The13th annual survey `V&D 100` covered over 500 telecom companies in India spanning carrier equipment, enterprise communication equipment, and handset manufacturers.

Revenues of the Indian telecom equipment industry grew by 24% to touch Rs954.07bn in FY08, according to an annual survey by Voice&Data, a CyberMedia Publication.

The13th annual survey 'V&D 100' covered over 500 telecom companies in India spanning carrier equipment, enterprise communication equipment, and handset manufacturers.

According to the survey, more than half of the telecom equipment revenue came from carrier equipment manufacturers, which grew 32% to touch Rs569.94bn during the year. The enterprise equipment grew at 27% to report revenues of Rs13,210 crore. The phone segment, contributed nearly one-fourth to the total telecom equipment industry, at Rs252.03bn recording a growth of 7%.

Commenting on the results of the survey Prasanto K Roy, Chief Editor of CyberMedia's business publications said, "This is robust growth for the Indian telecom equipment market--24% on such a large base. It continues to be driven by the rising demand for mobile handsets, especially beyond the metros, and the consequent wireless infrastructure expansion by service providers."

The Top 10 Club
Mobile handset maker Nokia had the highest revenue during the year followed by telecom network equipment major Ericsson, Nokia Siemens Networks, Alcatel-Lucent and Wipro. The other players in the top 10 were Cisco, TCS, Infosys, Sony Ericsson and ZTE.

The Top 10 Telecom Equipment Players FY08
 

The Top 10 Telecom Equipment Players 2007-08
Rank	Company	Revenue (in Rs crore)		%Growth
		2006-07	2007-08
1	Nokia	11,486	15,000	30.6
2	Ericsson	5,004	8,000	59.9
3	Nokia Siemens Networks	5,700	7,779	36.5
4	Alcatel-Lucent	5,000	7,000	40
5	Wipro	3,471	5,585	60.9
6	Cisco	4,037	5,046	25
7	TCS	3,006	3,978	32.3
8	Infosys	2,681	3,600	34.3
9	Sony Ericsson	1,386	3,083	122.4
10	ZTE	2,596	3,000	15.6

 Source: Voice&Data Jun 2008

While Nokia and Ericsson retained their positions as the top players, Nokia Siemens Networks (NSN), struck major deals in the wireless segment to rise to number 3. The Top 10 club also saw the entry of Sony Ericsson at ninth position as its revenues grew 122.4% to Rs30.83bn. Alcatel Lucent, with 40% growth moved from the fifth rank to the fourth.

"Expansion of mobile networks and broadband infrastructure, and the introduction of 3G technology, will sustain the growth in the current year," adds Roy.

Segment Wise Break-Up

In the handset segment, revenues of companies making mobile handsets grew 12% to Rs240.03bn while the fixed handset sales decreased by 41% to Rs12bn, over the same period last year. This indicates consumer preference for the more affordable, convenient and feature rich mobile handsets over the fixed phone. 

The Indian handset market recorded a 33% growth by volume with 95.6mn pieces sold during the year against 71.8mn in the same period in the previous year. Of the total handsets sold 68.3mn were based on GSM technology and 27.3mn on CDMA. The GSM handsets sales reported a growth of 34% compared to a 28% for CDMA phones.

Top 10 Mobile Phone Players 2007-08
 

Top 10 Mobile Phone Players 2007-08
Companies	Revenue 06-07	Revenue 07-08	Growth %age	Mkt share
Nokia	11,486	15,000	30.6	62.5
Sony Ericsson	1,386	3,083	122.4	12.8
Samsung	1,205	1,500	24.5	6.2
LG	2,348	1,500	-36.1	6.2
Motorola	2,387	1,200	-49.7	5.0
ZTE	783	850	8.6	3.5
Huawei	132	320	142.4	1.3
Haier	294	300	2.0	1.2
Others	1,413	250	-82.3	1.0
Total	21,434	24,003	12.0	100.0
Source: Voice&Data Jun 2008

Source: Voice&Data Jun 2008

Nokia had the highest market share in the handset space at 62.5% followed by Sony Ericsson (12.8%), Samsung and LG (both 6.2%), Motorola (5%), ZTE (3.5%), Huawei (1.3%) and Haier (1.2%).

Within the carrier equipment business, wireless infrastructure segment grew 43% to report revenues of Rs237.7bn. The telecom software grew nearly 29% to record revenue of Rs230.18bn. Broadband infrastructure segment grew 68% to post revenues of Rs15.1bn as broadband connections increased during the year.

The enterprise equipment business grew by 27% to Rs132.1bn in FY08. While Network security business recorded a growth of 73% at Rs4.56bn, the network storage business grew by 47% to record revenue of Rs14.46bn.