The truth of the ‘phantom market merger’ of NEC / Fujitsu, the Hinomaru Union set up by NTTT

“I’m still calling out to have you come early.”

Talking regarding Fujitsu, a major domestic telecommunications equipment firm, Naoki Shibuya, vice president of NTT. NTT has often sent Akinami to Fujitsu since the spring of 2020, when talks for a capital and market partnership with NEC began in earnest, saying, “I want to find a way to collaborate.”

NTT and NEC are embarking on a “new made in Japan” system in the world that transcends the borders between telecommunications providers and research and development vendors and the global extension of network infrastructure technologies of the next decade.

NTT is largely responsible for advanced technological research and development, and NEC is responsible for developing product manufacturing processes and distribution networks, but the challenge for Ericsson, Nokia, and Huawei in China, which dominate the global market for telecommunications equipment, is that it is a major gamble.

The secret to raising the winning percentage is the presence of leading suppliers who can be said to be comrades.

Fujitsu was, together with NEC and others, a large manufacturer of telephone exchanges that make up the “Denden Family.” We have been supplying contact systems and cell phone terminals in conjunction with the NTT Community since the 1990s, when mobile phones flourished. While it has fallen behind, such as mobile phone base stations, in the global market, it still maintains its position in the sector of “optical transmission equipment” sold to large domestic and overseas telecommunications carriers. It would be a major reinforcement if Fujitsu joins the NTT / NEC Union.

There was a disagreement between NEC and Fujitsu

And not just that. The “phantom business integration” that vanished for several years between NEC and Fujitsu is starting to become a reality.

In order to create a new corporation, NEC and Fujitsu will merge their telecommunication businesses. It’s a rumor that has been whispered around over the past decade or so in the industry. “A dozen years ago, executives from both companies suddenly launched a business integration move. It soon disappeared.”A dozen years ago, a business integration move was suddenly launched by executives from both companies. It soon vanished.

The government and NTT needed to revive domestic technology, and the underwater drive to consolidate NEC and Fujitsu’s technology and human capital was “always thought by someone” (former Fujitsu executive). The two firms who work in separate market areas are hesitant to partner with each other, but NEC says, “They have the most common parts. I always want Fujitsu’s optical transmission business.” I can hear you. I can hear you. In the other hand, Fujitsu has pointed out that “it is obvious that the telecommunications business will be tough in the future with Fujitsu alone.”

At present, Fujitsu is obviously waiting. There is no question that we will work with NTT, but it is a business-like partnership,”There is no doubt that we will work with NTT, but it is a business-like relationship.” At Fujitsu, an executive opens a heavy jaw. “Is there really a chance to win in the world? We have to make a lot of decisions to consider future business strategies.”