Mobile handset sales in India, billed as one of the world's fastest growing telecom markets, are likely to double this year due to falling prices and rock-bottom call rates, a top industry official said on Wednesday.
Pankaj Mohindroo, president of the Indian Cellular Association, told Reuters the nation's population of more than one billion and its low mobile teledensity of just 1.3 per cent offered huge potential.
"This year we expect almost 95 lakh (9.5 million) handsets to be sold in India," Mohindroo said, adding that close to 44 lakh (4.4 million) handsets were sold in India last year.
"You'll have a replacement demand of about 25-30 lakh (2.5-3.0 million) handsets and a very large proportion of this are people looking at technology-featured and fashion lifestyle handsets."
The ICA represents handset makers such as Nokia, Motorola and Samsung in India, expected to become the second-largest mobile market in Asia after China.
Many of these firms have turned to India because most of their markets in developed nations have reached saturation point.
Mohindroo said more than half the expected sales in 2003 would be through the legal market, thanks to sharp cuts in import duties and call rates. In 2001, less than 10 per cent of sales were through official channels.
According to industry estimates, India has more than 1.5 crore (15 million) mobile users and the number is expected to surge to around 7 crore (70 million) by the end of 2007.
"A mobile is now a poor man's tool and not a rich man's toy. It's also a convergence tool so people are using it for entertainment also," Mohindroo said.
"Some people carry handsets as fashion accessories, so they have five handsets and carry different phones on different days."
Mohindroo said handset sales would also be boosted by the increasing reach of cellular services in India's vast rural areas, home to close to 70 per cent of the population.
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