Monday,
October 7, 2002 |
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Feature |
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Cellphones not just
rich man’s toys
Peeyush Agnihotri
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than 55 per cent of cellphones sold in India are being purchased by
lower to middle income groups, says Alcatel, a French telecom major.
Mohit Kapoor, country manager, of the company, points out that at
present there are 20 to 25 per cent purchasers in A- segment, 35 to 40
per cent in A+ segment, 15 to 20 per cent in B/B+ segment, 5 to 10 per
cent in C segment and more than 5 per cent in D segment.
Mohit says that mobile
phone penetration in Punjab is ‘pathetically low’ and, at least, 30
to 40 per cent of penetration is needed here. However, the region is
quality and value conscious though people here still rely more on the
grey market.
In fact, grey market
continues to be a major issue. Pankaj Mohindroo from Agrani Convergence
says more recently the grey market has taken a beating when duties on
the handsets were slashed from 28 per cent to 14 per cent.
In spite of a heady growth
in the cellular services market, the share of the unauthorised market in
the
overall market has shot up to 89 per cent in second half of 2001,
according to an IDC report on cellular handsets market in India.
In the long-term, the
legal channel sales for cellular handsets is expected to grow at a CAGR
of 87 per cent to reach 8.9 million units by the end of the year 2006
though the unauthorised market will still account for 55 per cent of the
handset market share.
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