India’s youth driving mobile phone sales

Himalayan News Service

New Delhi, May 20:

A study today identified India’s youth as the force behind the growth in the market for mobile phones, which dwarf the sales of fixed line phones in India. “The youth sector plays a key role in the Asian mobile market development. India in particular is vital to the growth of new mobile phone subscribers with Indian youths driving mobile phone ownership,” data released by the Britain based research consultancy Wireless World Forum (WWF) stated today. In its fourth annual mobile youth report, WWF estimates that by 2007 there would be 28 million Indians under the age of 24 owning mobile phones — almost 15 million more than their counterparts in Britain. Already Indian youth using mobiles have more than doubled from 2004 to touch 8.3 million (of the over 47 million cellular phone users in India) in 2005. The projected growth of 28 million youth mobile users represents a more than 300 per cent increase — bigger than any other global mobile market for youth. Along with India and China, the US and Brazil would account for 50 per cent of total mobile phones used by youth by 2007, the study stated.

Indian youths are also likely to increase spending on mobile applications like music and games, with expenses on ring tones, ring back tones and real tones expected to increase from $2.4 million a year currently to $23 million a year by 2007. Spending on mobile games is forecast to grow from $5 million to $30 million a year by 2007. “The mobile phone looks set to have a distinct influence on the spending and behavioural patterns of Indian mobile youth and the impact on this segment cannot be overlooked,” the report stated.