After the launch of world’s cheapest car – Tata Nano priced at £1,250, its time for the £10 “people’s phone”, developed by Indian telecom company Spice. The Spice mobile is especially targeted at the lower strata of the market. With half of the world still lacking phones, the cheapest handset is expected to receive prompt response from buyers looking for lowest rates.

The cut-rate mobile handset comes sans the not-so-important features such as the screen. As described by Spice chairman, Bhupendra Kumar Modi “It is just a phone.” He anticipates the sale of mobile would reach about 10 million by the end of next year.

The Western markets are already saturated – UK has more mobiles than the number of people living there. Introduction of Spice’s “people’s phone” clearly indicates company’s intention to step into the new generation of African, Asian, and South American consumers. These factors have largely contributed in creating a massive potential mobile market out of the developing world.

However, with the telecom industry forecasting a proliferation in the number of mobile phone users from 3 billion to at least 4 billion for the next three years, world’s major mobile brands continue their experiments to produce cheaper handsets.