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NEC to open network soutions development centre in India

27 марта 2012

NEC Corp. said Monday it plans to open a facility in India in April to design and develop hardware and software for mobile communications systems, as the Japanese technology company aims to cut costs and bring down losses.

The new center to design and develop hardware and software for the Pasolink small microwave transmitter will initially be located at NEC India's office in the southern city of Chennai, the Tokyo-based company said in a statement. It will likely be relocated to a new office by the end of this year.

Demand for Pasolink-related technology is surging as it facilitates construction of mobile-phone networks without laying fiber-optic cables. This business has been growing at about 10% a year, with annual revenue of about 100 billion yen.

The move comes at a time when intense price competition in the telecom-equipment sector is eating into NEC's profit margins. The company is expected to book a group net loss of 100 billion yen in the fiscal year ending March.

NEC said it had previously planned to produce Pasolink systems in Chennai. The company expects to begin shipping products from there in June.

On Sunday, the Nikkei reported that NEC aimed to slash its development and production costs by 20%-30% over the long term. It said NEC will start by relocating about 10% of its Pasolink development operations to India, and will then expand further based on initial results.

NEC said it plans to recruit local people and work closely with Indian partners to create a global development system. It didn't elaborate.


Источник: Total Telecom

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