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Media Articles & Industry Comment

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GSMA Press Release:
Emerging Market Handset Programme Set to Exceed Target
Mobile operators in developing countries have bought or ordered more than 12 million mobile phones from Motorola under the Emerging Market Handset programme run by the GSM Association (GSMA), the global trade association.

GSMA Press Release:
GSM Association Forges Sub-$30 Mobile Phone Segment For Developing Countries
Motorola selected to supply affordable and robust handsets for second phase of programme to 'connect the unconnected' - The mobile industry has driven the wholesale cost of mobile phones to below US$30 as part of the GSM Association (GSMA) programme to make mobile telephony affordable for people in developing countries.

Motorola Press Release:
Motorola and GSM Association Extend Partnership to 'Connect the Unconnected'
Singapore, 3GSM World Congress Asia 2005 - 27 September 2005 - Motorola, Inc. (NYSE: MOT), a global leader in wireless communications, today announced that it has been selected by the GSM Association (GSMA) to serve for a second phase as the sole supplier of handsets for the Emerging Market Handset (EMH) program - a program that strives to advance the social and economic development of emerging markets through mobile communications.

BBC Article:
Cheap phone contract for Motorola
Mobile phones could soon be sold for less than $30 (£16) in developing countries after Motorola won a contract to produce low-cost handsets. The US firm is expected to manufacture six million low-cost phones for sale in 17 countries including India, Nigeria, Bangladesh, Yemen and Kenya.

Reuters Article:
Motorola wins new cheap phone deal with $30 model
Motorola will sell more than 6 million mobile phones for less than $30 each in a new program to bring very cheap handsets to developing markets, industry body the GSM Association said on Tuesday. The cost per handset will dip below $30, compared to $40 in the first Emerging Market Handset (EMH) program awarded in February, which was also won by U.S.-based Motorola.


Industry Comment

"To get below US$30 per handset is a milestone achievement, Today's news cements the formation of a whole new market segment for the mobile industry and will bring the benefits of mobile communications to a huge swathe of people in developing countries."

Craig Ehrlich, Chairman of the GSM Association



"Motorola won thanks to a combination of a portfolio starting from sub-US$30, together with other key factors such as after-sales support, local service, brand presence and a choice of low-cost handset models including an exclusive product, the C113a for this programme"

Rob Conway, CEO of the GSM Association



"The startup price is the single most important criteria for connecting the unconnected in emerging markets. The GSMA Emerging Market Handset initiative is a major step towards reducing the startup price, and will fuel significant economic  growth,  as well as major social changes, when so many new people can communicate directly from their home or on the move. "

Erik Aas, CEO Grameenphone



"Wireless communication is the foundation for creating a higher standard of living and for social development in a country with a widely-dispersed population. The provision of affordable devices is essential for a country's development towards universal access to communications."

Yingluck Shinawatra, President Advanced Info Service Plc.



"The first phase of the Emerging Market Handset programme, which paved the way for new low cost terminals with an affordable Motorola product, has helped Globe penetrate the lower income segment of the population, even in less-developed towns in the Philippines. Our tracking shows these phones are delivering good subscriber usage and, interestingly, in some cases, 'phone-sharing' behavior. There are still more challenges in making mobile service more affordable, both from the perspective of cost and service package. We are glad that the GSMA is further breaking down barriers on the terminal cost side through the second phase of the Emerging Market Handset programme."

Gerardo C. Ablaza, President and CEO Globe Telecom.



"High prices of handsets in the past have inhibited growth. Despite the fact that people have started changing their phones more frequently than ever before, this pattern is restricted to the high end segment which needs to be contemporary at all times. However, the huge demand that lies ahead will be spurred by a sub $ 30 handset. This is not about communication alone...it is also an economic opportunity for the masses!"

Mr Sandip Das, Deputy Managing Director Hutchison Essar Ltd



"The MTN Group is a proud supporter of the GSM Association's Emerging Markets Handset (EMH) Initiative.  In many of our operations handset costs have proven to be a barrier to entry for prospective subscribers.  This initiative has resonance with MTN's commitment to increase access to information and communication technologies (ICTs) through introducing products and services that are relevant, cutting edge and affordable. As such we believe the introduction of an Ultra-Low Cost handset will significantly contribute to making mobile communications access increasingly affordable."

Mr Phuthuma Nhleko, CEO MTN Group



"Again, the GSMA Emerging Markets Handset project managed to catalyze the creation of a new high volume handset segment. The sub-$30 ultra-low cost handset will further lower the barriers for new subscribers in our markets and enable more people from low income segments to benefit from mobile communications "

Mr. Naguib Sawiris, CEO Orascom Telecom



"We are strongly committed to offering affordable mobile services to as many people as possible, and the ultra low-cost handset initiative directly addresses the issue of providing effective mobile communication in emerging markets."

Arve Johansen, CEO Telenor



"Idea wholeheartedly welcomes the Emerging Market Handset project which will bring to the rural markets of India an ultra low cost handset. By lowering entry costs, this project will bring about an inflexion point that will lead to high levels of telecom penetration in India."

Mr. Vikram Mehmi, CEO Idea Cellular




Read the media articles and industry comments from phase one of the EMH programme

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