NEC 2007 Annual Report Download - page 10

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The global communications market is enormous and is currently worth approximately ¥13
trillion annually. The outlook is for further market expansion, fueled by growth in emerging mar-
kets as well as industrialized countries. NGN-related businesses are poised to drive further growth
in Japan’s world-leading communications market. In light of these market conditions, NEC aims
to increase carrier network business sales from around ¥700 billion in fiscal 2007 to ¥1 trillion
over the medium term. Our goal is to have NGN-related businesses account for around 40% of
this amount. By offering competitive products and services, we will continue to strengthen our
foundations as we sow the seeds for future growth.
Looking to New Horizons Worldwide
Because there are limits to how far we can grow in Japan, NEC is actively targeting global business
expansion. A particularly noteworthy achievement in fiscal 2007 was the significant progress
made by NEC’s PASOLINK (point-to-point microwave wireless access system) in the network
systems field. Thanks to the performance and high reliability of NEC products, and our ability to
meet short delivery times, we have seen strong demand from numerous overseas regions, including
Russia and various Asian countries, mainly for communications systems linking mobile handset
base stations. So far, NEC has delivered more than 500 thousand PASOLINK units on a cumula-
tive basis in 123 countries worldwide and had the second largest share of the global market in
2006. Furthermore, NEC is taking active steps to open up new markets by aggressively launching
products featuring cutting-edge technologies, such as a new Virtual PC Type thin client system
and next-generation grid storage systems. NEC also aims to actively develop global businesses
through alliances with leading companies around the world.
NEC aims to increase the overseas sales ratio from around 26% in fiscal 2007 to more than
30% as quickly as possible by pursuing global business expansion.
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