My 7 year old wants a phone because every kid in school has one. In a village school.

Our son Jaskaran studies in the government school in the next village. He came home and said that three boys in his class have their own phones and watch videos in the bus. He wants one too. I am 36 and I got my first phone at 22. My father thinks a phone at 7 is madness and honestly so do I. But I also do not want him to be the odd one out, and some of his homework is now sent to a class messaging group. What do parents here do? My wife's idea is an old phone with no SIM only for the homework group. I feel like that is the beginning of a long story I do not want to be in.