NEC, the Japanese technology giant trying (again) to expand its communications systems and software business globally and secure its position as a leading international partner for the world’s major network operators, has struggled to make progress. According to the company’s latest financial report. reveal.
The company, which has been a key vendor partner for major Japanese carriers such as NTT Docomo (which owns a small stake in NEC), KDDI, and SoftBank for the past few decades, is looking to spread its wings and grow into a larger company. I have been trying. Become a more strategic player in the global communications field. It stalled a bit in the global market when it acquired communications software specialist Netcracker Technologies in 2008, but more recently the emerging open RAN sector has acted as a bandwagon for NEC to jump into the global 5G technology sector. Ta.
However, the company underwent executive changes last year and its international communications ambitions appeared to be shelved, though they are now reflected in the vendor’s latest financial reports.
For the nine months ended December 2023 (first three quarters of the current fiscal year), the vendor’s communications services business was as follows: Network infrastructure (including 5G radio access and core systems), submarine systems, OSS/BSS (Netcracker Technologies unit) and NEC Netsi System Integration Corporation (NESIC) – The company’s sales were 560.6 billion yen ($3.79 billion), an increase of only 0.8% compared to the same period last year, but adjusted operating profit decreased slightly (0.5%) to 14.1 billion yen ($95 million). did.
For the full year ending in March, the Telecom Services division’s revenue is expected to decline slightly from a year ago to 814 billion yen ($5.5 billion), which is lower than NEC had previously expected for the business. About 20% lower. .
But this communications technology division is just one part of the NEC empire, which is doing very well, with total group revenue increasing by 5.5% to 2.39 trillion yen (162 billion yen) in the nine months to the end of 2023. billion dollars). Of these revenues, 72% were generated in the company’s domestic market, indicating that only the telecommunications division has less global reach.
– Ray Le Maistre, TelecomTV Editorial Director
