Low cost smart phone functionality without data plan is need of the hour. This is very true for teenage students. They need 4 inch, multitouch, Android 2.x, Wi-Fi feature phone without data plan at around $150.
MediaTek is the one company which has already proved this. They have the processors which are targeted low cost 2G handsets which actually have the integrated application and broadband processors. It is sure that all the OEM's actually require a lesser chip solution foe the smart phone designs.