The Hindu Business Line : Low cost handsets dominate sales

Low cost handset and rural users seems to be the in the thing as far cellular usage in concerned. According to a study done by the Yankee Group nearly 50 per cent of the mobile handset sold in the country was below the sub $50 level by the end of 2005. The study also points out that 35 per cent of the new cellular users in the country will be from the rural segment by 2010.

The study titled `Enabling India's Broadband Economy - The 3G Way', prepared by the US based research and analysts firm Yankee Group, was released by the Confederation of Indian Industry. The study said that 3G (third generation) services will be adopted in India at a faster rate than anywhere else due to greater economies of scale and availability of low cost devices. "Multiple operators are set to launch 3G services in India to overcome capacity constraints in the existing networks. India's telecom services market is expected to expand to $11 billion by 2010, but to ensure that subscriber additions continue at a pace achieved in the last few months, bottlenecks such as lack of adequate spectrum need to be addressed fast," said Mr Farid Yunus, Senior Analyst, Yankee Group.

While the number of telecom subscriber additions in India are more than 50 lakh a month at present, the report warned that this growth could slow down if adequate spectrum was not released to accommodate the growing number of subscribers.

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