Mobile operator Vodafone and phone manufacturer Sagem have announced the signing of an agreement according to which Sagem will produce a Vodafone-only branded mobile phone to be sold by the mobile operator. The agreement comes as an extension to Vodafone's Original Design Manufacturers' strategy.

The new handset, that is to be released by June this year, will come with an extra-slim case, include all of the main GSM features and a 65k color screen. Thus, it will probably be an entry-level mobile phone, targeting your average user that wants an affordable and 'keeping-it-simple' handset.

Vodafone claims that it is aiming to use the international recognition of its brand to help leverage the production of a whole line of high-quality handsets with lower price tags. All of the phones will be available only through the mobile operator. The agreement that was signed by the two companies is a further extension of the delivery of the Vodafone-branded range.

Jens Schulte-Bockum, Global Director of Terminals at Vodafone added: "Vodafone's Original Design Manufacturers' strategy is intended to use Vodafone's size and purchasing power to engage with the best white label handset makers and then use the power of the Vodafone brand to bring their products to market. We are pleased that we have signed this agreement with Sagem Communication which will build on their experience in European markets to create for us a high quality and affordable handset for sale across Vodafone's markets." Also, according to Sagem's deputy CEO, Thierry Buffenoir: "Designing and producing handsets to be marketed under other brand names than our own is one of the key pillars in Sagem Communication's business strategy for 2007."