The objective of the initiative with an invitation to strategic partnership issued to handset manufacturers is to offer ultra-low cost sets to developing country markets like Bangladesh.

Erik Aas, CEO of Bangladesh's GrameenPhone Ltd, will chair the steering committee managing the GSMA initiative while Arve Johansen, GSMA Board member and Telenor Mobile CEO, will be the sponsor of the committee.

Other members of the steering committee include GSM operators serving in emerging markets.

"Operating in developing markets means that we are dealing with the challenges on a day-to-day basis," said Aas. "We must ensure that the realities of the issues faced by developing countries are addressed."

Open to handset manufacturers worldwide, the result of the selection process will be announced at the 3GSM World Congress Asia in Singapore at the end of September, with new handsets expected to be available from Q1 2006.

"Effective communication is one of the key catalysts for economic growth. The GSMA is bringing together operators and vendors to address the affordability issues of mobility in emerging markets, " said Craig Ehrlich, chairman of the GSM Association.

"The next phase of our initiative aims to drive even greater affordability, through sustainable products, at even lower cost than the first phase of the programme. At the right entry level we believe there is the potential for over a hundred million new connections per year."

The GSMA's determination to create a sustainable ultra-low cost handset segment has ignited huge global support. Motorola won an initial supply tender earlier this year, and is already on target to meet the programme's anticipated volume of six million units.