Canada-based wireless products and services developer, Datawind has allocated around Rs 150 crore to announce mobile phones supporting free basic Internet services for a year. These phones will cost Rs 3,000 per unit, according to the company.
Interestingly, Datawind has given proof of its concept to the telecom operators in the country and only the final agreement is yet to be signed. It is likely that the final agreement will be signed in by February.
“We have raised 30 million Canadian dollars (about Rs 150 crore) through our public offer and all that is earmarked for this project,” said Suneet Singh Tuli, Datawind Founder and CEO.
He said that the industry trends show that an estimated 76 percent of Indian mobile device buyers choose handsets priced below Rs 4,000 and 60 percent buy phones priced below Rs 2,000.
The company has asked the operator to bill it for internet that customers will access from Datawind's server. He said that said that we have already put in place our distribution to reach target customers. Earlier this month, we tied up with HomeShop18 as 80 percent of our target market might not have access to internet but they have access to TV.
For entering in mobile space, the company has tied up with UniverCell in the south, Spice Retail in the North and West and has established its own distribution network in the east.