An Indian company is due to launch what is being billed as the world's cheapest smartphone.

Ringing Bells said their Freedom 251 phone would be priced under IRs 500 £5; $7.3), but Indian media reports said it would cost just 251 rupees ($3.67; £2.56).

Reports say the phone has 8GB storage and cameras in the front and back.

India is the world's second-largest mobile market and has one billion mobile phone subscribers.

Freedom 251 is expected to target a market already dominated by low-cost handsets.

"This is our flagship model and we think it will bring a revolution in the industry," the AFP news agency quoted a spokeswoman as saying.

At present, the firm imports parts from overseas and assembles them in India, but plans to make its phones domestically within a year, she added.

Ringing Bells was set up a few months ago and recently launched one of India's cheapest 4G smartphones at 2,999 rupees, the Press Trust of India reported.