3G phone like Freedom 251 would cost Rs 2,300, finds DoT

February 19, 2016 20:50

With questions being raised over the promised price of Rs 251 for a 3G smartphone by new entrant Ringing Bells, the Telecom Ministry has found that a device with such specifications would cost about Rs 2,300.

"The ministry has analysed the issue and it feels that such a device can be manufactured for about Rs 2,300," sources said.

However, they refused to say if any action will be taken against the company in the matter.

Earlier this week, Noida-based firm Ringing Bells launched the world's cheapest phone -- Freedom 251 -- priced at Rs 251, hogging limelight globally.

Indian Cellular Association, which represents the handset makers industry in India and has members like Apple, Samsung, Microsoft, Lava and Micromax, had also written to Telecom Minister Ravi Shankar Prasad.

The body said the bill of material value for a product like this when sourced from the cheapest supply chain cost approximately USD 40 (Rs 2,700).

When translated into retail price after addition of applicable duties, taxes and distribution and retail margins, the cost of the product would be at least Rs 4,100, it added.

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