Motorola is to produce 6 million mobile phones each is priced at USD 30 (USD1 = CNY 8.11), and telecom operators of developing countries will assume the responsibility for the product sale.

However, the Emerging Market Handset Programme (EMH) does not develop as smooth as expected in China, said Huang Baozhong, Senior Advisor of the GSM Association.

In China, telecom carriers are not interested in the programme, and consumers are unwilling to buy such cheap mobile phones for comparing with what others bought.

GSM Association will not formulate special promotion plan for the products targeting the current market condition, but will strengthen cooperation on promotion with home telecom operators, Huang Baozhong said.

In the first half this year, domestic handset makers generally suffered loss, and the cheap handset may not be able to trigger their interest, analysts said.