Leading mobile handset maker from Finland, Nokia has suffered a huge decline in revenue in India. There has been almost a decline of 15% in India revenue. It was found out to be Rs 14,000 crore for the period under review.
However, Chinese telecom equipment maker Huawei has registered an impressive revenue report. This has been informed by a recent study.
The revenue of the company has increased by almost 76% and reported to be Rs 11,000 crore in the financial year 2009-10.
However, the decline in revenue has not affected the position of the market leader Nokia. It has retained its top spot de spite the revenue dip. It has number of handsets loaded with excellent features it its product line. Its market share still remains the same.
The report on the revenue record was prepared based on a study by Voice&Data. Voice&Data is a publication of Cyber Media group.
As per its report, there has been a growth of 18.6% in the preceding year in the telecom equipment and devices industry.
Indian mobile operators are adding over 8 million subscribers a month, with a majority of the new users being from rural areas. The share of mobile phones had increased from 71.69 per cent at the end of March 2006 to 87.68 per cent at the end of May 2008. While the total mobile subscriber base was 277.92 million, wire-line subscriber base was 39.05 million. The number of mobile subscribers in India, (India is the world's second-largest wireless market after China) has gone up to around 280 million.
According to a report by Gartner Inc., India's mobile subscriber base is projected to exceed 737 million connections by 2012 growing at a CAGR of 21 per cent and India is likely to remain the world's second largest wireless market after China in terms of mobile connections. The overall cellular services revenue in India is projected to grow at a CAGR of 18 per cent from 2008-2012 to exceed US$ 37 billion. Cellular market penetration will rise to 60.7 per cent from 19.8 per cent in 2007.
GSM companies added over 6.3 million new customers in June 2008, (excluding the GSM subscriber base of Reliance Telecom) crossing the 212 million mark, with a growth of 3.07 per cent over May 2008, according to the Cellular Operators' Association of India (COAI).
According to an analyst firm Springboard Research, India will become the leading market for WiMAX in the Asia pacific region and is expected to have 15.8 million WiMAX subscribers by 2012, accounting for 46.7 per cent of total subscribers in Asia-Pacific and 35.7 per cent of revenues from the region. However, India had only 3.4 million broadband subscribers in January 2008, which was much lesser than the government's target of 9 million.
Global consumer electronics and mobile phone vendors are going green in India. Bigwigs like Nokia, LG, Samsung and Haier, among others, are planning to introduce products that will be positioned on an environment-friendly platform, starting the trend of environment as a brand strategy in the Indian consumer electronics industry.
Value Added Services
Consequent to a fall in revenues from voice-based services, mobile value-added services (MVAS) is all set to see massive growth across the world. According to a report by PricewaterhouseCoopers (PWC), the Indian value-added services (VAS) market is all set to grow to US$ 2 billion in 2008. Currently, MVAS in India accounts for 10 per cent of the operator's revenue, which is expected to reach 18 per cent by 2010. According to a study by Stanford University and consulting firm BDA, the Indian MVAS is poised to touch US$ 2.74 billion by 2010.
Mobile advertising, which is an important VAS segment, is still miniscule in India. According to analysts, it has the potential to grow at 200 per cent a year, becoming an important revenue source.
According to global technology research firm Gartner, the value-added services market in India is expected to grow to about US$ 5.6 billion by 2011, and data services will be the major factor behind the growth. India's share in Asia-Pacific (excluding Japan) data revenue is estimated to almost double from about 6 per cent in 2007 to 11.5 percent by 2011. India is expected to lead Asian countries in terms of mobile gaming revenues. The mobile gaming revenues in India, in 2007, stood at around US$ 80 million and it is likely to touch US$ 450 million by 2012.
Echoing similar sentiments, research firm Gartner estimates data services to account for 22 per cent of the total revenues by 2010 from 12 per cent in 2007.