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Broadband infrastructure grows 68% in FY 2007-08
 
Indiantelevision.com Team

(14 June 2008 4:30 pm)

 

NEW DELHI: Broadband infrastructure segment grew 68% to post revenues of Rs. 15100 million as broadband connections increased during the year.

Revenues of the Indian telecom equipment industry grew by 24% to touch Rs 954,070 million in 2007-08, with more than half of the telecom equipment revenue came from carrier equipment manufacturers.

 

According to the 13th annual survey by Voice&Data, a CyberMedia Publication, carrier equipment manufacturers grew 32% to touch Rs 569,940 million during the year. The enterprise equipment grew at 27% to report revenues of Rs132,100 million. The phone segment, contributed nearly one-fourth to the total telecom equipment industry, at Rs 252,030 million recording a growth of 7%.

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

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."

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
Rank Company Revenue (in Rs crore) %Growth
    2006-07 2007-08  
1 Nokia 11,486 15,000 30.6
2 Ericsson 5,004 8,000 59.9
3 Nokia Siemens Networks 5,700 7,779 36.5
4 Alcatel-Lucent 5,000 7,000 40
5 Wipro 3,471 5,585 60.9
6 Cisco 4,037 5,046 25
7 TCS 3,006 3,978 32.3
8 Infosys 2,681 3,600 34.3
9 Sony Ericsson 1,386 3,083 122.4
10 ZTE 2,596 3,000 15.6
Source: Voice&Data Jun 2008

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.

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
Companies Revenue 06-07 Revenue 07-08 Growth %age Mkt share
Nokia 11,486 15,000 30.6 62.5
Sony Ericsson 1,386 3,083 122.4 12.8
Samsung 1,205 1,500 24.5 6.2
LG 2,348 1,500 -36.1 6.2
Motorola 2,387 1,200 -49.7 5.0
ZTE 783 850 8.6 3.5
Huawei 132 320 142.4 1.3
Haier 294 300 2.0 1.2
Others 1,413 250 -82.3 1.0
Total 21,434 24,003 12.0 100.0
Source: Voice&Data Jun 2008

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 237,700 million. The telecom software grew nearly 29% to record revenue of Rs 230,180 million.

The enterprise equipment business grew by 27% to Rs. 132,100 million in FY 2007-08. While Network security business recorded a growth of 73% at Rs. 4560 million, the network storage business grew by 47% to record revenue of Rs. 14460 million.

 
 
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