Slid­ing Down

Voice&Data - - CONTENTS -

Slow.adop­tion.of.3G.and.mod­er­ate.growth. in.2G.cou­pled.with.po­lit­i­cal.un­cer­tain­ties. re­­fall.

The In­dian trans­mis­sion in­dus­try has shown neg­a­tive growth, thanks to 2G li­cense can­cel­la­tion cou­pled with po­lit­i­cal un­cer­tain­ties. Slow adop­tion of 3G along with mod­er­ate growth in 2G has also led to this de­cline which has re­sulted in large op­er­a­tors hold­ing back on their planned capex in­vest­ments. The sec­tor also did not see any large scale pub­lic sec­tor ten­der.

The Supreme Court judg­ment on can­cel­la­tion of 122 li­censes had an ad­verse im­pact on the capex as lot of band­width was freed up with the shut­ting of shops and lot of un­cer­tainty in the mar­ket. So, op­er­a­tors were more cau­tious when it comes to fresh cap­i­tal out­lays for trans­mis­sion deals—be it net­work up­grades or for new roll­outs and were de­fer­ring their de­ci­sion for pur­chase of equip­ment.

Ini­tially, op­er­a­tors did not spend any­thing on core net­work for 3G roll­out but hav­ing burnt their fingers, op­er­a­tors are look­ing at new tech­nolo­gies like Car­rier Eth­er­net, GPON, and 40G/100G net­work. All these would be re­quired for 3G roll­out, mak­ing 4G ready net­work, and ca­pac­ity ex­pan­sion in na­tional long dis­tance net­work.

The Play­ers

Al­ca­tel-Lu­cent has done well to help op­er­a­tors trans­form their net­works to next-gen­er­a­tion op­tics. The com­pany has supplied trans­mis­sion equip­ment for ma­jor 3G op­er­a­tors who are en­sur­ing ad­e­quate data car­ry­ing ca­pac­i­ties in their net­works. The com­pany has supplied a top In­dian ser­vice provider with back­bone ex­pan­sions and new net­work/links in­clud­ing ASON ex­pan­sions.

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