Ericsson India third quarter revenue 2013 dipped 26 percent to $205 million (SEK 1.3 billion).
Current slow pace of network roll outs impacted Ericsson India revenue growth. Top telecoms including Bharti Airtel, Vodafone India, Idea Cellular, etc. are reducing their network expansion in India due to tough market conditions and regulatory issues.
“Sales declined as investments continue to be slow, in spite of signs of improvements in the regulatory environment. Services sales grew, mainly driven by managed services business,” Ericsson said.
Out of SEK 1.3 billion third quarterly revenue, Ericsson generated SEK 566 million from network business that dipped 46 percent.
Ericsson India’s global services business increased 11 percent to SEK 576 million.
The telecom vendor’s support solution business dipped 51 percent to SEK 38 million, Ericsson India said.
Apparently, India is one of the worst performed countries for Ericsson. North East Asia region reported 28 percent decline in third quarter revenue. Revenue decline in Sub Saharan Africa was 4 percent.
Ericsson global revenue decreased 3 percent to $8.4 billion (SEK 53 billion). Its net income increased 38 percent to SEK 3 billion.
Decrease in sales was mainly due to lower sales in North East Asia and India. Segments such as Networks and Global Services showed slightly lower sales.
CDMA sales in North America, as well as GSM sales in China, declined.
Hans Vestberg, president and CEO of Ericsson, admitted that the sales are coming under some pressure.