Calcutta, Sept. 7: GeePee Infotech has launched the country’s cheapest GSM handset. It costs Rs 994 — the first GSM model for less than Rs 1,000 — and will be available without a bundling offer.

At present, only CDMA phones are priced below Rs 1,000 and are bundled with connections. The black and white GSM phones offered by Vodafone Magic Box are also bundled with connections and cost Rs 1,199.

“The phone is the first of its kind with colour display in the GSM segment. It has audio and video players. We are manufacturing the phones in Shenzhen, China. We will begin by launching the phone in the eastern and northeastern regions,” said Bijay Agarwal, managing director of GeePee Infotech Pvt Ltd.

GeePee is also in talks with various GSM operators to sell the phone through bundled offers.

The company expects to sell 50,000-75,000 of these handsets per month.

The proposed hike in value-added tax (VAT) to 12.5 per cent from four per cent in Bengal had delayed the launch of the phone. However, the state government recently decided to roll back the decision to increase VAT.

GeePee is also reworking its proposal to set up a component supply unit with a foreign partner.

According to the initial plan, the project will cover one-lakh-square-foot space involving an investment of Rs 100 crore and employing around 1,500 workers.

The company is now planning to set up a telecom special economic zone along with a component facility at higher investment.

By October, GeePee will be introducing its phones in Bangladesh.