Telecommunications equipment maker Sercomm Corp (中磊) yesterday said it has established a Russian subsidiary in Moscow to cope with fast-growing broadband upgrade demand in Europe’s most populous country.
Sercomm, headquartered in Taipei, said it has secured a leading position in Russia’s broadband market by supplying telecommunications equipment to the country’s major telecoms and services providers over the past few years.
The expansion in Russia provides further proof that the company’s growth this year would come primarily from Europe and emerging markets such as Russia, as it has seen new customer orders from those regions increasing as it forecast earlier this year.
Meanwhile, growth in China, a major market for Sercomm, has plateaued, the firm said.
“As global telecoms have been pushing for digital convergence, the broadband equipment market has been heating up. To provide better services and technologies catering to the needs of local clients, Sercomm has been expanding its footprint worldwide,” CEO James Wang (王煒) said in a statement.
As Russia is preparing to host next year’s FIFA World Cup, Sercomm forecast that telecom equipment demand will surge, as the country needs to upgrade its broadband infrastructure to cope with rapidly increasing demand for high-definition video and other bandwidth-intensive applications, the statement said.
Sercomm has also established a research and development center in Moscow to quickly provide better technological and software support, the statement added.
With a population of 144 million, Russia is one of the biggest emerging markets in the world, Sercomm said.
Of Sercomm’s NT$36.7 billion (US$1.22 billion) in revenue last year, 64 percent was generated by sales of home gateways, with the remainder coming from integrated access devices, small-cell base stations, “smart” home surveillance devices and business routers, company data showed.
Sercomm posted a 0.36 percent month-on-month decline in revenue for last month to NT$3.03 billion, compared with NT$3.04 billion in the same period last year, a filing with the Taiwan Stock Exchanged showed.
In the first five months of this year, the firm’s revenue totaled NT$14.4 billion, a drop of 3.42 percent from NT$14.91 billion in the same period last year, the data showed.
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