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Handset growth benefits wireless comm testers

Posted: 28 May 2009     Print Version  Bookmark and Share

Keywords:Indian wireless communication  test equipment  mobile phone market  wireless technologies 

According to a new report from market research group Frost & Sullivan, the Indian wireless communication test equipment market is positioned for good growth with investments in R&D and infrastructure development, bolstered by growth in the mobile phone market and the advent of next-generation wireless technologies.

However, accompanying this will be challenges such as the demand for lower prices and intense competition. Although the current economic downturn has temporarily slowed demand, the situation is expected to improve within a quarter to put the market back on its high-growth trajectory.

The report titled Indian Wireless Communication Test Equipment Market, finds that the Indian base station and air interface test equipment market was worth Rs.27.33 crore ($5.40 million) in 2007 and is expected to generate revenues of Rs.47.02 crore ($9.29 million) in 2011. The Indian mobile station test equipment market generated Rs.95.16 crore ($18.80 million) in 2007. The revenues are expected to grow to Rs.202.37 crore ($39.98 million) in 2011.

"The penetration and growth of mobile phones is a significant driver for the wireless communication testers market," says Frost & Sullivan Programme Manager Deepa Doraiswamy. "India is now the second largest wireless market in the world."

A key factor driving the market for wireless communication test equipment is the phenomenal growth in the mobile phone market over the last 4-5 years, resulting in a 27.5 crore-subscriber base in 2008. With the addition of close to 1 crore users each month, the subscriber base is expected to touch 75 crore in 2012. Further, the number of locally made GSM handsets is expected to rise from 7.2 crore in 2008 to 10 crore by 2010. Export activity is likely to pick up in the future.

Quality of service (QoS) is undoubtedly a critical aspect of the communication industry. However, with the advent of 3G technology, it becomes difficult to offer several value-added services of 3G over existing offerings without compromising on QoS. Service providers will be challenged by interoperability and interference and will require adequate test support tools, as 3G, WiMax, and other wireless technologies need to be supported in the same device.

"In sync with the global trend, 3G wireless networks will be integrated with wired next-generation IP networks in the future to enhance the service capabilities by providing voice, data, graphic, and voice-based information at a higher speed, along with internet connectivity," says Doraiswamy. "In such converging 3G wireless and wired next generation IP networks, ensuring QoS will be the foremost challenge for mobile service providers."

Wireless standards are evolving rapidly with increasing bandwidth and higher data transfer rates. It is uncertain which standard will emerge as the single-most dominant standard. In such a scenario of multiple standards being deployed, wireless test manufacturers should develop products conforming to the latest standard.

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