Forecast: In 5 years, $20 will be enough to buy a cellphone

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Making a phone call will be free some days and we’re heading to this realm. A study from ABI Research expects the global market for sub-$20 ultra low cost handsets (UCLH) to grow over 330 million units in 2011. By that time, almost one out of every four handset shipped globally will be an ultra low cost handset, and that India will be the biggest market, inflating from a little over 9 million handsets in 2006 to more than 116 million handsets.

The situation has already started with the Motofone, the Motorola Linux-based cellphone, or the Greenphone, developed by Trolltech. But we amend the forecast: Cellphones will become as cheaper as a book, and phone call prices will fall down to null — thanks to wireless hotspots. Revenues of mobile carriers would come from extra services, premium contents, but not anymore from phone calls.

Jan 23, 2007 | By Nuno

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