Can you hold the hegemony at the last chance? 14:32 on July 7 with the help of Huawei exclusion
There is a series of movements in anticipation of high-speed, large-capacity 5G and the next-generation communication standards. Behind it is the international battle for hegemony over communication infrastructure, which Japan has been far behind. A society that assumes that everything is connected to the network, such as cars, home appliances, and factories. Now is the "last chance" to take control of the telecommunications infrastructure for such an upcoming society. (Economic Department reporter Shuntaro Hayakawa Satomi Mogi)
NTT and NEC form a capital and business alliance
On June 25, NTT President Jun Sawada and NEC President Takashi Shinno all met and announced a capital and business alliance. NTT will invest 64 billion yen (about 4.8%) in NEC and become the third largest shareholder. On top of that, they will collaborate on research and development of 5G, a new high-speed, large-capacity communication standard, and the next-generation communication technology.
We will also cooperate in the creation of next-generation networks that utilize optical technology, which NTT calls “IOWN”. Having entered into a capital tie-up has the meaning of showing "preparation," so to speak, that both companies will be engaged in technological development over the medium to long term.
The key to the strategy set by both companies is "openness." It is also called "horizontal division of labor" because it is not the mainstream "vertical integration type" in which one company develops all equipment, but the idea of working with a wide range of companies to create optimal equipment and communication networks. At the press conference, the two leaders made a series of remarks with a strong awareness of the "world."
President Sawada
"I would like to work with a reliable partner to create a new trusted made-in-Japan. We would like to strengthen the technology originating in Japan and provide it globally through open cooperation."
President Shinno
"I would like to develop an internationally competitive base station and secure a 20% share of the world's open base stations to take the top share. This may be the last opportunity to go out to the world. "
Background crisis
Behind the tie-up is a sense of crisis regarding the current situation of Japanese companies, which have been far behind in the 5G field.
According to the British research group Omudia, the world share of 5G telecommunications infrastructure (2019) is Huawei in China, Ericsson in Sweden second, Samsung Samsung in third.
The total number of Japanese companies, including NEC and Fujitsu, is just over 2%. It is in a state of watching with a finger over the enormous competition for infrastructure demand all over the world.
US-China conflict at a turning point
However, the battle for hegemony has reached a major turning point here. The trigger was the conflict between the United States and China.
The Trump administration, which has taken measures to ban transactions with Huawei, will ban US telecommunications companies from purchasing new telecommunications equipment from both Huawei and ZTE in China on June 30. Announcement. The use of already installed equipment is also prohibited.
Since it poses a security threat, the stance of further strengthening the “exclusion” was clarified.
Britain, which has "accepted" Huawei's 5G products, is reported to have a warning from the United States that Prime Minister Johnson will change policies this month. The move to remove Huawei is widespread, centered on American allies.
For NTT and NEC, this opportunity is considered to be the last chance for the "open made in Japan" to regain its global reach.
5G and beyond, also support the country
The Japanese government is also strengthening its efforts to counter the Chinese forces. On June 29, it decided to utilize the fund of the New Energy and Industrial Technology Development Organization to support the technological development of 5G and its evolution. NEC, Fujitsu, Rakuten Mobile, etc. were selected as recipients.
Each company will be commissioned by the government to work on the development of next-generation base stations with an optical fiber network that enables high-speed and stable communication and an international standard in mind. According to the person concerned, the total amount of support is about 70 billion yen.
Furthermore, for the 6G (also called “Beyond 5G”), which is expected to be introduced around 2030, the Ministry of Internal Affairs and Communications's Council of Experts has compiled recommendations on the national strategy.
By 2025, when the Osaka/Kansai Expo will be held, we will concentrate on development and show the world what a future image of society is. From the sense of crisis that Japan is lagging behind in 5G, Japan will lead the world as a safe communication network as the most important item in the next communication standard.
The enthusiasm is expressed in the phrase, "We will take away from the conventional idea of "solidify the country first, and then go overseas", and from the beginning we will carry out efforts on the premise that it will be used in the world." ..
Last chance
The fact that NTT and NEC have decided to participate in the global hegemony over the next-generation communication infrastructure from a medium- to long-term perspective may affect the strategies of other domestic companies such as KDDI and Fujitsu. .. Competing should be competing, cooperating should be cooperating, and if the presence in the world rises, it will be a plus in terms of security of Japan's telecommunications infrastructure.
However, the wall of the rival is high. Huawei spends a huge amount of R&D expenses of over 1 trillion yen each year to produce inexpensive products, and is growing its share in Africa and other countries even as the US-China conflict deepens.
In the past, Japanese mobile phones were said to be "galapagosized", with their unique evolution, such as i-mode, wallet mobile phones, and 1Seg TV functions.
In the next-generation communication infrastructure, is it possible to avoid the plunge into the Galapagos and to regain it with the "openness" strategy involving the public and private sectors? We cannot waste any time to realize it.
Shuntaro Hayakawa, Reporter, Ministry of Economics
Joined in 2010
After working at Yokohama, Gifu and Nagoya stations,
in charge of the current electronics industry
Joined
NHK after working as editor of Satomi Mogi Free Paper, a reporter of the Ministry of Economic Affairs .
Economic department from 2017 after going through Saitama station and Morioka station