Logo of Phnom Penh Post newspaper Phnom Penh Post - Japan’s NTT, NEC to form ‘5G alliance’

Japan’s NTT, NEC to form ‘5G alliance’

Content image - Phnom Penh Post
NTT will acquire a 4.8 per cent stake in NEC for 64.4 billion yen ($600 million). NTT CORP

Japan’s NTT, NEC to form ‘5G alliance’

Tokyo-based firms NTT Corp and NEC Corp on Thursday officially announced a capital and business partnership for the purpose of jointly developing fifth-generation large-capacity, ultrahigh-speed mobile communications services, or 5G.

NTT will acquire a 4.8 per cent stake in NEC for 64.4 billion yen ($600 million). This alliance will allow the companies to catch up in the 5G market where foreign companies have taken a great lead.

NEC will allocate new shares to NTT next month and transfer a portion of its own shares to the company. By doing so, NTT will become the third-largest shareholder of NEC.

NEC will use the newly raised funds for joint research endeavours with NTT, such as for facilities related to 5G base stations. Both companies will also collaborate to develop sixth-generation technology that will achieve communication speeds as much as 10 times faster than 5G, and the Innovative Optical and Wireless Network (IOWN), the new network concept using optical technology advocated by NTT.

5G is said to be the core technology for areas of technology such as self-driving cars and remote medicinal practice. However, 80 per cent of the market for 5G base stations is dominated by the top three foreign companies, including Huawei Technologies Co Ltd of China. Given the risks involved, such as theft of information, the development of domestic highly secure technologies has been long-awaited.

NTT and NEC held a joint online press conference on Thursday. “We will develop Japanese technologies with high added value,” NTT president Jun Sawada said, while NEC President Takashi Niino said: “We will globally expand our communications infrastructure to ensure transparency and security.”

In March, NTT announced that it and Toyota Motor Corp would acquire shares of each other’s companies and cooperate in the development of smart city businesses that connects various technologies such as self-driving cars and energy-saving homes by utilising 5G technology. NTT is also accelerating efforts to form connections with domestic companies.

THE YOMIURI SHIMBUN (JAPAN)/ASIA NEWS NETWORK

MOST VIEWED

  • Without shoes or a helmet, a young cyclist steals the show

    Pech Theara gripped the curved handlebars of his rusty old bike, planted his bare feet on its pedals and stormed as fast as he could towards the finish line. The odds were against him as the 13-year-old faced off against kids with nicer bikes at

  • Phnom Penh-Sihanoukville expressway on schedule

    The construction of the more than $1.9 billion Phnom Penh-Sihanoukville Expressway has not been delayed despite the Covid-19 pandemic, with more than 26 per cent of the project completed and expected to finish in about two years, according to Ministry of Public Works and Transport secretary of

  • Over 110 garment factories close

    A government official said on November 22 that at least 110 garment factories had closed in the first nine months of the year and left more than 55,000 workers without jobs – but union leaders worry those numbers could be much higher. Ministry of Labour and Vocational Training undersecretary

  • Singapore group seeks $14M in damages from PPSP over ‘breach of contract’

    Singapore-based Asiatic Group (Holdings) Ltd is seeking a minimum of $14.4 million relief from Cambodia Securities Exchange (CSX)-listed Phnom Penh Special Economic Zone Plc (PPSP) for allegedly breaching a power plant joint venture (JV) agreement. Asiatic Group’s wholly-owned Colben System Pte Ltd and 95 per

  • PM vows to protect Hun family

    Prime Minister Hun Sen has vowed to continue his fight against opposition politicians who he said intend to smash the Hun family. Without naming the politicians but apparently referring to former leaders of the Supreme Court-dissolved Cambodia National Rescue Party (CNRP), Hun Sen said there

  • Cambodia lauded for fight against Covid-19

    Cambodia has drawn global accolades for its handling of the Covid-19 pandemic, with a new report finding that the Kingdom has controlled the pandemic better than any other country in Asia. Dr Takeshi Kasai, director of the World Health Organisation’s (WHO) Western Pacific region,