The mobile industry has driven the wholesale cost of mobile phones to below $30 as part of the GSM Association (GSMA) programme to make mobile telephony affordable for people in developing countries.
GSMA expects to order 6.0 million of the low-cost handsets from Motorola.
Motorola submitted two models of handsets in its proposal - the C113 and the C113a, which were specifically designed for the emerging markets.
The C113a offers talk times of up to 450 minutes and up to 330 hours of standby, reducing the need for frequent recharging.
"To get below $30 per handset is a milestone achievement," said Craig Ehrlich, Chairman of the GSMA, the global trade association for the world's GSM mobile operators.
"Today's news cements the formation of a whole new market segment for the mobile industry and will bring the benefits of mobile communications to a large number of people in developing countries."
The GSMA programme, which is chaired by Erik Aas, Chief Executive of GrameenPhone Ltd., is supported by some of the leading operators in emerging markets, AIS, Bharti, BPL, Globe Telecom, Hutchison Essar, IDEA Cellular, MTN Group, Orascom Telecom, Telenor and Vodacom.