Telecom Lead India: Ericsson India has posted 39 percent
drop in revenue to SEK 1.7 billion in second quarter of 2012.
However, q-o-q growth was 20 percent.
Ericsson India said it is expecting some recovery in
network Capex spend as operators have started focused investments
in areas where data traffic is growing. Y-o-y sales decreased due to the strong
H1 2011, when the initial 3G deployments peaked. Regulatory uncertainties
continue in India.
Ericsson, while announcing the global results, said y-o-y
sales were negatively impacted by lower business activity in China, including
weaker sales of GSM as well as lower 3G sales in Russia and reduced operator
investments in India.
Ericsson India posts 55 percent decrease in Q1 2012 revenue to
SEK 1.4 billion
Ericsson India posted 55 percent decrease in revenue to
SEK 1.4 billion in Q1 2012. In Q1 2011, Networks sales were positively impacted
by initial 3G rollouts. Operators have a strong focus on cost competitiveness,
which has resulted in high interest in reducing their operating expenses. This
has generated a growing managed services business. Strong q-o-q growth in
support solutions is due to Telcordia consolidation.
Global telecom operators likely to post 6 percent increase in
revenue
Telecom operators are likely to post 6 percent increase
in revenue – from mobile voice, mobile broadband, and mobile messaging services
in 2012.
Despite the popularity of over-the-top messaging
applications like Apple’s iMessage and WhatsApp, SMS is growing every year from
2012 to 2016, delivering a cumulative $1 trillion in operator revenue during
those 5 years. Over the same period, voice revenue will decline only slightly,
making up a sizable chunk of operator revenues.
On a global basis, operators will see a 6 percent
increase overall in revenue from mobile voice, mobile broadband, and mobile
messaging services in 2012.
The India government is going slow on spectrum auction.
The delay in fixing the reserve price will add to the uncertainties faced by
operators such as Telenor, Sistema and Videocon among others whose licences
were cancelled by SC earlier this year. These operators say their participation
in the auctions to get back their licences will depend on the base price,
rollout obligations and other policy issues such as permitting staggered
payment.
The Indian telecom industry has been demanding a
significant reduction in the TRAI specified base price of Rs 3,622 crore per
unit of spectrum in the 1800 MHz band, which amounts to over Rs 18,000 crore
for pan-India licence for companies whose permits were quashed by SC in
February.
editor@telecomlead.com
