Freedom 251: A Noida-based company Ringing Bells that ran into controversy after announcing the Freedom 251 mobile- a Rs. 251 smartphone, has recently announced that it will start shipping of Freedom 251 phone to customers from June 28, 2016.
Shipping will begin to users who have registered for buying Freedom 251, Ringing Bells Managing Director Mohit Goel said.
Freedom 251: Company will start shipping phone from June 28
“We will start shipment of Freedom 251 from June 28 to customers who paid for it earlier on COD (cash-on-delivery) basis,” he told Press Trust of India.
The Noida-based company started selling the handset, Freedom 251, through its website in February, 2016. When the Freedom 251 was launched, touted to be the cheapest phone in the world, ran into controversy, where most of the people accused the company of fraudulent scheme.
Ringing Bells official website also crashed during two-day sale due to the massive registration from the prospective buyers. According to company statement, around 30,000 customers had booked the freedom 251 booking online in the first batch despite the glitch.
The Ringing Bells, later, withdrew phone and refunded the payments to customers following a close scrutiny by government agencies. According to them, about 30,000 customer paid for booking the phone on freedom 251 payment link and over 7 crore people registered for it through the main site. The small firm, however, said that it would deliver the Freedom 251 on cash-on-delivery mode to those who register.
Freedom 252 President Statement
Ashok Chaddha, the company president had explained earlier that the manufacturing cost of the phone was about Rs. 2,500, which had to be recovered through a series of measures like innovative marketing, economies of scale, creating an e-commerce marketplace and reduction in duties.
According to the company president, they would make phones in India that would lead to 13.8 percent savings on duties and further save on cost by selling it online.
Freedom 251 was to be manufactured in Uttaranchal and Noida.
“Two plants will be set up for Rs. 250 crores each with a capacity of 5 lakh phones. The money will come in the form of debt and equity (1.5:1),” Chaddha had said.
But, many expert had expressed doubt over the claim. Ravi Shankar Prasad, Telecom Minister too had asked the IT and Department of Electronics to look into the matter.