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Manufacturing Communications Technology Products in India
WiMAX is one of the fastest growing wireless broadband technologies and India is the world’s fastest growing markets for wireless telecommunication. This combination offers a fertile location for the volume manufacturing of communications technology products.
by Petra Ebner and Arno Kolk, Elcoteq
To successfully manufacture WiMAX (Worldwide Interoperability for Microwave Access) and communications technology-related products in India, OEMs are looking for a number of things. These include technology expertise, sourcing, a global footprint, design support, and asset management.
Communication network products being manufactured in India by Elcoteq include wireless and wireline infrastructure products and equipment for enterprise networks. Products for wireless infrastructure are cellular base stations, microwave systems, plug-in units for mobile base stations, and antennas. For wireline infrastructure, products include 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.
Investing in Experts
Technology expertise in these sectors requires years of experience and a substantial investment in the engineers who specialize in radio frequency and microwave frequencies and the accompanying challenges. Establishing a manufacturing plant involves a major investment in capital equipment. At these high frequencies, testing and measurement equipment and their operation all become more complex. Elcoteq has established complete Surface Mount Technology (SMT) manufacturing lines and radio frequency (RF) test and measurement capabilities in its Indian facility.
Component sourcing is another issue to consider before deciding on manufacture in India. The source from which parts are obtained affects not only their purchase price, but also the cost of delivery, time schedules and inventory demands. It also introduces the possibility of tariffs on imported components. If parts are available in India, both the reliability of the source and the quality of the parts must be determined, and quantity and delivery issues must be resolved. Linking up with an EMS partner that has a local supply network can save a lot of time and money and reduce cost of ownership.
Partnering with a company that has a global footprint and can execute volume manufacturing in India can be advantageous. Partners like this offer flexibility because they can ramp up production quickly, adapt to product changes, accommodate unexpected levels of demand, or even move manufacturing to another location if problems arise. Since Elcoteq has a global footprint with new product introduction (NPI) centers close to many of its customers, OEMs can collaborate with Elcoteq locally for design and prototyping, and/or coordinate such design and prototyping activities with design and manufacturing services in India. If an NPI center is being used, the process can be transferred to the Indian plant for volume manufacturing.
OEMs in India often need local design support services, especially when they are designing products for the Indian market. Creating designs and prototypes locally provides flexibility in adapting to market preferences and allows designers to work in conjunction with manufacturers when making decisions on sourcing, logistics, assembly, test, repair and environmental issues.
From Design to Markets
After analyzing the market potential and demand for your products, a large part of the decision on whether to manufacture in India comes down to asset management. What level of resources will it require and how much working capital will be needed to establish and operate a manufacturing plant? Although EMS companies have traditionally been regarded as nothing more than manufacturers, nowadays they not only provide complete design to after market services but are also experts in managing entire supply chains and can work with OEMs to create financing models and handle resource allocation.
OEMs considering manufacturing and localization in India have nothing to fear. The mechanisms for volume manufacturing are in place and now it is a good time to start. The quality of the work is excellent and there is ample IP protection. And, if you are looking for an EMS company that offers technology expertise, sourcing, a global footprint, design support and asset management in the Indian communications technology market, Elcoteq is there for you.
This article is from the actual Elcoteq News:
http://www.elcoteq.com/NR/rdonlyres/CA81DB20-8DD5-44B6-9C20-B9DF0671C4D3/0/EMSNewslowcom.pdf
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Topics:
Bangalore, CN, Communication, Communication Technology, Communications Networks, Elcoteq, India
