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Nokia to Procure Key Parts, Modules for WiMAX From Taiwan
[May 05, 2006]

Nokia to Procure Key Parts, Modules for WiMAX From Taiwan


(Taiwan Economic News Via Thomson Dialog NewsEdge)Taipei, May 5, 2006 (CENS)--Nokia is scheduled to map out an overall global strategy for its Worldwide Interoperability for Microwave Access (WiMAX) business deployment late this year, a move which is expected to bring many business opportunities to local suppliers of key parts and modules, according to Mike Wang, regional general manger for Nokia Networks



Wang pointed out that Nokia has decided to utilize third-generation (3G) base stations with built-in WiMAX capability for the deployment of its WiMAX network equipment business, and plans to procure key parts and modules from Taiwan under to the same mode as its has purchased equipment for 3G base stations

Industry sources said that Nokia's future procurements are expected to benefit several leading network-equipment makers on the island, including Hon Hai Precision Ind. Co. Ltd., GemTek Technology Co., Ltd., and D-Link Corp


Data compiled by market-investigation company Gartner showed that Ericsson was last year's No. 1 global mobile-telecom equipment supplier, accounting for 27% of the global supply, trailed by Nokia (14%), Siemens (13%), and Motorola (11%)

In the new-generation equipment market, only Alcatel and Nortel have chosen WiMAX as their core technology for next-stage network equipment. Nokia (which has won orders for 3G mobile-telecom networks from Chunghwa Telecom, Far Eastone, and Taiwan Cellular on the island), however, plans to utilize its advantages in 3G technology to further develop its WiMAX business

According to Wang, Nokia plans to push a small 3G base station, the Flexi, in Taiwan. The new base station model, which will be commercialized late this year, is expected to solve the location disputes faced by base stations in populous cities on the island. Nokia also plans to push Flexi base stations with built-in WiMAX functions

Industry sources said that Nokia has procured modules, power supplies, and other key parts for its 3G base stations from the international market. In the future, Nokia is expected to follow the same mode by ordering many key parts and modules from Taiwan

Nokia recently held a 3G application and development forum in Taiwan and invited representatives from the Ministry of Economic Affairs (MOEA) and various telecom companies on the island. The MOEA's M-Taiwan project is scheduled to provide a subsidy of total NT$7 billion (US$218.75 million at US$1: NT$32) over the next five years to develop WiMAX services on the island

Wang deemed that WiMAX would be a very good network technology, but said it still needs to mature. This is why, he stressed, Nokia chose to incorporate WiMAX into its 3G technology development, rather than developing a new technique independently like rivals such as Alcatel and Nortel.

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