Multi-SIM handsets are expected to become a 100 million volume market by the end of 2010, driven primarily by low-income, price-sensitive markets, according to a new report from Pyramid Research.

According to the research firm, the multi-SIM handset adoption is increasing and has reached a size large enough to attract global brands.

Jan ten Sythoff, analyst at Pyramid Research, said: "The niche was developed by low-cost Chinese and Indian vendors, which still dominate the market; now, more than 1.2 billion users have more than one SIM, with the majority in emerging markets, driven by cost-reduction opportunities."

Additionally, multi-SIM handset shipment volumes have also increased and are expected to become a 100 million volume market in 2010.

The report revealed that low-income, price-sensitive markets that are competitive and predominantly prepaid tend to result in pricing strategies that foster multi-SIM ownership.

Sythoff said: "The pricing strategies of operators trying to increase market share result in opportunities for price-sensitive users to optimise their costs by using different networks. CDMA operators have been the most accepting of multi-SIM handsets in order to mitigate the benefits of GSM technology’s dominance."