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Colour phones for Rs 500 By Gee Pee
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<img style="float:left; margin: 0px 10px 0px 0px;" src="http://www.telegraphindia.com/1091227/images/27GEE-PEE-2.jpg"/>Gee Pee Infotech will unveil colour handsets for Rs 500 in April.

The city-based firm has scheduled the Calcutta launch of the phone for the Bengali New Year.

“We are targeting the rural population. There are people in rural India who aspire to have a mobile phone but cannot afford even Rs 1,000,” Gee Pee Infotech managing director Bijay Agarwal told The Telegraph. The company now sells phones for around Rs 1,000.

Handset production in India is expected to grow to 107 million units in 2011 from 31 million in 2006 at a compounded annual growth rate of 28.3 per cent.

Gee Pee targets to cover 5 per cent of the total market share by 2010.

Revenues from mobile phone manufacture stood at $4.9 billion in 2006 and is likely to touch $13.6 billion by 2011, according to a report by global research agency Gartner.

The top five handset vendors in India are Nokia, Motorola, Samsung, Sony Ericsson and LG.

The smaller companies source the handsets from China and market them under their own brand.

“Call rates are coming down because of the price war among service providers. Our target is to initiate that in the handset market,” Agarwal said.

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