Wire-less world
Globally also, the fixed phone market is moving toward cordless phones. There is a growing trend of mobile phone features being adopted by fixed phone vendors.

Manufacturers are adding new features like text, and picture messaging to wired phones to attract, and retain customers. From 30 lakh phones in FY '06-07, the market is expected to grow to 100 lakh phones in 2007-08.

There are numerous factors that are enabling CLI and cordless phones to bring in growth in the fixed phone market in the country. The key drivers for the CLI segment include availability of new features like polyphonic ring tones, FM radio, two-way speaker phone, large screen displays, and color screens. In the coming days, companies will be producing fixed-line phones with integrated cameras, and also offer landline photo messaging to the customers, a feature that will further drive the segment.

Reduction in prices of cordless phones due to technological improvements and competition is the greatest driver of growth in the cordless segment. Also, today cordless handsets are operating on digital spectrum.

The previous financial year saw the launch of compact models of the 2.4 GHz cordless phones, which offer better clarity in sound and enhanced range. The other key developments include the launch of the SIM card reader phone along with technological advancements like CLI with bigger display, and cordless phones without an antenna.

The market size of the Indian fixed phone segment is 9.5 mn units, which includes 20% from the grey market.

The biggest challenge for the industry today is to grow the market by offering new relevant features, and availability of VFM cordless models.

During the previous financial year, compact models of the 2.4 GHz cordless phones were launched by Bharti Teletech, besides new models in CLI with bigger display. They also launched specialized phones for the hotel industry with extra memory storage capacity.

As the demand for more feature rich fixed phones increases, the fixed phones market is expected to grow at a higher rate in the future. The key drivers for the growth of fixed phones in FY 2007-08 include the shift to CLI phones from basic phones, availability of VFM cordless handsets, new features in CLI like FM Radio, and bigger and better display.

Sonia Sharma
sonias@cybermedia.co.in

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