Microwave Engineering Europe - September 2008 - (Page 20)

20 WiMAX — INDIA Manufacturing communications technology products in India By Petra Ebner and Arno Kolk, Elcoteq SE, www.elcoteq.com iMAX (Worldwide Interoperability for Microwave Access) is one of the fastest growing wireless broadband technologies, and India is the world’s fastest growing wireless telecommunication’s market. This combination results in a fertile market for volume manufacturing of communications technology products in India. Although original equipment manufacturers (OEMs) might be positioned to enter this market, they may look at the infrastructure of India and what it entails to set-up a manufacturing operation and be hesitant to make the move. However, working with an electronics manufacturing services (EMS) company that is already established in India and expert in communications technology products, can make the decision to move volume manufacturing to India a lot more desirable. India is a huge market with a local supply chain. This was not the case in 2004 when Elcoteq opened a plant to manufacture communications technology products in Bangalore, but as OEMs and EMS companies moved in, the supplier base has improved. OEMs are looking for several things in order to be successful manufacturing WiMAX and communications technology-related products in India. These include technology expertise, sourcing, a global footprint, design support, and asset management. Many communication network products, such as wireless and wireline infrastructure products and equipment for enterprise networks, are being manufactured by EMS companies. For wireless infrastructure products, the range includes cellular base stations, microwave systems, plug-in units for mobile base stations, and antennas. Examples of wireline infrastructure products are ADSL multiplexers and other broadband network products and enterprise network products such as switches for data networks. The WiMAX product mix ranges from customer premises equipment (CPEs) to remote radio heads (RRHs) and complete WiMAX base stations. Some of these products, like WiMAX base stations, W need lower volume manufacturing while others, like CPEs, require high volume manufacturing. Technology expertise in these areas requires years of experience and a substantial investment in engineers who specialize in RF and microwave frequencies and their challenges. Meeting the high performance standards expected from these complex, high frequency products requires precision manufacturing capabilities and an advanced level of test capabilities. To set up a manufacturing plant involves a major investment in capital equipment. Besides assembly equipment, when working at these high frequencies, test and measurement equipment become more complex and expensive. Component sourcing is another major issue to consider before deciding to manufacture in India. Where the parts are obtained can alter not only their purchase price, but the price to have them delivered to the manufacturing site in India, the time it will take to get the parts, inventory demands, and possible tariffs for parts that have to be imported. If those parts are available in India, a company must determine the reliability of the source, the quality of the parts, and quantity and delivery issues. Sourcing is another reason for using an established EMS company for manufacturing in India, especially an EMS that concentrates on a particular OEM’s products. For telecommunications and communications networking products, sourcing has to include items like WiMAX chipsets, RF mechanics, and rack or case mechanics. EMS companies specialize in sourcing, so they tend to be more familiar with the suppliers, have vetted them, and know which ones can produce the quantities needed and deliver them on time. They usually buy in quantity so they can take advantage of volume discounts. Because they use millions of components, they know which have the best quality and what will work best in various designs and under various conditions. Having a local supply network can save a lot of time and money and reduce cost of ownership. Microwave Engineering Europe ● September 2008 ● www.mwee.com 020-022_MWEE.indd 20 2/09/08 14:05:37 http://www.elcoteq.com http://www.mwee.com

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Microwave Engineering Europe - September 2008 News Contents Comment Cover Feature: Uncovering Test and Measurement’s Role in Advancing LTE and Mobile WiMAX WiMax: WiMax and LTE Need to Address Issues of Backhaul, Cost and Efficiency for Successful Deployment WiMax: Manufacturing Communications Technology Products in India Test and Measurement Mobile Platforms Evolve to Meet Future Demands Products Calendar

Microwave Engineering Europe - September 2008

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