Nokia and Ericsson to Introduce GSM 450 for Remote Areas
By Jonas Dromberg at Bloomberg News
09 April 1999
Nokia Oyj, the world's top mobile phone maker, and its
Swedish rival Ericsson AB said they plan to introduce a digital
cellular phone network for remote areas, cutting costs for
phone operators.
The new low-frequency 450 megahertz network is based on
the world's most popular global system for mobile
telecommunications, or GSM, and will be introduced in 2001.
While fewer subscribers can call into the 450 megahertz
system than the existing GSM 900, GSM 1800 and GSM 1900
systems, the new GSM 450 has a range twice that of the GSM
900, an Ericsson spokesman said.
"The GSM 450 standard will open up new exciting market
prospects especially in Eastern Europe and in Southeast
Asia," said Hannu Huttunen, vice president at Nokia Mobile
Phones, Special Products.
While mobile phone equipment makers have benefited from
soaring demand for services in densely populated areas, Nokia
and Ericsson are looking to benefit as cellular phones become
more popular in remote areas. Already, Finland has more
cellular subscribers than fixed-line subscribers. Nokia expects
the number of cellular subscribers will reach 1 billion in 2005,
compared with today's 300 million.
The new GSM 450 will support the next generation of cellular
telephony that will allow faster transfer of data, such as
moving pictures.
"GSM on the 450 MHz frequency band will provide future
proof cost efficient coverage solution and improved range of
physical capabilities for (next generation) services to be
offered later," said Olle Ljungefeldt, director and general
manager at EricsSon.
Nokia shares rose 3 euros, or 2%, to 153.2 in Helsinki, while
Ericsson rose 0.5 krona, or 0.2%, to 213.5 in Stockholm.
Copyright 1999, Bloomberg L.P. All Rights Reserved. |
