New Delhi: Reliance Communications is entering
into a joint venture with Taiwan''s Cal-Comp Electronics
to manufacture CDMA handsets in the country. The manufacturing
plant is slated to be operational during the first half
of 2008. RCOM is also learnt to have placed an order of
nine million additional handsets with Cal-Comp.
officials said the company plans to set up a joint venture
with the client to manufacture handsets in India, with
the planned investment project likely to be carried out
in the first half of 2008.
the entry of Cal-Comp into handsets manufacture 51 million
handsets likely to be made in India this year. India produced
nearly 31 million mobile phones in 2006 worth about $5
move to place a large handset order and enter into a JV
with an established player will help RCOM preempt Vodafone-Essar,
which plans to launch a series of ultra low-cost bundled
handsets (mobile connection and a handset) in collaboration
with China''s ZTE to get a bigger pie of rural India and
increase its market share. Vodafone''s low-cost handsets
are expected to be priced between Rs1,000 and Rs1,600.
sold over a million units of the Classic range within
a week of its launch. RCOM followed it up with the launch
of colour handsets beginning at Rs1,234 and sold over
a half a million in the first 10 days. Subsequently, RCOM
introduced FM radio mobiles at Rs1,888 and Rs1,919.