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TELECOM EQUIPMENTS INDUSTRY

Other Topics - By: - Mr. M. GOVINDARAJAN - Dated:- 14-2-2017 Last Replied Date:- 17-2-2017 - Introduction It is universally agreed that telecommunications contributes significantly to the overall socio-economic development of the country, and that the development of a modern nation to its full potential in the contemporary world can never be attained without modern telecommunication services. Developing a modern, reliable and robust telecommunication system needs availability of state-of-the-art .....

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quipment Analogue Switches; Digital Switches. Transmission equipment Transmission lines; Optical fibre; Base transceiver station; Multiplexers; Local loops; Communication Satellites; Customer premises equipment Private switches; Local area network; Modems; Mobile phones; Landline phones; Answering machines; Fax machines; Routers Global scenario Almost all countries in the world are manufacturing telecommunication equipments. The Revenue of top 10 global telecom equipment companies by 2013 is dep .....

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5 2009 237 6 2010 284 7 2011 308 8 2012 330 9 2013 351 10 2014 429 Source: www.statista.com This statistic shows the total amount of revenue made worldwide from telecommunications equipment sales from 2005 to 2012, and also offers a forecast for 2013 and 2016. In 2007, revenue from telecommunications equipment came to 222 billion euro. Indian scenario The Indian telecom sector was entirely under government ownership until 1984, when the private sector was allowed in telecom equipment manufacturi .....

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and Development, IPR creation, testing, standardization and manufacturing i.e. complete value chain for domestic production of telecommunication equipment to meet Indian telecom sector demand. The department is working in coordination with Department of Electronics and Information Technology (DeitY) for this cause. One of the missions of National Telecom Policy, 2012 is to make India a global hub for telecom equipment manufacturing and a Centre for converged communication services. One of the o .....

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tempt to capitalize on this opportunity, the government and policymakers are focusing on developing the domestic manufacturing industry. The Indian equipment manufacturing sector has come a long way in the past few years. From being an import-centric industry, it is slowly but steadily moving towards becoming a global telecom equipment manufacturing hub. TRAI is in the process of formulating the recommendations for encouraging domestic telecom equipment manufacturing. While regulator has issued .....

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d. GSM operators are not in favor of any regulations in this regard. It may be a counter productive and may retard the growth of the Indian telecom industry. FDI policy 100% participation of FDI is allowed in respect of manufacture of Telecom equipments under automatic route since 1990. Equipment production The exponential growth witnessed by the telecom sector in the past decade has led to the development of the telecom equipment manufacturing and other supporting industries. In 2002-03, India .....

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s noticed during the year 2007 - 08 when compared to the figures of other financial year. Import and Export of equipments The export of telecom equipment has consistently increased till 2012-13. It has increased with the CAGR of 43% to reach ₹ 21,075 crore in 2012-13 from ₹ 402 crore in 2002-03. In the year 2006-07, India exported equipment worth ₹ 18980 million, which increased by over 730 per cent to ₹ 158380 million in 2011- 12. However, the export figures has slightly .....

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hones, parts and telecom cables HS Code Description Value ( Rs.in Million) 2012-13 2013-14 851711 Line telephone sets with cordless handsets 3835 9169 851712 Telephones for cellular networks or for other wireless networks 144871 118542 851718 Others 1042 2530 851761 Base stations 128 329 851762 Machines for the reception, conversion and transmission or regeneration of voice, images or other data including switching 4923 6067 851769 Others 6647 7659 851770 Parts 34769 37395 852560 Transmission ap .....

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eriod from April 2014 to October 2014 is ₹ 523105 millions. The following table will depict the equipment wise import for the year 2012 - 13 and 2013 - 14: Table - 6 Import of Telecom equipments including mobile phones, parts and telecom cables HS Code Description Value (Rs. in millions) 2012-13 2013-14 851711 Line telephone sets with cordless handsets 2587 2452 851712 Telephones for cellular networks or for other wireless networks 258351 357210 851718 Others 3113 2404 851761 Base stations .....

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amp; cables 2961 3839 TOTAL 559933 685093 Source: DGFT web-site The above table depicts that rate of import is increasing for the period 2013 - 14 than 2012 - 13. The objective of the Government is to balance the import and export and then to obtain the positive result in exporting more equipment in future. International co-operation With a view to promote R&D, IPRs, Standardization, Product development and manufacturing of telecom equipment and services including their exports, Government h .....

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romotion Council (TEPC) as a Council plays a critical role in furtherance of Telecom Exports from the Country and assists its member companies in easy facilitation of their respective exports. The Council caters to the complete Telecom Ecosystem including Telecom Hardware Manufacturers, Telecom Service Providers, Telecom software vendors and consultants. TEPC achieved in Inclusion of telecom products under 5% duty credit scrip of Focus Product Scheme (FPS) Public Notice No. 53 (RE 2013)/2009-14 .....

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India s enthusiasm. The smart phone evolution is waiting to happen. Table - 7 Market share of Smart phone companies in India Name of Company Percentage Samsung 23% Micromax 17% Intex 11% Lava 7% Lenovo 6% Others 37% Source: International Data Corporation According to IDC 265 million smart phones were sold in India during the quarter ended June 2015. Table - 8 Market share of tablets companies in India Name of Company Percentage 1 Ball 14.90% Samsung 13.80% Datamind 13.50% Micromax 12% Xiaomi 9. .....

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emand, the percentage of Indian demand of that of Global for the years from 2007 - 08 to 2019 - 20. Table - 9 Telecom Equipment demand in India Year Global Total Demand (Rs. In crores) Indian demand (Rs. In crores) % of Global demand 2007 - 08 1,255,500 58,781 6.5% 2008 - 09 1,409,850 60,294 5.8% 2009 - 10 1,300,500 54,765 5.5% 2012 - 13 1,638,255 76,940 6.2% 2014 - 15 1,910,861 96,514 6.6% 2016 - 17 2,228,828 121,067 7.1% 2019 - 20 2,807,682 170,091 7.9% Source: www.trai.gov.in The following ta .....

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2 Source: www.trai.gov.in Used telecom equipment As telecommunications equipment technology rapidly evolves, operators are being forced to look at used and refurbished telecommunications equipment for alternative, cheaper options to maintain their networks. The used telecommunications market has expanded rapidly in the last decade with used and refurbished equipment offering cheaper equipment supply, offering legacy and end of life equipment being refurbished to support platforms already being u .....

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There is a mechanism for properly disposing of these waste products, wherein they are brought to a central location and disposed scientifically by conversion into other products. All mobile phones should be free of brominates and chlorinated compounds by 2015. This will be in accordance with the e-waste (Management and Handling) Rules, 2010. Mobile manufacturers/distributors will be required to place collection bins at appropriate places for the collection of e-waste. This includes mobile phone .....

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