Increased coverage and increase in number of subscribers translates into more sites. Consequently, the demand for equipment to be used in these sites increases.

Market Overview

The RF products market was an estimated Rs. 900 crore in India in 2007-08. This market can further be segmented into connectors (including jumper assemblies) and cables (excluding accessories and surges). Cables accounted for approximately 90 percent of the Indian RF products in 2007-08 (Rs. 810 crore). The balance 10 percent or Rs. 90 crore was accounted for by connectors (including jumper assemblies). The market more than doubled itself through installation of 114,700 sites, compared to 55,000 sites in 2006-07.

Growth Drivers and Trends

RF products form an integral part of network infrastructure. RF and feeder cables are used to connect antennas and mobile stations. The RF product market has a strong correlation with the cell site market as a cell site translates into requirement for RF equipment for the site.

The substantial growth in the number of sites added per year is a result of service providers increasing their market penetration through expansion in semi-urban and rural areas. Increased coverage and increase in number of subscribers translates into more sites. Consequently, the demand for equipment to be used in these sites increases as well.

Falling ARPUs for existing and new subscribers imply service providers have to cut costs and encourage site sharing. The implementation of networks specifically WiMax, UMTS series being overlaid in traditional 2G frequency bands, greenfield operators, and increased interest in broadband capabilities, will imply that mantra for success in this market would be one-stop solution providers that lower costs, offer aluminium cable innovations, and offer adaptations in assemblies and accessories.

Market Dynamics

Andrew Wireless Solutions, a CommScope Company, consolidated its leadership position with over 50 percent market share in the RF products market. CommScope Inc. acquired Andrew Corporation in June, 2007 at approximately USD 2.6 billion. The acquisition has said to have translated into substantial annual pre-tax cost savings due to CommScope's track record of successfully integrating acquisitions, manufacturing discipline, and commitment to operational excellence. Andrew is now a wholly-owned subsidiary of CommScope.

On the OEM side, Andrew's major customers include Nortel, Siemens, and Ericsson. On the service provider side, Andrew's major customers include Bharti, Vodafone, Idea, BSNL, Tata Teleservices, Reliance, and Unitech.

Other major players in the market include Kavveri Telecom Products Limited, TVS Interconnect Systems, RFS, Hubner and Suhner, Rosenberger, and Radiall. Amphenol's primary revenues from this market come from jumpers and connectors. Leoni got orders from Reliance and Vodafone. Rosenberger is setting up a manufacturing facility in Chopanki, Rajasthan.

Major Players

Andrew Wireless Solutions, a CommScope company

Andrew first started its operations in India in 1997. With sales offices in Delhi and Mumbai, the company has its production facilities in Goa. Starting in a modest 1,000 square meter facility with employee strength of 10, Andrew has progressively grown to become the only player in the Indian telecom cable and antenna segment to produce both product families from its own manufacturing facility in India. The increasing demand in this dynamic market led the company to go in for further expansion through a third manufacturing facility in Goa. With the opening of the new facility, Andrew Wireless Solutions is now the first and only indigenous manufacturer of both radio frequency cables and antennas in India. The newly custom-built 19,400 square meter facility in Goa will serve the various original equipment manufacturers (OEMs) and network operators in this rapidly growing market with technically superior, high quality products. Customers can now benefit from reduced freight and inventory costs, faster delivery time and in-country technical assistance and customer support. Andrew customers include wireless operators, original equipment manufacturers (OEMs), distributors, integrators, broadband providers; value added resellers, and installers. Reliance, Hutch, Bharti, BSNL, Idea, and Spice, just to name a few, are customers of Andrew in India.

Kavveri Telecom Products Limited

Founded in 1991 by a highly innovative team, Kavveri Telecom designs, develops, tests, and implements a diverse range of products, from concept to deployment. With over 150 R&D man-years of experience, Kavveri Telecom is uniquely positioned to offer an array of world-class products and solutions to meet all hardware requirements of telecom manufacturers, telecom service providers, and telecom users. The diverse range of products manufactured by Kavveri Telecom includes antennas, RF components, repeaters, TMA/TMB, and solar products. It also enjoys the stature of being the largest manufacturer of antennas and RF products in India. With 30,000 square feet area of R&D manufacturing infrastructure for design, development, and production of microwave components, RF products, and antennas, Kavveri Telecom has the capacity of manufacturing over 1,00,000 high quality antennas and 10,000 RF products per month. Headquartered in Bangalore, India, with three well-equipped production plants, Kavveri Telecom is geared to meet all telecom hardware needs of clients across the globe. Kavveri Telecom's esteemed clientele include industry giants such as Ericsson, Motorola, Spice, Airtel, BSNL, ISRO, World Space, and Airport Authority of India.

TVS Interconnect Systems Limited

TVS ICS was incorporated in 1999 for offering optimised solutions to the telecommunication and networking verticals. Today, it has established a name for itself as a reliable partner for delivering and implementing tomorrow's solutions by combining the best-in-class solutions and products from a wide variety of globally acclaimed partners. TVSICS is a part of the prestigious TVS Group, with group revenue of more than USD 5 billion annually and employing over 25,000 personnel. TVSICS supported by its manufacturing base in Madurai is broadly classified into 6 divisions: Telecom Infrastructure, GSM/CDMA Antennas, Wireless Solutions, Carrier Solutions, Networking Solutions, and Project Management Services.

Radio Frequency Systems

RFS is a global designer and manufacturer of cable and antenna systems plus active and passive RF conditioning modules, providing total-package solutions for wireless infrastructure. RFS serves OEMs, distributors, system integrators, operators and installers in the broadcast, wireless communications, land-mobile and microwave market sectors. RF Systems provide solutions for cell-based mobile communications, in-building, in-tunnels, television and radio, radio-link networks, LMR/PMR, and HF and defence. RFS is represented on six continents, with nine manufacturing centers-of-excellence (Germany, France, US, Brazil, Russia, China, Denmark, Mexico and Australia) and 32 technical support and sales offices. As an ISO compliant organization with manufacturing and customer service facilities that span the globe, RFS offers cutting-edge engineering capabilities, superior field support and innovative product design.

HUBER+SUHNER GROUP

Huber+Suhner Group is a leading global supplier of components and systems for electrical and optical connectivity. Their customers in telecommunications, industrial applications, and transportation appreciate their speciality with detailed knowledge of practical applications. Huber+Suhner offers technical expertise in radio frequency technology, fiber-optics, cables and polymers under one roof, thus providing a unique basis for continual innovation focused on the needs for customers all over the world.

Radiall

Radiall is a global manufacturer of interconnect components including RF/coaxial connectors and cable assemblies, antennas, fiber optic components, microwave components and multi-pin connectors for the automotive, telecommunication, military and aerospace markets. Radiall's expertise in interconnect technologies and its intimate market knowledge have established it as a key player in the industries it serves.

"Factors driving RF products in India are new mobile technology, new operators and defence expansion plans"

On 2007-08 sales

We have achieved our set targets. We hope to meet our target for 2008-09.

On major market segments

Major market segments are mobile cellular OEMs and operators in GSM and CDMA, and defence establishments. This covers a major portion of the market.

On growth drivers

Factors driving RF products in India are new mobile technology, new operators & defence expansion plans.

On new and emerging technological platforms

3G Networks and WiMAX are the new technology platforms in India.

On challenges and opportunities

Challenges: High raw material cost, low cost products from street vendors, low market product prices, and penetration by Far East vendors.

Opportunities: Increased roll outs, New market with new technology, and new operators.

On growth rate of the RF products market

The RF products' market potential is growing exponentially in India. The market size will triple in next two years.

On setting up manufacturing facilities in India

We have set up a new manufacturing facility at Bangalore to cater to the large volume of RF products which meets global standards.

On plans to increase market share

Opportunities are tremendous in India for RF products and we plan to increase our market share through volume production and timely delivery to meet the customers' project schedules.

On product offerings

Our existing RF products are splitters, couplers, combiners, isolators, circulators, filters, etc. We shall launch products to meet the new frequency range to meet the new technologies.

On copper prices going up

All manufacturers in this segment are affected severely.

On rural coverage

Our increased production capabilities shall help the operators to roll out faster in rural areas.

On plans for 2008-09

We plan to double our sales turnover in 2008-09.