Vodafone Essar launched an ultra-low cost mobile handset in the Indian market priced at Rs.799.

The handset is branded under the Vodafone brand name and can be used by non-Vodafone mobile subscribers as well. However Vodafone will offer the customer of the handset a free Vodafone mobile connection.

The handset is believed to be launched to mainly penetrate further into the low-end strata of population including rural areas.

Vodafone Essar has been clocking the highest number of new subscriber additions for the last two consecutive months.

The company had earlier announced plans to launch such an ultra low-cost mobile handset at the GSMA Barcelona event.