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Ericsson to invest Rs 200 cr in India

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March 07, 2005 14:58 IST

Swedish telecom network supplier Ericsson on Monday said it would invest over Rs 200 crore (Rs 2 billion) in the next 2-3 years to manufacture Base Stations in India, promising huge savings in the operational and capital expenditure of mobile operators.

With the installation of these new Base Stations, the mobile operators can reduce the operational and capital expenditure by 30 to 50 per cent, claimed Jan Campbell, Ericsson India managing director.

Mobile tariffs could fall further in case the service providers decide to pass on the benefits of reduced opex and capex by installing new Base Station of Ericsson.

Expecting India's mobile subscriber base to reach 100 million (10 crore) by 2006 and surpass 200 million (20 crore) mark by 2008-09,
Ericsson is all set to take a lead and has also lured the mobile operators with a new concept called 'Managed Services'.

Under this plan, Ericsson would plan, design and run the network while the service provider would concentrate on providing "Best of Mobile Services" to acquire, retain and grow the subscriber base.

Campbell, however, emphasised on the introduction of next to third generation technology called "Super 3G" for Indian mobile market.

"With Super 3G, India can within a couple of years, not only reach hundreds of millions of people with basic voice communication, but achieve a reach to the same millions with high quality broadcasting, video on demand, high speed Internet as well as video calls."

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