Report may decide fate of Ringing Bells.
By Dileep Thekkethil
The overwhelming reaction to Freedom 251, the cheapest smartphone in the world costing just Rs. 251 ($4) has been the talking point in the technology arena for the past several days.
However, Ringing Bells, the company selling Freedom 251 have miserably failed in garnering the trust of prospective buyers as the company website crashed on the day one of the pre-booking, even before a single buyer could order the phone.
Later, they closed the sale abruptly with a notice that they received over 6 crore orders and over 6 lakh unique visitors per second.
Some people who ordered the smartphone online are complaining that they haven’t received any confirmation mail from Ringing Bells acknowledging the order. This has raised concerns about the payment made through a third-party gateway.
Thanks for your support. #ExperienceFreedom #Freedom251 pic.twitter.com/hpIsSqtPjK
— Ringing Bells (@RingingB) February 18, 2016
Also, what came to light after the launch of the smartphone, which was touted as the latest achievement of the ‘Make in India’ initiative by prime minister Narendra Modi, was that the device is nothing more than a cheap Chinese smartphone.
Freedom 251 is powered by a 1.3Ghz Quadcore processor, coupled with 1GB RAM, 8GB internal memory. The device also features a 3.2 MP rear camera and .3 MP front camera. The device also boasts of connectivity options like dual-SIM card slots, and 3G support. It runs on a customized version of Android 5.1 Lollipop.
Moreover, it’s now alleged that Ringing Bells has just rebranded a smartphone model of Adcom, which sells the same product of Rs. 4000 via an e-commerce website.
Industry experts confirm that a 3G smartphone made in China costs around $28 and when it reaches India the price is expected to touch at least $40.
In the lights of all this, the Indian Cellular Association president Pankaj Mahindroo wrote to the Telecom Minister Ravi Shankar Prasad saying that no company can offer a smartphone equipped with such features for less than Rs 3,500.
“For your kind information, the bill of material (BOM) value for a product like this when sourced from the cheapest supply chain cost approximately $40 (Rs 2,700),” wrote Mahindroo.
Ringing Bells, on Monday, came out strongly against Mahindroo, with its director Mohit Goel saying that when the company sells a smartphone for Rs. 251, it’s getting Rs 31 profit out of each unit.
Goel during an Interview with The Times of India said, “Why am I being hounded? What wrong have I done? Why am I being called a ‘bhagora’ (who’ll run away with the money)? I intend to do a valid business, just like any other startup, and I have a business plan ready.
“We are taking online bookings for only 25 lakh units in the first batch due to limited supplies while giving another 25 lakh through offline distributors. I will deliver the handsets before June 30,” he told the newspaper.
When talking about reports that the design of the device was copied, Goel said, “Some of the devices had the Adcom branding as we sourced panel (screen) from them. However, the final device will have our branding and the phone will have the same features and design that we had showcased.”
After many companies alerted the telecom ministry about a possible fraud, Prasad ordered the Department of Electronics and IT Secretary Aruna Sharma to scrutinize the model of Ringing Bells that enable them to sell the phone for such a low cost.
“The minister has received a representation from Kirit Somaiya and mobile phone manufacturers where they have expressed doubt about the veracity of this venture,” a Telecom Ministry source told PTI.
The ministry has also sought clarification from Ringing Bells regarding how they managed to sell Freedom 251 without getting a clearance from Bureau of Indian Standards. It has also ordered the Uttar Pradesh government to look into the credentials of the firm.
The Income Tax Department is also looking into the financial structure of Ringing Bells, which has no prior history of selling smartphones.
Meanwhile, there are reports that unknown people are selling vouchers of Freedom 251 in Noida. The company has distanced themselves from people who are selling the vouchers and have confirmed that they offer the phone only through online registration.
To all those who were able to make the payment, the company says they will withdraw the amount from the payment gateway only after getting the proof that the product is delivered.
“All the money that we receive from customers through the payment gateway will be kept in an escrow account and we will touch it only when we deliver the devices”, said Goel.
PayUBiz, the official payment gateway of Ringing Bells, said in a statement, “As a leading payment solution company, we are cognizant of both our merchants and buyers. With a surge in number of queries received for Freedom 251 during last few days, we are cautious towards the payments being made by buyers to buy Freedom 251. As a responsible payment solution company, we have ensured that the buyer’s money remains safe with us and gets released to the merchant once the product is dispatched. In case the merchant is not able to fulfil the huge demand they have received, we will work with merchant to return the money to buyers.”
According to Ringing Bells, all shipments of the phase 1 pre-order will be completed by the end of June.
All eyes are now on the forthcoming report of the Department of Electronics and IT, which will decide on the future of the Ringing Bells and its Freedom 251 smartphone.
Social Media updates
#Freedom251 Chinese Smartphone. Whitener used to Hide Name. Sold in garb of Narendra Modi's "Make in India" campaign pic.twitter.com/BLAZPSBJWk
— Joy (@Joydas) February 18, 2016
https://twitter.com/IndianIdle/status/700616725377581058
#Freedom251 Chinese Smartphone. Whitener used to Hide Name. Sold in garb of Narendra Modi's "Make in India" campaign pic.twitter.com/BLAZPSBJWk
— Joy (@Joydas) February 18, 2016
https://www.youtube.com/watch?v=DLwzvuGpdz4
1 Comment
best ! best ! best !