Transmitting Success

VoicenData Bureau
New Update

The transmission segment grew by 52.5% to Rs 1,931 crore in FY 2007-08 from

Rs 1,266 crore in FY 2006-07. FY 2007-08 was a good year in many ways as a total

of 121 LoIs (letters of intent) were issued to nine companies. DoT issued the

universal access service license (UASL) to five new companies and four existing

players. Under these UASLs, licensees are allowed to roll out telecom services

in any of the technologies available. It can also provide Internet telephony as

well as Internet and broadband services. Also, DoT has given Reliance

Communications and Tata Teleservices crossover technology permission, ie, they

can now roll out services under the GSM technology.


The companies that got the licenses are Unitech, Videocon, BPL, Shyam

Telecom, Swan Telecom, STel, Spice, Idea Cellular, and Tata Teleservices. Real

estate major Unitech Group, through its eight subsidiaries, and Videocon through

its subsidiary Datacom Solutions, have got LoIs for pan-India licenses for all

twenty-two service areas.

Also, the existing players like Shyam Telelink, already operational in a

Rajasthan circle, has got an LoI for twenty-one circles, Spice has got four,

Idea nine, and Tata Teleservices three. Also, Loop Telecom has got LoIs for

twenty-one circles. Besides, hitherto unknown entities like Swan Telecom and

Stel have got LoIs for thirteen and six circles respectively.

ECI remained the #1 transmission equipment vendor in India, and it continued

to support the tremendous growth experienced by its customers including Bharti

Airtel, Tata Group, Vodafone, and Idea Cellular.


Tejas had also launched new products like TJ1600; full-featured SDH/SONETMSPP,

which can support upto 10 Gbps.

Some of the prominent customers of Tejas Networks were BSNL, MTNL, Tatas

(including VSNL), Bharti, Railtel, and OEM Partners.


Alcatel-Lucent had a growth of 218%. From Tata, RailTel and Bharti Airtel it

bagged orders worth Rs 200 crore and the remaining chunk of revenue was

generated from non telcos and other operators.

Huawei for the FY 2007-08 showed an impressive growth of 239%. It bagged

major order from BSNL because of its reduce price of DWDM.

NSN in FY 2007-08 bagged major order from Bharti, Idea and BSNL.


The main sectors that contributed to the revenues of Tejas Networks were

telecom carriers and service providers, utility companies, Internet/cable

service providers, OEM partnerships with global tier-1equipment vendors, and

sales generated through various VAR/SIs in international markets. Some prominent

customers of Tejas Networks were BSNL, MTNL, Tatas (including TTSL), Bharti,

RailTel, and OEM Partners.

ZTE clocked a revenue of Rs 70 crore and received an upgrade contract for

DWDM from BSNL, and it has generated revenue mainly through incumbent players,

and partly through private players.

Growth Drivers

The market is witnessing investments by operators in SDH-based solutions. In

parallel, migration to other technologies such as IP is being witnessed.

However, such migration is quite subtle at this point and most operators are

taking a cautious view in the matter.


On the business level, there is a move toward consolidation, both at the

service provider as well as the vendor level, creating tighter economies of

scale and a significantly more competitive industry.


From a service provisioning perspective, we are seeing a move by operators

toward total telecom, driven in part by the need for supplementary revenue

sources and the competitive fight for customer retention.

Wireline operators are venturing into the wireless sector, and business

service providers are offering residential packages, creating strong demand for

networking infrastructure solutions that can support a multitude and diverse

service offerings. The key aspect here is to utilize the same network

infrastructure to support different target audiences and different services and

applications, avoiding duplication of networks, and, of course, unnecessary

capital and operating expenses.

The market growth in India is expected to be fueled by ongoing infrastructure

rollout, especially in rural areas, subscriber and usage growth, and the

increased demand for a differentiated, bandwidth-intensive service offering from

service providers, especially in the wireless and broadband realm.


The outlook for the transmission equipment industry looks good, as it is one

of the key ingredients for fueling 3G and broadband. With LoIs issued to new

players and service providers improving their reach in remote areas of the

country, tremendous growth will be witnessed in the transmission segment.

Sandeep Budki