The US firm is expected to manufacture six million low-cost phones for sale in 17 countries including India, Nigeria, Bangladesh, Yemen and Kenya.
The cheapest mobile phones using the GSM industry standard now cost between $30 and $40 in emerging markets.
Operators said high taxes still made phones unaffordable in some countries.
Economic stimulus
Motorola will supply the phones to operators in the countries concerned, with shipments starting early next year.
At wholesale prices, the phones will cost less than $30.
Retail prices will vary from market to market, depending on taxes and other factors, but are expected to be below $30 in many cases.
Motorola has already produced about six million low-cost phones through an industry initiative to make mobiles accessible to more people in emerging markets.
The project is designed to capitalise on rising demand for mobile phones in India, the world’s fastest growing mobile market, and other countries in Asia and Africa.
Motorola said low-cost phones were essential to economic development.
“In emerging markets, consumers and operators want mobiles that meet specific performance requirements while exceeding expectations for quality, reliability and design,” said Ron Garriques, president of Motorola Mobile Devices.
“Additionally, they want all of this at a value price.”
The phones will incorporate powerful batteries to ensure they can be used for longer without charging - vital in many communities without access to a reliable power supply.