The Hindu Business Line : Too many frequencies in 3G a growing concern: Siemens

EFFICIENCIES from newer technologies could help ensure available spectrum is fully utilised, before more and more spectrum is made available to operators worldwide, according to Mr Christoph Caselitz, President, mobile networks division at Siemens AG.

At the 3G Congress being held here, he told Business Line, "We now have too many different frequencies in 3G and would have to stop issuing additional frequencies. This is not good. Too many frequencies drive down scale and increase the cost of terminals. It is a global issue." He indicated that spectrum is available on the 850 Mhz, 900 Mhz, 1800 Mhz, 1900Mhz, 2.1 GHz and 1.7 Ghz bands.

He added, "We now have combinations of 2.1 and 1.7 which would mean separate equipment to be made for that combination. As an industry, we have to be very careful not to have additional frequencies but narrow down the number of different frequencies around the world."

But wouldn't the rising number of subscribers lead to congestion within individual spectra? He disagrees, saying, "If you look at efficiencies that current technologies offer, such as high speed downlink packet access (HSDPA), voice capacity is high. So, the current step towards issuing new frequencies is still early. We first have to utilise existing spectrum that we have."

Earlier, addressing the media from the Asia-Pacific region, he said, "TV on the mobile would drive growth for broadband over 3G. The coming Beijing Olympics may be a key driver."

This assumes significance in the context of 3G services not gaining widespread acceptance even in markets such as Hong Kong where, (according to reports in the international media), penetration for 3G services is only about 15 per cent among mobile subscribers over a two year period.

Mr Caselitz also said that Siemens, as a venture capitalist, has invested in four companies located in China and Singapore. LinkRich is one such beneficiary, located in China. It aggregates information from diverse sources for a mobile user. Asked if he was interested in specific areas in which he would invest in Indian companies, he said, "We already have a huge presence in India and co-operate with local companies. We do outsource some of our own development work to local partners."

Mr Caselitz also indicated that Siemens Communications would be aiming at the No 2 slot in mobile networks globally. As per 2005 figures, it occupies slot three, up from slot six in 1999. The Asia-Pacific market, which is to see mobile subscribers rise from 850 million now to 1.2 billion by 2010, is to be critical in Siemens' growth prospects, he said. Investments in developing new technologies, broadening local partnerships and providing solutions for all mobile communications technologies, are to be Siemens strategies for growth, he said.

To demonstrate its work at innovation, Mr Caselitz announced the debut of nanoEDGE, the world's smallest base station, at the size of an A4 sheet of paper. Asked for a business case for the product, he said, "This product is useful when you need to serve companies with an employee size ranging between only 6 and 20 or in shadowed areas in buildings. You don't need to use other technologies, such as Wi-Fi."

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