Billed as the next step in providing mobile communications to emerging markets, Ericsson announced the introduction of GSM 450 in October this year. The additional frequency will allow Ericsson to build networks in remote environments using radio base stations with a range almost twice as far as 900 MHz bands.

With GSM 450, Ericsson is bringing affordable GSM services to areas too costly to cover with current technologies and providing new customers with mobile telephony services. However, as Ulf Ewaldsson, head of GSM solutions at Ericsson says, GSM 450 will have a two-fold effect. "It gives us the capability to enter emerging markets such as Africa, parts of Russia and Asia. But it can also be used in mature markets where the 450 frequency can add coverage in mountainous areas or other environments that are difficult to cover."

The extensive distance range of GSM 450 is its appeal, with the potential of reaching nearly 40 kilometers with one radio base station alone. Consequently, GSM 450 can also address private network segments with economic feasibility. This would allow, for example, military and government environments to obtain their own GSM network.

GSM 450 allows operators to cover the same area with fewer radio base stations. However, the technology remains highly complex, providing a full GSM service with the same functionality and features offered in other frequency bands. GSM 450 offers advanced data solutions with EDGE and GPRS for high-bit-rate applications. "It doesn't necessarily mean the sites are cheaper, it means we will build fewer of them," Ewaldsson says.

GSM 450 is a display of Ericsson's commitment to offering the most cost-efficient solutions possible to operators. However, the scale of profitability for operators as well as the extent of lower costs for consumers remains to be seen.

The first GSM 450 networks will be built when compatible handsets for those networks are available for consumers to buy. In October, Nokia announced its interest in the production of handsets for the 450 MHz band. Ewaldsson believes it is unlikely that a shortage of compatible handsets will prove to be an obstacle in building GSM 450 system infrastructure. "There is a market for this and, built on market demand, we expect more handset vendors to make proposals to meet this market," he says.

Apart from 450MHz, the same handset will also be capable of using 900, 1800 and 1900. This means that GSM 450 will not replace other frequencies, but complement them as the handset will work everywhere, also in urban areas on the higher frequencies that are already established there. As Ewaldsson says: "GSM 450 only needs to be built where other technology has not been able to reach, for cost reasons and roll out reasons."

Ericsson expects the first GSM 450 networks to be in operation by the end of 2006.

To help operators address the high-growth market opportunity through reduced total cost of ownership, Ericsson has developed a complete solution called Expander that encompasses everything from the core network and radio access network, to  transmission. Through GSM 450, Ericsson will also be able to offer Expander on the 450-band.

More about Ericsson expander on: www.ericsson.com/network_operators/business_growth/expander/doc/expander_brochure.pdf