A new report on India's ad-funded mobile entertainment market indicates that while piracy is eroding the ringtone market, this is being offset by the continued success of ringback tones.

Quoting figures from research agency Direct2Mobile, the "Ad-Funded Mobile Entertainment (AFME)" report, by London-based industry group Mobile Entertainment Forum (MEF), states that ringback tones will generate $120.4 million in 2008 and $440.5 million in 2013.

Overall mobile-music revenues in India are expected to total about $200 million in 2008, growing to $550 million by 2013.