With cellular subscriber base in the country growing more than 90 per cent, handset manufacturers are making a beeline to introduce the latest and cheapest phones.

While Sony Ericsson has announced the introduction of a range of mobile phones ranging between Rs 5,000, at the entry level, and the high-end camera phone at Rs 20,000, Alcatel launched one of its cheapest handset at Rs 3,995.

Recently Nokia had announced its intention to bring in two entry-level phones in the Indian market. China's largest handset manufacturer Bird International has also launched its phones last week.

Sony Ericsson's launch of four mobile handsets was in conjunction with its global launch in Paris.

The entry level T105 at Rs 5,000 is to be launched in the next few days has been developed specifically for the mass market in Asia Pacific.

Bjorn Almqvist, general manager, South Asia, Sony Ericsson said, "The four handsets has been designed keeping in mind the different consumer profile. India is a key market for us and we are constantly evaluating to deepen our relationships here."

The T230 priced at around Rs 10,000 has a colour screen, polyphonic ringtone and mobile game play. The Z200, priced at around Rs 15,000 has 4000 colour screen and 40 tone polyphonic sound.

The high end Z600 has an in built camera and is priced at around Rs 20,000. All the three models will hit the market in the fourth quarter.

French telecom major Alcatel also launched its entry-level handset called One Touch 320 today.

Only Motorola has a cheaper handset at Rs 3300 in the market. The Alcatel phone comes at time when the company is aggressively looking to make its presence felt in India.

"This market represents a huge opportunity for operators as well as telecom vendors as the market for mobile services is growing exponentially," Ravi Sharma, managing director, Alcatel India, said.