"We want to grow faster than the market..."

-Michael Kuehner managing director, Siemens Public Communication Networks

Recently,
Michael Kuehner has been appointed as head of Siemens Public Communication
Networks. With 20 plus years of experience in ICT industry, Michael has worked
in different capacities and has lots of international exposure having worked for
Siemens in Malaysia, Moscow, Libya, and Algeria.For Michael, Indian
market is different and he has a tough task ahead in terms of increasing the
market share in the wireless space and also consolidates its share on fixed
services with the introduction of NGN and broadband services. In an exclusive
interview to VOICE&DATA, Michael spoke about India strategy, manufacturing,
wireless, and broadband. Excerpts:

How do you look at
Indian communications market? And how is Siemens planning to leverage it in
future?    

The Indian market is an interesting one as there is an enormous potential
in different areas. In fixed services, the focus is on expansion of services in
terms of IP, IP-Tv, and home. On the mobile front, the market is growing at a
fast pace and the potential is huge due to increased coverage as well as
introduction of new services/technologies. 

We would like to
leverage on the huge potential as our cost position is good and our services are
at par. India is a highly competitive market and we are fast reacting to encash
on India opportunities.

Having taken over as
head of Siemens what is your priority for the Indian market?


I have three priorities. First, migrate existing fixed line to new technologies
like IP, next generation and softswitch as these are extremely important for
service providers. Second, Siemens has to have a strong foothold in mobile by
becoming the main supplier for operators. Third is to focus on rural coverage
with a mix of fixed and mobile technologies. And all this would be through a mix
of right technology and right business model.

SPCNL revenue has been
stagnant for a long time. What are your plans for increasing SPCNL's revenue?


In terms of revenue we are a stable company with a good top line. We want to
grow faster than the market by putting an additional effort on top line by
focusing on fixed line, mobile and rural coverage.     

Our focus is on 3G and
Wi-Max technology. Strategy is also to grow on new technologies on fixed
services. We are number two globally on mobile front and we want to defend it in
India with an aggressive strategy. 

BSNL's 60 mn tender
has a mandatory requirement for local manufacturing. What are your plans for
mobile infrastructure manufacturing in the country?  

We have plans to increase value added manufacturing in the country as it
is nearer to the market and the customer. Manufacturing in India is crucial as
it is important from tender point of view as well as for meeting the price
requirement. Success will depend on our ability to cater to indigenization,
localization, and adaptation for the India market.

Kolkata manufacturing
is the role model for our mobile activity as we have made huge cost savings for
fixed services. We want to duplicate this model also for mobile. We have not
decided on mobile manufacturing facility whether it would be the existing
facility or a new one. And there has been no official announcement on this
front.

Indian operators are
planning to introduce 3G services in 2006. How is Siemens planning to encash on
3G opportunities?  

3G is a big opportunity for us as we have a leading market share
worldwide. We want to replicate our market share in India when 3G is introduced
in India. We will work together with service providers in terms of technology
education, sharing intelligence, working on business models as we have a large
resource pool.

2006 will be decisive
as we can expect trial networks from service providers.

How is Siemens
positioned for managed services?


Managed services are a trend and we are well positioned for it. Presently,
services contribution is small but it is important to grow the market. Two years
down the line, product related services would contribute around 70%, whereas
VAS, professional services, and managed services will together contribute around
30%.

Pravin Prashant 

pravinp@cybermedia.co.in