Gearing up for competition in the supply of cheap, customized mobile phones, MTN has sent a team of engineers to China to assess handsets that the operator will sell on the African market for as low as US$10.

Increasing the penetration of mobile phones is dependent upon cheaper equipment and cheaper calling fees, noted Tim Lowry, MTN vice president for Southern and Eastern Africa.

The reliability of Chinese handsets is no less than that of expensive brand-name models, Lowry assured.

Additionally, he said, "MTN is working with mobile-phone manufacturing companies in order to bring down the high cost of handsets that could handle data, voice and multimedia service to between $20 and $40."

In Zambia, MTN currently sells handsets for $24, while its major competitor, Zain, offers the customized Motorola C123 model for $20.

The IDG News Service is a Network World affiliate.