Motorola aims to capture new market in India

Motorola, the world's second-biggest maker of wireless phones, started selling the low-cost Motofone in India to compete with larger rival Nokia.

The thin, "value-priced" phone will be sold in other countries starting in "coming weeks," Schaumburg, Illinois-based Motorola revealed. A U.S. version will be shipped by year-end, the company said.

Motorola is banking on the Motofone, its thinnest phone yet at about 8 millimeters, to break Nokia's dominance in markets such as India and China, where sales are rising faster than in Europe and North America. The company is also seeking to build on the success of the Razr, a half-inch thick clamshell-style phone. Motofone's price wasn't disclosed as yet.

“It is an opportunity to bring in new consumers to the market place,” said Steve Lalla, general manager of Motorola's mass market phone unit, in an interview. “We're looking at places like India, China, South Africa and Eastern Europe.”

The Motofone makes it easier for first-time users to place a call and retrieve messages by using local languages and symbols as well as text, the company said. The phone also uses a plastic display that incorporates Cambridge, Massachusetts-based E Ink electronic paper technology, Motorola said.

Each company is looking to lure first-time users in regions such as Asia and Latin America as sales growth slows in Western Europe and North America. The Motofone will compete with phones such as the 75-euro ($99) Nokia 2626, introduced recently.

Will Motorola's Motofone entice customers away from Nokia? How much of an impact will their practical interface, which integrates local languages and symbols, make in emerging markets?