As the Executive Vice-President/President, Asia, Middle East & Africa of Nokia Solutions and Networks, Ashish Chowdhary is one of the Indians who have made it to the company’s global team. After leading India operations for Nokia Networks from 2003 to 2007, Chowdhary emerged into the global scene heading the company’s global delivery services.

As part of the Executive Board, he is today driving the telecom equipment maker’s transformation along with CEO Rajeev Suri. Business Line met Chowdhary on the sidelines of the Mobile World Congress at Barcelona to know key trends in telecom equipment segment.

Is the telecom equipment market showing signs of buoyancy? What is driving growth globally?

The main factor driving growth is data. Last two years have generated data as much as in the last 50 years. Data explosion is driving usage of devices and in turn this is driving the whole ecosystem. Different parts of world are in different stages of this evolution. Some parts are still on 2G, while others are doing massive deploying of LTE. Voice is flattish but data are growing.

Can LTE (4G) be done in 1800 MHz band as is being planned by Indian players?

LTE can be deployed across a number of frequencies. As far as the 1800 MHz ecosystem is considered we do believe it’s the most robust for LTE deployment. Only short-term issue is availability of affordable devices.

Is 5 MHz enough for data play?

Larger quantum of spectrum is always better. Normally, operators have 10 MHz or more. But Indian operators have launched 3G with 5 MHz, so it has worked. It’s our job as technology vendors to maximise efficiency and squeeze out spectrum usage from service point of view.

How do you see emergence of voice over LTE and competing services from appproviders such as WhatsApp?

It’s a bit early to say how things will evolve. Voice over LTE is becoming a standard part of the evolution. This is coming. The question is how to monetise and how telecom players ensure that they do not get canabalised by the over the top players. From tech point of view, our job is to provide the plumbing that enables such service. Things like monetisation come in the operator domain. Also, as the world evolves it also about quality of experience. This is where small cells, Wi-Fi along with LTE are coming.

Telcos have spent billions of dollars for spectrum. Are the business models changing in terms of equipment deals?

All of us work with financing institutions to drive credit facilities but there is no fundamental change in the way we deal with operators. Operators have always spent billion on spectrum. What one spends on capital expenditure is only a fraction of the cost.

This is very small portion of the cost. Bigger spends come in marketing, infrastructure. So operators factor this is in. We keep on looking at how we can make their business case more efficient. For example, by bringing equipment that uses spectrum more efficiently. Our technology can pack in 20-30 more capacity than anyone else in the same spectrum. We also have single equipment for 2G, 3G and 4G which means that telcos don’t have to throw away old equipment as they migrate from technology to the other.

Does this put more pressure on your margins?

We are always challenged to be more efficient. It is not linked to any particular auction.

How is your region faring for NSN. Where does India figure?

The region that I head is the vibrant part of the world. It has countries with poorest GDP and also with highest GDP. There are counties with basic 2G voice and others with LTE Advanced. It provides us a spectrum of things to look at.

India is important base. One of the key enablers for NSN is automation and lot of that is around how to deliver services. So lot of that will be delivered via global centres in Noida and Chennai. India delivery centres today contribute to 60 per cent of our global delivery

How do you see competition from Chinese vendors?

We have gone through a transformation and we have come out stronger. Competition spurs us to do better.

There are reports of NSN acquiring another player. Do you see further consolidation in this segment?

Sector has seen consolidation in the past. I don’t want to comment on the future. We are confident of our position.

What headwinds do you see?

No major headwinds per se but one has to make right bets. You have to bet on the right technology. That comes with working with customers and bodies that defines new standards. Technology is an unforgiving sector. If you miss its hard to get back.

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