Indian Telecom Equipment Industry Grew By 24% In Fy '08

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Indian Telecom equipment industry grew by 24% in FY '08

Revenues of the Indian telecom equipment industry grew by 24% to touch Rs 95,407 crore in 2007-08, according to an annual survey by Voice&Data, a CyberMedia Publication.

The 13th annual survey 'V&D 100' covered over 500 telecom companies in India spanning carrier equipment, enterprise communication equipment, and handset manufacturers.

According to the survey, more than half of the telecom equipment revenue came from carrier equipment manufacturers, which grew 32% to touch Rs 56,994 crore during the year. The enterprise equipment grew at 27% to report revenues of Rs13,210 crore. The phone segment, contributed nearly one-fourth to the total telecom equipment industry, at Rs 25,203 crore recording a growth of 7%.

Commenting on the results of the survey Mr Prasanto K Roy, Chief Editor of CyberMedia's business publications said, "This is robust growth for the Indian telecom equipment market--24% on such a large base. It continues to be driven by the rising demand for mobile handsets, especially beyond the metros, and the consequent wireless infrastructure expansion by service providers."

The Top 10 Club

Mobile handset maker Nokia had the highest revenue during the year followed by telecom network equipment major Ericsson, Nokia Siemens Networks, Alcatel-Lucent and Wipro. The other players in the top 10 were Cisco, TCS, Infosys, Sony Ericsson and ZTE.

The Top 10 Telecom Equipment Players 2007-08

Nokia11,48615,00030.6

Ericsson5,0048,00059.9

Nokia Siemens Networks5,7007,77936.5

Alcatel-Lucent5,0007,00040

Wipro3,4715,58560.9

Cisco4,0375,04625

TCS3,0063,97832.3

Infosys2,6813,60034.3

Sony Ericsson1,3863,083122.4

ZTE2,5963,00015.6

Source: Voice&Data

While Nokia and Ericsson retained their positions as the top players, Nokia Siemens Networks (NSN), struck major deals in the wireless segment to rise to number 3. The Top 10 club also saw the entry of Sony Ericsson at ninth position as its revenues grew 122.4% to Rs. 3,083 crore. Alcatel Lucent, with 40% growth moved from the fifth rank to the fourth.

"Expansion of mobile networks and broadband infrastructure, and the introduction of 3G technology, will sustain the growth in the current year," adds Mr. Roy.

Segment Wise Break-Up

In the handset segment, revenues of companies making mobile handsets grew 12% to Rs. 24,003 crore while the fixed handset sales decreased by 41% to Rs. 1200 crore, over the same period last year. This indicates consumer preference for the more affordable, convenient and feature rich mobile handsets over the fixed phone.

The Indian handset market recorded a 33% growth by volume with 95.6 million pieces sold during the year against 71.8 million in the same period in the previous year. Of the total handsets sold 68.3 million were based on GSM technology and 27.3 million on CDMA. The GSM handsets sales reported a growth of 34% compared to a 28% for CDMA phones.

Top 10 Mobile Phone Players 2007-08

CompaniesRevenue 06-07Revenue 07-08Growth %ageMkt share

Nokia11,48615,00030.662.5

Sony Ericsson1,3863,083122.412.8

Samsung1,2051,50024.56.2

LG2,3481,500-36.16.2

Motorola2,3871,200-49.75.0

ZTE7838508.63.5

Huawei132320142.41.3

Haier2943002.01.2

Others1,413250-82.31.0

Total21,43424,00312.0100.0

Source: Voice&Data

Nokia had the highest market share in the handset space at 62.5% followed by Sony Ericsson (12.8%), Samsung and LG (both 6.2%), Motorola (5%), ZTE (3.5%), Huawei (1.3%) and Haier (1.2%).

Within the carrier equipment business, wireless infrastructure segment grew 43% to report revenues of Rs 23,770 crore. The telecom software grew nearly 29% to record revenue of Rs 23,018 crore. Broadband infrastructure segment grew 68% to post revenues of Rs. 1510 crore as broadband connections increased during the year.

The enterprise equipment business grew by 27% to Rs. 13,210 crore in FY 2007-08. While Network security business recorded a growth of 73% at Rs. 456 crore, the network storage business grew by 47% to record revenue of Rs. 1446 crore.

About V&D100

V&D100 is the most comprehensive annual survey of the Indian equipment industries and telecom services. It is the most trusted and widely used survey for those seeking authentic information on Indian communications. It is also the most comprehensive, as it covers a wide range of segments and is the only 'single source' of such diverse information.

The V&D100 (volume II) for 2007-08 survey will focus on telecom services and service providers, and is slated for release next month.

Courtesy : ET