Japan-US Business Report Logo

No. 353, February 1999

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Japanese Companies in the US


TELECOMMUNICATIONS

NEC BUSINESS NETWORK SOLUTIONS, INC., the Irving, Texas communications systems integration subsidiary of NEC CORP., exercised a December 1997 option to purchase the network integration division of ENTERPRISE NETWORKING SYSTEMS, INC. The acquisition of this part of the Redwood City, California company's business is aimed at better positioning NEC BNS to deliver integrated multiservice network solutions to big companies and national accounts by combining ENS's experience in network integration with NEC BNS's voice, data and video hardware/software products and services. The enlarged NEC BNS has a payroll of 960 people. It is projecting revenues of $700 million or so in 2002, or roughly three times more than the 1998 figure.

In a major endorsement of its SONET/SDH (synchronous optical network technology/synchronous digital hierarchy) digital microwave radio technology, NEC CORP., through its main U.S. subsidiary, has a five-year, nearly $100 million contract to supply this equipment to PATHNET, INC. This four-year-old Washington, D.C.-based wholesale communications services provider had as of last September 1,200 route miles of operational network. At that time, an additional 5,500 route miles of network were under construction, and 10,000 route miles of network were under contract. The 2000 Series SONET/SDH-based digital microwave radio ordered by Pathnet provides high-capacity radio links for networks. NEC has provided technical assistance to the start-up since its formation.

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