Nokia Siemens Network (NSN) is ready to provide LTE equipment that is locally manufactured in Brazil, in line with LTE auction rules, to wireless operators that will launch the next generation of telecommunications, starting in the first quarter of 2013. The Brazilian carrier Oi has chosen NSN as a vendor, along with Alcatel-Lucent and Ericsson. NSN names Claro, which is owned by the Mexican group América Móvil, as a client—although, until now, Claro has only announced Ericsson and Huawei as its LTE providers. DirecTV’s Sky Brazil is another client; it has entered the broadband wireless market offering TD-LTE in Brasília, the country’s capital.
The production plant is located in Sorocaba, in the countryside of São Paulo. It was launched on Wednesday, Oct. 24, in the presence of NSN’s CEO, Rajeev Suri; Nokia’s CEO, Stephen Elop; NSN’s head for Latin America, Eduardo Araujo, and Flextronics’ CEO, Flavio Magalhães; as well as the president of Anatel, João Rezende, and Brazil’s Minister of Communications, Paulo Bernardo.
“I am very proud to open a new production line. It will make us more efficient, and we are closer to our customers,” said NSN’s CEO, Rajeev Suri. “Brazil is good for business, and we see exciting growth opportunities here.”
As NSN’s head for Latin America, Eduardo Araújo, noted in a video interview with RCR Wireless News, the production capacity is 15,000 radio base stations per year, which will meet existing demand, fulfilling already-signed contracts and forecasted future demand. Although in the first phase the manufacturing plant will serve only Brazil’s needs, Araújo did not deny the possibility of exporting equipment.
Speaking with RCR TV, Fernando Carvalho, head of business development at Nokia Siemens Networks, noted that in addition to current clients Oi, Claro and Sky, NSN is talking with Telefónica’s Vivo and TIM. Vivo has already announced that Ericsson and Huawei will be LTE providers for some areas, but the company lacks vendors to cover the remaining areas. TIM has not released the names of its providers yet.
The government set national technology percentages in the LTE auction rules for the procurement of goods, products, equipment and systems for telecommunication and data networks. According to the bidding document, the percentage for the acquisition of goods and products with national technology will be 60% from 2012 to 2014, 65% from 2015 to 2016, and 70% from 2017 to 2022. The auction rules were released earlier this year.
In Brazil, NSN has approximately 6,400 employees.