Nokia Siemens Networks is opening an assembly line in Brazil with contract manufacturer Flextronics International.
The company announced that the plant will build next generation mobile phone networks and should start shipping fourth-generation (4G) wireless equipment at the start of October. The idea is that it will help local carriers build out networks for the 2014 World Cup.
Ken Wirth, head of the Americas region for Nokia Siemens said that the company is looking to do is align its manufacturing capacity close to the markets that we're selling in. This lowers transport costs, tariffs and any other things that pop up.
Brazil issued 4G broadcast licenses in June stipulating at least 60 percent Brazilian content in the hardware installed.
Nokia said that demand from four Brazilian operators starting up their 4G networks will be enough to justify the local manufacturing capacity for the next 12 to 18 months.