Nokia Siemens unveils rural low-cost solution

In a bid to garner a larger share of the rural market in India, Nokia Siemens on Thursday launched a new low-cost wireless communication solution that could enable operators to offer mobile services for as low as $3 a month. The company is also looking to source the equipment required to set up the rural communication system locally.

Speaking to Business Line Mr Rauno Granath, Head of New Growth Markets, said, "India is a key market for us and the next 100 million is expected from the non-urban centres. "We realise this and are well positioned to offer this unique solution that can enable operators to offer low-cost services in rural areas where rolling out and operating a traditional GSM network would be too cost-intensive. As per our estimates mobile services can be offered for around $3 with this system."

The Nokia Siemens Networks Village Connection offers to build rural connectivity based on franchise-based business model between an operator and local village entrepreneurs.

"The system can be deployed at the house of a villager on a franchisee model and with a 5 metre antennae, the operator can cover arrange of 4-5 km. The system makes economic sense even in areas where there are as low as 80 subscribers," said Mr Granath. Most cellular network equipment at present are designed to cater to a larger subscriber base.

Nokia Siemens solution comprises GSM access points located in villages and regional access centres.

A village would typically host one access point module comprising GSM radio, power and IT hardware and software components.

Local Switching

"The access point only requires simple installation and powering can be done, for instance, by solar energy. Each access point connects to standard GSM mobile devices and autonomously handles calls within a village through local switching. Access points are connected via Internet Protocol links to a regional access centre.

The access centre connects the villages to the main GSM core network and handles the calls between the villages," said Mr Granath.

The solution is on a trial basis and will be commercially available in 2008.