NTT to Invest 60 B. Yen in NEC for 5G Alliance
Tokyo, June 25 (Jiji Press)--Japan's Nippon Telegraph and Telephone Corp. <9432> will invest 60 billion yen in Japanese electronics company NEC Corp. <6701> to jointly develop fifth-generation, or 5G, large-capacity ultrahigh-speed wireless communication technologies, it was learned Thursday.
Through the alliance, NTT and NEC hope to increase their presence in the 5G sector, where Japanese players have been lagging behind their overseas rivals, including Chinese telecommunications equipment maker Huawei Technologies Co.
NTT will acquire an equity stake of about 5 pct in NEC to become its third largest shareholder, according to informed sources.
The deal is expected to be announced on Thursday afternoon.
The two companies will collaborate on the development of 5G communication line control devices, the sources said. They also plan to work together in promoting the Innovative Optical and Wireless Network (IOWN) Global Forum, a new optical technology-based network initiative proposed by NTT.
[Copyright The Jiji Press, Ltd.]