generation network gear
08 Dec 2006
Mumbai:
Japanese electronic conglomerate NEC Corporation expects
orders for its next-generation network (NGN) equipment
to surge as much as six times in three years, on the back
of a demand for new technologies like internet TV and
e-commerce applications.
NGN would enable new IP-based services such as better-quality internet calls, high-definition broadcasts and video-on-demand. NEC is betting on NGN as its driver for earnings as it faces challenges to turnaround its mobile phones and chip business.
NGN, an IP-based architecture, has the backing of service providers like the BT Group and Japan''s Nippon Telegraph and Telephone Corporation (NTT), which are switching over to faster and more efficient networks.
NEC expects NGN-related orders to reach between 500 billion yen ($4.4 billion) and 600 billion yen in 2009, from the expected 100 billion yen this year, repoprts quoting NEC executive vice president Botaro Hirosaki said.
NEC faces global challenge from rivals Alcatel, LucentNokia and Siemens.
Its product range includes network solutions, software, mobile phones, wireless network and chips. NEC also expects orders for NGN-related products to make up about half of its business geared toward telecom carriers.
NEC, which earns about 28 per cent of its total sales abroad, is trying to expand its businesses overseas, which is a strategy also adopted by its rivals such as Hitachi and Fujitsu.