Mobile phone subscriber base in the world is increasing rapidly. Gartner Inc. predicts that by 2010, there will be 3 billion subscribers. In India, the base has crossed 56 million mark in July 2005 and is expected to touch 200 million by December 2007.

This rapid growth is attributed to the latest technology up gradation in mobile phones which are now available with novel and attractive features like voice & SMS messaging, video camera, ring tones, GPRS and so on. It has also become a status symbol and the most effective communication tool for its users. Rapid decrease in handset prices in recent times has also resulted into increase in their demand.

However prices in the legitimate market are still high as compared to those in the gray market where stolen handsets are sold. This has resulted into rapid increase in the number of stolen mobile phones as well. Statistics of handset thefts in India are not available, but thefts in the global market are reported to be around 330,000 nos. per annum initially & a rapid increase is observed.