NEC 2011 Annual Report Download - page 21

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2009 2015
500.0
300.0
400.0
200.0
2009 2010 2011 2012
100.0
0
15.0
60.0
200.0
450.0
business resources in four areas where it can demonstrate
its own strengths and high market growth is expected:
wireless broadband access, mobile backhaul, submarine
cable systems, and services and management. NEC is
taking on the challenge of enhancing its position in global
markets while driving growth in net sales and earnings.
In wireless broadband access, NEC is striving to ensure
the completion of LTE projects currently under way in
Japan, and at the same time, working to develop business
globally. Specifically, NEC entered into an agreement with
Wuhan Research Institute of Post and Telecommunications
(WRI), China’s leading telecom equipment manufacturer,
to cooperate in development, manufacturing, sales and
maintenance in the LTE field. In femtocell solutions, NEC
has already signed commercial agreements with more
than 10 telecom carriers, primarily in Europe. NEC is now
actively pitching femtocell solutions in the Middle East,
Africa, Asia and other regions.
Mobile backhaul is expected to become an increasingly
important infrastructure supporting burgeoning data
traffic in step with growing demand for mobile phones in
emerging countries. NEC possesses the high-quality
wireless transmission technology bar none and conducts
efficient manufacturing activities at NEC Network Products,
Ltd. (former NEC Wireless Networks, Ltd.), a PASOLINK
production site. Harnessing these strengths, NEC will
maintain its competitive edge in markets going forward.
In submarine cable systems, data traffic is projected to
increase steadily, especially in the Asia-Pacific region. As
one of the world’s three major submarine cable system
providers, NEC is able to comprehensively supply products
ranging from terminal equipment to submarine repeaters
and cables. Leveraging these strengths, NEC will look to
seize future business opportunities ahead.
In services and management, NEC will utilize the
strengths of NetCracker Technology Corp., which was
acquired in 2008. NetCracker has a global customer base,
along with strong solution capabilities in consulting, sales
and services. Harnessing these strengths, NEC will help
telecom carriers to reduce operating costs.
LTE base station
Submarine cable system
TREND AND OUTLOOK
FOR DATA TRAFFIC
VOLUME*1
(Traffic volume)
SIZE OF GLOBAL MARKET
FOR LTE EQUIPMENT*1
(Billion ¥)
Mobile phones
Smartphones
50 times greater
2009 2015
Average annual growth rate: 92%
CARRIER NETWORK
INFRASTRUCTURE
MARKET SHARE, JAPAN
(MONETARY BASIS)
MOBILE CARRIER NETWORK
INFRASTRUCTURE MARKET
SHARE, JAPAN
(MONETARY BASIS)
Source: Gartner *2Source: Gartner *2
NEC
34.5%
A
21.9%
Others
17.2%
F
2.8%
E
3.1%
D
4.3%
C
5.6%
B
10.5%
NEC
42.5%
C
8.4%
B
20.5%
A
28.7%
*1 Source: NEC estimates and projections based on data from various market research companies (calendar years).
*2 Source: Gartner “Market Share: Carrier Network Infrastructure, Worldwide, 2010” 22 March 2011 (2010 calendar year) 20
NEC Corporation
Annual Report 2011