SINGAPORE - SMART phones come at a price but a local firm has managed to pack in features such as instant messaging and e-mail into a handset costing no more than $50.

Mainboard-listed contract manufacturer Jurong Technologies, along with chipmaker Infineon Technologies, mobile messaging software maker TJAT Systems and Brightstar Corp, has taken the wraps off what they claim to be the world's lowest-cost smart phone here at the Mobile World Congress.

The so-called smart entry phone (SEP) will allow users to enjoy the perks of instant messaging services like MSN, Yahoo Messenger, ICQ and e-mail on their phones without having to strain their purse strings.

Such functions are typically found on higher-end smart phones costing hundreds of dollars according to i-Sirius marketing director Oswald Wong.

The company is a subsidiary of Jurong Technologies and specialises in making low-cost handsets.

The SEP is developed by i-Sirius using Infineon's chip platform and TJAT's messaging technology. It will be distributed globally by Brightstar, the Business Times reported yesterday.

This phone is set to appeal to the growing pool of users in emerging markets - such as India - that are earmarked to drive the next phase of mobile user growth.

According to ABI Research, emerging markets will account for 80 per cent of new mobile phone subscriptions globally over the next five years, with ultra low-cost handsets playing a major role.

"The demand for low-cost, easy-to-use mobiles is constantly increasing, particularly in emerging markets. While this is so, many people still don't want to be without functions normally offered only in the high-end segment," said Mr Hermann Eul, head of Infineon's communications solutions business group.