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Slideshow: Giant vegetable contest Follow Reuters Facebook Twitter RSS YouTube Read In UN week, Saudi says to ease Palestinian crisis 19 Sep 2011 UPDATE 1-S&P cuts Italy ratings one notch, outlook negative 19 Sep 2011 Defunct NASA satellite to crash to Earth this week 19 Sep 2011 Scientists find way to "disarm" AIDS virus 19 Sep 2011 Obama offers $3.6 trillion deficit plan, would up taxes | 19 Sep 2011 Discussed 141 Number of poor hit record 46 million in 2010 129 Obama to propose $3 trillion in deficit cuts 72 Geithner’s ”succinct” message irks Europeans Watched Series of earthquakes hit Guatemala Mon, Sep 19 2011 Scarlett's naked pics, Tyler Perry is highest paid Wed, Sep 14 2011 Singapore scientists create world's smallest gear Mon, Sep 19 2011 NSN to push cloud computing to telco gear market Tweet Share this Email Print Related News Chipmaker Broadcom to buy NetLogic for $3.7 billion Mon, Sep 12 2011 Internap not for sale, bets on data center growth: CEO Fri, Sep 9 2011 Baidu offers glimpse of new mobile OS Fri, Sep 2 2011 Insight: Jobs exit opens door for nimble Apple rivals Thu, Aug 25 2011 Analysis: Network gear makers stumble, but growth still there Thu, Aug 25 2011 Analysis & Opinion Track me if you can Windows 8: Worth the wait, but is it too late? Related Topics Technology » Media » By Tarmo Virki, European Technology Correspondent HELSINKI | Mon Sep 19, 2011 7:29pm EDT HELSINKI (Reuters) - Nokia Siemens Networks (NSN) unveiled on Tuesday its new Liquid technology which promises to ease telecom network congestion and possibly change the market for such equipment for good. The technology from the world's No. 2 mobile gear maker after Ericsson shares network resources across mobile and broadband networks, similar to cloud computing. "For operators it offers a better use of capital. You invest in total network load, not in peak levels," Phil Twist, head of marketing at NSN's Network Systems unit, said in an interview. Telecom operators around the world are struggling with a shortage of network capacity as the use of video on smartphones and tablets proliferates. The shortages usually occur during rush hours at specific locations. Networks at city centers are crowded, base stations in suburbs which are scarcely used during the daytime. With traditional technology, operators have to buy new base stations for the centers to cope with the growth. According to Nokia Siemens, up to 80 percent of base stations' processing capacity and up to half of core networks' capacity is unused. CHANGING THE MARKET? The technology of the 50-50 venture of Nokia and Siemens removes the computing power unit, one of the two key units of traditional station, from the base station. The network shares computing power between all stations. It is the first major step toward using standard servers by telecom equipment makers which have been historically able to fetch strong margins from dedicated equipment. The new network software provides most of the required features, reducing the need for dedicated equipment. This poses a risk to market leader Ericsson, as well as Chinese players Huawei and ZTE, which have stormed the market with cheap and strong dedicated hardware offerings. In recent years, Ericsson and the Chinese firms have put strong pressure on NSN and Alcatel-Lucent which have struggled to make a profit and have been forced to try to find the next breakthrough technology ahead of the others. Nokia Siemens said it has already started deliveries of its Liquid products. Rival Alcatel-Lucent has unveiled a comparable, stripped down future base station, but it is scheduled to start first deliveries only next year. (Editing by Richard Chang) Technology Media Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. 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