Sure, everyone’s drooling over phones that offer multi-megapixel cameras and mobile TV, but in order for the industry to experience some real growth, it’ll have to look at the Ultra Low Cost (ULC) handset market segment. TTPCom Limited, a subsidiary of TTP Communications, has completed a reference design that can create a fully functional cell phone for less than $20.

This handset design will include TTPCom’s AJAR ULC application suite, protocol software, and a baseband chipset engine. By demonstrating a way of cutting costs and optimizing both hardware and software, TTPCom has put itself in the unique position of selling the intellectual property needed to better penetrate into emerging markets. Of particular interest to handset makers are India and Africa, where they hope to gain as many subscribers as they have been doing and continue to do in China.

“We can help handset manufacturers deliver a sub-$20 device,” said TTPCom’s managing director Tony Milbourn. “In fact, with the right partners, we believe we can reduce costs even further.”