Google to tie up with Micromax, Karbonn, Spice for affordable Android smartphones

At the ongoing Google I/O, Sundar Pichai announced a new program called Android One. This is essentially a hardware and software reference program to help OEMs build affordable smartphones. India will be the first country where these devices will be launched, before going global, intensifying competition in the already crowded segment of the market.

The Android-powered handset will be built with a basic set of features including FM radio, have a screen slightly smaller than five inches and be priced at less than $100, Google senior vice president Sundar Pichai said at the start of the technology giant's annual developers conference.

"We are going to be launching it around the world, but will launch in India first in the fall of this year," Pichai said. Google is partnering with three Indian mobile phone makers - Micromax, Karbonn and Spice - for the first set of Android One phones.

However, in a country like India, while access to affordable smartphones is an issue, access to cheaper high speed connectivity is also a challenge. Though telecom companies have been reducing data tariffs over the last few months, the usage is not picking as fast as they were hoping.

Google may have to partner with telecom companies to offer smartphones bundled with data connectivity. Facebook, for instance, has partnered with telecom operators in India to offer free access to its social networking platform.

India has also become the focus for most large operating system makers including Mozilla that announced to launch ultra low cost devices with Indian partners Spice and Intex, priced at $ 25 (Rs 1500), less than a fortnight ago.