Fujitsu 2000 Annual Report Download - page 10

䢇Focusing on optical transmission, mobile and IP
communications
Our optical transmission business has expanded greatly
in response to the dramatic increase in Internet traffic in
the U.S. Some industry watchers forecast that the
volume of telecommunications traffic in the U.S. in
2002 will grow to more than 26 times that in 1998. The
Fujitsu Group has closely supported this dramatic
growth since its early stages, and we hold top share in
the U.S. regional telephone company market. Moreover,
we have been expanding our business with MCI
WorldCom and other companies in the long-distance
telephone market.
We are also well placed to develop photonic systems
business, based on our strengths in next-generation
optical communications technology. Looking ahead, we
expect growth in the optical transmission field to shift
from SONET to WDM technology and demand to rise
for next-generation OADM and OXC equipment. We
are actively pursuing development of competitive
systems in these fields.
Business Topics
12
Activities in Our Major Business Areas
Telecommunications
Turning to mobile communications, in fiscal 1999 we
established ourselves as a comprehensive vendor of
broadband mobile communications systems (W-
CDMA). Fujitsu was selected by NTT DoCoMo as a
total systems supplier_covering
not only the mobile switch and
base station fields but also includ-
ing terminals and transmission
equipment_for the world's first
commercial W-CDMA-based
IMT-2000 service, which will
begin from the spring of 2001 and
has been recognized as a standard
in Japan and Europe. Moreover, in
May 2000 Fujitsu and Alcatel
agreed to establish a joint venture
to engage in W-CDMA business
in Europe. The new joint venture
is intended to speed up the devel-
opment process by bringing
together Fujitsu's development capabilities for W-
CDMA systems and Alcatel's for GSM systems. We
expect these activities and our accumulated operational
know-how to contribute to the overall expansion of our
mobile business on a global basis.
Finally, in the area of switching systems, we are
concentrating our development resources on IP switches
for supporting interconnection of high-speed Internet
links. In fiscal 1999, we successfully developed high-
speed backbone switches for corporate use. Building on
this accomplishment, we are proceeding with
development of such switches for the carrier market.
SONET: Synchronous Optical Network
WDM: Wavelength Division Multiplexing
OADM: Optical Add-Drop Multiplexing
OXC: Optical Cross Connect