Japan’s NEC Halts Development of 4G and 5G Base Stations Amid Intense Competition
Japanese corporation NEC has officially announced that it will stop developing new base stations for 4G and 5G networks. The company acknowledged that it is unable to compete effectively with global leaders from China and Europe, which currently control around 80% of the global market. At the same time, NEC will continue providing technical maintenance for equipment that already have been sold.
The main reason for the strategic shift is losses in the telecommunications sector. The dominance of giants such as Huawei, Ericsson, and Nokia has left Japanese manufacturers with less than 2% of the market. The situation has been further aggravated by the fact that major telecom operators, including Japan’s NTT Docomo, are increasingly choosing foreign equipment over domestic products.
In the future, NEC plans to focus on software development and specialized communication systems for the defense sector. The company also intends to allocate resources to research in next-generation networks (6G). Thus, NEC is not completely leaving the telecom industry but is shifting its emphasis toward more profitable and promising areas.
ORIENT
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