The uncertainty in the Indian telecom sector is now beginning to reflect on global equipment vendors’ revenues.
Swedish equipment maker Ericsson has seen a 55 per cent decrease in revenues from India to SEK 1.4 billion in Q1 2012.
India, which was among the fastest growing regions a few years back, is now the worst performing region for the Swedish gear maker. Ericsson now gets more money from the sub-Saharan African region and West Asia.
“Regulatory uncertainty continued with the Supreme Court ruling to revoke 122 2G licences. In Q1,11, networks sales were positively impacted by initial 3G roll-outs. Operators have a strong focus on cost competitiveness, which has resulted in high interest in reducing their operating expenses,” Ericsson said.
“Sales of high-performance mobile broadband developed well in North America, Japan and Korea, while other regions such as Europe including Russia, parts of the Middle East and India were weaker," said Mr Hans Vestberg, President and CEO of Ericsson.
The global revenue of Ericsson was SEK 51 billion in Q1 2012, down 4 per cent. Net income increased 116 per cent to 8.95 billion kronor.