India Telecom

June 17, 2003
Siemens' new mobiles to ring in many services

Rajendra Prabhu

NEW DELHI -- With the mobile phone market in India set to bloom, basic service providers are finding that subscribers are now giving up landlines in favour the wireless. Telecom global major Siemens has recently launched a range of attractive GSM phones for the Indian market, some with the Indian language menu, to cash in on this opportunity. Mobile phone subscriptions crossed 10 million in 2002 that was almost a 100 percent growth, and is likely to go up to 22 million this year. In April 2003, mobile subscribers had crossed upto 13 million. According to research firm Gartner, there should be 50 million subscribers by 2005. Therefore, Siemens has caught the wind at the right time.

By 2005, yet another event will take place -- the WTO conditions would apply and customs duties would come down to zero level for all electronic items. The gray market that had been distorting the true demand for mobile phones in the country would disappear after customs duties fall to zero level. That means, subscribers would find no attraction in buying mobile phones from gray market dealers in Palika Bazar and Nehru Place. Tech Pacific, an IT distribution major, will distribute these mobile phones via its 3,000-strong retailers.

According to Lothar Pauly, board member of the Siemens Information and Communication Mobile Group, at the Siemens AG in Munich, the new arrivals represented a portfolio 'for every lifestyle in India'. With the Indian farmer in view, Pauly said that the day would not be far off when the farmer working in his field faraway from his home would be using the mobile to keep in touch with his family. If you do not believe that sort of prediction, look at Kerala where fishermen and vegetable vendors are using mobile phones. That way would be quicker and the artisan could plan his daily order book accordingly.

The new range of mobile phones is bound to give the Munich-based company with a long Indian exposure beginning with the 19th century job of building up a telegraph line from across Europe and Asia into India, a big boost in what Pauly described as 'conquer India market' plan. Siemens already has a good position in the mobile market here -- around 30 percent of all mobile calls in the country are being handled over Siemens' technology, said Juergen Schubert, managing director, Siemens Ltd. In 2002, the company received orders for about 100 million Euros (approximately Rs. 500 crores) worth of mobile network equipment. Its GSM infrastructure technology is being used by leading mobile phone operators like Bharti, Hutch, BSNL, BPL, Spice, and ADIL, etc. In prepaid technology, it is numero uno in India and the world, Schubert underlined. It has nine intelligent network (IN) platforms in India's mobile networks.

The six new phones range from the entry level A55 with Hindi language menu, to high-end models such as the SL55, the S55, the CL50, the M55, and the SX1 smartphone. In the next phase, Hindi language menu would be available in the other models as well.

Pauly did not fail to emphasise that much of the software for the Siemens' success story had been written in the company's R&D center at Bangalore. That includes the 'HRLi' software that enables mobile operators to administer more subscribers than in the past, besides enabling a more user-friendly interface. That brings the costs down and revenues up, an important factor in the highly competitive mobile network market in the country with four operators in each circle jostling for space.

Pauly added that they would let Bangalore handle much of the high-end software that Munich used to do so far. "With its end- to- end solutions strategy, Siemens mobile is putting the focus squarely on mobile operators and views itself as a strong partner who enjoys mastery of this complex market," said the chief executive of the Siemens mobile division. The decision that Bangalore center would develop data applications for customers, is in line with the deepening of this partnership. The Bangalore center will recruit 100 more engineers, raising the workforce to 500, handling GSM and UMTS software.