Indian Telecom equipment market crosses Rs 75,000 cr in fy 06-07
New Delhi, Jun 5 (UNI) India's telecom equipment sector grew 43.5 per cent in 2006-07, posting revenue of Rs 77,170 crore, a study said.
Based on a survey of over 500 telecom companies operating in the country, the study done by Voice&Data reveals that the carrier equipment contributed 55 per cent to the sector, while the share of phone equipment stood at 30 per cent. Input of enterprise equipment was 14 per cent.
Nokia retained the top position among the telecom equipment companies in 2006-07, while Ericsson jumped to the second position from the fifth position in 2005-06. Nokia retained 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 revenue of Rs 15,891 crore. Ericsson stood second with a 95 per cent increase in revenue to Rs 5,004 crore.
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 the last fiscal with most of the growth coming from the mobile handsets.
Carrier equipment clocked revenue 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.
Telecom software and wireless infrastructure grew the fastest in this segment at 55 per cent and 46 per cent respectively, the 12th Indian telecom equipment business report says.
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 arm of telecom industry providing more value-added services.
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, Tata Consultancy Services (TCS) led with 18 per cent share, followed by Tech Mahindra at over 16 per cent and Infosys at 15 per cent, the annual survey report adds.
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.
Commenting on the survey, CyberMedia group chief editor Prasanto K Roy said, ''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.'' ''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,'' Mr Roy added.
UNI