The rapid growth in the global telecom subscriber base and the introduction of technologies such as 3G and 4G have increased the importance of test and measurement (T&M) equipment in sector growth. The growing demand for quality of service (QoS) and network uptime has led operators to deploy specialised T&M solutions to provide an enhanced user experience to end-customers. Increasing complexities in new wireless technologies have also resulted in a need for T&M solutions.
In India, the telecom T&M market has witnessed significant growth over the years. The increase in the wireless subscriber base, which currently stands at around 860 million, has been a key growth driver for this market. Further, provisions such as mobile number portability have shifted the operator focus from subscriber addition to customer retention. Also, the delivery of quality services has become a top priority for operators with the introduction of 3G and 4G services. Factors such as technology convergence, launch of innovative and bandwidth-intensive applications as well as mobile TV services, and the increasing compatibility of telecom devices with the services and products of other industries including health care, banking, education, retail and manufacturing are also encouraging the telecom T&M industry?s growth.
Key opportunities and growth drivers
Focus on QoS
In the current hypercompetitive market, operators are focusing on improving QoS to differentiate themselves. User demand has become complex and specialised testing equipment has gained importance in providing seamless connectivity across various technologies, platforms, etc. Moreover, the introduction of advanced wireless data applications has driven the need for testing processes. In the past, test equipment was typically used to monitor data services from time to time, but today, there is a need for continuous screening of services. New technologies are being introduced in the wireless market, which have changed the QoS dynamics and have forced T&M companies to meet market requirements.
Evolving device ecosystem
Over the years, telecom requirements have grown significantly, which has led to major advancements in handset and chipset development. This technological progress has increased the demand for sophisticated device testing mechanisms. Further, with the mobile data market witnessing rapid growth, multifunctional smartphones are being introduced, which is driving the demand for measuring equipment for handset manufacturing.
Next Generation Technologies
The launch of new technologies such as 3G and 4G has driven the demand for advanced T&M solutions. Interoperability across 2G, 3G and long term evolution (LTE) will require highly defined T&M methodology and solutions. Further, multiple input, multiple output (MIMO), which is an important part of these high speed wireless communication standards, is a complex technology and needs regular examination and proper implementation. A key challenge for test equipment vendors is to realise the optimal performance of MIMO applications while reducing their complexity.
The telecom industry has witnessed large investments in migration to IP- based data networks. With the roll-out of next-generation networks, quality of experience (QoE) is replacing QoS as a key factor for customer acquisition and retention. Going forward, as LTE roll-outs gain momentum, testing and measuring of networks will become critical for operators to maintain a competitive edge.
Increasing focus on broadband services
Both the government and operators are focusing on the broadband segment. Recently, the Telecom Regulatory Authority of India notified an amendment to its ?QoS of Broadband Regulations?, which include strong penalties for the violation of these norms. Thus, operators would require advanced T&M solutions to adhere to broadband QoS norms. Further, National Optical Fibre Network project involves large infrastructure and would require periodic testing of various components.
Other drivers
Development of the T&M segment will also be driven by the operators? need for a scalable network without compromising on QoS/QoE. Adoption of location-based services will also drive growth in the testing market. Besides, cloud applications and big data will provide opportunities for T&M players, given the growing security and privacy concerns.
Key players
Multinational companies are the key players in the T&M market. Some major companies have set up offices in India and are promoting T&M. For instance, high-end T&M equipment supplier Anritsu Corporation (headquartered in Japan) has established its 100 per cent Indian subsidiary in Bengaluru. The Anritsu Corporation has been operating in India since the 1980s through its liaison offices in New Delhi and Bengaluru. The company?s India business has grown significantly over the past few years across verticals such as wireless research and development (R&D), network equipment manufacturing and installation, and mobile and base transceiver station manufacturing.
Besides, Agilent Technologies India Private Limited is one of the key T&M players in the Indian market. It offers comprehensive solutions in the 2G, 2.5G, 3G base station tester and antenna tester segments. Agilent is a leading player in the LTE domain, and develops design and automation tools and flexible instrumentation solutions for R&D. It also manufactures LTE-based components, base station equipment and mobile devices.
Aplab has been manufacturing and exporting T&M instruments to India since 1964. Its product portfolio comprises signal sources and generators, signal/ function generators, DDS signal generators, arbitrary waveform generators, pulse generators, analogue oscilloscopes, digital storage and mixed signal oscilloscopes, optical communication test equipments and solar simulators.
Meanwhile, Rohde & Schwarz has been serving the calibration and measurement needs of telecom manufacturing industries in India since the 1950s. The company offers instruments and systems for radio frequency and microwave measurements as well as sound and TV broadcasting measurements and network testing. Its portfolio for the telecom sector includes wireless device testers, infrastructure testers, protocol testers, signal and spectrum analysers, signal generators, vector network analysers and conformance and pre-conformance testers. It is one of the leading solution providers for electromagnetic interference and electromagnetic compatibility test systems.
Tektronix has been a leading supplier of testing instruments since 1964. It offers solutions to equipment manufacturers to test the design of new equipment. The company?s instruments help in the troubleshooting of live networks, mobile network optimisation and network management. Its products and solutions for the telecom sector include real-time spectrum analysers, protocol analysers, signal generators and wireless field testers.
The Fluke Corporation is a global manufacturer, distributor and service provider of test tools and software. It is a key supplier of quality precision measurement and quality control T&M equipment for telecom companies. The major products include bench instruments, digital multimeters, calibration instruments, cable testers, clamp meters, insulation testers, oscilloscopes and laser distance meters.
Aishwarya Telecom Limited is an India-based T&M company that produces a range of optic fibre test equipment and cable fault locators. Its clients include Bharti Telenet, Bharat Sanchar Nigam Limited etc. JDSU markets broadband and optical technologies. It offers solutions under three business categories ? communications, T&M, and commercial optical products and advanced optical technologies. The company?s major solutions include optical products, and T&M solutions for the communications industry. Recently, JDSU opened its new IT development centre in Pune in India. The facility will provide technology support for the company?s IT applications and projects. It will also play a role in supporting JDSU in providing software-based services.
Ixia Technologies provides converged IP network validation and network visibility solutions. These are being used by clients including equipment manufacturers, service providers, enterprises and government agencies to design, verify and monitor wired, Wi-Fi and 3G/LTE equipment and networks. While the company has been serving the Indian market since the early 2000s, it incorporated its subsidiary in the country in 2005. Currently, it has offices in Delhi, Bengaluru and Kolkata, and offers internet core network test solutions, test automation and conformance testing solutions, and tools for LTE UMTS and GPRS/EDGE testing. Ixia established its R&D and customer support centre in Bengaluru in 2007, which currently accounts for over 30 per cent of the company?s R&D activities.
EXFO is among the leading providers of next-generation test and service assurance solutions in the world. Its client base includes wireless and wireline network operators, and equipment manufacturers. The company?s portfolio comprises R&D testing, field network testing and quality of services assessment. In India, it has an R&D and engineering centre in Bhubaneswar and Pune. These units have played a key role in developing and delivering software enterprise solutions that allow telecom companies to monitor traffic and diagnose equipment malfunctioning.
National Instruments India was set up in 1998 and has since been a key contributor to virtual instrumentation technology development in the country. The company has an R&D facility in Bengaluru and invests over 15 per cent of its annual revenues in R&D activities. Its telecom product portfolio comprises communication test, radio frequency and wireless test solutions, and semiconductor testing solutions. National Instruments India has received seven patents for innovations in areas of motion control algorithm, radio frequency and software development.
Challenges and the way forward
Limited investments by operators and product development companies pose challenges for the T&M segment. End-users of T&M products, in this case telecom operators, are price sensitive, mainly due to low ARPUs. The price of high-end, general-purpose test equipment including network analysers, spectrum analysers, and oscilloscopes is a key issue and in order to keep development costs low, companies often try to reduce testing expenses. This is a major deterrent for T&M companies as they require huge investments to keep pace with technology development and meet customer needs.
These challenges notwithstanding, there are several opportunities in the telecom T&M space. Increasing wireless connectivity, data service demand, processing capabilities and integration; and software content are creating a demand for advanced or customised test equipment. Going forward, commercialisation of 3G and LTE technologies, migration to all-IP networks and the rapid growth of data services will provide an impetus to the telecom T&M industry. Further, with several Indian players now shifting to the IPv6 platform, T&M equipment would witness higher demand in this market.
