Telecom equipment industry’s revenue falls in 2011-12

The Indian telecom equipment industry’s revenues fell marginally to Rs 1,13,188 crore in 2011-12 from Rs 1,14,133 crore 2010-11.

According to CyberMedia group’s telecom industry journal, Voice&Data, nearly half of the
telecom equipment revenue came from carrier equipment manufacturers.

This saw a dip of 5.06 per cent to Rs 55,333 crore from Rs 58,285 crore. Within the carrier equipment business, segments like transmission, telecom turnkey and wireless infrastructure were the biggest losers.

Voice&Data attributes the decline in carrier equipment revenues to policy uncertainty which restrained many telecom operators from releasing large-scale network expansion orders, a statement from CyberMedia said.

User device segment

The user device segment that includes mobile handsets, fixed phones, data cards and tablet computers, contributed more than one-third to the total telecom equipment industry, at Rs 34,672 crore, recording a flat growth of 0.33 per cent from Rs 34,557 crore last year.

Mobile handset maker Nokia had the highest revenue during the year followed by Korean electronics major Samsung. They were followed by telecom equipment manufacturers like Cisco, Huawei, Nokia Siemens Networks, Ericsson, and Alcatel-Lucent, according to Voice&Data.

Enterprise equipment

Revenues from enterprise equipment grew 8.89 per cent to Rs 23,183 crore during the year.

Enterprise cost-saving equipment segments like audio-video conferencing and voice solutions showed a significant growth of 16 per cent and 15 per cent, respectively, according to the statement.

Modem and router industry saw a negative growth as enterprises demanded futuristic and multi-tasking devices like single device working as modem, router and switch.

“The survey bears out market apprehensions that the operators have slowed down investments in building, expanding and upgrading their networks. This could have a serious impact on Indian’s tele-density and broadband targets,” Mr Ibrahim Ahmad, Group Editor, Voice&Data said in the statement.

The 17th annual survey, Voice&Data 100, covered over 500 telecom companies in India including carrier equipment, enterprise communication equipment, and user device manufacturers, the statement said.