Ericsson plans $50 mn capex in India

Swedish telecom network supplier Ericsson today said it would invest over Rs 200 crore ($50 million) in the next 2-3 years to manufacture base stations in India.

"With the installation of these new base stations, mobile operators can reduce the operational and capital expenses by 30-50%," Jan Campbell, MD of Ericsson India, said today.

Mobile tariffs could fall further in case service providers decide to pass on the benefits of reduced expenses, he added.

Expecting India's mobile subscriber base to reach 100 million by 2006, and surpass the 200 million mark by 2008-09, Ericsson is all set to offer mobile operators a new concept called "managed services."

Ericsson would plan, design and run the network while the service provider would concentrate on providing "the best of mobile services" to acquire, retain and grow its subscriber base.