Nokia revives interest in GSM450 — MobileMonday Global: Industry News

^{Once buried technology resurfaces} Nokia revives interest in GSM450

11 Oct 2005 at 18:10 GMT Timo Poropudas

Nokia today issued a press release reviving its interest in GSM technology on the 450 MHz frequency band. Nokia said it believes that a GSM450 frequency is a viable solution in providing affordable handsets and mobile voice-centered services to new growth areas with a low teledensity.

The company believes that a 450 MHz frequency band with GSM technology can provide a cost conscious alternative and thus enable mobile communications for a broad consumer base in very price sensitive markets.

“Nokia believes that reducing the total cost of ownership for both affordable handsets and mobile voice services are the key when it comes to reaching the next billion consumers in new growth markets,” says Søren Petersen, Senior Vice President, Nokia Mobile Phones. “The GSM450 frequency can provide a way of giving consumers and operators a choice in taking full advantage of the affordability of GSM technology.”

When GSM was first introduced the 450 MHz band was also considered systematically rejected. 450 MHz radio waves carry better that waves on higher frequencies and therefore need fewer base stations. The drawback is the fact that GSM uses time division technology and one base band can supports only simultaneous users.

The competing code division CDMA-technology from Qualcomm has been able take an advantage from 450 MHz band that has been freed from NMT450 networks. Using Qualcomm’s CDMA450 technology it is possible to provide 3G services for a limited but sizable number of subscribers.

Towards 3 billion subscribers

Nokia previously stated it expects the mobile subscriber base to reach three billion by 2010. This growth will be significantly fuelled by markets, which currently have a low mobile penetration rate.

With the right combination of mobile phones, network solutions, services and a regulated environment, Nokia envisions a mobile landscape where operators can profitably offer mobile services to a broader range of consumers for as little as USD 5 per month.

Nokia GSM handsets, such as the recently introduced Nokia 2652 and the Nokia 1600 (for GSM 900/1800/1900), are very popular in entry markets. Potentially Nokia products could bring the benefits of GSM technology to markets that are planning to license the 450MHz frequency band.