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Telecom turnkey is one segment whose performance and opportunities directly depend on the service provider's rollout plans and expansion activities. Despite global economic slowdown, opportunities in the Indian telecom turnkey services are not much affected. Telecom turnkey market clocked a revenue of Rs 4,823.85 crore in FY 2008-09 which is an increase of 45.7% from Rs 3,311.46 crore in FY 2007-08. In FY 2007-08, the overall revenue had actually declined by 17.3% from Rs 4,002 crore in FY 2006-07.

Thanks to the healthy monthly mobile subscriber additions and lower cost of setting-up telecom sites, the enthusiasm of telecom infrastructure rollout has been growing among service providers.

GTL has topped the rankings this year as well, registering 97.73% growth rate with Rs 1,945.09 crore during FY 2008-09. It had clocked revenue of Rs 1,004 crore in FY 2007-08. Another player that occupied the second place in the top order last year, was ITI. The company retained the position in FY 2008-09 by registering 32.52% growth rate with Rs 1,080 crore during FY 2008-09. It had clocked revenue of Rs 815 crore in FY 2007-08. TCIL clocked revenue of Rs 360 crore in FY 2008-09, an increase of 44% from Rs 250 crore in FY 2007-08, occupying the third slot in the last fiscal.

UTL clocked revenue of Rs 163.30 crore in FY 2008-09, a decrease of -1.03% from Rs 165 crore in FY 2007-08.

One of the important players in the telecom turnkey services segment, Nu Tek has registered a robust 89.47% growth to clock Rs 95 crore in FY 2008-09 even during the recession. Its revenue in FY 2007-08 was Rs 180 crore. During FY 2008-09, Nu Tek bagged a number of new orders/LoIs in addition to the ongoing/retainer projects. The LoI worth Rs 12-13 crore was received from Indus for new build-outs and up-gradation of telecom sites in twelve major telecom circles. Apart from this, Nu Tek received a Rs 45 crore order from Aircel for turnkey infrastructure rollout in Jammu & Kashmir, Bihar and Jharkhand. It also bagged Rs 9 crore order from ATC for new-builds in Jharkhand and Orissa and Rs 3 crore order from Shyam Tele in Rajasthan circle, apart from other orders.

FY 2008-09 was a very exciting year for Nu Tek, as it successfully launched its IPO during August 2008, raised Rs 67.2 crore, and got listed at NSE and BSE. Nu Tek could achieve this impressive growth with its key strengths including pan-India presence, end-to-end service offerings, strong relationship with all the telecom players, and the skilled resource base.

HFCL, provider of global solutions for telecom networking, telecom solutions, optical transmission products, wireless transmission, wireless access, clocked Rs 85 crore in FY 2008-09, a decline of -51% from Rs 173.6 crore. It got main orders from Reliance, Indus, ZTE, Dishnet / Aircel in FY 2008-09. Uneven distribution of business was its major challenge in the last fiscal, but it enhanced its client base.

HFCL was one of the top ranking company two years ago. But, with its key strengths viz-a-viz all India presence, strong technical expertise, and end-to-end solution capabilities, the company aggressively targets to reach Rs 200 crore to regain the glory in FY 2009-10. With this target, its focus in the ongoing fiscal would be to increase more class of material supplies and moving up the value chain by including more technical services.

Outlook
The outlook for telecom turnkey rollout services continues to remain robust in view of factors like high growth rate of subscribers, on-track capex plan of all major telcos, and additional opportunities from incumbent operators. Infrastructure rollout plan of existing and incumbent operators looks very much intact on the back of opportunities provided by continued healthy subscriber addition and untapped rural market.

The major growth drivers for the turnkey solutions during this fiscal will be the healthy subscriber growth rate, aggressive rollout plans of telecom operators, industry consolidation, huge untapped rural market, introduction of new technologies and concepts like 3G, WiMax, MNP, MVNO, etc.

Kannan K
kannan@cybermedia.co.in