Ringing Bells’ Freedom 251: Mobile industry expresses its concern over Rs 251 pricing

Freedom 251's incredibly low pricing has sent all the bells ringing in the mobile industry

By: PTI | New Delhi | Updated: February 20, 2016 11:25 am
 Freedom 251, buy Freedom 251, Freedom 251 website crash, Freedom 251 registrations, ringing bells, ringing bells freedom 251, freedom 251 android smartphone, freedom 251 booking, freedom 251 specs, freedom 251 cheapest mobile, world cheapest mobile freedom 251, freedom 251 features, freedom 251 price in India, ringing bells india Ringing Bells’ Freedom 251 smartphone launch has sent alarm bells ringing in the mobile industry with questions being raised about its price

Expressing concern over the launch of a smartphone at price as low as Rs 251, mobile industry body ICA has written to Telecom Minister Ravi Shankar Prasad to get into depth of the issue, saying the rate could not be below Rs 3,500 even after a subsidised sale.

The Indian Cellular Association (ICA) also said that it is not appropriate for the senior political and government leadership to be present at the launch till the air around this is cleared and it is not shrouded under controversies.

Watch: Everything you need to know about Freedom 251

Noida-based Ringing Bells is launching India’s most affordable smartphone, priced at Rs 251, a move that is set to disrupt the booming Indian mobile handset market.

The 3G handset, Freedom 251, features a 4-inch display, Qualcomm 1.3-GHz quad-core processor and 1 GB RAM, according to details shared by the company.

Defence Minister Manohar Parrikkar will launch the smartphone Freedom 251 later this evening.

“For your kind information, the bill of material (BOM) value for a product like this when sourced from the cheapest supply chain cost approximately USD 40 (Rs 2,700).

“And this, when translated into retail price after addition of applicable duties, taxes and with distribution and retail margins would be at least Rs 4,100 while the product is being sold at Rs 251,” ICA National President Pankaj Mohindroo said in the letter.

He further added that even if the product is sold at lower margins in an e-commerce type subsidised sale, the final consumer price cannot come below USD 52-55 (about Rs 3,500-3,800).

“Further, there is no visible mobile operator subsidy involved in this, which in any case is not the way the Indian mobile market operates,” he added.

Mohindroo said it would be advisable that officers from Deity get into the depth of this and ICA will provide any technical assistance, if required.

“We are bringing this to your kind notice, so that a scenario does not arise in the future, where the nation, the government of India, industry and trade are seen in a poor light,” the letter added.

Must Read: Freedom 251: The reason why the phone at Rs 251 is not ringing a bell for everyone