Nokia not sure of dual SIM handset market

Intense tariff war has led to flooding of the mobile phone market with lower-end products with dual SIM (Subscriber Identity Module). However, the single largest player in the handset market, Nokia, is yet to be convinced of the sustainability of the present trend.

According to IDC India, dual or multiple SIM handsets accounted for more than one-third (39 per cent) of the total number of handsets sold in the country during April-June 2010, up from

one per cent a year ago

The newly created market space has proved to be a game changer in the handset industry in the country, as new players (such as Micromax and Spice) have made their way among the top five sellers – largely riding on a range of dual SIM offerings.

Compared to a range of dual SIM offerings by its competitors, Nokia currently has a single model (C-100) to offer in this category. Plans are afoot to launch a second model (C- 200) soon. “We will be present in all segments. However, we are not into the price game,” a company official said.

Dual-SIM is an India specific phenomenon arising out of the intense competition among the cellular operators to grab market share by unleashing a tariff war.

“Whether this trend is sustainable over the long-term remains to be seen – especially with operators coming under increased pressure from tariff arbitrage,” Mr Shivakumar told Business Line.

“With 3G services expected to become main stream over the years and mobile number portability on the anvil, things may change in the future,” he added.

While queries sent to Vodafone on tariff arbitrage and sustainability issues went unanswered, data available from the Cellular Operators Association of India (COAI) reveal a declining trend of average revenue per user (ARPU) so far during this fiscal.

The introduction of new brands has seen ‘emerging vendors' corner as much as 33 per cent of the country's mobile handset market in April-June 2010.