LG to manufacture a low-cost handset for 3G mobile phone networks

LG to manufacture a low-cost handset for third generation mobile phone networks

Market sources claim that South Korean tech giant LG has won a contest organized by the GSM Association to produce a low-cost handset for third generation mobile phone networks.

If this is true, LG is set to gain an order for several millions of these handsets by as much as a dozen mobile carriers. The official winner is expected to be announced next week at the 3GSM mobile communications trade show in Barcelona.

This low cost handset is expected to cost around USD 100 and is likely to boost the sales of 3G phones in the market. Regular 3G mobile handsets are quite expensive and lack of sales had led to held back usage of 3G network services.

Some of the mobile service providers expected to place their orders are: Cingular, Globe Telecom, Hutchison 3G, KTF, MTN, Orange, Smart, Telecom Italia, Telefonica, Telenor, T-Mobile and Vodafone.

LG is not exactly a giant in the mobile phone market. They are placed fifth in terms of sales. The market leaders are Nokia, Motorola, Samsung and Sony Ericsson.