A report from Russia’s largest mobile handset retailer Euroset says that phone sales in the first three months of 2006 rose 5.9% year-on-year in value terms, although actual shipments declined. Euroset says revenues from handset sales reached USD1.26 billion in the first quarter, with the average price of a handset rising to USD193 from USD151.60 in the first quarter of 2005. The firm estimates that 6.53 million phones were shipped, down 16.7% on the same period last year. The jump in revenues is attributed to the growing market for replacement phones, with cheaper low-end models being ditched in favour of newer, more expensive models. In addition, a clampdown by police has led to a drop in the number of illegally imported handsets available on the market.