliance Communications President (Wireless) S P Shukla,
"We are confident of extending the benefits of mobility to an entirely new
segment of population in metros, small cities and rural hinterland of India. We
believe that this would provide an opportunity for customers looking at
second-hand phones to buy a new handset". The launch also would result in
increasing the telephony penetration in the country, which at present stands at
14.7 per cent of the total population, he added.

The newly launched phones are CDMA handsets with SIM provisions, meaning that
users can move over to other providers it they are not satisfied with the
Reliance Communications' services. There are no hidden costs and the user can
select a tariff of his choice, or use pre-paid vouchers. Industry sources said
that the handsets were being provided by China-based ZTE Corporation. However,
Shukla declined to divulge the name of the vendor, but added that the company
brands these as 'Classic'.

On expected sales of the newly launched handsets, he said that the company is
looking at improving it compared with that of the last financial year. Rcomm
sold over 2 million handsets during the last financial year, while its customer
base stands at around 30 million.