When do you see 3G deployments happening in India?
The compound annual growth rate for subscribers in India has been pegged around 50 percent for the next three years. When subscribers are growing at such rate the networks have to grow even faster. In India there is no demand constraint, rather there has been a capacity constraint and upgrading to 3G is one option to fill this gap. And all major operators have to start upgrading their network to meet the demand. But appropriate policies should evolve and spectrum-related
issues must be resolved urgently. Once the spectrum is allocated it would take anything between six months to a year to roll out 3G services.

Where did more revenues come from-CDMA or GSM?
For us GSM proved to be more revenue earner. We implemented BSNL expansion projects plus their 25 percent additional line tender. Similarly MTNL's expansion was done by us. We have been principle supplier for Hutch, both in their capacity enhancement and expansion plans.

Do you expect the price drop to continue this year?
In 2004, the equipment prices dropped by almost 30 percent. Such drops are not normal and would not be sustainable in the long run. But this year big tenders are in line and everyone would be playing around price to get a share. Because of the crashing prices, unit sale growth rate this year would exceed the revenue growth rate.

Do you see managed services becoming a trend?
Motorola has expanded its portfolio and included managed services. We are in discussion with some operators for managed services. However, it is too early for managed services to become a trend. The normal practice globally is to allow your technology partner to manage the network as he understands the network better.

How would the Indian market grow in the coming years?
India has a long way to go and a huge range to grow. Though consolidation would happen with less number of operators in the market, but expansion would also be an on going activity. In the rural areas, niche players would emerge and there is scope for lot of expansion. So India would witness both consolidation of the market and expansion of subscriber base happening together for sometime.

What are your plans for manufacturing in India?
If there were a requirement, manufacturing as an option would be reviewed. The 40 million line BSNL tender would be the key for us to implement this option, and implementation for manufacturing plans is not a problem. Otherwise also manufacturing plans would be reviewed time and again. We have our global partners in India so we have an option of either manufacturing on our own or with our partners or sub-contract to a third party.

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