Vodafone has launched new low-cost handsets intended to help mobile penetration in emerging markets including Kenya.

The two Vodafone branded phones are expected to retail between Sh1,125 and Sh1,500 ($15 and $20) making them accessible to more people in these markets.

These low cost handsets are intended to help mobile phone penetration in India, Turkey, Eastern Europe and eight African markets - DRC, Ghana, Kenya, Lesotho, Mozambique, South Africa, Tanzania and Qatar.

The mobile company has footprints in these markets including Kenya where it owns 40 per cent of Safaricom.

Speaking during the unveiling of the handsets Vodafone's group director of terminals, Mr Patrick Chomet, said that the cost of mobile handsets was one of the most significant barriers for people in accessing and benefiting from mobile services.

"The lives of people who use these phones will be changed and improved as they become part of the mobile society," he said.

The launch of the handsets will be supported by an extensive logistics infrastructure to reach the rural segments where mobile penetration remains low.

This is the second time the phone company has ventured into unveiling low cost phones.

In May 2007 Vodafone unveiled its first low cost branded handset, Vodafone 125 and 225, that were available in the Kenyan market retailing from Sh1,500.

The European mobile company unveiled the Vodafone 150 and 250 at the ongoing Mobile World Congress in Spain where other leading phone manufacturers unveiled new smart phone models.

Sony Ericsson and Samsung Electronics unveiled these phones in a bid to advance their position in the lucrative end of the phone market.

Samsung, the world's second largest handset maker, unveiled its flagship smartphone model Wave, which uses a new touch screen technology and first phone to use its bada operating system.

The head of Samsung's mobile operations, JK Shin, said that with the help of bada - which can be used also in cheaper models -- the company would benefit from surging demand for new smart phones in emerging markets.

"I believe that the smart phone market will grow more than 20 per cent every year for a three-year timeframe, and the growth rate in emerging markets is much higher than that of advanced countries," he said in an interview.

Samsung said it plans to launch five to seven phone models using bada software in 2010.

While the world's fourth largest phone maker Sony Ericsson of Sweden unveiled three smart phone models.

The company is aiming at retuning to profits, after reporting losses seven straight quarters, as soon as possible.

Samsung and Sony Ericsson have seen consumers seeking Web and other PC-like functions increasingly turning away from their feature phones to computer-like smart phones from vendors like Nokia and Apple.

The Mobile World Congress began yesterday and has brought together leaders in the mobile industry under the theme Vision in Action.