Swedish telecom equipment maker Ericsson said that it is ready to implement the proposed manufacturing policy as long as there is level-playing field.

The manufacturing policy proposes to give preferential access to companies with local production units. It also prescribes the amount of value addition that needs to be done by manufacturers locally.

“Any country would like to promote local manufacturing so we are not fighting it. We have a manufacturing unit in India so we are ready to comply with the policy if we have level-playing field. If everyone has to follow the same value addition then its fine with us,” Fredrik Jejdling, Head of Ericsson’s India operations, told Business Line .

This is the first time a foreign player has come out in support of the policy. Earlier, the European Commission and the American vendors had opposed this on grounds that it violates the international trade agreements.

Under the new manufacturing policy, operators will be mandated to buy 30 per cent of the network equipment from companies with local production unit. In addition, manufacturers will be required to 65 per cent of the value add domestically. Jejdling said the amount of value addition prescribed in the manufacturing policy was on the higher side for which Ericsson was working with the Government to get the ecosystem ready. “You need suppliers, component makers and other key players to achieve such high value addition,” he said. Ericsson is planning to make India its export hub as it already has a plant in Jaipur.

Focus Area

Speaking about Ericsson’s focus area, Jejdling said its business support systems (BSS) portfolio will be key as the Indian telecom market transitions into more data usage. Operators are looking at different models and differentiated experience to drive revenues and stickiness. BSS enables operators to offer subscribers customised billing plans based on their data consumption.

“There is a keen focus on data monetisation and advanced billing systems - critical to revenue generation. This presents a big growth opportunity to vendors like Ericsson,” he said.

Ericsson had acquired Telcordia last year to strengthen its presence in this space and is reported to be interested in buying Nokia Siemen’s BSS business. Although Jejdling declined to comment on the discussions with Nokia Siemens, he gave an indication as to why the Swedish major may be interested in this business. “BSS solutions become critical success factor for the operators. They drive the customer experience and serve as the engine for monetising traffic, offerings and products that operators sell,” he said.

>thomas.thomas@thehindu.co.in

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