Connecting the World

Emerging Market Handset Programme Set to Exceed Target

13 February 2006

Operators snap up ultra-low cost handsets designed to bridge digital divide

13th February 2006 - London  - 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.

Through the programme, leading operators in developing markets buy ultra-low cost handsets from Motorola, which are available in more than 50 countries, making mobile telecommunications services available to many more millions of people.

"Motorola is set to exceed the programme's target of 12 million phones, proving that there is a huge appetite for mobile communications beyond the affluent markets traditionally served by this industry," said Rob Conway, CEO of the GSMA, which represents more than 680 mobile operators worldwide. "The widespread availability of ultra-low cost handsets is bringing major social and economic benefits to people who have never before had access to information and communication technologies."

Motorola has seen strong demand for the two handsets in the second phase of the EMH programme, the C113 and the C113a, which went on sale at the beginning of 2006. Any GSM operator in an emerging market can participate in the programme.

"This program is a great success. Together with the GSMA and our mobile operator partners, we are enabling over 31,000 new consumers to experience mobile connectivity every single day," said Ron Garriques, President of Motorola Mobile Devices. "This is powerful, not only for the consumers whose lives it is changing, but also for global economies, for our own business and for the mobile industry as a whole."

To ensure as many users as possible benefit from the programme, the GSMA has extended its endorsement of Motorola as the Emerging Market Handset vendor for a further six months, representing the period from July 1st 2006 to the end of the year.

However, the GSMA estimates that there are more than one billion people worldwide who still won't be able to afford a mobile phone for the foreseeable future. To help give these people access to telecommunications, the GSMA is funding projects designed to stimulate the rollout of 'shared access' mobile solutions across the developing world.

One such scheme uses specialized software from South African company Sharedphone, which enables ultra-low cost handsets from Motorola to work like a mobile 'payphone'. Local entrepreneurs can sell airtime on these phones to people wishing to make a call or send a text message. This innovative approach allows an entrepreneur to set up a payphone business for just the cost of a handset.

The shared access initiative is one of several projects being funded by the GSMA's Development Fund. For every handset sold under the Emerging Market Handset programme, Motorola and the mobile phone operators participating in the programme are together contributing 50 cents to the GSMA's Development Fund. The GSMA's goal is to give 80% of the world's population access to mobile communications by 2010 even if they don't all own a handset.


More on the Development Fund:

In addition to extending access to basic voice services, the GSMA is also using the Development Fund to explore how high-speed mobile networks, based on 3GSM technologies, can aid social and economic development. In many instances, 3GSM networks are the most economical way to make Internet access and other data communications widely available in the developing world.

For example, the GSMA is running field trials in Bangladesh with Ndiyo, a not-for-profit organisation based in Cambridge, England, that is promoting the concept of low-cost Internet access terminals for the developing world. In rural Bangladesh, villagers are using the low-cost terminals to connect to the Internet via a mobile network that uses EDGE technology to transmit data at speeds of up to 240 kilobits per second. In neighbouring India, the GSMA is organizing trials of handsets equipped with software from fastmobile of Rolling Meadows, Illinois, that makes it easier for people to access a range of messaging services, such as SMS, MMS, email and instant messaging.

For more information see: www.gsmworld.com/digitaldivide
About the GSM Association For further information contact:

David Pringle
GSM Association
Tel: +44 795 755 6069
Email:press@3gsmworldcongress.com

Mark Smith
GSM Association
Tel: +44 7850 229724
Email: press@3gsmworldcongress.com


About Motorola
Motorola is known around the world for innovation and leadership in wireless and broadband communications. Inspired by our vision of Seamless Mobility, the people of Motorola are committed to helping you get and stay connected simply and seamlessly to the people, information, and entertainment that you want and need. We do this by designing and delivering "must have" products, "must do" experiences and powerful networks -- along with a full complement of support services. A Fortune 100 company with global presence and impact, Motorola had sales of US $36.8 billion in 2005. For more information about our company, our people and our innovations, please visit www.motorola.com

For further information contact:

Una Kent
Motorola
Tel: +44 1256 790317
Email: una.kent@motorola.com

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