Indian telecom equipment market grows at 25% to Rs 52,998 cr

By Staff
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Google Oneindia News

New Delhi, Jun 19 (UNI) Not being able to match the whopping 70 per cent growth reported for the year ending 2005, the telecom equipment market grew at a mere 25 per cent rate for the year ended 2006, settling at Rs 52,998 crore.

According to the Voice and Data100 (V&D100) 2006 survey, the enterprise equipment market grew 31 per cent to reach Rs 7,901 crore in FY 2005-06, the market for carrier equipment stood at Rs 29,040 with a growth of 13 per cent and the market for telephones (mobile and fixed) grew at 50 per cent to reach Rs 16,057 crore.

This growth was fuelled by mobile phones, which grew at 62 per cent.

Mobile communications leader Nokia continued to remain the undisputed top telecom equipment vendor in India with revenues of Rs 12,062 crore, while LG Electronics jumped from the sixth place in FY 04-05, to become the number two telecom vendor in India.

The survey covers carrier, end user, and enterprise communications equipment, and is based on a study of more than 500 Indian telecom companies.

''The massive growth in handsets in 2005-06 is a clear pointer that the wheel of telecom revolution in India is gathering momentum, and only those players who can align themselves with the requirements of rapidly expanding consumer base and their expectations will be the leaders,'' VOICE&DATA Editor Ibrahim Ahmad said.

Of the Rs 10,552 crore that the equipment industry grew over the previous fiscal, Rs 5,453 crore was contributed by the sale of mobile phones.

In volume terms, around 38 million mobile handsets were added in FY 2005-06.

GSM had a 73 per cent share of the mobile phone pie, and the GSM market grew at 42 per cent clocking revenues of Rs 1,05,060 crore.

The market for CDMA handsets grew at 164 per cent to reach Rs 3,752 crore. The fixed phones market slipped by 6 per cent to settle at Rs 1,799 crore, and this came on the back of a 110 per cent plus growth in the 2004-05 fiscal.

Though the focus of carriers continued to be wireless, triggered by service providers' focus on network expansion, the market for telecom cables increased 59 per cent to reach Rs 1,566 crore.

Revenues from transmission equipment plummeted 12 per cent to Rs 645 crore despite the private players placing large orders.

The telecom turnkey market grew 27 per cent to reach Rs 2,837 crore, and the buzzword for this industry from now on is going to be infrastructure sharing.

The VSAT market grew to reach Rs 355 crore-new technologies and lowering of equipment costs helped it to a growth rate of 22 per cent, while the broadband equipment market grew at 29 per cent to reach Rs 642 crore. However, this investment will take time to materialise in terms of subscriber numbers.

The telecom software sector, driven primarily by revenues from international markets, grew 31 per cent to rein in Rs 11,519 crore, clearly surpassing the market for wireless infrastructure. With a boom in the previous fiscal, the wireless infrastructure market grew only 1 per cent, to reach Rs 11,411 crore in FY 2005-06.

Switches remained the biggest segment of the enterprise equipment pie, growing at 22 per cent to Rs 1,587 crore, despite a crashing of prices. Voice solutions market grew 32 per cent to clock Rs 1,102 crore.

The V&D100 (Vol II) for 2005-06, which will focus on telecom services and service providers, is slated for release in the first week of July 2006.

V&D100 is the most comprehensive annual survey of the Indian telecom services and equipment industries.

UNI RA CS DS1640

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