Handset demand to reach 350 mn by 2020

The demand of mobile handsets in the country is expected to reach 350 million units per annum by 2020, says a study by FICCI, a non profit organisation working on industry policy issues and Ernst and Young (E&Y), a market analyst firm.

"India is the world's second largest telecom market after China, with the total wireless subscriber base crossing 850 million at the end of June, 2011. By 2020, the handset demand is projected to reach 350 million a year, with an estimated production of about 505 mn handsets in that year." says the study.

The study reveals that average selling price (ASP) of handsets in the country is estimated to increase to Rs 2,950 by 2020 as compared to Rs 2,300 in 2010.

"In India, handsets are categorised as high, medium, low, and ultra low cost devices. The medium ASP segment is likely to be the fastest growing segment in terms of volume," Prashant Singhal, Telecom Industry Leader, E&Y, said on the report.

The study also sees rural market to provide the next phase of growth for handset players which has remained untapped till now, and recommends that there is need to set up handset manufacturing cluster parks enabling a sustainable ecosystem for the manufacturing of mobile handsets in the country.