‘Telecom equipment industry grew 20 percent in 2008-09′

June 1st, 2009 - 5:04 pm ICT by IANS  

New Delhi, June 1 (IANS) India’s telecom equipment industry reported 20 percent growth in revenues at Rs.114,527 crore ($24 billion) in 2008-09, compared to 24 percent rise recorded the year before, an industry survey said Monday.
The survey was conducted by Voice&Data, the flagship telecom magazine of Cybermedia.

“It (high growth) is not surprising because despite overall economic slowdown, India has been witnessing over 10 million month-on-month new mobile subscriber additions, and telecom operators have been buying equipment to expand their networks,” the survey said.

Of the different components of the telecom equipment industry, the carrier equipment business grew at the fastest rate of 27 percent to report revenues of Rs.72,616 crore.

The enterprise equipment category grew 15.4 percent to report a revenue of Rs.15,242 crore.

“We’ve seen this before. In a downturn, telecom gains, as businesses deploy cost-saving technology,” said Prasanto K. Roy, chief editor of Voice&Data.

“In the last downturn, IP (Internet protocol) telephony got a boost. This time, it’s video-conferencing, including high-spend areas such as telepresence,” he said.

The revenue of the phone category, which includes CDMA, GSM and fixed phones, stood at Rs.26,669 crore last fiscal, the study said.

This category grew a modest 6 percent, thanks to crashing handset prices. Major growth is happening in semi-urban and rural areas where more entry-level phones sell, it added.

According to the survey estimates, Finnish mobile and equipment maker Nokia posted revenues of Rs.16,567 crore to retain its number one position in the Indian market.

Nokia was followed by Ericsson with a revenue of Rs.10,310 crore. Nokia Siemens Networks came third with Rs.9,848 crore in revenues while Alcatel-Lucent posted a revenue of Rs.8,050 crore to bag the fourth position.

India’s three leading software companies Wipro, Tata Consultancy Services (TCS) and Infosys sold telecom software valued at Rs.5,692 crore, Rs.4,233 crore and Rs.3,926 respectively.

According to the survey, the fixed phone market has been losing to the mobile market in recent years. During 2008-09, the fixed phones market’s revenues declined to Rs.760 crore from Rs.1,200 crore recorded the year before.

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