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TELECOM฀CARRIER฀BUSINESS
709.3
659.3
2012 2013
0
200.0
400.0
600.0
800.0
2012 2013
0
20.0
40.0
80.0
60.0
8.3%
10.1%
71.6
54.6
Shunichiro Tejima
Executive Vice President
NEC supplies equipment required for network implementation
to telecom carriers, along with network control platform
systems and operating services. NEC’s wealth of experience
in large-scale network implementation and strong technical
capabilities contribute to the development of highly reliable
communications networks.
Operating income
Operating income ratio
SALES
(Billion ¥)
OPERATING INCOME,
OPERATING INCOME RATIO
(Billion ¥)
Fiscal 2013 Performance and Main
Accomplishments
Business segment sales increased 7.6% year on year
to ¥709.3 billion. This increase mainly reflected steady
growth in domestic business and the consolidation of
the฀business฀support฀systems฀operations฀of฀U.S.-based฀
Convergys Corporation.
Operating income improved ¥16.9 billion year on year
to ¥71.6 billion, mainly due to higher sales.
In fiscal 2013, NEC provided network infrastructure
and built systems to respond to data traffic growth driven
by the uptake of smartphones in Japan. NEC steadily
converted these business opportunities into sales.
In international markets, while difficult business
conditions continued due to a strong yen and a
sluggish European economy, NEC moved ahead with
the steady execution of its existing Asia Submarine-
cable Express system and South-East Asia Japan
Cable projects. In the mobile backhaul business, NEC
worked to expand sales to telecom carriers in
international markets, including Poland’s Polkomtel,
Telenor of Norway, and Tele2 Sverige AB of Sweden.
In terms of the services & management business, the
NEC Group completed the acquisition of the business
support฀systems฀(BSS)฀operations฀of฀U.S.-based฀
Convergys Corporation in May 2012, and integrated
this business with the operation support systems (OSS)
operations of NetCracker Technology Corp., an NEC
subsidiary, making it possible to provide telecom
operations and management solutions (TOMS). As a
result of active efforts to expand sales under this new
structure, the NEC Group won an order to supply
operation support systems from KDDI CORPORATION,
and began providing TOMS to Europe’s largest power
transmission company Réseau de transport d’électricité
(RTE)฀of฀France฀and฀U.S.฀telecom฀carrier฀Sprint฀Nextel฀
Corporation (currently Sprint Corporation).
23 NEC Corporation
Annual Report 2013