Nokia Siemens banks on energy savings to counter competition in Africa

Nokia Siemens Networks is banking on energy-efficient products and the desire by network operators to reduce operational expenditures to counter competition from Chinese manufacturers.


With regulatory pressure to lower costs and expand services beyond urban areas, operators in Africa have been forced to explore cheaper network management and optimization options and China has provided affordable alternatives to Western manufacturers.


Huawei and ZTE have strengthened their partnerships with telcos in many African countries, which has forced Nokia Siemens to move from traditional network equipment supply to offering solutions to problems like energy costs and power generation in remote areas.


According to a recent study by Nokia Siemens, 15 percent to 30 percent of operational expenditure (OPEX) in Africa is spent on energy, while in mature markets, only 10 percent of OPEX is allocated to energy costs. The declining average revenue per user for operators puts pressure on the companies to reduce costs.


To address rising energy costs, for example, Nokia Siemens launched its Flexi Multiradio base station, developed to work without external air conditioning, reducing energy consumption by 30 percent per site.


"The Flexi's radio capabilities and site flexibility also mean as many as 30 percent fewer base stations are needed in the network, compared to alternative technology; it can also reduce the carbon footprint by using renewable energy such as wind or solar power," said Diliani, head of Nokia Siemens Networks (NSN), Africa Region.


In off-grid areas, NSN is providing wind and solar energy solutions, including battery banks, battery cabinets, fuel cells and remote monitoring solutions.

These initiatives come after the company experienced customers losses due to competition. NSN is also focusing investments on technology such as LTE and IP based microwave technology to stay ahead of the competition.

NSN, however, also has been working under an additional burden since one of its parent companies, Siemens AG, was accused of corruption in Nigeria and was banned from World bank-funded projects. In general in Africa, corruption has been a major discussion point in big projects that involve huge government spending or donor funding.


In East Africa, Bharti Airtel signed a contract with NSN for network management and optimization across the region. This led NSN to open a larger office and launch a larger product portfolio that is expected to win more operators.




(C) ComputerWorld Kenya