This is part of its new commercial and production strategy to reduce initial network rollout costs by having elements of its Reach GSM portfolio.

The manufacturing in India is expected to start from the telecom major's handset manufacturing unit in Chennai.

The Reach Strongbox, an equipment for Horizon II macro base tower station (BTS), will be the first product delivered under the strategy.

Phased deployments of over 1,300 units have been carried out in the country to serve frontline cellular operators in the local market, a company release said.

The domestic telecom market has been witnessing a phenomenal growth, and operators are on a network expansion spree.

Reliance Communications [Get Quote] is expected to come out with a request for proposal for its GSM network, estimated at around $8 billion.

The telecom industry will pump in around $6 billion for its 3G network.

Motorola will also roll out the strategy to other markets including China and Africa, the release added.

Official sources said plans had been on for production at local units, and the manufacturing would be done from the company's Chennai facility.

"The strategy to produce portions of the Reach GSM equipment locally demonstrates our commitment, and investment for providing low-cost solutions for rural and urban cellsite deployments," said Mohammad Akhtar, vice-president, global product management GSM and UMTS, sales & services, Motorola.

The Reach Strongbox solution also allows a full 2G to 3G upgrade by being able to house the Motorola Horizon 3G-n Node B or combined 2G and 3G operation using a 3G-n Fiber upgrade to the Strongbox enclosure.

Besides this clear upgrade path, Reach GSM provides high flexibility at lower costs by delivering low-entry cost network solutions with scalable voice coverage and capacity, support for data services, and sustained low operating expenses.