They are currently in advanced stages of discussions with leading contract manufacturers in China, Taiwan and Korea for sourcing the prototype of the low-cost internett-enabled mobile phone. The company intends to place an initial order for 12 million handsets. It will target the 600 million rural population and sell around 1 million pieces a year in the rural and semi-urban areas.
At that price, i would recommend them to bundle the phone with the service. Why bother trying to sell at $12. As its, most providers worldwide are giving away free phones bundled with their mobile services. At $12 a piece, the return of investment (ROI) should be fast.