Center

Nokia and Siemens to tango

By LI WEITAO (China Daily)
Updated: 2006-08-07 14:14

"Without larger scale, we would be unable to compete in the marketplace effectively," Ho says.

The president notes continued delays in 3G licensing in China will have a minor impact on Nokia and Siemens. Operators are forced to expand their GSM networks to increase capacity with the 3G licensing remaining on-hold, he explains.

Future 3G terminal by Siemens [google.com]

"I believe the GSM market in the second half of this year will see significant growth."

Norson estimates sales of GSM equipment in China in the first quarter of this year was worth US$570.8 million, up 10.1 per cent. The firm forecasts second quarter growth may reach 86.1 per cent compared to the previous quarter.

Ho says Nokia has managed to increase its GSM share "slightly" in the first half of this year and has entered some territories where it traditionally had no presence.

Late last month, for instance, Nokia added Hunan Mobile, a subsidiary of China Mobile, to its customer list by winning a contract to provide gears to China Mobile's GSM networks in Central China's Hunan Province.

Prior to that, Nokia signed a US$150 million GSM contract with Henan Mobile, also a subsidiary of China Mobile. Nokia has been a major GSM supplier to Henan Mobile for years. The US$150 deal was the 11th GSM network expansion of Henan Mobile.

Ho says Nokia will attach more importance to professional services to Chinese operators in the future.

Professional services are those connected with network design, planning, optimization, and managed services where mobile telecoms equipment makers take over and operate networks for operators.