The emerging category of "ultra low-cost handset" (ULCH) is seen as a key component in attracting the "next billion" mobile phone subscribers into the market. Ultra low-cost handsets are expected to be stripped-down cellphones offering only the most basic communication experience of voice and text messaging.

 

　　However, In-Stat has found in a survey of Indians who are likely to purchase a low-cost handset that urban residents of major Indian cities show a strong preference for cellphones with features. Fully one-third of the respondents to this survey say that they would not even consider a basic handset equipped with only voice and SMS capability.

 

　　The ultra low-cost handset may, indeed, be the way to bring the next billion users to cellular, but lower-cost and refurbished cellphones should be considered as an important way to expand cellphone usage in developing countries, especially those countries where users have already experienced cellphone ownership and enjoyed the benefits of advanced features.

 

　　Companies developing or marketing cellphones in India will need the in-depth insights about Indian consumers who expect to pay less than US$75 for a cellphone. This research provides analysis and survey data taken from over 1,000 respondents that includes income, demographics, preferred handset brands, and features and interest in purchasing ultra low-cost handsets.

•     Executive Summary

•     Introduction

o     Low-Cost Handsets

o     Low-Cost Handsets a Threat to Top-Tier Manufacturers

•     Overview—India Mobile Phone Market

o     Mobile Network Operator ARPU in India

o     Low-Cost Handsets in India

o     Landline Availability

•     Report Demographics

o     Other Relevant India Facts

•     Low-Cost Handsets in India Study Methodology

o     Participants’ Handset Features

o     Future Purchasers of Handsets

o     Plans to Purchase Basic Cellphones

o     Strong Interest in Handset Features

o     Willingness to Pay For Features

o     Preference for Handsets with Features

o     Key Purchase Factors

o     Brand Preference

•     Conclusions—Low-Cost and Ultra Low-Cost Handsets in India

•     Forecast

•     Related In-Stat Reports

 

List of Tables

•     Table 1. Landline Ownership

•     Table 2. Demographics

 

List of Figures

•     Figure 1. Forecast Indian Cellular Subscribers, 2002–2012

•     Figure 2. Cellphone Subscriber Growth Compared to Declining per Minute Rate

•     Figure 3. Categories of Respondents

•     Figure 4. Handset Features

•     Figure 5. Non-Cellphone Owner’s Plans to Pay for a Mobile Phone

•     Figure 6. Average Price Respondents Would Pay for New Basic Handset by Category

•     Figure 7. Average Price Respondents Would Pay for New Basic Handset by Location

•     Figure 8. Desired Features, Those Who Own vs. Those Who Do Not Own a Handset

•     Figure 9. Functions on Owned Mobile Phone vs. Desired Features

•     Figure 10. Average Amount Respondents Would Pay for Desired Features on a Handset

•     Figure 11. Amount Respondents Would Pay for a Handset with Features vs. a Basic Handset

•     Figure 12. Choosing Between a Refurbished Handset and New Basic Handset

•     Figure 13. Decision to Buy a New or Used Handset by Category

•     Figure 14. Non-Cellphone Owners Preference for Features, by Amount They Would Pay

•     Figure 15. Purchase Factors by Rank

•     Figure 16. Brand Preference

•     Figure 17. India Cellular Subscriber Growth, 2002–2012