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With the robust growth in subscriber base, handset manufacturing is attracting many key global players to India. Almost all international companies are in the process of announcing their manufacturing plans for GSM and CDMA handsets. In the last year, both private and public sector telecom service providers invested in tools for network deployment and upgradation. Development of GSM, EDGE, and WCDMA will continue to increase. New telecom manufacturing companies in the country will boost the communications test and measurement (T&M) market.

India has witnessed a 14% growth in the communications T&M market to touch Rs 408 crore during FY �06-07 from Rs 358 crore in previous fiscal. Agilent is the dominant player with a market share of 38.52%. During FY �06-07, Agilent clocked a telecom T&M revenue of Rs 157.2 crore as compared with Rs 120 crore during FY �05-06, registering 31% increase in its growth. During FY �06-07, JDSU grew by 29% to record Rs 54 crore as compared with Rs 42 crore in FY �05-06. Rohde&Schwarz�s revenue from communications T&M increased by 5% to Rs 45 crore during FY �06-07 from Rs 43 crore during FY �05-06. Tektronix�s revenue is up by 11% at Rs 41.44 crore during FY �06-07 as against Rs 37 crore during FY �05-06. National Instruments doubled its revenue to Rs 18 crore from Rs 9 crore during FY �05-06, while Anritsu grew by 11% to record revenue of Rs 14.43 crore as compared with Rs 13 crore during FY �05-06. Fluke Networks, a new entrant, registered Rs 10 crore revenue during August 2006-March 2007, as per V&D estimates.

The wireless world is accelerating. 3G trials have begun in India, and technology is changing the way the world communicates. The evolution of wireless technologies including WiMax, CDMA2000, GPRS, EGPRS, WCDMA, HSDPA, and 1xEV, allow development of new wireless devices that combine voice, Internet, and multimedia services. Communications test and measurement will help accelerate the wireless evolution by providing design tools, test equipment, and consulting services that are crucial for wireless devices, and infrastructure development, manufacturing, deployment, and operation.

Measured Trends
India as a market offers the critical mass and volumes to manufacturers to use their breadth and depth of product portfolio, especially products that cater to a large number of users, high-mid-low platform products covering varied users in urban-metro-rural areas. The T&M market is expected to cater to the challenges of emerging complexities. Devices are getting complex, and hence require elaborate testing. India has several multinational companies in the T&M space uniquely poised with a wide range of products, and associated expertise available locally to handle this challenge. Mobile growth has already caused many companies from related fields to expand, extend, and make forays into wireless product development.

As mobile operators such as Bharti Airtel, Hutchison Essar, Idea Cellular, Tata Teleservices, Reliance Communications, BSNL, and MTNL, and handset makers committed huge investments to expand and upgrade their network in India during the last fiscal, the T&M market saw marginal growth; although several T&M players recorded 30% increase in their respective revenues improving their market share.

After mobile communications, the next big thing in the telecom space is broadband. It is estimated that India will have approximately 20 mn broadband subscribers by the end of 2010. The technologies that can make this happen are DSL, WLAN, WiMax, and mobile 3G. There will be large-scale deployments of broadband network infrastructure in India in the next few years. RF and microwave measurements will become absolutely critical for these operators. Agilent has been a pioneer in introducing innovative and cutting-edge technologies in T&M for facilitating this revolution in technology.

In addition to opportunities created by the emergence of export-based manufacturing in India, there are opportunities for several T&M players to help customers in the engineering design space, especially in design, prototype, and deployment stages of design.

In the past, design engineers used one set of tools for design, a separate group used a different set of tools to prototype and test products, and another group had to design a test system for testing final products. The market place has forced companies to fundamentally change the way this process is carried out, and now most design engineers are involved in all aspects of product life cycle, from design to test, and even service. National Instruments is uniquely positioned in the marketplace with a platform that bridges design, prototype and deployment stages of design.

Business Drivers
Customers care for early access to fast growing markets, and adoption of cutting edge technologies. Many educational institutes, and R&Ds are working on leading edge technologies like WiMax, 3G PP, HSDPA, HSUPA etc. These efforts culminate into use of high-end T&M products.

High volume manufacturers care for the cost of total test and cost of ownership. So they have placed their focus on cost effective solution. Telecom continues to be the largest driver for growth in T&M industry in India, as this segment is growing day by day. Over the last couple of years, India has emerged as one of the leading hub for R&D and design bases for multinational biggies like Texas Instruments, Intel, ST Micro, Motorola, Alcatel Ericsson, LG, Samsung, etc. These biggies invest a lot in T&M.

Another factor which helps T&M sector grow in India is exports, particularly of mobile handsets and consumer electronics products, because Indian manufacturers need to invest a lot in T&M equipment to ensure that their produce meet stringent international standards.

Industry is also expecting high growth rates for T&M in broadcast sector. TV is driving the wireline communications business with DVB-H and IPTV (means any video delivered over Internet protocol) being the latest trend.

On the whole, the communications industry is poised to drive the global T&M equipment market in terms of revenue, technology, and innovation, with ample support from the aerospace and defense sector.

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