Cheap Cell Phones

Communication industry has gained tremendous importance in the past few years the world over. Given the busy schedule of people and the ever-increasing need for instant and frequent communication, the growth of the communication industry is hardly surprising. Mobile telephones have an important place in this quest for better and quicker communications. Common economic wisdom suggests that when demand increases prices should also increase. However, the prices of cell phones and cell phone services have been on a down trend, primarily because supply has more than kept pace with the increasing demand, consequent on the vast opportunities thrown up by the industry. Economies of scale have also played a major role in ensuring that falling prices have not left the manufacturing and service providing companies in the red. All this has resulted in the wide spread use of the cell phone.

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In many countries service providers even offer cell phones free of cost. Bundling the handsets with their services does this, so that if you subscribe to their service you get a free handset. Apart from this, cell phones from the manufacturers are also available at rock bottom prices, typically as low as $50 for a set with no frills. And it’s not just the unknown brands, but reputed companies such as LG and Motorola that have come out with models in this range.

On the service side too, there have been significant reductions in prices. Reputed companies such as AT&T offer $20 plans for individuals and $40 plans for family with unlimited nighttime use. In several developing countries like India and China, cell phone penetration is huge and continuing to grow. This has brought in tremendous economies of scale. Coupled with growing and fierce competition, this has brought in an era of cheap plans – even lifetime plans for a very low initial fee.

Cell phones have ceased to be merely instruments to receive and send mobile telephone calls and SMS messages. Today’s cell phones come with a lot of add-ons like camera, voice recorder, speakerphone, MP3 player and FM receiver. They also have built in memories to record and retain voice and pictures and facility to download them to a computer. Internet facilities ranging from receiving of mail on the cell phone to surfing the Internet are also available. When we speak of cheap cell phones, we naturally imagine phones that are shorn of these additional features. And that is certainly true in a comparative sense. It is but natural and obvious that cell phones with more facilities are costlier than ones without any additional facility. However, if you look over a period of time, you will find that even all these facilities have become extremely cheap. Just a few years ago a large handset without any facility that we are talking about was available at a price that would be twice or thrice the price of a modern handset with a reasonable array of facilities. In this sense, we can say that even sets with all facilities are cheap and affordable. The really cheap ones, of course, come with no additional features, but then they are affordable by everyone.

The combination of cheap handsets and low tariffs has brought the cell phone into the lives of the lower income groups even in developing countries.

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