An case study about freedom 251 Smartphone , Worlds cheapest Samrtphone

1. RINGING
BELLS
By
Charan Raj Y Devadiga
Sharath kashyap s s

2. Introduction
• Ringing Bells Private Limited is a company based in Noida
(India), registered on 16 September 2015.
• The company attracted attention when it announced the
Freedom 251, a 3G Smartphone, at a price of Rs. 251 ( INR
251 , after 20:00, on the 21st of February 2016, the price will
become Rs. 500+).
• That would make it the world's cheapest Smartphone. The
company claims that phones purchased now will be delivered
(at the additional cost of Rs. 40) by 30th June 2016.

3. President.
Mr. Ashok Chadha
Director
Mr. Mohit Goel

4. Objective of study
1. How did the company is able to produce a
Smartphone at such a low cost and able to
promise to sell at INR 251 (USD 4).
2. Smartphone for every person.
3. Safety to women.
4. Impact of freedom 251 in Smartphone
market.

5. Industry study
• Think of telecommunication as the world's biggest
machine. Strung together by complex networks,
telephones, mobile phones and internet-linked PCs,
the global system touches nearly all of us.
• Plain old telephone calls continue to be the
industry's biggest revenue generator, but thanks to
advances in network technology, this is changing.

6. Telecommunication industry includes
• Telegraph and telephone
• Radio and television
• Computer networks and the Internet

7.  Basic elements
 A transmitter that takes information and converts it to
a signal.
 A transmission medium, also called the "physical
channel" that carries the signal.
 A Receiver that take the signal from the channel and
converts it back into usable information for the
recipient.
transmitter medium Receiver

8. Telecom Sector in India
• India is the world’s second-largest
telecommunications market after China, with 898
million subscribers as on March 2013.
• The sector expected to witness up to US$ 56.3
billion investments and the market will cross the
US$ 101 billion mark in five years.
• present 74% to 100% FDI is permitted for various
telecom services. This has made telecom one of
major sectors attracting FDI inflows in India.

9. • The total mobile services market revenue in India is
expected to touch US$ 37 billion in 2017.
• According to a study by GSMA, smartphones are
expected to account for two out of every three
mobile connections globally by 2020 making India the
2nd largest smartphone market.
• to maintain high growth rate over the next few years
as people switch to smart phones and gradually
upgrade to 4G.to 250 million connections by 2017,
according to GSMA.

10. Investment in Indian market
With daily increasing subscriber base, there have been a lot of
investments and developments in the sector. The industry has
attracted FDI worth US$ 17.7 billion during the period April
2000 to September 2015,
 Some of the major developments in the recent past are:
• Bharti Airtel has planned to invest Rs 60,000 crore (US$ 9.02
billion) over a period of three years with a view to boost its
telecom network capacity thereby improving the quality of
voice and data services to its customers.

11. • Reliance Communications Ltd, India’s fourth largest mobile
services provider, has agreed to acquire Sistema Shyam
TeleServices Ltd (SSTL), the local unit of Russian company
Sistema JSFC, in a deal valued at Rs 4,500 crore (US$ 687
million), which includes payments to the government for
spectrum allotted to Sistema.
• • Videocon Industries Ltd plans to set up a mobile handset
assembly plant along with manufacturing set top boxes in
Punjab for an investment of Rs 500 crore (US$ 76.7 million)
over three years.
• Chinese smartphone maker OnePlus has announced its
partnership with Foxconn, a Taiwanese company, for
assembling its phones in Foxconn's factory in Andhra Pradesh.
• Lenovo Group of China has commenced manufacturing its
smartphones in India,

12. • • Foxconn, the world’s largest contract-manufacturing firm
for consumer electronics and manufacturer for Apple
products, has signed a Memorandum of Understanding
(MoU) with Maharashtra state government to invest US$ 5
billion over the next three years for setting up a
manufacturing unit between Mumbai and Pune.
 India has 554.8 million mobile users and 143.2 million
unique Internet users.
 Mobile Penetration in Urban India is 70% & rural India is
36%.
 23.8 million users use Internet on their mobile devices
 7.1 million (or 77%) of these users who access Internet
exclusively through mobile data connections are in rural
areas.
 95% of all active connections are prepaid.

13. • Moreover, the cumulative revenue of telecom
service providers was recorded at Rs 54,284
crore (US$ 8.32 billion) in the January-March
2013 quarter, as per TRAI. 54,284 crore

14. Ringing bells Freedom 251

18. • The cost of making one unit of the Smartphone is around Rs
2,000.
• "By making in India, this price goes down by Rs 400.
• . Then we will sell online only. So, this pulls down the price by
Rs 400 further.
• They are sure that this Smartphone will be in a lot of demand.
They are assuming to save around Rs 500 from this economy
of scale.
• At last, we wait for our platform to grow, so, that we can make
money from other services," explained Mr.Chadha at the
launch event.
• The company is also aiming to introduce its own SIM card
within a couple of years (which can be the main source of
income/profits).
Q) How did the company is able to produce a Smartphone at such a
low cost and able to promise to sell at INR 251 ( USD 4 )?

19. The makers of the world’s cheapest
Smartphone will make a profit of Rs 31
on every unit of the Freedom 251

20. Q) Smartphone for every person ?
• Freedom 251 Smartphone is priced at very
cheaper than all other Smartphone which comes
with the same kind of specification.
• Ringing Bells said that all deliveries will take 4
months to complete and it claims to do so by
June.
• The company is charging Rs 40 extra as delivery
charges, which sums up the price of Freedom 251
to Rs 291 (with delivery charges).
• . According to the reports the company has
received 7.5 cr of registration for their mobile.

21. • Since, it is government funded; the Indian
Government will provide the phone with
some apps pre-installed. Like apps for
woman's safety,
Q) Safety to women?

22. Q) Impact of freedom 251 in
Smartphone market?
• Every month about 2 crore mobile phones are sold
in India.
• India one of the fastest growing Smartphone markets
globally.
• Forecast for 30% of market share in Indian market by
end of 2017.
• The company (Ringing Bells) claims to have 25 lakh
bookings and some 7.5 crore registrations.

23. Findings
• The Make in India phone a Made in China
replica?
• Chinese mobile phone sellers say the design of
the Freedom 251 released in Delhi looks
exactly like a China-made fake iPhone that was
popular in China five years ago.
• Adcom Ikon 4 is essentially a Shan-Zhai
iPhone says the Chinese sellers

25. • These phones can be bought on Chinese
websites. Chinese sellers say the fakes can still
be made to order in Shenzhen, south China, in
bulk for around Rs.1000 per piece.

26. Could be a scam?
• The Telecom Ministry is believed to have sought
clarification from Ringing Bells for marketing its
‘Freedom251’ mobile phone without BIS
certification and have asked UP government to
check its credentials, as per BJP MP Kirit Somaiya.
• Adcom Ikon 4 Smartphone, which is available on
Flip kart for Rs 3,699.
• On the other hand, the Freedom 251 is just the
Ikon 4 being sold at a ground-breaking price of Rs
251.

27. To clear the companies name .
• Ringing bells announces Cash on Delivery
option for first 25 lakh consumers for Freedom
251.
• “Freedom 251” Smartphone maker , has
reportedly claimed to have paid back the
money it generated from the first 30,000 pre-
booking orders on the first day of the sale this
month.

28. Conclusion
• Booming market of Smartphone industry has come to
point where impossible things are being possible, the
announcement of worlds cheapest Smartphone as
made world’s attention towards ringing bells ltd,.
Trying to buy INR 251 Smartphone is not a loss , with
many controversy the freedom 251 is trying to deliver
the smart phone in coming days .If it deliver what is
promised Smartphone market going to change
smartphone industry.

31. Bibliography
• https://en.wikipedia.org/wiki/Ringing_Bells_Priva
te_Limited
• http://www.investopedia.com/features/industryh
andbook/telecom.asp
• https://en.wikipedia.org/wiki/Telecommunication
• http://www.slideshare.net/Murali007/indian-
telecommunication-industry-
58041093?qid=28aded10-eaaf-43e9-8bde-
f63aad3b1bb4&v=&b=&from_search=2

32. •http://www.wittyfeed.com/story/15499/Freedom-251---Worlds-Cheapest-
Smartphone-Costs-4-Only
• http://timesofindia.indiatimes.com/tech/tech-news/Freedom-251-Queries-F
AQs-about-the-cheapest-smartphone-answered/articleshow/51041116.cms
• http://www.msn.com/en-in/news/other/freedom-251-will-make-rs-31-profit-
on-every-unit-sold-says-maker/ar-BBpO6CR
• http://techpp.com/2016/02/21/freedom-251-sale-registrations/
• http://www.moneycontrol.com/news/business/freedom-251-smartphone-
• to-be-launched-today-at-rs-251_5524981.html
• http://www.bbc.com/news/world-asia-india-35595500
• https://in.finance.yahoo.com/news/freedom-251-why-phone-low-003600414.html
• http://www.newsr.in/n/India/759i5nzm7/Smartphone-sellers-brand-Freedom-251-as-
fake.htm

33. • http://tech.firstpost.com/news-analysis/freedom-251-is-a-huge-
scam-says-bjp-mp-kirit-somaiya-300202.html
• http://timesofindia.indiatimes.com/tech/mobiles/Freedom-251-
review-Lets-wait-till-deliveries-start/articleshow/51138679.cms
• http://tech.firstpost.com/news-analysis/freedom-251-announces-
cash-on-delivery-option-for-first-25-lakh-consumers-301306.html
• http://www.abplive.in/lifestyle/freedom-251-makers-refund-pre-
booking-money-what-next-297922
•
• References: Media Reports and Press Releases, Cellular Operators
Authority of India (COAI), Telecom Regulatory Authority of India
(TRAI), Department of Telecommunication (DoT), Department of
Industrial Policy and Promotion (DIPP).