Nokia looking to make IP and Optical products in India; aims to grow non-telco business

Nokia looking to make IP and Optical products in India; aims to grow non-telco business

NEW DELHI: Finnish telecom gear maker Nokia said that it is evaluating manufacturing its IP and optical products in India through its existing facility to cater to domestic as well as global demand. It is also increasing its engagement with non-telecom customers such as MSOs for network transformation to enhance capacity for broadband services.

“India is a huge part of our markets in terms of what we do. We are evaluating manufacturing here, using this as a base for our IP and optical networks, and we’re actively looking at, you know, how would the feasibility of whether we can do that,” CB Velayuthan, senior vice president, Global Sales, IP & Optical Networks, told ET.

“When we do it from here, we would look at making it here and seeing how we can take it global markets,” he added.
Nokia is already making its 4G and 5G radio products from its Chennai facility. Last year, Nokia shipped $400 million worth telecom gear from its factory and half of it was from exports to more than 35 countries.

Having won multiple MSO deals last year, Nokia is now eyeing new deals in the space and is currently engaged with multiple companies. “These customers either provide in house capacity and to enterprises or they provide backhaul. Some of these are backhaul providers on which other operators just ride on,” Velayuthan said.

“Our message to the operators and to all the other non-telco customers is that they need to get their transport networks to be able to take care of handling all the data that’s going to come,” he said.

The executive said that Nokia’s IP and optical business grew double-digit in sales in the second quarter at a time where its competitors have seen seven to eight consecutive quarters of revenue decline. “…it shows you the strength and the confidence that our customers have in our products and in our solution,” he said, adding that two-thirds of these deployments are with new customers.

“…we are either taking a new footprint or swapping competition.”Asked if India has also seen a similar growth in the IP and optical space, he said, “India is a great market of potential. And it’s a great success market that we have. We work with all the operators here in building the transport networks and growing that.”

“We invest big time in India market, we are very excited about this market,” he added.

Nokia said that it is taking learnings from the Indian telecom market to help its customers in other global markets. “…this market is innovative…we learn how to bring in services at a lower cost, but still be able to make money and be able to bring in volume. India in no way is any less than others. In fact, we bring in customers, all our customers from outside here to learn about how do you scale and launch services,” he added.


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