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The modem market has grown by 30% in terms of units, but less in terms of
revenue due to drop in prices. This is also because there are changes in
technology for the SME and SOHO market as low-cost solutions are now available.
In terms of revenue, the market has grown by 26%.
The number of broadband subscribers (with a download speed of 256 kbps or
more) was 2.06 mn subscribers at the end of the December 2006 quarter, growing
by 120% compared to same period last year. Dialup modems are slowly dying. ADSL
on the other hand is gaining market share with a wider penetration of broadband.
The ADSL2+ technology will prevail for at least two years before VDSL2 takes
over to provide more bandwidth. High costs of VDSL2 chipset is another reason
which compels the service provider to go for ADSL2+ technology. Leased line
connections are also not growing but it continues to find patronage from the
financial services sector.
THE PLAYERS
Atrie continued to hold on to the number one position in terms of revenue. It
sold 262,000 units, earning revenue of Rs 157 crore. Bharti Teletech grew 36%
and sold over 404,384 units and clocked a revenue of Rs 49 crore as compared to
just Rs 36 crore last fiscal. In terms of market share, it was at the third
slot. Airtel added 283,114 broadband subscribers to its network which explains
the growth of Teletech. MRO-Tek sold 35,000 units with a revenue of Rs 55 crore
making it to the number two position. MRO-Tek and D-Link registered a negative
growth.
Sterlite commenced manufacture of ADSL2+ modems at its facility in Aurangabad
in March 2007. Since the announcement of the launch, Sterlite has successfully
executed an educational order from BSNL for 3,000 units of its SAM100 ADSL 2+
modem, designed for single-user residential applications. Dax Networks whose
market share was on the decline, has decided not to focus on modems.
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Top Players
(FY '06-07)
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Companies
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Revenue (in Rs Crore)FY '05-06 FY '06-07
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Growth (in %age)
|
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Atrie Technology
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76
|
157
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106.6 |
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MRO-Tek
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74
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55
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-25.7
|
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Bharti Teletech
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36
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49
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36.1
|
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D-Link
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48
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37
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-22.9
|
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Others*
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32
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37
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15.6
|
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Total
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266
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335
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25.9
|
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*Others includes Dax Networks, Artek Enterprise, Gemini
Communication, Linkquest Telecom and Sterlite
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THE FUTURE
The DSL business is the biggest in size, the volumes for it coming
from SOHO and SME segment. BSNL/MTNL will continue to rule this segment. The
64/128K leased line will see a major growth in the banking and finance verticals
besides segments such as railway, airline ticketing and freight management
system.
The data circuits/leased line will see a significant growth and some of the
old 64K links will be upgraded to E1. The major customers would be banks and
state government WAN projects.
Nilabh Jha
nilabhj@cybermedia.co.in
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