Operators are looking at multi-vendor strategy

Written by Rachana Khanzode | Updated: Aug 4 2010, 04:30am hrs
European telecom equipment provider Ericsson plans to leverage its capability in the managed services in India for 3G and long-term evolution (LTE) technologies, as Indian telecom service providers increasingly adopt a multi-vendor, multi-technology strategy. Girish Kadam, VP, global services sales region, India, tells FEs Rachana Khanzode, that most operators expect 3G launch by year end and aggressive commercial negotiations are on.

How has the Indian telecom industry changed for equipment providers, post the 3G and BWA auctions

Most Indian service providers have deployed their 2G networks and are looking at 3G and LTE.

These operators are now looking at multi-vendor managed services strategy, which would enable a particular telecom equipment provider give managed services on a network built by another equipment provider.

Though this has been a trend across the globe, we are witnessing increased interest amongst the Indian telecom service providers. We also expect adoption of LTE overWiMax as more and more trials are successfully done globally. Bundled services (equipment and managed services) have been a trend for some time in India.

How big are the opportunities in the Indian context

According to industry reports, managed services opportunity in India is expected to be $8.7 billion by 2013, at a componded annual growth rate of about 19%. Telecom service providers have spent a huge amount on spectrum licences (3G and BWA), the market is quite aggressive at the moment.

Telecom service providers are not only looking at better capacity building of their BTS, but performance in terms of data speed, especially for features like mobile TV, voice systems, gaming applications, amongst others. Specialised skill sets and personnel to manage increasingly complex networks are also needed.

Immense competition and challenges to reduce operating expenditure are also acting as growth drivers for increasing relevance of managed sevices.

There is a demand for quicker network roll out and network optimisation services, as service providers witness rising competition and exponential growth in subscriber numbers.

How are you placed in a competitive market

We have about 111,000 BTS being managed globally, which makes it 40-45% of the global 250,000 BTS. We recently concluded our first long-term evolution trials in India. This puts us in a better position to address the Indian market with bundled services.

The market dynamics in India are quite similar to that of Indonesia where we have done successful 3G deployments and can be a benchmark for our potential customers in India. We expect rapid expansion of our employee base in India in three-four years.