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Wuhan Research Institute and NEC in 3G infrastructure joint venture

June 9, 2005

Wuhan Research institute of Post and Telecommunications (WRI) and NEC Corporation has signed an agreement to establish a joint venture in China. The new firm will engage in 3G mobile infrastructure development, manufacturing, sales, maintenance, and system engineering (wireless circuit design).

The name of the new firm will be "Wuhan Fiberhome Mobile Communication Inc.". A 65% share of the new company will be hold by WRI, a 30% share by NEC and NEC Telecom China and a 5% share by others. The new company plans to start with 100 employees and is set to be established within June of this year in Wuhan City.

WRI was established by the Research Institute of Chinese Post and Telecommunications ministry, and now one of top manufacturers in the field of telecommunications infrastructure in China. As a local vendor in China, the joint venture company will contribute to the early establishment of 3G infrastructures in China by expanding W-CDMA and developing TD-SCDMA based on NEC's state-of-the-art 3G (W-CDMA) infrastructure technology and 3G network design and optimization technologies, utilizing WRI's extensive maintenance, sales, and service network and established relationships with telecommunications carriers.

By working together with WRI, NEC gets to establish a 3G business operation structure taking strong hold in China.

NEC already has a 3G alliance with Siemens to manufacture 3G. To build on this base, NEC is striving to expand the 3G infrastructure business in the Chinese market mainly through NEC Telecom (China), established in June 2004. NEC Telecom (China) will work with Siemens and also through its joint venture with WRI in an optimal formation to expand 3G infrastructure business in China.

Takakuni Kuki, Executive General Manager of NEC's Mobile Network Operations Unit commented, "NEC will enter into a key phase of the Chinese 3G market. In order to accelerate the progress of Chinese 3G market, NEC will build up basic production as early as possible to meet the increasing demand of the market."

 

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