The enterprise equipment business grew by 27%, from Rs 10,381 crore in FY 2006-07 to Rs 13,210 crore in FY 2007-08. Network security recorded a growth of 73% last fiscal and network storage grew by 46%. Voice solution and router recorded a growth of 22% and 26% respectively. The enterprise equipment segment contributed 14% to the entire telecom equipment business in the country. Structured cabling grew from Rs 827 crore in FY 2006-07 to Rs 1,173 crore in FY 2007-08, recording a 42% growth.

In the phone segment, while the handsets continued with the growth trajectory, the fixed phone division recorded a southward trend. This is not surprising since cheaper handsets have been eating into the market share of fixed phones. Broadband, coupled with feature-rich phones, might help the fixed handset players to salvage some market this year. The phone segment contributed 26% to the equipment business.

The mobile handset market grew by 12%, from Rs 21,434 crore in FY 2006-07 to Rs 24,003 crore in FY 2007-08. The fixed phone market recorded a negative growth of 41%, from Rs 2,018 crore in FY 2006-07 to Rs 1,200 crore in FY 2007-08.

Telecom Bellwethers
Nokia retained its top position in the Indian telecom industry clocking a growth rate of 30.6% as revenues reached Rs 15,000 crore. A smart marketing strategy ensured that the company retained its marketing position. Second in rank, Ericsson also managed to retain its position, growing by around 60%. Aggressive marketing strategy and big orders in the wireless segment went a long way in Ericsson's growth story.

Motorola was at the third position in V&D Top 10 in FY 2006-07. A new entrant, Nokia Siemens Networks (NSN) occupies this position in FY 2007-08. Owing to a lackluster performance in both the wireless and handset segments, Motorola was ousted from V&D Top 10. The company lost huge market share in the handset as well as the wireless segment. There were also reports of Motorola equipment being replaced by the equipment of other prominent companies in the segment.

V&D Top 10 saw the entry of new players-Nokia Siemens Networks and Sony Ericsson. In its first year of inception, NSN grabbed major deals in the wireless segment, while Sony thumped its way in V&D Top 10. Sony Ericsson grew from Rs 1,386 crore in FY 2006-07 to Rs 3,083 crore in FY 2007-08, garnering a share of 12.8% of the total handset market.

ZTE, which had entered for the first time in V&D Top 10 last year, found itself at the same rank in FY 2007-08. Smart pricing strategy helped the company retain its position.

Alcatel Lucent, Wipro, TCS, and Infosys moved one step ahead in their rankings. Alcatel Lucent, which grew by 40% last year, moved from the fifth rank to the fourth; Wipro, on the other hand, grew by around 60% and moved from the sixth rank to the fifth. Infosys grew by 34.3% and moved from the ninth position to the eighth in the V&D ranking.

All in all, the Indian telecom industry played a superb knock in the last fiscal. One looks forward to a great innings by the Indian telecom industry in the current year as well.

Team V&D
vadmail@cybermedia.co.in

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