Nokia, Tomsk Micran set up 4G LTE equipment venture
TOMSK/MOSCOW. Sept 19 (Interfax) - Nokia Siemens Networks (NSN) and Tomsk-based Micran Research and Production Company (a resident of the Tomsk Special Economic Zone) signed an agreement Monday on their joint venture Wireless Technology Center (WTC), which will produce 4G Long Term Evolution (LTE) base stations.
"The agreement will attract the best experts in the industry and meet the demand for 4G network equipment," Micran told Interfax.
The general director of Nokia Siemens Networks in Russia, Kristina Tikhonova, told the press Monday that NSN B.V. and Russian NSN together own 75% of the joint company. Micran owns the other 25%. Russian Nanotechnologies (Rusnano) is expected to join the project at the end of 2011 and will also own 25% of the joint venture although, Tikhonova said, it has still not been decided how the transfer will happen. "Probably the sale of a stake in WTC will be organized," she said.
Nokia Siemens will provide the data necessary for production, a Micran spokesman said. Micran specialists will use Nokia Siemens technology, know-how and equipment to produce the 4G LTE standard stations, including system modules, radio modules and assemblies for LTE networks. All this will be manufactured on a production line similar to those operating in three other NSN companies that make LTE equipment.
Russia does not currently have any LTE equipment certification requirements. The Tomsk company plans to produce multi-radio equipment that will make it possible to switch from LTE to 3G and 2G, Tikhonova said.
The companies also agreed that the joint venture would launch production in the fourth quarter of 2011. The official launch is expected next month. The production line was installed in early September and Micran has already assembled the first equipment samples, Tikhonova said.
A year ago Nokia Siemens Networks included Russia in its list of strategic countries and organized industrial platforms inside the country, including R&D, production and services. There is a budget of several tens of millions of euros for this program, Tikhonova said.
Nokia Siemens Networks, Rusnano, Micran and the Tomsk Regional Administration in March signed an agreement of intent to launch production of LTE base stations. Production is expected to reach 10,000 stations per year in 2012. The precise volume of production will depend on the situation on the market. The venture is expected to pay for itself after three years.
The cost of the production plant in Tomsk has not been disclosed. Tikhonova said that this kind of project would cost in $50 million in western Europe.
By transferring its production chain to Russia, NSN is virtually complying with the requirements foreign vendors must meet to obtain Russian LTE equipment producer status. The relevant joint Economic Development and Industry and Trade Ministry order on these requirements is currently with the Justice Ministry for approval. Tikhonova expects the company will comply with all the requirements, except for one (over 50% of production should be owned by a Russian company or individual). NSN Russia will not reduce its stake in WTC. "Either production is part of the company and works in accordance with its plans and standard or it does not have any relation to it," she said.
LTE data transmission can reach a download speed of up to 326 Mbps and an upload speed of up to 172 Mbps. The base station range can reach up to 30km.
Micran specializes in the development and production of microwave telecommunications and measurement equipment.
Tomsk Special Economic Zone was established in December 2005. It focuses on three areas: IT and electronics, medicine and biotechnology, and new materials and nanotechnology. The Tomsk SEZ consists of two sites, a Northern site and a Southern site with a combined area of around 300 hectares.