Cellular Operators Association of India on Thursday hailed the duty reduction on cellular phones and said that prices of handsets would come down by at least Rs 500 at the entry level.

"We welcome this as this is going to bring sizeable benefit to consumers at the entry level," T V Ramachandran, director general of COAI told PTI.

It is not only the duty cut but also the effect of sales tax reduction, which will give additional advantage to the consumers, Ramachandran said adding, "it is going to be a win-win situation both for the government and consumers."

Welcoming the measures announced by Finanace Minister Jaswant Singh, Communication and IT Minister Arun Shourie said that the steps would help the IT sector to grow further.

Telecom Equipment Manufacturers Association, however, expressed unhappiness over the announcements saying duty cuts has done injustice to local manufacturing.

Reduction in excise duty to eight per cent from 16 per cent as given to computers has not been given to the telecom sector, N K Goyal, president of TEMA said.