New communication models could see consumers inserting their SIM cards into wireless payphones or renting handsets to use with their personal telephone numbers.
The cost of mobile handsets is one of the major barriers to subscription growth in emerging mobile markets. Though not the only barrier to affordability, the problem is acute for people with low disposable incomes among the world's remaining two billion people who remain unconnected. Although the GSM Association's emerging-market handset initiative has forced vendors to focus more on the low-cost segment and brought handset prices down to between $30-40, affordability remains an issue, especially in rural areas.
The cost barrier
Agreements between operators and handset manufacturers have seen some low-cost handsets retailing for as little as $20. However, given the 
economies of scale required to profitably deliver handsets at these prices, such initiatives have been largely restricted to the major network operators. In India for example, mobile operator Reliance, with a subscription base of about 36 million, was able to market its classic range of handsets for between $15 - $20 in partnership with Chinese handset vendor, ZTE.
The realisation that the cost of handsets will continue to serve as a barrier for those on low incomes is increasingly focusing on alternative ways to connect this segment of the population – even removing the need to own a mobile handset.
Peculiar among emerging-market users is the fact that nearly all handset owners share their phones. But many people without handsets already own SIM cards. A study conducted by Nokia in 2007 found that in Nigeria a quarter of those without handsets already had their own SIMs.
SIM pay phones
The shared-phone concept, which was born out of rural-community phone initiatives, is gaining ground. Of most interest is the GSM SIM payphone – a wireless public payphone that would offer multiple users the same benefits as a personal handset. By simply inserting his or her SIM card in a public payphone, a user could not only make and receive calls, but also access their address list saved on a SIM, send and receive text messages, access their voicemail and even pick up missed calls. The SIM cards could be rechargeable over the payphone and even permit the transfer of credit.
Such an approach effectively addresses the high cost of handset ownership and the lower purchasing power of the consumer. One need only consider the cost of owning a SIM card.
Rent a handset
Other vendors are taking this model a step further by offering a mobile phone number without a SIM. By renting a mobile phone from an agent providing mobile handsets in street kiosks or stalls, subscribers could log in to their mobile number and personal profile with a predetermined code. Once the profile has been activated, they can make and receive calls. The number could be loaded with airtime credit, as you would with your personal phone, and enable access to a voice message box and other services.
In an environment where sharing handsets is the accepted norm but where the cost of owning a handset is still prohibitive, this model of access to affordable communication is sure to extend the market to include millions of potential customers.
