• Spice ‘People’s Phone’ to compete with landlines

    It is priced at less than USD 20 (Rs 800), it doesn’t have a screen, it can fit in your pocket and it can make calls. Well, that is the People’s Phone from Spice for you. With carriers expecting the next couple of billion subscribers to come from rural and smaller towns, Spice hopes to ride the wave by offering an affordable product targeted at that very segment. The People’s Phone will be available in select markets from April this year. Here’s an excerpt from an exclusive interaction with Dr BK Modi, chairman, ModiCorp.

    Why will people buy a phone that doesn’t have a display screen?

    It is just a matter of perception. Traditional landlines never had a display screen. Had someone announced this phone before cellphones were launched you wouldn’t ask this question. With the People’s Phone, we are offering the most affordable cellphone in the world. It is targeted at the new subscribers, who will come from smaller towns and villages with low budgets.

    Are you competing with landlines with the People’s Phone?

    The People’s Phone is better than a landline and slightly lesser than a conventional cellphone as it doesn’t have a display screen. The calling rates will come down to as low as 10 paisa a minute. With such low tariffs, why would a consumer want to stick around with a landline when he can go mobile by spending as much as he would in buying a landline?

    What about text messaging?

    Despite of data services, voice has been the predominant revenue generator for carriers. They are employing voice-based solutions to deliver value added services and the People’s Phone will take advantage of that.

    It seems a perfect product for bundling with carriers.

    We are already talking to a few carriers like BSNL, Vodafone and Et Salat.

    12 February 2008 in Events by

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