The Sun Shines on Telecommunications Equipment Suppliers

India has the world’s second largest industry for telecommunication in terms of user ship. The cumulative Number of phones, both mobile and land line together amounts to a number which is staggering in its size. There were about eighty five crore subscribers registered in 2011. In a 2012 survey, about ninety two crore mobile phone users were registered, according to the Telecom Regulatory Authority of India (TRAI). Also, about fourteen crore people across India use the internet! With such a booming market, it is not surprising that there have been so many new internet service providers and telecom parts manufacturers springing up across the country. It is also no surprise that the competition has become extremely intense and unforgiving.Essence of Telecom parts SuppliersNot only is this competition for mobile phone companies and connection providers, it also spills over to manufacturers and telecom parts suppliers. Having a large mobile phone company as a client is always the dream of any supplier and hence these suppliers work out all possible methods of keeping themselves in competition.Telecommunication Products Manufacturers Sometimes they have tie ups with Chinese component manufacturers for inexpensive and yet qualitative parts. Otherwise they have bulk offers wherein the parts can be procured for lower rates than available in the market. Telecommunication products manufacturers are also constantly under pressure to deliver the goods with required quality and within the given time. However, in this sector the contribution by Indian companies can be called meagre at best. To a large extent this is because the government has remained indifferent to Research and Development and innovation in this field. There is a market of about fifty thousand crore rupees in the Indian market, for telecom manufacturers. However only two percent of this is by Indians, the remaining is contributed by foreign manufacturers.ConclusionMost telecom manufacturers are exhibiting a certain reluctance to actually bring manufacturing units here because there are good plants as well as telecommunication equipment suppliers based abroad. In China and Taiwan, for example. This means there is no necessity to bring the manufacturing to India, and while this remains profitable to the industry as a whole, the R&D as well as manufacturing sectors in India are affected by this mentality. Since there have been less funds invested in these fields, there is consequently a lack of good technology thus leading to dependence on foreign companies in the world.

» Tags:

Comments are closed.