Ericsson India revenue dips 28% to $292 mn in Q3

ericsson-technology-for-telecomsEricsson India has reported 28 percent drop in revenue in the third quarter of 2016 to SEK 2.6 billion or $292 million.

The main reason for the drop in the third quarter revenue of Ericsson India was the delayed spectrum auctions that led to another slow quarter.

“The pending spectrum auctions, which closed early October in 2016, negatively impacted mobile broadband investments in the quarter. Professional Services continued to be stable,” said Ericsson in a statement, announcing its Q3 financial result.

Ericsson India generated SEK 1.4 billion from networks business, SEK 1.1 billion from global services and SEK 0.1 billion from support solutions during the third quarter.

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North America

Sales in North America declined, mainly due to lower sales in Professional Services. In the quarter a major managed services contract was renewed with reduced scope. In addition one customer continued to reduce their investments in mobile broadband. There is continued high focus on network and IT transformation. 5G trials are ongoing with all major customers.

Latin America

Sales continued to decline in Latin America as telecom network operators reduced mobile broadband investments due to the recession in the region. Despite the challenging macro-economic environment, operators continue to invest in OSS and BSS transformation and network efficiency.

Northern Europe and Central Asia

Sales decreased in Northern Europe and Central Asia as networks sales were impacted by lower investments in mobile broadband infrastructure in Russia. Mobile operators are investing in ICT transformation, creating demand for OSS and BSS.

Western and Central Europe

Sales declined in Western and Central Europe, following completion of mobile broadband projects in 2015 and lower capacity sales. Operators continue to focus on transforming their networks to meet the increased demand for data consumption and quality improvement. Mediterranean Sales declined due to lower investments in mobile broadband infrastructure, mainly related to capacity business. There was positive development in Managed Services and investments are being made in OSS and BSS transformation.

Middle East

Sales declined in Middle East following a sharp decline in Networks sales due to lower mobile broadband investments. This was driven by macro-economic challenges, mainly in countries with high exposure to low oil prices.

Sub-Saharan Africa

Sales declined in Sub-Saharan Africa mainly due to lower investment levels in some big countries impacted by low oil prices and a weak macro-economic environment.