Global telecommunications equipment supplier Nokia Siemens Networks said that it plans to invest an additional Rs105 crore at its facility near Chennai to became the country's first telecommunications infrastructure vendor to manufacture 3G products locally.

The expanded facility, which was inaugurated by the deputy chief minister of Tamil Nadu, MMK Stalin on Saturday, will take one of the world's largest telecommunications hardware, software and services companies investment to over Rs300 crore as per the MoU signed in 2008 with TN Government.

The facility, with state-of-the-art manufacturing capabilities has so far been involved in the production of 2G communication infrastructure for local and global customers.

''India is not just a high-growth market but also an innovation hub for us. Our manufacturing operations in India reflect our unwavering focus on the country and enhance our proximity to our customers,'' said Urs Pennanen, head of the India region at Nokia Siemens Networks.

''With 3G licenses underway and the country taking huge strides in telecommunications, operators require a local manufacturing partner. This is definitely the right time and place to begin 3G manufacturing for India,'' he added.

The first batch of LTE-ready 3G base stations rolled out of the Chennai facility last week.

Nokia Siemens Networks will initially manufacture radio frequency modules and system modules, ramping up production for both these products by almost three-fold towards the latter half of the year. In addition, the company plans to commence production of transport modules and next-generation microwave radios from the second half of 2010, as well as raise its 3G manufacturing staff from 75 to 210 by the third quarter 2010.

Although the products manufactured at the Chennai facility are intended for both local and global markets, the company said that the demands of the Indian market will be given priority in manufacturing decisions.

Herbert Merz, head of operations for Nokia Siemens Networks said, ''With 3G manufacturing capabilities in the country, we will be able to facilitate a faster time to market of 3G services for our customers since all key elements, including production, distribution, logistics and remote delivery, will be taken care of locally.''

The company said that it had set up 3G test labs in the country and trained 3,200 Indian field engineers to support 3G roll-outs.
Its global network solutions centres (GNSC's) in Noida and Chennai are fully equipped to manage 3G networks remotely.

These GNSCs already serve 27 3G operators globally, maintaining, operating and optimizing their networks, which support millions of subscribers across the globe.

Nokia Siemens Networks' research and development (R&D) centre in Bengaluru supports 3G-related initiatives for the domestic market, and the company said that it has already carried out site surveys for 3G deployment.