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Coolpad Communications, the Indian joint-venture of Hong-Kong listed China Wireless Technologies Limited, has commenced the market roll-out of India's cheapest touchscreen CDMA phone, S100, across Maharashtra. The handset will be distributed as well as retailed through Reliance World stores.

While Coolpad has already introduced its dual-mode handsets to India, the S100 is Coolpad's first CDMA-only handset being introduced in the country. The company formally entered the Indian market last year through an exclusive distribution agreement with Reliance Webstore Limited. This is part of Coolpad's focus to establish its presence in the Indian CDMA handset market which accounts for nearly 2 million handset sales every month.

According to Sami Al-Lawati, Managing Director, Coolpad Communications, "In the current scenario, we see CDMA subscribers as the key drivers of mobile data business in India. Feature-rich CDMA handsets will play a crucial role in addressing this segment. Currently, the operator pushed CDMA handsets are primarily in the sub-2000 price bracket. Telecom operators typically bundle talk-time with entry-level handsets as part of their subscriber acquisition strategy. However, amongst the 120 million CDMA subscriber base in India, almost 30% use CDMA smartphones. This captive customer base of CDMA smartphones, as well as the increasing base of CDMA-users who want more features in their phones, offers Coolpad an opportunity to address the CDMA segment with the right products, at very attractive price-points."

Coolpad will follow a two-pronged strategy to drive its CDMA volumes. While the Operator-bundled offerings will help Coolpad gain volumes in the Indian market for its entry-level CDMA phones, an independent distribution sales drive for unbundled handsets will help Coolpad enhance smartphone volumes as well as gain necessary hold on margins. Upgrade offers (from a low-end handsets to smartphones or feature-rich handsets) will be an important component of the latter strategy.

Coolpad S100 will be offered in the sub-4500 price-point, making it nearly 30% cheaper than similar touchscreen phones in the market. Coolpad plans to launch over 15 CDMA handset models in India during the current fiscal. While our high-end handsets will be dual-mode (CDMA/GSM), the single-mode will be CDMA handsets. We plan to price our CDMA handset offerings in the sub-5000 price range. Following the launch of these 15 CDMA handsets, Coolpad is targeting one million annual handset sales in India. The Maharashtra telecom circle is expected to contribute nearly 20% of these volumes. Coolpad will extensively leverage its distribution partnership with Reliance Webstore to drive these volumes in the market.

Commenting on the market roll-out, Raj Maharshi, Circle Head - Maharashtra & Goa Circle, Reliance Webstore Limited, "In Maharashtra, Reliance Webstore will market Coolpad CDMA handsets, including the newly introduced S100, across twenty top cities in the state. We expect a substantial growth in the overall handset volumes sold in Maharashtra through Reliance World and Reliance Mobile Stores over the next two to three quarters."

Coolpad's exclusive distribution tie-up with Reliance Webstore was signed in October 2009. This marked Coolpad's formal entry into in the Indian handset market--its first foray outside China. The distribution tie-up with Reliance Webstore offers Coolpad direct market access across 700 Indian cities.

Courtesy: Coolpad Communications