Motorola had a great time in 2003-04 in India as the country emerged as one
of the top three markets for it in Asia during the period. According to
VOICE&DATA estimate, the US vendor grew by around 35 per cent in the past
financial year and had a revenue realization to the tune of Rs.1,649 crore as
against Rs. 1,210 crore in 2002-03 (VOICE&DATA Estimates). Most of this
growth came from its wireless infrastructure business. There was significant
contribution from its cellular handset business as well which inch towards
replacing Samsung as the number 2 player in the Indian market. VOICE&DATA
estimates that while its mobile infrastructure has contributed around Rs.1,011
crore to its 2003-04 sales, Motorola made around Rs. 435 Crore from sales of
handsets. CDMA handset sales contributed 198 crore.
In February Motorola announced business wins of wireless equipment agreements
worth over US$307 million from leading Indian operators BSNL, MTNL, and Tata
Teleservices. These agreements include deployment of new networks, as well as
expansion and up-grades of existing networks for both Global System for Mobile (GSM)
communications and Code Division Multiple Access (CDMA) systems. Of the US$307
million in announced wins, substantially all of the orders were reported in 2003
and the majority of the revenue is expected to be recognized in 2004. For BSNL,
Motorola has been awarded the business for expansion of over 1 million lines in
south India.
This turnkey project includes value-added services such as General Packet
Radio Service (GPRS) and Multimedia Messaging Service (MMS). For MTNL, Motorola
has been awarded the business as a result of a public tender, which will
increase the number of GSM lines by 400,000 each in Delhi and Mumbai. The
upgrade will be GPRS enabled and is capable of smoothly evolving to EDGE. The
Motorola network will also deliver value-added services such as Pre-paid and
Intelligent Networks and a complete billing solution for 1.5million customers
across the two cities. Motorola has been awarded a CDMA contract by Tata
Teleservices to expand the CDMA2000 1 X mobile phone network in Delhi, Gujarat,
Maharashtra and Mumbai. The contract is among the largest CDMA contracts to be
awarded globally.
Among the significant deployments by Motorola in 2003 deployment of a CDMA 1X
network in the cities of Maharashtra, Mumbai and Goa for Tata Teleservices. The
value of this deployment was worth $43 million. Motorola also deployed a
Motorola SoftSwitch for CDMA (MSS-C) on a CDMA2000 1X network for Tata
Teleservices Ltd. in Maharashtra circle.
Past year Motorola also emerged as the third important GSM handset vendor in
the Indian market after Nokia and Samsung. Its market share here rose to 10 per
cent from 8 per cent last year. Not only did Motorola introduced a slew of new
handsets in the Indian market it also strengthened its sales and distribution
machinery in order to expand its reach across the country.
Very recently it Motorola India today announced the successful completion of
Enhanced Data Rate for Global Evolution (EDGE) trials with Hutchison Max
Telecom. Commercial deployment is scheduled for later in 2004.
Motorola India's focus areas include, wireless infrastructure and managed
network services, broadband equipment, mobile handsets, trunking and two-way
radios, and software development. The company is betting big on India and sees
the country emerging as one of the top three markets in near future. It also
expects India to be its biggest absolute growth market in the coming three
years.
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