The carrier equipment market scaled new heights last year. This was an
outcome of constant service innovation and network modernization taken up by the
carriers over the last couple of years.
Except some areas, the carrier equipment market for the fiscal 2005-06 was
quite upbeat. According to VOICE&DATA estimates, the carrier equipment
industry stood at Rs 29,040 crore, as against Rs 25,691 crore in FY 2005-06-a
growth of 13%. The dip in equipment prices and the ever expanding services
businesses took carrier equipment markets to new heights. The telecom cable
industry achieved a growth of around 59%. This was driven by the increase in
exports.
Telecom turnkey was another segment, which had an excellent year. This sector
grew at the rate of 27% and the market is estimated at Rs 2,837 crore for FY
2005-06.
But it was not a great year for transmission equipment vendors. The market
witnessed huge orders coming from private operators. But since there were no
large orders from incumbent operators, it affected the market substantially. The
market saw a drop of 12% from last year with revenue of about Rs 645 crore. With
mega 3G tender by public operators already on, things are likely to improve for
the transmission equipment segment in FY 2006-07.
With the dip in the equipment prices and the availability of KU-band in India,
the VSAT market saw a growth of 22% with revenue of Rs 355 crore. The strong
financial market, growth in the economy, education initiatives by government and
private players were the major reasons for the boom in the VSAT segment. Stock
exchanges and the banking sector saw high demand of VSAT this year.
|
Carrier Equipment
Market (FY 2005-06)
|
|
Product Categories
|
Revenue (Rs Crores)
|
Growth
(in %age) |
Market Share
(in %age) |
Market Leader
|
|
2004-05
|
2005-06
|
|
Wireless Infrastructure
|
11,277
|
11,411
|
1.2
|
39.3
|
Nokia
|
|
Telecom Cables
|
985
|
1,566
|
59.0
|
5.4
|
Sterlite
|
|
Transmission Equipment
|
730
|
645
|
-11.6
|
2.2
|
ECI Telecom
|
|
Telecom Turnkey
|
2,241
|
2,837
|
26.6
|
9.8
|
ITI
|
|
VSAT
|
291
|
355
|
22.0
|
1.2
|
HNS
|
|
T&M
|
325
|
327
|
0.6
|
1.1
|
Agilent
|
|
Telecom Software
|
9,442
|
11,519
|
22.0
|
39.7
|
Wipro
|
|
Others
|
400
|
380
|
-5
|
1.3
|
|
|
Total
|
25,691
|
29,040
|
13
|
100
|
|
Though mobile networks are expanding, but wireless equipment market didn't
grow as expected last year. This segments generated revenue of Rs 11,411 crore
as against Rs 11,277 crore of FY 2004-05, a meager growth of 1.2%.
Telecom software market grew by 22% with revenues to the tune of Rs 11,519
crore in FY 2005-06. The international market remained lucrative for the telecom
software companies and domestic revenues summed up to be just 5% of the whole
pie. The domestic market was driven by OSS/BSS whereas international business
included embedded and system software also. Business Intelligence was another
software tool, which saw considerable traction with service providers realizing
the importance of availability of trustworthy data.
Sonia Sharma
sonias@cybermedia.co.in
Page(s) 1
