RINGING BELLS

By Charan Raj Y Devadiga Sharath kashyap s s

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.

President. Mr. Ashok Chadha

Director Mr. Mohit Goel

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.

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.

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

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

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.

• 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.

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.

• 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,

• • 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.

• 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

Ringing bells Freedom 251

• 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 )?

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

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.

• 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?

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.

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

• 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.

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.

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.

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.

Bibliography

• https://en.wikipedia.org/wiki/Ringing_Bells_Private_Limited

• http://www.investopedia.com/features/industryhandbook/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

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• http://tech.firstpost.com/news-analysis/freedom-251-is-a-huge-scam-says-bjp-mp-kirit-somaiya-300202.html

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• 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).