Ericsson to invest in manufacturing and manpower expansion in India

By Telecom Lead Team: Ericsson CEO Hans Vestberg said the
wireless gear and solutions maker will be investing more in Indian mobile
market for expanding facilities and resources.


The announcement is significant as the Indian telecom
market is going through a tough phase due to delay in 3G expansion and 2G
spectrum issues. Ericsson was one of the main telecom equipment makers in India
that has added manpower significantly in 2011.


For Ericsson, India is a big market and an important
market for several reasons. We have a big organization there and we will be
adding more manpower. We will be investing more in manufacturing. India will
become an export hub depending on market opportunities,” Vestberg said.


Recently, Ericsson India has posted SEK 9.8
billion in 2011 revenue, registering 13 percent increase over SEK 8.6 billion
in 2010. India sales decreased 46 percent in Q4 2011 year-over-year to SEK
1.5 billion.



Regulatory uncertainty, particularly around mergers and
acquisitions as well as spectrum trading policy, contributed to a slowdown in
infrastructure investments in the second half of the year.



Globally, Ericsson’s gross margin in 2011 declined
from 38.2 percent to 35.1 percent due to higher share of coverage projects,
network modernization projects in Europe and 3G rollouts in India.


During a media interaction with Indian media, Ericsson
CEO did not comment on Indian regulatory and 2G spectrum issues.


The telecom market is fragmented and cost competitive,
which has created a renewed focus among operators on reducing operating
expenses. This has resulted in a growing managedservices business for Ericsson. 


Baburajan K
[email protected]