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
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.
Ringing Bells, on its part, said the manufacturing cost of the phone is about
Rs 2,500, which will be recovered through a series of measures like economies
of scale, innovative marketing, reduction in duties and creating an e-commerce
marketplace.
Apart from the jaw-dropping price, the company that was set up five months ago
by Amity University graduate Mohit Kumar Goel, is also in the midst of
controversy with analysts alleging that its maker has merely rebranded a device
by its rival, Adcom.
Analysts allege that the design of Ringing Bells' Freedom 251 handset resembles
that of Adcom's Ikon 4, which is already available in the Indian market at Rs
3,999.
Interestingly, most built-in app icons on the Freedom 251 seem to be a direct
copy of icons on Apple's iPhone, they added.
Despite the controversies, the device has continued to grab attention from
consumers. Following a heavy demand, Ringing Bells suspended bookings for 24
hours yesterday. It resumed bookings today.
