The Indian Cellular Association (ICA) has asked consumers and industry to desist from buying unbranded illegal handsets which do not have a valid IMEI. HE said such models comprise as high as 20% of the overall sales.

He said that such devices pose serious threat to national security.

Meanwhile ICA President, Pankaj Mohindroo also told that feature rich handsets will be in more demand now. "The demand for feature-rich handsets selling at a price range of Rs 5,000 to Rs 12,000 will continue to grow," he added indicating that prices of handsets are unlikely to go down. "At present, the average price of a handset is Rs 2,500 and it's not going to go down any further,” he said.

According to ICA India will witness 150 million handset shipments by 2010-11 from 130 million in 2008-09. Data capable handsets will number 25 million in three years as compared to 5 million in 2008-09.

The handset industry is expected to grow by 15 percent this fiscal. "This indicates that service providers would earn more revenue from providing data-services in the next two-three years than what they have been earning all these years," Mohindroo said.