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Tuesday, June 05, 2007
NEW DELHI, INDIA: India 's telecom equipment sector grew 43.5 per cent in 2006-'07 posting revenue of Rs. 77,170 crore, according to a research report and analysis by Voice&Data, the country’s leading communications magazine from the CyberMedia group.
The 12th Indian Telecom Equipment Business Report released by Voice&Data covers three main segments: enterprise equipment, carrier equipment and end-user handsets. The report, V&D100, is based on a survey of over 500 telecom companies operating in India.
The report reveals that the carrier equipment contributed 55 per cent to the Rs. 77,170 crore telecom equipment sector, while the share of phone equipment stood at 30 per cent and enterprise equipment at 14 per cent.
"The Indian telecom equipment market continues to be on a roll, with robust 43.5 per cent growth in 2006-`07. Driving this growth are the massive expansion initiatives announced by service providers, and exploding consumer demand for mobile connections on the back of crashing tariffs and handset prices.”
In 2006-`07, Nokia retained the top position among the telecom equipment companies while Ericsson jumped to the second position from the fifth position in 2005-`06.
Commenting on the survey, Prasanto K. Roy, chief editor of CyberMedia group, said, "Going forward, deployment of the emerging 3G and WiMax technology platforms, and strong demand for innovative telecom services from enterprises, are contributing to the growth this year," Roy added.
Handsets post Rs. 23,452 cr, carrier equipment Rs. 42,763 cr
During 2006-'07 the handset segment, including mobile and fixed line, reported the highest growth at 45 per cent followed by carrier equipment and enterprise equipment at 44 per cent and 38 per cent respectively.
The survey reveals that revenue in the handsets segment stood at Rs. 23,452 crore in 2006-`07 with most of the growth coming from the mobile handsets.
Carrier equipment clocked revenues of Rs. 42,763 crore in 2006-`07, a 44 per cent growth fuelled by low broadband penetration, untapped mobile markets and adoption of innovative technologies.
Within carrier equipment, revenues of telecom cables decreased by 34 per cent to Rs. 961 crore in 2006-`07, as telecom carriers continued to focus on wireless. Telecom software and wireless infrastructure grew the fastest in this segment at 55 per cent and 46 per cent respectively.
The enterprise equipment segment grew at 38 per cent to Rs 10,955 crore, fuelled by the adoption of IT in the retail sector, increased government investment in technology applications, and the service industry providing more value-added services. In this segment switches remained the top product category by revenues, followed by routers and voice solutions.
Podium finish: Nokia, Ericcson and Motorola
Nokia zoomed ahead to retain its top position with nearly 54 per cent share of the mobile handset market and over 26 per cent of the wireless infrastructure market, with revenues of Rs 15,891 crore. Ericsson bagged the second position with a 95 per cent increase in revenue to Rs 5,004 crore.
Alcatel-Lucent at No. five and ZTE at No. 10 were the new entrants in the Top 10.
LG Electronics, which stood at second position in 2005-`06, slid to number seven as its revenue fell six per cent to Rs. 3,140 crore in 2006-`07.
In the Rs. 17,871 crore telecom software category, TCS led with 18 per cent share, followed by Tech Mahindra at over 16 per cent and Infosys at 15 per cent.
The leader in the Rs 16,677 crore wireless infrastructure category was Ericsson with 28 per cent share closely followed by Nokia with 26 per cent and Alcatel Lucent with 18 per cent share.
The survey found that Cisco had nearly three-fourth of the Rs 1,980 crore switches market, followed by D-Link and Nortel. The leader in the Rs 1,437 crore router market was also Cisco, with over 80 per cent share, and with Juniper a distant second at 10 per cent share.
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