NEW DELHI: Ericsson said that its India revenue fell 28% in the third quarter of 2016 to SEK 2.6 billion or $292 million (or nearly Rs 1,890 crore ), due to delayed of spectrum auctions in the country. In India the delayed spectrum auctions led to another slow quarter. The transition from 3G to 4G continued to contribute to sales growth in region South East Asia and Oceania,” the company said while announcing its third quarter results of 2016.
“The pending spectrum auctions, which closed early October, negatively impacted mobile broadband investments in the quarter. Professional Services continued to be stable,” the company said. Sales as reported decreased by -14% YoY, with a decline in all segments. Sales, adjusted for comparable units and currency, decreased by -14%.
The negative trends from the first half of 2016 accelerated in the quarter, impacting primarily Segment Networks. The sales decline in Networks was driven mainly by markets with a weak macro-economic environment, impacting both mobile broadband coverage and capacity sales in these mar- kets. Sales in Europe continued to decline YoY, following com- pletion of mobile broadband projects in 2015 and lower capacity sales.
Sales in India contributed to the decline following the delayed spectrum auctions which have delayed investments for several quarters. Sales in Mainland China declined YoY due to lower 3G sales, while 4G deployments continued on a high level and sales of core networks increased. Sales in North America declined slightly YoY mainly related to one customer that continued to reduce their investments in mobile broadband.
Sales in Global Services declined by -8% YoY. Professional Ser- vices sales declined, partly due to lower sales in markets with a weak macro-economic environment and continued decline in CDMA sales. Managed Services sales declined YoY, partly due to lower sales in North America. As already announced, a major managed services contract has been renewed, with reduced scope. This will impact Managed Services sales negatively also going forward. Network Rollout sales continued to decline YoY, due to lower mobile broadband demand.