Ericsson to make base stations in Rajasthan

Ericsson, the leading telecommunications network solution provider, will start manufacturing radio base stations at its plant in Kukas in Rajasthan.

"We will be the first multinational to manufacture radio base station with complete site solutions. This is the latest part of our localisation move involving transfer of technologies to India," Jan Campbell, president, Ericsson India, told reporters at the Ericsson strategy and technology summit here.

The unit would cater to the Indian market, Campbell said, adding the facility would witness more investments. He, however, did not quantify the volume and investment. At present, the facility is used for manufacturing Ericsson's AXE digital switching systems.

Ericsson has been awarded contracts for building networks for three new circles where Bharti Televentures would launch mobile services shortly, Campbell said.

Carl-Henric Svanberg, president and CEO of Ericsson, said the number of mobile subscribers in India would pass 100 million by 2006 and 200 million by 2008-09.

"With 1.5-2 million new subscribers being added every month, India is becoming more attractive for us. Both India and China will be the key growth drivers," he said.

With only 200 million people within reach today for any kind of telecom connectivity, there was a large potential in the untapped market, Campbell said. He also said that expanding services to more and more small towns and rural areas would fuel growth.

According to Campbell, micro prepaid vouchers available at less than $1 would enhance growth of wireless services. Large youth segments using mobile phones for the first time along with growing data services would drive wireless growth in the country, he said.

Ericsson has established 40 GSM and 6 CDMA networks in the country for all leading operators.

Its customers include Reliance, Tata, BSNL and Bharti. It supplies broadband access to Bharti and Videsh Sanchar Nigam and trans-local wireline switches to Reliance, Tata, BSNL and Bharti.

Ericsson has been present in India since 1903. Headquartered in Gurgaon, it has about 800 employees across 22 offices in the country.

It has about 4000 developers through its partners and accounts for 44 per cent GSM and 34 per cent wireless market share in India.