Reliance Communications – Common Mans Telco has just a while ago launched cheap mobile handsets costing mere Rs 777 [$19]. The price of the handsets – named as Classic 202, Classic 204 and Classic 203 – starts from Rs.777 and goes up to Rs.888. Reliance always tries to commoditize its offerings be it Mobiles or Retailing, a business principle followed by Dhirubhai Ambani.

Reliance Communications plans to be the number one telecom player in India a title currently held by Bharti Airtel. However, mere increase in the number of mobile connections will not aid to RCOM bottom line because of the poor ARPU of Rs 377 compared to Rs 406 of Bharti Airtel.

Earlier last month, Tata Indicom has launched low cost version of world’s popular slim phone – Motofone F3 in India.

The phone along with one year of free incoming calls is priced at Rs 1,699. This phone is powered by Qualcomm’s QSC 6010 system on chip which integrates Audio, Radio and Power Management. The phone is also localized to suit an average Indian by offering local language support – Hindi, Kannada, Tamil, Telugu and Malayalam. I am not sure if this is manufactured locally but a GSM variant of the same phone ships from Sri Perembudur Telecom Park near Chennai.

Tata Teleservices hopes to sell 2 Million Motofone F3 handsets by the end of 2007.