Ringing Bells Freedom 251: Here’s why customers might not sue the company

It is unlikely that that the buyers of the Ringing Bells Freedom 251 will sue the company. Here's a look at why the company might not face any legal battle.

Written by Nandagopal Rajan | New Delhi | Updated: March 28, 2016 9:19 am
Freedom 251 booking, Freedom 251 mobile, Freedom 251 booking online, Ringing Bells,Freedom 251, Ringing Bells FIR, Ringing Bells cheating, sue Ringing Bells, Ringing Bells controversies, Make in India, Ringing Bells issues, Ringing Bells, Freedom mobile, book Freedom 251, Freedom 251 delivery, Freedom 251 cashback, Freedom 251 price, Freedom 251 specs, smartphones, technology, technology news Noida Police, on Tuesday registered an FIR against the makers of Ringing Bells Freedom 251 under under Section 420 (cheating) of IPC and the IT Act .

Everyone wants to sue Ringing Bells, the makers of Freedom 251. While the world’s cheapest phone could soon prove to be a costly mistake for its makers, it is unlikely that the actual buyers of the phone will sue the company. That is because the costs of litigation will far outweigh the cost of the phone.

If the company finally ends up failing to deliver the phone as promised, not many people will bother going to consumer court for something that cost them just Rs 251. Unless you have the drive to bring the company to book, thousands of customers who bought the phone won’t bother spending their precious time in courts for a refund of this amount.

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In fact, some experts say the pricing gives Ringing Bells a big advantage. “They can actually pay back the money to the guys who pester them for the phone. Afterall, it is just Rs 251,” said the CEO of a tech manufacturing company.

There are still a lot of unanswered questions about the phone. The most important one still is who is subsidising the phone? While the phone is priced Rs 251, Adcom — the actual manufacturers of the units Ringing Bells showcased last month — claim the phones were sold at Rs 3,600 apiece.

Ringing Bells, Freedom 251. Ringing Bells FIR, Ringing Bells cheating, sue Ringing Bells, Ringing Bells controversies, Make in India, Ringing Bells issues, Ringing Bells, Freedom mobile, book Freedom 251, Freedom 251 delivery, Freedom 251 online booking, Freedom 251 cashback, Freedom 251 price, Freedom 251 specs, smartphones, technology, technology news There are still a lot of unanswered questions about Ringing Bells Freedom 251.

Must Read: Adcom says will sue Ringing Bells over Freedom 251 smartphone

So who is picking up the tab for the Rs 3,350 that is due just on the cost of the phone? And if someone is subsidising the phone, what is responsible for this sudden outpouring of philanthropy? The only business model that can help sustain subsidised hardware is monetised content, and in India not even Apple or Google have been successful on that front, certainly not to the extent of being able to recover Rs 3,300 a year.

Some suggest that the idea behind the big launch of the Freedom 251 could have been brand building. You get a lot of press on the “world’s cheapest phone”, burn money by absorbing the subsidy to make this possible for a limited number of phones and then finally launch phones at a higher, more plausible, price point. “But by then your brand is made and everyone knows you,” says Datawind CEO Sunit Singh Tuli.

Tuli adds that this pricing has also muddied the waters for all companies planning to launch really cheap smartphones. Ringing Bells in a way took away a bit of Datawind’s thunder, as the company was reportedly working of a Rs 999 smartphone — which would have been the world’s cheapest had Freedom 251 not come along — for this year.

“Now, everyone will look at Freedom 21 as the benchmark, even if they are not able to deliver in the end,” says Tuli. The company had launched a smartphone priced Rs 1,999 last year.

Also Read: DataWind launches Android phones at Rs 1,999 with free internet

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  1. M
    MEHAK Deep
    Jul 14, 2016 at 5:33 am
    I have 2 free Dom phone 251
    Reply
    1. R
      Raghu
      Mar 27, 2016 at 7:32 pm
      Do not get into this...its a Chinese phone...there could be some piece of info-tracking/gathering chip inside the phone...may be it's way to lure the people.....
      Reply
      1. S
        Sujith
        Dec 24, 2016 at 12:31 pm
        How did u get the phone
        Reply
        1. V
          Vijay
          Jul 19, 2016 at 11:22 am
          Nice mobile thanks lt;br/gt;Naku ok 4 lt;br/gt;Mobile kavle
          Reply
          1. I
            ie
            Apr 20, 2016 at 10:30 pm
            it is unlikely that the actual buyers of the phone will sue the company. That is because the costs of litigation will far outweigh the cost of the phone.lt;br/gt;lt;br/gt;It's a very weak point, upon which the le of this article is based on. Suing doesn't mean you get only what you paid for.
            Reply
            1. A
              Ahasan
              Apr 18, 2016 at 9:30 am
              Freedom 251
              Reply
              1. H
                Harikrishnan
                Mar 27, 2016 at 12:40 pm
                Dear Indian express, you also reported about this news at the time of booking without asking these questions then. It was so evident that he has not intention of supplying the phones. Let the consumers think that this is lottery they have taken which they will not win.
                Reply
                1. J
                  joshua
                  May 13, 2016 at 11:20 am
                  when come
                  Reply
                  1. C
                    chistine lane
                    Jun 19, 2016 at 10:28 am
                    how about people stop complaining and a smartphone for less than a meal at mcdonalds
                    Reply
                    1. S
                      Syemon
                      Jul 3, 2016 at 4:03 pm
                      Lets to simple maths folks... An article says that 7.35 Crores pieces are sold. Revenue to Ringing Bells is 1844 Crores. uming 1844 Crores were invested in a combination of Fixed Deposits, Bonds, Financial Insution Loans etc with a average annual return of 10%, Ringing bells will make 184 Crores by end of March 2017. Even if they return back money to all who have booked, Ringing bells will still have a fat profit check of over 180 crores. Ok... Ok.. Lets add the cost and taxes.. Still a return of atleast 100 crores out of nothing. Is that not cool? No. No... No... It might be a bad trendsetter..... Anyway this is just my personal opinion. Others may disagree
                      Reply
                      1. J
                        J.V.Emanvel
                        Jun 4, 2016 at 11:49 am
                        I got back my money all most immediately after they announced that they will begin delivery on COD basis effective 15 June 2016. Later I also got a SMS to this effect. Keeping my fingers crossed and hoping that thy ewould honour their promise. J.V.Emanvel
                        Reply
                        1. M
                          monu kumar
                          Jul 8, 2016 at 11:15 am
                          Monu kumar to feridam 251 to 10 pic. No. 8510980940
                          Reply
                          1. M
                            manoj l
                            Jul 3, 2016 at 3:14 am
                            When will Deilvery Mobile
                            Reply
                            1. M
                              mohan
                              Mar 27, 2016 at 7:24 am
                              not booking
                              Reply
                              1. N
                                neeraj
                                Jul 11, 2016 at 10:18 am
                                i like
                                Reply
                                1. N
                                  neeraj
                                  Jul 11, 2016 at 10:18 am
                                  i like this
                                  Reply
                                  1. P
                                    Prashant
                                    Jun 24, 2016 at 8:24 am
                                    when phone will come?
                                    Reply
                                    1. S
                                      Saiprasad
                                      Dec 25, 2016 at 12:56 am
                                      Very nice
                                      Reply
                                      1. S
                                        Saketpatel
                                        Nov 5, 2016 at 3:13 am
                                        Acha hai mager mujhe mila nahi
                                        Reply
                                        1. S
                                          Saketpatel
                                          Nov 5, 2016 at 3:12 am
                                          Acha hai tasali ke leye bas hai
                                          Reply
                                          1. S
                                            sanketh
                                            Mar 27, 2016 at 1:59 pm
                                            I got a message yesterday that the phone will be delivered via cod by June 30
                                            Reply
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