Probe ordered into smart phone priced at Rs 251

Amid mobile industry expressing concern over a Noida-based company Ringing Bells launching a smart phone priced at Rs 251, dubbed as world cheapest handset, the Centre asked the Department Electronics to probe and submit the report.

Telecom Minister Ravi Shankar Prasad had sought the report from the Department of Electronics on how the firms can offer such a low price when the manufacturing cost itself will be over Rs 2,500, sources said.

Ringing Bells, set up five months ago by Amity University graduate Mohit Kumar Goel, launched the ‘Freedom 251’ at a high-profile function on Wednesday, attended by BJP veteran Murli Manohar Joshi.

Though company said it will receive booking through online on Thursday at 6 am, it said site crashed due to large number of hits. However, the company claimed that it will ready for receive order within or before 24 hours.

Ringing Bells president Ashok Chaddha said 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.

“The phone will be manufactured in Noida and Uttaranchal. Two plants will be set up for Rs 250 crore each with a capacity of 5 lakh phones," he said while rejecting getting any subsidy from the government.

However, expressing concern over the phone, Indian Cellular Association has written the Telecom Minister to order probe into it. Even BJP MP Kirit Somaiya also demanded probe on how the company is selling a phone on a such low price.