BANGALORE, India Seeking to cash in on India's wireless service boom, Finland's Elcoteq Network Corp. today launched its manufacturing operations here, and said it will invest up to about $100 million to manufacture wireless handsets and other telecoms gear.
India's union minister for communications and information technology, Dayanidhi Maran, who was present at the opening, said the country's wireline and wireless phones services market will reach 100 million subscribers in a few days. He said about $800 million in foreign investment is expected in manufacturing telecom gear between 2005 to 2006.
Other firms such as LG and Nokia
have already announced their intention to manufacture wireless phones in India, with other firms expected to follow suit by announcing they will make telecom equipment in India.
Given that India's wireless phone services market is booming, it makes sense to manufacture in India, said Hannu Keinanen, president, Asia-Pacific, Elcoteq. Clearly, doubts about India's logistical problems have been overtaken by the boom in the country's telecom services market.