Mumbai:
Japanese electronic conglomerate NEC Corporation expects
orders for its next-generation network (NGN) equipment
to surge as much as six times in three years, on the back
of a demand for new technologies like internet TV and
e-commerce applications.
NGN
would enable new IP-based services such as better-quality
internet calls, high-definition broadcasts and video-on-demand.
NEC is betting on NGN as its driver for earnings as it
faces challenges to turnaround its mobile phones and chip
business.
NGN, an IP-based architecture, has the backing of service
providers like the BT Group and Japan''s Nippon Telegraph
and Telephone Corporation (NTT), which are switching over
to faster and more efficient networks.
NEC expects NGN-related orders to reach between 500 billion
yen ($4.4 billion) and 600 billion yen in 2009, from the
expected 100 billion yen this year, repoprts quoting NEC
executive vice president Botaro Hirosaki said.
NEC
faces global challenge from rivals Alcatel, LucentNokia
and Siemens.
Its
product range includes network solutions, software, mobile
phones, wireless network and chips. NEC also expects orders
for NGN-related products to make up about half of its
business geared toward telecom carriers.
NEC,
which earns about 28 per cent of its total sales abroad,
is trying
to expand its businesses overseas, which is a strategy
also adopted by its rivals such as Hitachi and Fujitsu.
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