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Telecom equipment mkt grows 10%

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CIOL Bureau
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BANGALORE: The 8th National Telecom Survey Report', (V&D100 — 2003) released today, estimates that the total value of communications equipment and software sold during the 2002-03 fiscal was in the tune of Rs 28,238 crore. This includes networking equipment sold to SME segment, telecom infrastructure sold to service providers and operators, and telecom software exports. This is a growth of almost ten percent over the 2001-02 fiscal, when the market size was Rs 25,706 crore. In the previous year (2001-02) the industry had grown by 21 percent.

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V&D100, the only comprehensive annual report on Indian communication equipment and services, has covered 26 categories of equipment, including some very hot segments such as wireless LAN, Broadband Equipment, Network Management and Security, OSS/BSS, VoIP Switches, CMTS, GSM/CDMA handsets, and Test & Measurement equipment.

As per V&D100, equipment contributed 70 percent to the total industry size of Rs 28,238 crore last year. Software exports contributed 19 percent, and the remaining 11 percent came from turnkey services. Within products, 53 percent came from sales to operators, 17 percent from sales to SME users, and 8 percent came from sales of GSM and CDMA handsets. As per the report, overall Lucent was the biggest equipment vendor with a sales of Rs 2,015 crore.

In the enterprise network equipment category, equipment worth Rs 4,037 crore was sold, and overall Cisco was the biggest supplier. Cisco was also the biggest supplier of routers and LAN switches, which were Rs 459 crore and Rs 841 crore markets respectively, last year. While the market for modems shrank to Rs179 crore last year from Rs 252 crore the previous year.

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MRO-RAD was the market leader with 40 percent market share. Avaya was the top seller in the Rs 265 crore structured cabling market place. The Rs 820 crore EPABX market was dominated by Tata Telecom which sold equipment worth Rs 244 crore to be top seller of enterprise voice solutions. In the Rs 700 crore Network Storage market, HP was the top seller with 32 percent market share.

In the Rs 2,871 crore Network Integration Services market, Datacraft India dethroned last years’ top integrator Wipro by doing business worth Rs 288 crore. Datacraft was also the top player with 33 percent market share in the Rs 171 crore Network Management Services market. The BPO/Call Centres space and the Banking and Finance sector saw maximum action on network integration front. In the VSAT segment, Hughes Networks emerged the winner by selling 7,000 VSATs worth Rs 106 crore, last fiscal.

In the Rs 1,588 crore telecom switch market, Lucent was the top vendor with 38 percent market share. In the VoIP switches category, VocalTec at Rs 31 crore, emerged as the top seller. Nortel was the top vendor in the transmission equipment category with a sales of Rs 322 crore and a market share of 41 percent, last year. Though Finolex Cables slid from Rs 375 crore in 2001-02 to Rs 302 crore last year, it was still the biggest telecom cable vendor. Govt owned ITI, was the top telecom turnkey services company after executing projects worth Rs 806 crore last year.

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In the communications test & measurement category, Agilent was the top vendor with a revenue of Rs 10 crore and 34 percent a market share.

In GSM handsets (legal market only) Nokia was the top vendor with Rs 330 crore coming from the sale of 6.6 lakh handsets and 46 percent market share. In CDMA handsets category, LG Electronics was the top vendor with Rs 291 crore revenues from 5.84 lakh handsets. In the regular fixed-line phones, Bharti Teletech was the top vendor with Rs 153 crore revenues coming from the sale of 15 lakh instruments, in the 2002-03 fiscal.

According to Ibrahim Ahmad, chief project co-ordinator of V&D100, 'Simple comparison of last years’ growth of 10 percent against the previous years’ growth of 21 percent can be mis-leading. We have to keep in mind the fact that maximum growth has happened in the wireless space, and there the industry has done very well. Its only the poor performance of some very large traditional sectors like switches, cables that has pulled the industry average down'. It is interesting to note that the global market for communications equipment has shown a negative growth of 10 percent last year.

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