Nokia to switch S'pore M1 mobile network to GSM

Nokia to switch S'pore M1 mobile network to GSM

LONDON (AFX): Nokia said it has landed a contract -- worth up to US$290 million over 5 years -- to replace Singapore mobile operator Mobile One (Asia) Pte's existing CDMAOne network with a GSM one, and then build a third generation mobile network on top of it.

The deal means that all Singapore's mobile networks will use GSM technology, as well as the W-CDMA 3G technology favored in most Japanese networks and all European ones.

Mobile One (M1) is owned by a consortium in which The Keppel Group holds 35 percent, Singapore Press Holdings holds 35 percent, Cable Wireless PLC holds 15 percent and Cable Wireless HKT, now majority owned by Pacific Century CyberWorks, also holds 15 percent.

Nokia said it is committed to having the new network up and running by the end of next year, and to build it so as to allow its base stations to be upgraded to support W-CDMA. M1 runs a GSM network at 900 MHz side by side with its cdmaOne network, but will now provide dual-band GSM services with the new equipment using the 1800 MHz waveband.

M1 will be applying for a 3G license next year along with its competitors, but is having to prepare now to move away from its current spectrum allocation, which has now been allotted to 3G licenses, an M1 spokesman said.

"To some extent the move has been forced upon us" by the government's decision to re-allocate the spectrum at around 1950 MHz, the spokesman said.

But he added that the company recognized that relying on GSM, leading to W-CDMA, was a better policy than sticking to cdmaOne.

"There were other wavebands available, but there are other benefits. We're looking for the longer term in terms of 3G, and we were looking for the alternative that offers the biggest benefits... That seems most likely to be GSM and W-CDMA," he said. The prevalence of the GSM/W-CDMA option elsewhere in the region and in Europe meant that it made sense to switch, he said.