The U.K. government has announced that it will work with NEC around 5G infrastructure development. As Huawei’s equipment is excluded from the UK communications network, NEC will be one of the candidates to replace it. This has the potential to be a business opportunity for NEC, which is strengthening its overseas communications infrastructure business.
According to the Nihon Keizai Shimbun today, the UK will start 5G cooperation with NEC. According to the British government, UK International Trade Minister Alexandra Truss, who is visiting Japan to sign the Japan-UK Economic Partnership Agreement (EPA), met with NEC Chairman Nobuhiro Hatano on October 23. The U.K. will also set up a 5G-related office. The U.K. has made it an important issue to activate business and human resources exchange in the digital sector between Japan and the U.K. through the EPA.
According to the report, the U.K. decided in July to exclude Huawei from the 5G communications network. NEC sees the trend of excluding Huawei, centered on Europe and the US, as an opportunity to consider a global rollout of its own communications infrastructure, and plans to emphasize the security of Japanese products. NEC also announced a capital tie-up with NTT in June, and plans to emphasize the security of Japanese products.
In the global communications base station market, Huawei, Ericsson, and Nokia have an 80% share of the market. Ericsson and Nokia also see the trend to exclude Huawei as a good opportunity and are expanding their orders, according to the report.
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