MUNICH -- Germany's third largest mobile service operator in terms of revenues, O2 Germany, placed an order extending up to 2010 for the provision of mobile technology for its GSM/UMTS network with Siemens Communications. In contracting this technology, O2 intends to ensure the nation-wide availability of its services to its customers. Siemens will be delivering the entire technology package and will be assuming the related service and maintenance work. The order has a value of 250 Mio. Euro and positions Siemens as Europe's largest provider of radio link technology.

In supplying and installing radio link technology, Siemens is supporting the expansion of O2's German network infrastructure. "In expanding our mobile technology network we are placing an emphasis on top quality products. Siemens' radio link technology products are state-of-the-art in terms of technology, flexibility and features," said Karl-Wilhelm Rohrsen, CTO of O2 in Germany.

Radio link systems transfer data wirelessly between GSM or UMTS-base stations and transfer units. One of the prerequisites is direct inter-visibility between transmission and reception antennae. The transmission distance is usually 20 kilometers, while the maximum possible range is 100 kilometers. Especially remote areas, where the installation of cable lines would result in high expenditures, can be linked with mobile networks quickly and cost efficiently thanks to this technology. For O2, Siemens will install radio link systems with two different transfer rates: PDH (Plesiochrone Digital Hierarchy) with a transfer speed of up to 34 Mbytes and SDH (Synchronous Digital Hierarchy) for greater data volumes at a high-speed transfer rate of up to 622 Mbytes.

"The O2 order indicates that there is a large market potential for radio linked technology in Germany as well as around the world. About 60 percent of the world's GSM/UMTS-base stations are connected to transmission stations via radio linked technology," explains Christoph Caselitz, Head of the Mobile Networks Business Division at Siemens Communications. "Globally, our radio linked technology is currently being utilized by some 200 customers. We are very pleased that O2 has also decided to opt for our technology and that we can now claim market leadership in this segment thanks to this order -- in Germany and in Europe."

Siemens Communications Group