Last year, to co-develop 5G technology, NTT formed a capital and business alliance with NEC Corp
To advance the development of next-generation networks beyond 5G and gain a competitive edge, Nippon Telegraph and Telephone Corp and Fujitsu Ltd said on Monday that they have formed a business partnership.
On 1 June 2021, NTT Electronics Corp, a subsidiary of the Japanese telecom giant, will acquire a 66.6 per cent stake in Fujitsu Advanced Technologies Ltd from parent company Fujitsu.
The Fujitsu subsidiary will be renamed NTT Electronics Cross Technologies Corp. By using cutting-edge technologies, such as photonics, under an initiative called IOWN, or Innovative Optical and Wireless Network, NTT is aiming to create communications infrastructure.
“Photonics is one of the keys”, Jun Sawada President and CEO of NTT said during an online press conference. “This boils down to semiconductors, so linking subsidiaries related to semiconductors is the starting point”.
Takahito Tokita, President of Fujitsu further said to ensure real-time exchanges of massive data as digital formation progresses, advancements in 5G networks and computing are “essential”.
“We thought it was the best solution to conduct research and development with NTT”, said Tokita, stressing the importance of innovations that are “global and open”.
Last year, to co-develop 5G technology, NTT formed a capital and business alliance with NEC Corp.
Fujitsu and NEC are known to have built close ties with the predecessor of NTT before it was privatized in 1985.
In the area of 5G wireless network technology, Japanese companies have lagged behind their foreign competitors, including China’s Huawei Technologies Co. China’s growing dominance in the field has also raised security concerns.
Japan and the United States are now aiming to boost competitiveness in the digital field, including 5G and 6G technologies. When Japanese Prime Minister Yoshihide Suga met with U.S. President Joe Biden in Washington earlier this month, the allies committed a combined $4.5 billion in this area.