At a press event hosted today by the Cellular Operators Association of India (COAI), Texas Instruments Incorporated (TI) [NYSE:TXN] Chairman Tom Engibous announced that TI has made a live phone call from India to Europe, further proving its single-chip cell phone technology. Engibous made the phone call on a live cellular network, demonstrating the next step in TI's strategy to deliver a single-chip cell phone solution for ultra-low-cost handsets in emerging markets, such as India.

Recognizing the need for affordable handsets in developing countries, the GSM Association (GSMA) introduced its Emerging Markets Initiative earlier this year. With a goal of delivering up to six million handsets in the first six months, GSMA is working with manufacturers to deliver products at a price point below US$40, with the potential to add 100 million connections per year.

"Continued innovation to design costs out of handset manufacture is a key factor in achieving greater affordability of mobility for developing markets," said Rob Conway, CEO of the GSM Association. "The GSM Association, having facilitated the creation of a new Ultra Low Cost handset segment, welcomes this announcement from Texas Instruments as another step in the industry's efforts to connect the unconnected."

Also at the press event, Engibous announced the first cell phones built entirely in India, from concept to design to production. Based on TI's TCS chipset family, the GSM/GPRS handsets have been developed by Indian companies BPL and Quasar for Primus. The handsets also include TI's BRF6150 single-chip Bluetooth module and other TI components, including audio amplifier, LED drivers, voltage regulators and standard logic/linear components. These designs will serve as platforms for development of a variety of handsets for different market segments, from ultra low-cost to mid-range voice- and feature- rich data-centric handsets. The first phones based on the TI and BPL cooperation will be available in September 2005. Primus phones will be in production later in 2005.