India’s youth market for cell phones growing at 300 percent

Indicating the growing interest of youngsters in mobile phones, the country’s youth market for cell phones has been growing at 300 per cent in the recent years, says a study.

The youth market for mobiles has touched 27.6 million this year compared to 8.3 million people in 2005, says the global study conducted by leading mobile phone maker Nokia.

As per the report, entertainment is expected to be one of the main revenue generators for value added services (VAS) segment and is likely to dominate the mobile space in India.

The total earnings from mobile entertainment services is estimated to be Rs 1,500 crore in India whereas the global entertainment earnings stood at $110 billion.

The VAS market segment would push the the total spending to $43 billion and music would continue to be the major revenue generator, the study indicated.

Though music is a major contributer towards revenue, its overall share of the market would fall from 40 per cent in 2006 to 36 per cent in 2011 as new forms of entertainment such as mobile TV and video series gain consumer interest.

The survey added that arrival of latest mobile phone technologies that offer high transmission speeds have helped social networking as these technologies have helped create a web surfing and video streaming experience similar to what users are accustomed to on their PCs.

The study added that out of the total mobile user base, over 60 per cent listen to music, 75 per cent use camera, over 50 per cent play games and 50 per cent browse Internet.

The mobile music market accounted for 227 million dollar revenues in calender year 2006 and is expected to reach $476 million in FY 2007, the study added.

Source: Economic Times